Latest news with #AppliedAnalysis
Miami Herald
28-07-2025
- Business
- Miami Herald
Is Las Vegas in Trouble?
The party may soon be over for Las Vegas, as economic challenges and a steady outflow of both visitors and residents threaten to strip the town of its title as the "entertainment capital of the world." Hotel occupancy rates are dwindling, declining tourism threatens to push Nevada's already nation-leading unemployment rate higher and casinos-once the beating heart of the Sin City economy-have extended a monthslong streak of falling revenue. According to recent data from hotel analytics provider STR, hotel occupancy dropped to 66.7 percent in early July, down nearly 17 percent from the same period last year. Vegas also recorded the steepest national declines in average daily rate (ADR) and revenue per available room (RevPar), the latter down 29 percent year-over-year. Data shows that visitors, both domestic and international, are increasingly steering clear of Vegas, sparked by a period of economic difficulty at home and a wider decline in inbound travel to the U.S. Jeremy Aguero, senior analyst at the Las Vegas consulting firm Applied Analysis, described this as "a pretty formidable one-two punch" for a city so heavily reliant on flows of outside cash to keep its economy afloat. "Southern Nevada is more dependent on the tourism industry than any other major market in the United States today," he said, adding that declining tourism is "having a ripple effect" throughout the city's flagship industry. Gaming revenue across Nevada fell by 2.2 percent in May compared to a year earlier, according to the state's gambling regulator, with the Vegas Strip seeing an even larger drop of 3.87 percent. Vegas's woes have been attributed in part to the high costs of visitation, with steep room rates, dining costs and pricy amenities deterring prospective visitors from spending their limited time and funds in Vegas. "From what I understand, Vegas may be setting themselves up for the same situation they went through in 2008-2009," said veteran gaming consultant Bill Zender, "over pricing the market." As well as dropping visitors, the city has also seen a significant exodus of its residents. According to June housing report, Vegas has seen the largest increase in housing inventory, with active home listings now 77 percent higher than a year ago. Robert Little, a real estate agent in Nevada, told that this was due to a marked slowdown in buyer demand, but also investors in the Vegas property market choosing to "cash out and reallocate their funds into other opportunities." Aguero told Newsweek that one could view Vegas' struggles as a symbol for the economic issues facing all Americans, which have an outsized impact given the city's economy is centered around things – gambling, lavish hotels and a booming nightlife – that would be considered discretionary and the first to go in times of economic hardship. "There are some folks that believe that Las Vegas has a tendency to be somewhat recession-resistant," he told Newsweek. "But no one ever has suggested that this community is sort of recession-proof." "When you look at consumers across the United States, what you're going to see is that consumers are being stressed relative to the cost of living," he added. A precarious national housing market, declining tourism, and heightened macroeconomic worries among America's spending population have spared few states or cities this year. Las Vegas's own weakening odds must be viewed against this backdrop, Aguero said, but added that these could nevertheless rebound in the near future. This may require adapting pricing strategies to appeal to more cash-strapped visitors, acknowledging that casino gaming is no longer the revenue driver it once was, and expanding into sports and cultural attractions to meet the tastes of the modern American consumer. "If there's one thing Las Vegas has proven since legalizing gambling in the early 1930s, it's that it is both resilient and resourceful, and it has both the infrastructure investments, but also the capability to reposition itself fairly effectively." Related Articles How to Watch Las Vegas Aces vs Dallas Wings: Live Stream WNBA, TV ChannelHow to Watch Las Vegas Aces vs Minnesota Lynx: Live Stream WNBA, Start Time, TV ChannelA'ja Wilson Makes WNBA History vs Indiana FeverEx-Raiders Coach Antonio Pierce Resurfaces With Surprising New Job 2025 NEWSWEEK DIGITAL LLC.
