COVID-19 cost Las Vegas $34 billion in total economic impact: LVCVA
COVID-19 pandemic cost Las Vegas billions of dollars in total economic impact, leaving an indelible imprint on the tourism industry and the economy of Southern Nevada, a fresh analytical study by Applied Analysis revealed.
The Las Vegas Convention & Visitors Authority (LVCVA) contracted assigned analytical firm Applied Analysis to review the COVID-19’s toll on the regional economy. Pointing to the unimaginable toll that Southern Nevada and the Las Vegas economy suffered due to the pandemic, the Applied Analysis team concluded that Las Vegas suffered economic impact of approximately $34 billion.
Applied Analysis principal Jeremy Aguero said that the magnitude of COVID-19 pandemic-caused recession was unmatched in its depth and speed.
Commenting on the findings, Aguero said, “The COVID-19 pandemic left an indelible imprint on the Southern Nevada tourism industry and the broader regional economy. Compared to recent recessions, the COVID-19 recession’s magnitude was unprecedented in its depth and speed.”
In 2019, the economy of Southern Nevada suffered a total economic impact of roughly $63.7 billion, including $36.9 billion in lost direct visitor spending, nearly $11.4 billion in indirect activity from suppliers & vendors, and around $15.4 billion in the form of wages of employees.
As tourism industry of Las Vegas started operating at considerably reduced levels throughout much of last year, Southern Nevada’s total economic activity contracted to $29.6 billion. Spending by visitors remained down to $17.6 billion, while third-party activity and employee wages were down to $4.9 billion and a little more than $7 billion, respectively.
The tourism industry and casino gaming are the lifelines of Southern Nevada’s economy. As casino resorts remained closed for several months and then operated at curtailed capacity under numerous restrictions; a large number of workers remained out of jobs.
In 2019, the Southern Nevada tourism industry directly provided employment to nearly 242,500 people. When the ripple effects of visitor spending are taken into account, the tourism industry provided employment to 376,800 people. Last year, direct and indirect tourism-related employment slipped 32.5 per cent and 33.3 per cent to 163,800 and 251,200 jobs, respectively.
Luckily, Southern Nevada casinos have started gaining momentum, thanks to the return of gambling and entertainment enthusiasts. The number of tourists visiting Las Vegas jumped 3.2 per cent month-over- month to around 2.9 million in June 2021. The higher number of visitors means bigger wins for casinos. As per latest available data, Nevada casinos won $1.19 billion from gamblers, with the Clark County alone accounting for the lion’s share ($1.01 billion).
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