We all know that Las Vegas brings in money through tourism. Tourists come in the city to witness Broadway-style song and dance, comedy shows and entertainment spectacles. First-time visitors are enthralled by the city’s colorful lights at night seeing different kinds of people from all over the globe. There is an element of fine dining, nightclubbing and shopping that makes it more unique. It’s like telling the world, “Hey, I am at the Sin City doing whatever I want.” It’s part of the adventure of experiencing Las Vegas.
Hotels in Las Vegas are not just merely for rest. Each hotel has its own gambling facility. It is usually a hotel plus a casino. You cannot stop anyone from betting through that simple slot machine. It is tempting and once your hooked, your world is entirely different.
The casino industry of Las Vegas clearly contributes to the growing economy. It is part and parcel of the city’s income-generating businesses. It has become part of the culture. The aspect of gambling in the city may be a person’s way of enjoying that brings in money to the hotel and economy.
Gambling activities in the city have also evolved over the years. The casino is not just it. Today, e-sports and sports betting, bingo and keno are part of it. Gambling has transitioned to digital.
Las Vegas Brings Thousands of Tourist Yearly
So we know now that Las Vegas brings thousands of tourists yearly to the city. As reported by Open Data Network, 2016 statistics show that the Las Vegas Metro area in Nevada generated a GDP per capita of $44,810. During 2005, the GDP measured was $54,548 so this figure was definitely higher than the 2016 number.
Though it was not visible, the economy of Las Vegas did not perform great last year as well as the economic fortunes of the city and other international gambling destinations. There was a slight plunge due to the decreased gambling spend. Tourism numbers also took a dip last 2017 in Las Vegas though forecasts for business expansions are expected to commence until 2019. Acknowledging the Center for Business and Economic Research at UNLV for the data provided.
There is an expected increase in tourists at the end of 2018
2018 is coming to an end but there is an expected 0.4% increase in tourist volumes. In 2019, it is an expected 0.5% increase. Las Vegas is home to a lot of events like live sports contest and concerts. People come in to witness celebratory events too.
Gross Gaming Revenue
Southern Nevada Casinos will see a 3.7% in gross gaming revenue (GGR). In 2019. it is an additional 2.5% GGR increase. We’ve seen businesses in the country including casinos had a moving effect during the recession from 2008 to 2012. But according to the Nevada Gaming Control Board, there has been a turnaround based also on UNLV’s studies. Las Vegas is situated below the top 25 cities in the country whose homebuilding, development and investment are idle.
Even this year, property costs have risen up and down. The prices of properties have actually been trending higher since 2014. It was said that there would be a major property boom in Las Vegas earlier this year. Bloomberg analyst Conor Sen was able to publish a feature about it.
In 2004, believe it or now, 20% of all jobs in the Sin City were gaming related. An amount of $33.7 billion was for visitor spending. A report from the Nevada Resort Association (NRA) said that 301,700 workers in Las Vegas are employed in the gaming industry. The indirect employment was responsible for the other 68,900 jobs in Nevada.
Major casinos in Las Vegas, with a focus on Clark County, employ a lot of workers that range from 4,000 to 8,500. This estimate is from the Nevada Department of Employment. This is to show how vital the gambling industry is for employment and economic gains.
Different Casino Revenue Outcome for 2017 and 2018
At the start of the year, Las Vegas Casinos had revenues drop for three straight months. Even in stock trading, prices were low. It was a different story during the first half of 2017 when the Nevada Gaming Control Board reported that net profits increased by 191.4% due to sports and tourism. It generated a figure of $814 million in Q1 and Q2 of 2017.
Massive projects aligned until 2020
Across Nevada, stretching over 272 casinos, there was a net income growth of 59.1% reported. Six massive projects are aligned until 2020. That’s how important casinos are to the success of Las Vegas and Nevada. This means having a room availability increase by 6%, which is equivalent to 9,000 new rooms. Including this project are a Marriott resort with 4,000 rooms, a Resorts World Las Vegas casino with 3,000 rooms, and Paradise Park with 1,500 rooms. The Hard Rock Hotel & Casino will be acquired by Virgin Hotels by the end of 2019 and will undergo a complete renovation.
Existing casinos will be pushed to offer more bonuses and promotions, shows and extravaganzas, amenities and services because of the competition of more hotel rooms being available. This is done to still draw in patron without having to reduce costs.
Clearly, the casino industry brings a lot to a city’s GDP. Yes, there are ups and downs in an economy but Las Vegas builds its revenue through tourism and casino.