May Numbers Down, But Not Quite Out

Diane Taylor -- Tradeshow Week, 7/17/2008 4:33:00 AM

Writers all over the country are having a field day talking about Las Vegas’ dreary economics. Readers can almost sense the glee as bad news about the country’s No. 1 tourist destination is piled on.

And then there are the facts – and not all of them are necessarily bad.

The most recent LVCVA Executive Summary, for the month of May, showed that year-to-date visitor volume is almost exactly even with last year, while convention visitation is down just 0.1 percent compared with the same period a year ago. In fact, convention attendance in May alone actually was up 0.7 percent compared with the same month in 2007 (a figure that was helped considerably by one convention in particular).

For the year to date, the economic impact of convention attendance was down 4.9 percent, similar to the decline in hotel room rates, down 4.3 percent compared with the same period a year ago. Gaming revenue in Clark County is down for the year as well.

Total room nights occupied by May convention-goers was down 9 percent, though tourist occupancy was up 3.2 percent, suggesting perhaps that savvy convention-goers are booking their own rooms as bargains become easier to find. Average occupancy in May was 89.7 percent, down 2.4 percent from a year ago. Bad news? Maybe, but note that the national average hotel occupancy rate for the first five months of the year was 66.7 percent.

May’s statistics indicate that, although visitor volume was up slightly, air traffic was down 4.7 percent and average daily auto traffic down 6.4 percent. Why the disconnect? Airport statistics include locals, who may not be traveling as much, and layover traffic, affected perhaps by U.S. Airways’ decision to stop using Las Vegas as an overnight hub. With regard to reduced drive-in traffic, in this era of higher gas prices visitors may be opting to share rides.   

The Natl. Hardware Show and Lawn & Garden World hit town May 6-8 with a projected attendance of 50,000 after a one-year hiatus in Orlando. Not only was the return to Las Vegas good news, attendance at the show itself was 14 percent higher than in 2007.