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twitterTourists to Vegas in October: ‘no thanks’
City sees 10 percent drop in visitors compared to last year
Justin M. Bowen
Las Vegas saw a 10.2 percent decline in visitor volume in October, the worst drop since visitation fell 14.1 percent in September 2001.
Published Wednesday, Dec. 10, 2008 | 12:17 p.m.
Updated Wednesday, Dec. 10, 2008 | 5:12 p.m.
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- Dec. 3 -- Economy poses test for The Strip’s big night
- Dec. 1 -- Cutting costs versus serving customers
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Hours after Nevada reported its worst monthly decline in gambling revenue since the state began compiling such info in 1983, the local tourism authority reported the second largest monthly drop in Las Vegas visitors.
The dismal October figures are the latest sign that business has worsened in Las Vegas and precede fourth quarter casino earnings reports expected to show more red ink.
On the Strip, gambling revenue – the amount gamblers lost – fell 26 percent in October from the same month a year ago, to $475 million. Though compared against a record 20 percent year-over-year gain in October 2007, the drop indicates just how far, and how fast, the gaming business has deteriorated.
The Las Vegas Convention and Visitors Authority reported a 10.2 percent decline in visitor volume in October, the worst drop since visitation fell 14.1 percent in September 2001 after the terrorist attacks.
This gaming decline might be a record for any market in the United States, which makes sense given that consumers are cutting back on big-ticket purchases.
In spite of efforts to lure tourists with cheap rooms and other freebies, at least half of Las Vegas visitors get here by plane, which is more expensive than going to a neighborhood casino that is closer to home. (Passenger traffic through McCarran International Airport is down 6 percent from January through October.)
The tourism figures closely track the slipping national economy.
After minor decreases early in the year, volume fell in the low single digits July through August, when gas prices soared and the credit crunch worsened. Volume fell 10 percent in September and October, when the market crashed and the Wall Street bailout hit.
Convention attendance is down 4 percent from January through October, while the number held is down 4 percent, the tourism authority says.
Hotel occupancy is down 4 percent through October and down 8.5 percent in October, the worst decline yet this year. Hotel rates fell 10 percent through October and plummeted 14 percent in October following double-digit declines since June.
By comparison, Atlantic City experienced its worst monthly decline in the No. 2 market's 30-year history in September, when gaming revenue fell 15 percent.
At the time, casino executives used the decline as ammunition to fight a complete smoking ban on casino floors.
Aside from a partial smoking ban in casinos, which executives say has motivated smokers to gamble in nearby tribal casinos that allow smoking, Atlantic City has been hurt by the opening of new casinos in Pennsylvania, a feeder market for the coastal gambling haven.
Las Vegas always had the advantage of being a unique, isolated destination. That's not enough these days to entice consumers who simply don't have the money to spend and others who see a trip to Vegas for what it is: a luxury.
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6:5 blackjack not seeming like such a brilliant idea now
The drop in gas prices, if it holds, should help Vegas after the holidays. Strip casinos especially, should actively market a drop in room rates and couple that with some free food at some of the nicer restaurants on their premises but the days of monthly Vegas jaunts for many are finished for some time now. Less is more should be Vegas' new slogan.
6/5 blackjack. Hitting on soft 17 everywhere. Slots that are tighter than ever. $9.95 for a small salad at the sportsbook. $14.95 for a breakfast buffet. People are not gonna come back to this town if they're gonna get nickel and dimed at every turn. People are not stupid-but Vegas honestly believes they are.
Gold1020, you are wrong: Most people ARE stupid, but that has little to do with Las Vegas' successes or struggles.
To "RPJ" have you ever considered running for politics? I'm sure you would be well recieved, to be honest.....
My wallet was snatched from my hand @ HARRAH'S while on slot machine..
Harrah's turned the problem over to a "3rd Party Company" who says Harrah's is NOT RESPONSIBLE ?/ This is HOW A BILLION DOLLAR COMPANY protects their guests ??? Many derelicts hanging around pushing a cup
in your face for hand outs!!! & watching FORGETFUL people who do not "CASH OUT!! SIN CITY is FULL OF SIN!!!
Come to Wisconsin...land of wonderful,beautiful places and over 20 casinos. MUCH higher payouts than Vegas or AC....you won't get robbed either literally or figuratively. And YES...they even have VIP hosts that actually will comp you based in midwest-sized gamer (prob average person)with great hotels, restaurants, and beverages. I mean can you imagine buying a drink when you're not gaming that maybe costs $3 bucks? Let me book your reservations...pun intended!
Most tourists are dumb but the bottom line is the Vegas has no image anymore except sex. Sex is a fine image but you can get that anywhere. Now you can get gambling anywhere, too, and lots of Indian reservations have rules equal or better than 98% of tables in Vegas. Vegas either needs to ratchet up the sex some, or re-create the image of "good" table games, fair odds, etc. Getting rid of 6:5 and hitting Soft 17 would be a good start. Re-brand the whole Vegas casino experience as "real" gambling -- i.e., better odds, more games, etc. -- and they'd have a chance.
Hey, RPJ, I guess if you're not lookin' at these blogs after the one you submitted, I guess the way you think is what Las Vegas has ended up as,...
but not to worry, there are a lot of people that have moved here over the past several years that think the same way, so your not without ALOT of company....sad......
This is a wake up call for Las Vegas....we haven't hit the bottom yet not even close.
Also most strip hotel/casino/bar staff do not have the accommodating attitude and friendliness of past eras.
I'm not surprised to hear this at all. I only go to Vegas once per year, and that's for the Global Gaming Expo. I even made a special point to put aside the grumpiness of past years and what did I get? Cabbies who long-hauled me without surcease -- one even going as far to swear at me when I asked for a short run!, porn-mongers with their pamphlets littering the whole strip, and being refused the right to spread my bet at blackjack. I guess being down $1,600 with a $40 maximum bet didn't convince them that I was actually more interested in the liquor than anything else.
Along the veins of cassierides' post, if you don't like slot machines, give Washington State a try. Much better scenery outside the casinos, much better treatment inside them. You just have to learn how to play Spanish 21, because that game is everywhere over there :P
These up-sell, bottle-service, greed-filled corporations have made the mob look like philanthropists...Now crunch those numbers.