Las Vegas, the entertainment capital of the world, has achieved remarkable feats in 2023, breaking several records for gaming and tourism. Despite the challenges posed by the COVID-19 pandemic, the city has bounced back with resilience and innovation, attracting millions of visitors and generating billions of dollars in revenue.
Gaming Revenue Surpasses Pre-Pandemic Levels
One of the most impressive achievements of Las Vegas in 2023 was the gaming revenue, which surpassed the pre-pandemic levels and reached new heights. According to the Nevada Gaming Control Board, the Las Vegas Strip generated $8.5 billion in gaming revenue over the 12 months through March 2023, a 9.0 percent annual increase compared to a 6.0 percent annual increase for Southern Nevada as a whole. This was the highest gaming revenue ever recorded for the Strip, beating the previous record of $6.9 billion in 2019.
The gaming revenue was driven by several factors, including the recovery of the domestic and international travel markets, the expansion of online and mobile sports betting, the legalization of cannabis consumption lounges, and the hosting of major sporting events such as the Formula One Grand Prix and the Super Bowl. The gaming industry also benefited from the stimulus checks and the pent-up demand from the consumers who were eager to return to the casinos after the lockdowns.
Hotel Occupancy Reaches Full Capacity
Another indicator of the success of Las Vegas in 2023 was the hotel occupancy, which reached full capacity for most of the year. According to the Las Vegas Convention and Visitors Authority, the average hotel occupancy rate for the city was 95.6 percent in 2023, up from 42.3 percent in 2020 and 88.9 percent in 2019. The hotel occupancy rate was especially high during the peak seasons, such as the summer, the holidays, and the weekends, when the demand exceeded the supply and the room rates soared.
The hotel occupancy was boosted by the influx of leisure and business travelers, who flocked to Las Vegas for various reasons, such as entertainment, conventions, weddings, and family reunions. The city also added more hotel rooms to its inventory, such as the Fontainebleau Las Vegas, which opened in December 2023 after being dormant for more than a decade, and the Durango Casino, which opened in the same month as the first casino in the southwest valley. The city also renovated and upgraded some of its existing properties, such as the M Resort, which added a new tower in December 2023.
Visitor Volume Breaks All-Time Record
The ultimate measure of the popularity of Las Vegas in 2023 was the visitor volume, which broke the all-time record and exceeded 50 million for the first time in history. According to the Las Vegas Convention and Visitors Authority, the city welcomed 50.3 million visitors in 2023, up from 19 million in 2020 and 42.5 million in 2019. This was a remarkable achievement, considering that the city had a population of only 640,000.
The visitor volume was influenced by the same factors that affected the gaming revenue and the hotel occupancy, such as the recovery of the travel markets, the diversification of the entertainment options, the hosting of the sporting events, and the stimulus checks. The city also enhanced its accessibility and connectivity, with the opening of the Sphere, a 17,500-seat entertainment venue that features a 360-degree LED screen, in September 2023, and the expansion of the McCarran International Airport, which added more gates and flights in October 2023.
