Las Vegas City Wire

A new report from the Las Vegas Visitors and Convention Bureau reveals the severe economic impact COVID-19 has had on tourism in Las Vegas and its surrounding areas. 

In total, Las Vegas visitor volume has dropped by 55%, the steepest drop since 1989, bringing in only 19 million tourists in 2020, according to the report. Las Vegas, like many other tourist destinations, felt the full force of COVID-19 with the collapse of the global travel industry in the early stages of the pandemic and has been slowly recovering over the past year. 

"There's no doubt this latest economic downturn was the steepest that we've experienced here in Southern Nevada," Brian Gordon, a principal at the consulting firm Applied Analysis, told Nevada Public Radio.

With the tourism industry accounting for over 28% of all jobs, Las Vegas reported the largest unemployment rate among large metro areas at 33% in April 2020. In addition, visitor spending dropped from $36.9 billion in 2019 to $17.6 billion in 2020.

Of large cities that attract travelers, Las Vegas has the highest share of employees in the tourism industry "so it is subject to the ups and down of more broad travel decisions," Gordon said.

Several key losses were responsible for sinking the tourism industry in Las Vegas, including a 74% drop in convention attendance, in addition to the loss of entertainment hard-hitters like Cirque du Soleil and the National Hockey League. 

Air travel revenue was also lost, alongside spending on rooms, dining, shopping, local transportation and other activities and amenities. Even with flight restrictions lifting, domestic air travel is still operating at 40% less than pre-pandemic numbers, according to the report.

The report, called "The Impact of COVID-19 on Southern Nevada Tourism Industry," was prepared by the consulting firm Applied Analysis in congruence with the Las Vegas Visitors and Convention Bureau and included a full timeline documenting the various restrictions and losses that led to the economic downturn.