The number of people who visited Las Vegas fell 4.4 percent to 37.5 million in 2008.
And now for the bad news.
The decline accelerated toward the end of the year, paced by a 14.2 percent dip in December to 2.7 million.
Ten of 12 months in 2008 showed declines.
People who track the numbers say falling home prices and rising fuel costs contributed to the declines early in the year.
More recently, massive layoffs and other frightening economic news cut further into the number of people willing to pay up for a trip to Las Vegas.
"It has been decades since we've seen all these things happening at once," research director Kevin Bagger told the Las Vegas Convention and Visitors Authority board of directors on Tuesday when he presented the numbers. "They all reflect the impact of the economy. We saw challenges in every sector."
In addition to the drop in visitor volume, the average daily room rate fell 9.8 percent to $119 for the year.
In December, the average rate fell to $96. It is the first time the rate has fallen below $100 since December 2005.
Convention attendance fell 5 percent to 5.9 million for the year.
Bagger thinks the declines will continue in 2009.
He projected visitation will fall another 4 percent to 5 percent this year and occupancy will hover around 81 percent to 83 percent.
The impact of falling room prices is hurting stock values of major resort companies and also local governments.
Brenda Siddall, the authority's vice president of finance, said room tax revenue was down 11.5 percent for the year. In December, it was down 25 percent.
"Lower revenues are going to impact subsequent fiscal years also," she said.
The authority has already implemented a hiring freeze and cut back on travel expenses.
Outside Las Vegas, other Clark County destinations faced hard times in 2008.
Visitation to Laughlin fell 7.6 percent to 2.9 million. Visitation to Mesquite was down 10.5 percent to 1.5 million people.
Room rates in Laughlin were up 2.7 percent to $43.04. In Mesquite, rates fell 33 percent to $53.19.
21 comments:
i think it is good that vegas isnt making so much money because i think it is over-rated
I sometimes wonder if this recession is a wake-up call to Americans or just a long precedented part of the business cycle. I am inclined to believe that maybe it's both. Not that all the recession talk doesn't phase me at all, but the increasing economic turmoil has mainly served to increase my faith in Christ. I only hope that as times get difficult, people will reach out to hold each other up. I guess only time will tell...
Hm, I can't believe all this stuff that is going on...Pretty soon it will be like this everywhere. We are gona hurt big time on our economy this year. But I'm glad we have Obama as president, he promises change and hopefully change will come. I already like what he is doing already so I have high hopes. As they say, It is gonna get way worse before it actually gets better.
~isaac
It is such a shame that what not to long ago was a booming city is now slowing down. I bet most tourist destinations have similar decreasing numbers. People are afraid to be extravagant and vacations are one of the first things to be cut out of household budgets.
If you do have the money, it sure does seem like a good time to go to Las vegas, though. Cheap hotel rooms, not so crowded lobbies, and all the slot machines to yourself.
Its shocking to see the dramatic decline in the rates of people visiting Las Vegas..thats the spot for almost everything.
But i see how it could have something to do with gas and morgage,but when Obama settles in and gets things back where they need to be. The rates should return to the desired amounts
Everyone is showing recession across the nation and across the world. Our economy and every decision we make affects every single person. The middle-class I believe was the first to start experiencing problems, and now its no doubt that America is in recession, with big cities like Las Vegas begging for people to travel there.
When people stop going to Las Vegas to gamble, that means that our economy is bad. Many people go to Las Vegas and gamble not worrying about there money because they are gambling. But when people stop gambling because they are worried about losing there money which is surprising and ironic at the same time. I think that it is a good thing that people aren't going to Las Vegas and that they are making a wise decision for not wasting there money gambling.
Are we really surprised about this? People are struggling to buy everyday things and make everyday payments. How could anyone be expected to pay to go to Vegas? Besides even if you had the money to make the trip you still have to pay for the shows, gambling, etc. This doesnt surprise me at all but i think it is a little reminder that this economic crises is real. We better start watchin our money or this could get out of hand.
its understandable that that is happening at this time, it was only a matter of time til people would start to notice things like this, i know that my family doesnt go on any expensive vacations due to the economy.
I suppose none of these articles surprise me. We are in a recession, and the proof is revealing itself, even in Lubbock, Texas. Tourist spots, luxury industries, and large cities will be the first to take blows to their incomes, and Las Vegas is an example of that. People are becoming a little more hesitant to spend their money on wants instead of needs. Of course, if people begin hoarding their money, our recession will evolve into a depression, but saving money and using it more responsibly is simply smart. I'm sure this will negatively affect the job market in Nevada, but unemployment is worsening everywhere and there's not much we can do except try to spend intelligently and get ourselves out of this recession. Hopefully Obama can help us with that...
If this doesn't show people that something drastic needs to be done, then I don't know what will. When major tourist attraction cities that normally pull large amount of money each year from visitors are being so vastly effected, something needs to be done and in a hurry. I don't think it's a matter of opinion whether the city is over 'overrated' or not, jobs and peoples lifes are being impacted because of this recession. Something needs to happen when people begin to spend money again.
This recession is going to make Americans realize what they do and do not need. Perhaps it will make us all a big more thankful for the extras we enjoy every day. Which, in my opinion, Americans need to do- desperately.
This just shows that even in the toughest of times that American's are going to buckle down and not give in the leisure time. It's sad that this has to happen, but what other choices do we have to make when there isn't the funds to plan vacations or weekend trips when those funds are what's going to help you keep your house?
This really doesn't surprise me at all. Many people today are struggling to make ends meet. obviously, family vacations are out of the question. However,I am just really afraid to find out what this economy is becoming. It is just so crazy how the econony was booming and in a second we have hit rock bottom. Who knows though maybe obama can get us out of this mess....
Its upsetting to see the preface to what kind of problems our country is going to face because of the recession. But at least we can tell that people are recognizing a recession and not spending all their money on vacations (which isn't always THE BEST for the economy as a whole, but is good for the individuals).
I guess there's no denying that America is in a recession. When Sin City isn't getting business, you know there's something wrong with the economy. Maybe people will get the hint and see America isn't invincible. The economy is in pretty bad shape.
I don't see anything to make too much of a fuss about. It's a recession. This is going on all over America, and it won't last forever. So what if Vegas has lost a couple million visitors? It's one of America's top vacation hot spots, and I'm sure they'll end up okay. Their casinos make unbelievable amounts of money. If anything I see this as a bonus for the vacationing tourist looking to save some money on rooms.
This really isn't surprising at all. With the prices on everything going up especially gas ,yea of course your gonna have a decrease in people traveling just to go to vegas and gamble ,nobody can afford that right now. So reading this is really no big deal it was bound to happen. To me its really just a wake up call to everyone telling them that this is real and its really effecting everything around us.
I think this is a good idea that people are going to stop going to Las Vegas, beacause it is just a waste of money if yout think about it its pointless.
Hello America it is time to stop spending money on things that are not needed and spen it on things that you do. we cant stop spending or be afraid to spen because that will make things worse we need to get in there and try to help it will get worse before better but i am gkad the loss is in Vegas.
I really believe that Tourist spots, big industries, and large cities such as LasVagas will be the first to take blows to their economy. My dad who is a Case Manager for Southwest Regional Hospital Facilities travels arounf the nation to help majoe hospitals out of financial trouble. Over the past two years, he has gone to LasVagas most frequently. Thats when i had first realized that America was going to hit some kind of a ression. I only hope it doesnt get any worse than it already has.
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