Barry Jonas, an analyst at Truist Securities, highlighted increasing hotel room rates and optimistic projections from casino operators as indicators of resilience
Even though the Las Vegas Strip has seen its gaming cash fall for six months straight, market watchers still believe the city’s financial situation is healthy overall. The drop in year-to-year earnings in the last half of 2024 might make some people worry, but the total take for the year hit $8.81 billion — just 1% below the all-time high of $8.9 billion in 2023.
Las Vegas Market Shows Resilience as Visitor Numbers Rise Despite Revenue Dip
Barry Jonas, an analyst at Truist Securities, stressed that the Las Vegas market’s core strengths remain intact. He pointed out rising hotel room rates and positive outlooks from casino operators as signs of toughness. He also mentioned that the las Vegas Strip’s last six-month drop happened between December 2018 and May 2019 highlighting the industry’s ups and downs, as reported by CDC Gaming.
Even though revenue dropped more people visited Las Vegas. The city saw 41.6 million tourists in 2024 up 2.1% from the year before. Convention attendance almost reached pre-pandemic numbers, with about six million people showing up. More international travelers came to Las Vegas by air, with a 13.6% jump compared to 2023.
Downtown Las Vegas, which has had trouble getting visitors from Hawaii back after the pandemic, still made a record $931.2 million in revenue. This was 2.4% more than in 2023.
As we look to the start of 2025, Las Vegas Strip hotel prices show steady demand. Jonas noted that MGM Resorts International and Caesars Entertainment see higher room rates. Weekend prices have gone up 6% for MGM and 12% for Caesars. Midweek rates did even better, with MGM seeing a 16% jump and Caesars a 22% rise. The Consumer Electronics Show (CES) gave an extra push in January leading to high occupancy. However, early data hints at a possible dip in February, with small drops for both MGM and Caesars. Come March, these companies should bounce back, with expected increases of 7% for MGM and 9% for Caesars.
Las Vegas Revenue Decline Seen as Market Adjustment, Not a Crisis
Josh Swissman co-founder of GMA Consulting, thinks the recent drop was bound to happen after the quick post-pandemic jump. He had expected things to slow down and called the current trend a leveling out instead of a crisis. He said that as long as revenue drops stay small, there is no need to worry right away. However, he warned that if things keep going down for a long time, analysts might need to take a closer look.
Swissman also said that outside factors, such as the wildfires in Southern California, might affect how many people visit. However, he pointed out that Las Vegas has always been a place where travelers go to have fun and relax, which should help keep tourism going in the long run.
Brendan Bussmann, managing partner of B Global, agreed with this view. He recognized the economic hurdles but claimed that Las Vegas stays strong despite a small drop in revenue. He pointed out that big events like Formula 1 and the Super Bowl had set a high bar in 2024 making it harder to compare year-to-year. Bussmann also emphasized the need to invest again in infrastructure at the airport, to handle future growth and draw more visitors.
While worries about falling revenue continue, industry experts agree that Las Vegas keeps showing its toughness. The city’s power to attract visitors, along with smart reinvestments, will play a key part in its success over time.
