Trouble, Right Here in Sin City

Labor Day weekend used to draw a big crowd to Las Vegas. Now, not so much. The Vegas downturn is well documented. But, CBS News found the one guy to claim the rumor Vegas’s slowdown is greatly exaggerated. Steven Hill is Sin City’s Harold Hill, CEO of the Las Vegas Convention and Visitors Authority (LVCVA). He told CBC News.com,

“The idea that generally Las Vegas is not a value, that it is overpriced, I don't think our customers are doing math when they are concerned about a specific issue," Hill said. "They're expressing concern about that specific topic, that tends to then move into a narrative around (whether) Las Vegas is expensive or Las Vegas is not a value, but if you actually do the math on that, that's not accurate."  Of course, Penn Jillette has said, Las Vegas is a city built on bad math.

But we got trouble right here in Sin City. Trouble with a capital "T"

And that rhymes with "D" and that stands for downturn

Upon coming home from Salt Lake City on a flight only 2/3rds full, I asked my wheelchair attendant if business was slow that day. He said, “Yeah, it’s been slow for the last month or two. Everything is too expensive. People have quit coming.”   

He didn’t look the type to be reading The Wall Street Journal or even Power & Market on mises.org.. He makes his living on tips pushing people through Harry Reid International Airport. Visitor volume is down 6 months in a row, 12% according to LVCVA data. Eighteen percent (18%) fewer Canadians are visiting. Gamblers continue to lose, with gaming win up 4% in July. But, these days gambling is only 30% of casino business, unlike the old days when it was 70%.  

The WSJ reported, “On the Strip and in the downtown casino district, bartenders, showgirls and blackjack dealers say their tip income has shriveled since last year, in some cases by more than half.”

MSN.com reports, “If the trend continues, 2025 could see the sharpest annual drop since records began in 1970—bigger than 4.4% and 3% drops during the Great Recession in 2008 and 2009.”

“Las Vegas tourism has often been taken as a barometer of America’s economic mood, and the latest data isn’t encouraging,” writes Aaron McDade for Investopia.com.  

Hill expects momentum to build in the fall, citing a packed events calendar and stronger bookings into December. Maybe see a Vegas Golden Knights (2023 Stanley Cup winners) hockey game. A friend who has season tickets says he has two extra and laments, “it’s just not something people want to do anymore.”

But Hill, who just received a raise to $539,550 and is eligible for a bonus of $247,500 says, "Don't believe the narrative."   

Who you gonna believe, a paid spokesman or a guy depending on the kindness of visitors coming through the airport.