EDITORIAL: Las Vegas tourism numbers are causing concern

Terrific marketing works better when there are terrific deals to take advantage of.

Tourism remains the lifeblood of Las Vegas, so there’s understandable angst when the numbers are anything less than rosy. Nevada’s fiscal health — gaming revenues make up about one-third of the state budget — depends upon a robust gaming industry. Yet visitation has fallen for six consecutive months, with an 11.3 percent decline in June. The occupancy rate was 78.7 percent, a drop of 6.5 percentage points. That’s the lowest level in nearly three years. The price of those rooms fell by 6.6 percent, at around $164 a night.

This doesn’t mean another Great Recession is lurking around the corner. Gaming win remains strong and even showed a year-over-year increase in June. The average daily room rate was slightly lower in July 2024. It rebounded last fall and will almost certainly do so this year once football season begins. Casino leaders also remain confident.

“This is normal seasonality that we haven’t seen in a while here. It’s nothing that leaves me concerned,” Tom Reeg, chief executive officer of Caesars Entertainment, said on a recent earnings call.

Certainly, there are many factors in this dip. Democrats are quick to blame President Donald Trump for depressing international tourism, especially from Canada. But just 12 percent of visitors are international.

Las Vegas’ biggest problem is that it’s less appealing to Americans. And the reason isn’t hard to figure out. Many of them have been griping about it openly.

In March, the Review-Journal’s David Danzis wrote a story asking, “Nickel and dimed: Are Las Vegas casinos pushing visitors to a tipping point?” Maybe. In June, a blogger reported on a $26 bottle of water at the Aria. The story went viral. Outrage over a $60 early check-in fee at the Flamingo rocketed around the internet at the beginning of summer. Last month, Fox News reported, “Vegas visitors shocked by ‘absurd’ resort prices that are turning tourists into ‘spectators.’ ” Some gamblers complain about lower payouts and other changes that strengthen the house advantage.

Some will blame this on greedy capitalists. But greed is a universal human vice. What’s unique about capitalism is that customers can change their behavior when companies raise prices. In turn, those companies can lower prices in an attempt to woo back customers.

Some hotels have recently eased or eliminated resort fees. Others have pulled back on parking charges. Specials on food and drinks are also an option. There’s plenty of evidence that people remain eager to spend money on Las Vegas’ fabulous entertainment options. Enticing more people through the door is only common sense.