Yahoo
06-03-2025
- Business
- Yahoo
How Las Vegas Grand Prix's economic impact goes beyond race weekend
LAS VEGAS (KLAS) — The Arts District, about three miles from the F1 track, features all sorts of locally owned stores, restaurants and breweries. Yovani Barrera owns one of those stores, Bring it Back, a buy-sell-trade store for hip shoes and clothing. 'Nothing crazy like 'F1 crazy' It's more like, if it's a fight weekend or some sort of other event happening on a weekend, big concert, that kind of traffic,' Barrera said. Applied Analysis principal Brian Gordon explained to 8 News Now how the Las Vegas Grand Prix's economic impact looks at a whole year of spending. Casinos and resorts get their chunk of change during race weekend, but everyone who gets paid for working around the track is a contributor, spending their money throughout the valley. 'They go to their doctor's office, they go to a grocery store,' Gordon said. 'All of that spending essentially ripples throughout the economy, and so it is impacting almost every corner of the market.' For example, if a race employee spends some of their paycheck on a pair of sneakers at Bring it Back, the grand prix now has an impact on a local business. Regardless, business owners like Barrera would like to see some more support downtown. 'It would be nice, get a lot more local support. Like I said, it's all holed over there,' Barrera said. Barrera said it's always good to have another busy weekend, but he's not sure if it's worth putting up with traffic and construction. The Las Vegas Grand Prix did make an effort to promote small businesses, with valley restaurants providing food around the track during the 2024 race. They also made a local business directory, listing different valley-based services for F1 teams or employees. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
05-03-2025
- Automotive
- Yahoo
Las Vegas Grand Prix adds $45M to tax base; $15M going toward Nevada schools
LAS VEGAS (KLAS) — The 2024 Las Vegas Grand Prix added $45 million to the tax base in Nevada, with more than $15 million of that set to go to schools, according to an economic impact report. According to a release from the F1 Las Vegas Grand Prix, attendance for race week reached 306,000 people, with 175,000 out-of-town tourists spending on average $2,400 on non-race-related expenditures during their visit to the valley. That number is nearly twice the amount an average Las Vegas visitor spends, according to a report produced by Applied Analysis for Grand Prix officials. Non-race-related expenditures include hotel rooms, food and beverage, local transportation, shopping, gambling, and entertainment. The $2,400 number does not include the cost of race tickets. In all, visitor spending from the event totaled $556 million. The total economic impact of the 2024 race exceeded $934 million. Spending from the 2024 race generated $45 million in tax revenues for state and local governments. The most significant beneficiaries of this revenue were the state general fund, the county's general fund, and the Clark County School District. Schools throughout the state are set to receive $15.5 million of the tax allocation. According to a race debrief following the first Las Vegas Grand Prix, the 2023 race estimated the event had a $1.5 billion economic impact on the area, with $77 million in taxes connected to the three-day event. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
New York Times
04-03-2025
- Automotive
- New York Times
F1 is now Las Vegas' largest annual event, reporting $934M economic impact in year two
Formula One has become the largest annual event in Las Vegas after recording an overall economic impact of $934 million in its second year, according to a new study. According to the study shared by the organizers of the Las Vegas Grand Prix and prepared by Applied Analysis, an economic analysis and consulting firm, the net visitor spend at the race came to $556 million, while a further $378 million was spent on operations. Advertisement The total of $934 million is over half a billion dollars down on the estimated economic impact from the first year in Las Vegas, which approached $1.5 billion, according to a report issued by Clark County following the 2023 race. That report estimated the total net visitor spend for 2023 at $884 million. The first year overall figure was boosted by the economic impact of construction for the inaugural race, meaning officials in Las Vegas always anticipated a drop for the second running of the grand prix, which was the site of Max Verstappen's fourth world championship victory in November. The study states that visitors to Las Vegas for the grand prix spent an average of $2,400 per person last year, not including their race tickets, which it claims is close to double the average spend for a visitor to Las Vegas. The race generated $45 million in tax income for the state of Nevada. The financial results have established the Las Vegas Grand Prix as the city's largest recurring event. When Las Vegas hosted the Super Bowl in 2024 at the Raiders' Allegiant Stadium, Applied Analysis estimated the economic impact to be around $1 billion. 'The economic impact of the 2024 race hitting at $934 million serves as Las Vegas's largest recurring event, and we are only bested by our inaugural year number, and coming in slightly less than Las Vegas hosting the Super Bowl,' Lori Nelson-Kraft, SVP for corporate affairs at the Las Vegas Grand Prix, told The Athletic. 'When you think of mega events in Southern Nevada, this rises to the top. It's not only here annually, but it's here in what is traditionally the slowest week for Las Vegas of the year, it's a real win to know that it's on the calendar in a meaningful way at a time when Las Vegas can really benefit from it.' There was a small dip in the overall attendance for the second Las Vegas Grand Prix, falling from 315,000 to 306,000 year-on-year. But the report did note an increase in the number of out-of-town attendees, drawing in 175,000 unique visitors. Nelson-Kraft said that hotel occupancy over the Las Vegas Grand Prix race weekend was also up year-on-year from 80 percent to 87 percent. Advertisement The organizers of the race in Las Vegas made a concerted effort to try and work closer with the local community for its second race after facing criticism through its inaugural year, particularly through the construction phase and repaving of roads that were used for the race track. This included staging a free fan festival, bringing local schools into the paddock and inviting local companies to bid on goods and services. But there was still some opposition from disgruntled locals and businesses on the ground in Las Vegas over the staging of the race. 'We're trying to make this an event that everyone here can be proud of, and I think we really had a great year inviting the community in to be part of the experience,' said Nelson-Kraft, who said $15 million of the tax relief would go to local schools. 'You see after an inaugural year things really normalizing.' Ahead of its third running on Nov. 22 this year, the Las Vegas Grand Prix has undergone some changes, both internally within the organization and regarding the timing of the race. The race start has been moved forward two hours to 8 p.m. PT. Emily Prazer has been appointed president of the event, in addition to her existing role as the chief commercial officer at F1. In a call with investors at the end of last month, Derek Chang, the newly appointed CEO of Liberty Media, F1's parent company, acknowledged that the Las Vegas Grand Prix had 'missed internal expectations on revenue' in its second year, which was primarily due to ticket sales. Chang said F1 had 'moved very quickly to enact changes that will benefit 2025 and support a financially successful race for F1 and continued growth and positive impact for the Las Vegas community.' The Las Vegas race operations team has also been fully integrated into F1's London office ahead of the 2025 race, while Chang said there would be 'further revisions to the ticket product and pricing strategy' based on the feedback and data gathered from the first two years. 'We have a clear handle on near-term priorities for Vegas to improve, and we are confident in the value it provides,' Chang said. Top photo:
