How Hotels are Bringing Back the Battered Las Vegas Economy
Economic recovery for Las Vegas is the first thing that comes to mind when Las Vegans talk about their community. Our entire city is hopeful that we can soon take a deep breath and relax in an economy that has had many feeling more than a bit anxious.
The Las Vegas development market has been at a standstill for some time, but things are not as bad as they may seem: US Gaming analyst, Bill Lerner, reports that daily room rates and hotel occupancy are positioned for an economic recovery.
“Layering our visitation forecasts across the probable Las Vegas room base range tells a very positive story for the Strip corridor,” Lermer says. “A story that hasn’t been told in some time and that is substantiated with realistic analysis.”
Union Gaming Group was established in 2009, offering research and advice by following over twenty local gaming companies and manufacturers of slot machines. They also offer analysis in major Asian regional markets.
Finally, a Sunny Forecast for the Las Vegas Economy
According to the Las Vegas Convention and Visitors Authority (LVCVA), the Las Vegas area supplies 147,611 rooms for occupancy. Right now the average daily room rate is at $106.44 in Las Vegas, with average hotel occupancy of 84.1%.
In 2009, the hotel occupancy rates for Las Vegas hit an all-time low with an average room rate of $92.93 and an occupancy rate of 79%. This was quite a disappointment from the decade-long, flourishing economy that started in 1996. This same economy ended in 2007, when the daily room rate was reported at a record high of $132.09.
Based on the newest trends, Lerner predicts that the average room rate in 2014 could shoot up to $134. Las Vegas has experienced over 15 months of increased tourism, and our occupancy is up 4.7% from last year. The Las Vegas tourist is still and increasingly helping the Las Vegas economy.
This may seem like a bit of an overly optimistic assessment, considering that at least three different projects on the Strip have experienced repeated delays and may not even be available until 2015. Nevertheless, Lerner believes that the Las Vegas economy will continue to flourish in spite of these setbacks, with noticeably higher levels of occupancy and more profitable room rates.
Do you think the Las Vegas economy is improving? Let us know in the comment section below.