Labor Day weekend outlook: More visitors, less spending

By Amanda Finnegan

Friday, Sept. 3, 2010 | 2:05 a.m.

The outlook for Labor Day weekend in Las Vegas appears much like that for most holidays since the Great Recession took hold — visitors will still flock to the city but they will spend less.

The Las Vegas Convention and Visitors Authority expects 290,000 visitors for the holiday weekend, a 2.8 percent increase from the 282,000 visitors the Las Vegas Valley saw Labor Day weekend 2009.

But the estimated nongaming economic impact is projected to be $160.7 million, a 3 percent drop from $165.6 million last year.

Although visitors will be spending less, there is a bright spot. The city ranks high on several travel lists for top Labor Day weekend destinations.

For the third straight year, Las Vegas tops travel booking website Orbitz.com’s annual list of Labor Day destinations. The list is based on vacation packages booked on Orbitz.com.

Orbitz spokeswoman Marita Hudson Thomas said Las Vegas continues to rank No. 1 because of its varied offerings and value.

“Las Vegas is a destination of great accessibility. Whether you are a domestic or international traveler, you can get there and you can get there very easily,” Hudson Thomas said. “Of course there is gaming, but now with the entertainment and what the city has done to market to families, anybody can find something to do once they get to the destination.”

The average daily room rate for a Las Vegas hotel room is $106, according to hotel bookings on Orbitz.com, which Hudson Thomas said is up 5 percent from last Labor Day but still down 23 percent from 2008.

“We are seeing higher airfare costs, but when you can have such a fantastic hotel rate, then your hotel costs are going to offset your airfare price,” Hudson Thomas said.

Hudson Thomas said all of the destinations on this year’s list are domestic, signaling that more travelers are driving.

Priceline.com’s annual Labor Day weekend list of top destinations, which put Las Vegas at No. 5, only listed four international destinations on its list of 30 top cities, all of which are in Canada. Last year, 11 international destinations made Priceline’s list.

Las Vegas also ranks No. 1 on AAA’s list of destinations for Southern Californians.

The Southern California branch of the travel club reported that more than 2.5 million Southern California travelers expected to take trips this holiday weekend — an 11 percent increase over last year’s 2.26 million travelers.

In the Mountain Region, which includes Nevada, 2.6 million people are expected to travel, a nearly 11 percent increase from last year.

Nationally, AAA said, 34 million people will travel this holiday weekend. That represents a 10 percent increase from 2009.

Travel and ticketing website Vegas.com, a sister company to the Las Vegas Sun, said its seen a 10 percent increase in bookings for this Labor Day holiday compared to 2009. The average daily room rate for rooms sold increased 11 percent, from $91 in 2009 to $101 this year.

Yvette Monet, a spokeswoman for MGM Resorts International, said the company is seeing visitors booking trips to its resorts this weekend at the last minute.

“We expect our Strip resorts to be completely full on Saturday night,” Monet said. “There is still some room availability at rates similar to last year’s room rates.”

Rates at MGM Resorts properties for the long weekend range from $87 at Circus Circus to $372 at Aria.

At Harrah’s Entertainment properties, the average daily room rate ranges from $85 at Imperial Palace to $279 at Caesars Palace. The company did not return calls for booking trend information.

The LVCVA expects hotel occupancy to dip 1.8 percent, primarily because of the addition of 7,500 rooms since last Labor Day holiday.