Center for Gaming Research
UNLVGamingReseach on Facebook UNLVGaming on Twitter
UNLV
Paradise Misplaced
Appraiser's Report, Part 3
The Las Vegas "Strip" Tourist Industry

gaming revenue

In analyzing the feasibility of the subject project, basic economic indicators affecting the Greater Las Vegas area and specifically  the Las Vegas “Strip” were utilized. These include air travel into and out of Las Vegas, average daily ground vehicular traffic entering and leaving Las Vegas, gross gambling revenue for Clark County and for the Las Vegas “Strip”, total hotel and casino spending for the “Strip” and Las Vegas area, Clark County gaming revenue for the first 6 months of each year, Las Vegas hotel and national average hotel percentage of vacancies over 5 years, available hotel rooms in the Las Vegas area from 1570 to 1975, “Strip” hotel spending for food and beverage from 1968 through 1974, a summary of the existing “Strip” hotels with inter-hotel ratios and room rate comparisons, and charts and graphs showing income per gaming device for the fiscal years 1970.771, 1971-72, 1972-73, and 1973-74, for the Las Vegas “Strip."

One of the basic indicators of the growth, or decline of the Las Vegas tourist industry is the traffic moving into and out of the Las Vegas area.  Air traffic into and out of Las Vegas has increased each year from 1968 through 1974 with gaming revenue on the “Strip” closely following the air traffic pattern. The average daily ground vehicular traffic has followed a more level increase each year than the air traffic and more closely resembles the gross gambling revenue increases for Clark County as a whole. The daily average ground vehicular traffic has increased substantially each year from 1968 through 1973. The air travel through 1974 has increased approximately 10% over the air traffic of 1973 with an increase in the first 6 months of 1975 of approximately 4% over the first 6 months of 1974. However, the average daily ground vehicular traffic declined slightly in the period of 1974 but indicated an increase of 12% for the first 6 months of 1975 over 1974. It has been reported that the decline in automobile traffic in 1974 is due primarily to the shortage of gasoline during the first 3 months of 1974. This has resulted in a decline in automobile traffic throughout the United States and not only in the Las Vegas area.

Providing no unforeseen circumstances limit the expansion of the air travel into and out of Las Vegas, air traffic is expected to increase annually at a substantial rate into the foreseeable future.  Cross relating this to gross gaming revenue, total hotel/casino spending on the “Strip”, and “Strip” hotel spending for food and beverage indicates the Las Vegas “Strip” hotels follow closely the volume of air traffic into and out of the Las Vegas McCarran International Airport. The reader  is referred to the following charts and graphs showing air travel into and out of Las Vegas and the average daily ground vehicular traffic entering and leaving Las Vegas.

Gross gaming revenue on both the “Strip” and in Clark County has increased substantially annually from 1968 through 1974. The first 6 months of each year from 1971 through 1975 has shown a substantial increase. The estimate of gaming income and total hotel/casino spending was obtained from the Nevada Gaming Abstract, State Gaming Control Board and excludes businesses grossing less than 1 million dollars. As stated previously, gross gaming revenue on the “Strip” closely relates to the air travel into and out of McCarran International Airport. With anticipation of increased air travel into and out of Las Vegas into the foreseeable future, increasing gaming revenues are also anticipated. It should be obvious, however, that a change in 1egalized gaming in surrounding states such as California could greatly affect the projections shown. Gaming experts feel, however, that it would take a substantial length of time for legalized gaming in surrounding states to drastically affect the       Vegas gaming industry by reason of the heavy investment  in hotel/casino facilities in the Las Vegas area and the time it would require to develop an atmosphere similar to that found in the Las Vegas gaming-tourist industry.

The following charts and graphs visually demonstrate the increases in gross gaming revenue and total hotel/casino spending from 1968 through June of 1975. In comparing the gross gaming revenue for the Las Vegas “Strip” and the total hotel/casino spending for the Las Vegas “Strip” to the air travel into and out of McCarran International Airport, the direct relationship between the two can be visualized.

Back to Las Vegas 1975

main | history | outside | inside | Vegas 1975 | estimates | theme | Martin Stern | poem | about

Follow UNLVgaming on Follow unlvgaming on Twitter Twitter and UNLVGamingResearch on Facebook

© 2016 University of Nevada, Las Vegas. Do not copy or reuse without permission.


Last modified Wednesday, 02-Dec-2009 11:34:56 PST