Las Vegas continues to attract visitors in 2024, as indicated by a recent report from the Las Vegas Convention and Visitors Authority (LVCVA), which reveals a 3% increase in visitor numbers year-to-date. However, September 2024 brought challenges, including declines in hotel room rates and revenue per available room (RevPAR) compared to the same month in the previous year.
Visitor and Airport Statistics
In September, Harry Reid International Airport reported that 4.7 million passengers traveled to and from Las Vegas, reflecting a slight decrease from the same month last year but a 2.4% increase year-to-date. Southwest Airlines maintained its status as the dominant airline, carrying 1.7 million passengers. Following Southwest were Spirit Airlines with 678,199 passengers and Delta Air Lines with 434,041.
Convention Attendance on the Rise
A bright spot in Las Vegas’s economic landscape is the significant uptick in convention attendance, which saw a remarkable 29.2% increase compared to September 2023. This surge brought approximately 527,200 visitors to the city, enhancing mid-week occupancy rates for hotels. The data indicates weekend occupancy rates at 90.4%, while mid-week rates stood at 81.1%, both demonstrating year-over-year improvements.
Changes on the Las Vegas Strip and Future Developments
The Las Vegas Strip is undergoing substantial transformations, including the ongoing redevelopment of The Mirage under Hard Rock ownership and the planned closure of the Tropicana. This closure will pave the way for a new stadium and hotel for the Oakland Athletics, anticipated to arrive by 2028. Additionally, the Fontainebleau Las Vegas, which opened in late December 2023, has slightly reduced the total number of hotel rooms available by just over 1,300 compared to the previous year.
Trends in Average Daily Rate and RevPAR
The Average Daily Rate (ADR) for Las Vegas hotels experienced a decline, falling to $196.34 in September—a 2.6% drop from the previous year. On the Strip, the ADR averaged $209.58, down from $215.54 in September 2023. Downtown hotels recorded the most significant decrease, with an ADR of $107.25, down from $120.91. Correspondingly, RevPAR reflected these trends, with an overall decrease of 1%, landing at $164.73. The Strip maintained a steady RevPAR of $182.33, while downtown RevPAR experienced a sharp decline of 10%, settling at $79.47.
Anticipation for the F1 Las Vegas Grand Prix
Looking ahead, the F1 Las Vegas Grand Prix is expected to draw strong visitor numbers to the city. Despite this anticipation, hotel rates have stabilized compared to the previous year’s surge during the inaugural season of the event. The LVCVA projects that hotel rates and RevPAR may experience an uptick in November, although they are unlikely to reach the record levels seen in the prior year.
Conclusion
With significant developments on the horizon, an increase in convention attendance, and excitement surrounding the F1 Grand Prix, Las Vegas tourism appears poised for steady growth as it navigates the fluctuations in room rates and RevPAR. While the city faces challenges in specific areas, the overall trend indicates a resilient and evolving tourism sector, reaffirming Las Vegas’s status as a premier destination for visitors.
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