Las Vegas Economist Believes Parking and Resort Fees Turning Away California Visitors
Posted on: December 4, 2019, 03:00h.
Last updated on: December 4, 2019, 03:13h.
Escalating resort fees and the elimination of free parking at numerous Las Vegas Strip casinos are likely impeding visitor volume from Southern California to Sin City. That’s according to Dr. Stephen Miller, the director of the Center for Business and Economic Research at UNVL.
On Tuesday, Miller delivered his economic outlook for the next two years on Southern Nevada before the Las Vegas Global Economic Alliance at the M Resort. While he’s overall optimistic regarding the Las Vegas economy through 2021, he noted there’s been a decline in visitors driving from California.
The Las Vegas Convention and Visitors Authority (LVCVA) reports that visitor volume in 2019 through October is up 0.5 percent. Miller is forecasting a strong final two months, with his full-year visitor volume calling for an 0.8 percent uptick.
Las Vegas visitor volume would be performing even better if it weren’t for a decline in arrivals from California. Statistics from the LVCVA show that traffic on I-15 is down 1.1 percent at the California-Nevada border through 10 months. That equates to almost 500 fewer automobiles crossing the border daily.
Fed Up With Fees
Miller suspects the ever-increasing resort fees and parking charges are the culprits for causing Southern Californians to U-turn away from Las Vegas.
Resort fees are now as high as $45 per day at such luxury properties as The Venetian and Palazzo, Wynn and Encore, and Caesars Palace, Bellagio, and Aria. Free self-parking and valet can still be found at certain Strip properties, but visitors arriving in automobiles should expect to incur parking charges at MGM and Caesars resorts.
That has got to be the answer,” Miller declared, as reported by the Las Vegas Business Press, which is part of the Las Vegas Review-Journal.
“The question is whether that is parking fees and resort fees. That may play into it, but whether it’s big enough to keep the visitor volume soft, I don’t know,” he added.
Economy Strong
Miller says Las Vegas is positioned well for the two years ahead. He believes the odds of a nationwide recession are long, which is, of course, positive news for the gambling mecca.
The UNLV economics expert is forecasting flat visitor volume: an increase of 0.3 percent in 2020, but 0.4 percent decline in 2021. As for gross gaming revenue (GGR), Miller’s calling for a 1.4 percent increase in 2020, and 1.2 percent gain in 2021.
Over the next half-decade, approximately 12,000 new hotel rooms are slated to come online. Resorts World Las Vegas and The Drew are expected to offer 3,500 and 3,719 rooms.
“The leisure and hospitality industry has been soft for a couple of years now, but the unknown factor that plays into this over the next five years is, supposedly, 12,000 rooms coming online,” Miller said. “There was a shortage of rooms and the question is, ‘Will those new rooms bring in visitors?’ That’s hard to forecast.”
The unemployment rate in Las Vegas-Paradise is at 4.0 percent, down from 4.7 percent in July. However, that’s still higher than the nationwide unemployment rate of 3.6 percent.
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Last Comments ( 13 )
The “Silver Lining” to this virus thingy is that the resort-fee scammers in Vegas ain’t getting no resort fees - in fact, they ain’t getting much at all Couldn’t happen to a nicer bunch of more deserving guys...
I live in CA and stop going to Vegas 3 years ago. Beside the resort and parking fees, the quality of the buffets and food have gone down hill. RIOS buffets no longer serve snow crabs and overall quality is down. Don't get me started on the gaming rules change. It's not like the house odds was good enough but today its like highway robbery. At least gave the gamblers some bones or leftover from the feast! For all the new casinos, I don't expect anything to change. Everything build now-a-day is luxury and guess who's gonna pay for it! NOT ME. I really missed the old Vegas before the GREED destroyed it!
Dr. Riposki has been invited to Rip oFF city. dR rIPOSKI HAS NOW ABANDONED LAS VEGAS and searching other gambling cities that can offer value and a reasonable price vacation. Dr RIPoski has now really been dissatisfied with visiting Fremont Experience with paying 60 dollars entrance fee and 50 dollar parking at Ripoff nUUGAT. nOW THAT IS A RIPPOSSKI RIPOFF. dR rIPOSSKI HAS NOW eyed other gambling alternatives. maybe Red Rock or maybe Pechanga or Pala or maybe Hawaii without resorteee fee .Dr ripposki has now said , he is disgusted of not getting the value at Vegas Low.
It's actually quite obtuse to charge resort fees. From a big picture pov, the 40-65/day will not break anyone's bank, but it is akin to charging shipping for a 'free item', or 100 bucks a month for your phone bill; oh, plus all these fees (5-who knows how much), that we hid from the nice sounding 100 advertisement price. Just add the fucking resort fee to the advertised nightly price or get rid of it. Most people will spend it at or near the location they're staying at anyway.
I ive in Arizona and the fees are the reason I have not been to Vegas in over 5 years. I know numerous other people who feel the same way. It's ridiculous that they charge around 50 per night in 'resort fees' that consist of things that almost nobody uses, while the casinos refuse to waive them. Now several casinos charge 20 dollars per day for parking. Also a change that helped drive me away was to table gaming greed. Now casinos on the strip pay 6 to 5 for a blackjack compared to every other casino I have been to that pays 3 to 2. That one change will add an additional 20 dollars per hour per person playing at a table. The game of blackjack has several rule changes at casinos that give the casino an additional edge such as limit to re-splitting aces and hitting on a soft 17. Those aren't enough advantages for the casinos so they need to take more and pay less on blackjacks. Don't even get me started on the craziness that is the tripple 0 roulette that several have started recently. I wish the casinos would read every board post on numerous sites and realize that greed is the biggest reason that many people are avoiding Vegas. The people running the casinos are obsessed with looking at numbers finding new ways to elevate them, while not realizing that this nickle and diming people has turned off many potential visitors that would be otherwise happy to visit Vegas. Instead of myself spending well over a thousand dollars on the stip over a several day period for a vacation, I just don't go and spend it at some other destination.
It took a while to find one, but this trip I stayed at a resort fee free property. Bait and switch hotel prices should not be allowed.
As a Las Vegas local, I can tell you , we do not patronize many of the strip properties, because of the fees. Even just to go for a buffet, or quick dinner and a little gaming, the parking fees alone are ridiculous. Instead, we go to the "locals" venues, mostly Station properties. Not as "glitzy", famous, or as fancy, but the food is comparable, if not better, and gaming is just as exciting, and without fees and the hassle of the strip.
The room rates are over rated, and now add more B.S., fees is ridiculous. These casinos are pulling in billions a year and want more. STOP, the greed.
Resort fees and parking fees are exactly why more people don't go to Las Vegas.
Quite going to LV 2 yrs ago after hit with unlisted resort fee at Cromwell. When I Decide to return it will be to hotel with no resort or other added unlisted fees
I am sitting at a poker table in Scottsdale Az instead of Las Vegas specifically due to the resort and parking fees in Vegas
That's the reason I don't go to vegas as much as I used too..
I won't come anymore. The casinos don't care . it'll cost me $50-65 a day extra. Thats ridiculous .