According to the HVS report, Las Vegas Casino and Hotel Market Outlook 2011, in addition to reducing the number of people who come to Las Vegas, the recession has prompted the ones who do gamble to spend less.



Data from the Nevada Gaming Control Board and the Las Vegas Convention and Visitors Authority indicates that the total gaming win for Clark County per visitor has declined since 2007. Gaming win per visitor declined 5.7 percent in 2008 compared to 2007, from $277 per visitor in 2007 to $261 per visitor in 2008, and 7.0 percent in 2009 compared to 2008; from $261 per visitor in 2008 to $243 per visitor in 2009. This downward trend has continued through year-to-date November 2010, but at a slower rate of decline. The 1.4 percent decline in Clark County gaming win per visitors in the year-to-date period through November 2010 is indicative that the bottom of the downturn has potentially been reached. The historical gaming win, number of visitors, and gaming win per visitor for Clark County for 1980 to November 2010 are shown in the accompanying table and chart.

The Las Vegas gaming market reached record highs annually from 2004 through 2007. Prior to 2008, there had been only two years since 1980 that the Las Vegas gaming market has contracted: 2001 and 2002. In 2001 and 2002, the gaming market contracted by 0.5 percent and 0.02 percent, respectively, which was attributable to the economic recession and the events of September 11. Gaming revenues for the Clark County market in 2007 were more than twice that of 1993, increasing from roundly $4.5 billion in 1993 to over $10.8 billion in 2007. The impact of the economic downturn is reflected in the decline in Clark County gaming revenues in 2008 and 2009. The declines in gaming revenue for Clark County in 2008 compared to 2007 (9.9 percent) and in 2009 compared to 2008 (9.8 percent) are high due not only to the economic climate but also the multiple years of strong growth immediately preceding the downturn. The average annual compounded rates of change in gaming revenue, visitors, and revenue per visitors all increased at higher levels between 1980 and 2009 versus the 1990 to 2009 period, likely due to the maturity of the market, as well as competitive forces.

On a more positive note, in 2010, February, August, September, and October all exhibited gaming revenue growth over the respective month in 2009; with a net 1.2 percent growth for the year-to-date period ending November 2010 compared to the same period in 2009, which does bode well for potential future revenue growth.



Excerpted from Las Vegas Casino and Hotel Market Outlook 2011 by Shannon Okada, VP HVS Consulting & Evaluation and associate director, HVS Gaming Services.. To view the whole report, please visit www.hvs.com.