Lou's Views
Is the tourism downturn in Las Vegas because of the "Vegas is too expensive" rhetoric?... Not really. About 3.5 million fewer people have visited Las Vegas so far in 2025 - a 12% reduction from last year. That's a lot of people but it still leaves a lot of people - over 38 million will visit Las Vegas this year (over 730,000 every week - over 100,000 every day). Despite fewer visitors, casinos have actually seen an increase in gaming revenue - the Strip more profitable by about 6% and downtown over 8%. During the 2024, 307 Vegas casinos grossed over $1 million, collectively reporting a revenue record of $31.5 billion (a 5.5% annual increase), but net income declined by 24% to $2.6 billion. Strip properties made $21.8 billion in total revenue (a 6.8% increase), but with ‘only’ $820.2 million net income (a 40% decrease). And Vegas isn't the only destination experiencing a tourism downturn. Manhattan is down 5%, Florida an 18% reduction and Hawaii, 17% fewer visitors. Contributing factors include a strong U.S. dollar, a slashing by the Federal government of the U.S. international promotion budget by 80%, a Canadian tourism boycott and of course, air travel disruptions caused by the government shutdown of 2025. Is Las Vegas simply a victim of circumstances? Not entirely. Corporate 'wisdom' has been to increase profits by adding more and more 'nickel and dime' fees (if it really were only nickels and dimes the impact might not be as noticeable). Let's review those nickels and dimes. There are: • Parking fees - some charge every time you enter the garage • Resort fees - that can exceed the room charge (covering such amenities as use of the phone no one needs) • In-room beverages and snacks - can easily double the room cost if you're not careful. There are the 'acronym fees': • RFT (resort fee tax): the tax you pay on top of paying the resort fee - 13.38%. • LET (live entertainment tax): the charge for buying a ticket to any live performance - 9%. • CNF (concession & franchise) the charge to buy food - 3% to 5%. • CCU (credit card usage) - 2.5% to 3% for using a credit card. And let's not forget the... • 'On the Rocks' and Neat Pour fee: for a shot pour larger than the 'Strip standard' of 1-1.25 ounces. • Mandatory Gratuity: 18% to 20% (be careful to subtract this from the tip you want to leave). • Restaurant Operation Fee: 3% to 5% fee (because the restaurant exists?) • Premium view fees: For rooms or restaurants with specific views - typically $25 to $75. • Operation Fee - such as for room service ($25 at some resorts). • Booking Fees: such as the 'Contact Center Fee' - for speaking with a human agent during the booking process. If the multitude of fees were rolled into original pricing structures, the “Vegas is ripping you off” narrative might simply roll into the “Vegas is too expensive” rhetoric. Maybe it wouldn’t influence vacationers to change their travel destination from Vegas to Tucson, but it wouldn’t hurt (apologies to Tucson - it's actually a very nice city).
Yes, Vegas isn't cheap anymore. But… it's not more expensive than any other city, even those that are not tourism focused. It begins with hotel prices. There are 150,000 rooms available in Las Vegas. That kind of supply vs demand creates a value unparalleled anywhere else in the United States. Following are nightly room rates on a Wednesday, one month in advance comparing three levels of hotels compared with a small city in central New York (where there is no resort fee): Central New York Hampton Inn $235 Fairfield Inn $190 Red Roof Inn $86 Las Vegas Paris $125 (w/resort fee $180) Flamingo $42 (w/resort fee $92) Luxor $14 (w/resort fee $59) So here’s a comparison of real cost on the same day and including resort fees: Paris $55 less than Hampton Inn Flamingo $98 less than Fairfield Inn Luxor $27 less than Red Roof Inn Drinks and food do cost less in a small city in New York, but options available are fewer than 2% that of Vegas - if you can find and drive to them. (Note: that calculation based on over 7,000 restaurants in the Las Vegas area, including about 1,000 Mexican, 300 Italian 100 Steakhouses). “Gambling is available all over the U.S these days.” That is true - there is a casino. …about 30 minutes away. Of course, few people plan a vacation in a small area in upstate NY so let’s compare tourism destinations: Hampton Inn Vegas (Tropicana Ave) $108 (no resort fee) Chicago Downtown $139 Boston Seaport $239 Manhattan $361 Hotel tax Vegas 13.38% Chicago 17.4% Boston 16.45% Manhattan 14.75% + $3.50/night Then there’s the weather… That particular amenity costs nothing.
Living in a lesser town has recently spawned 'Vegas is Dead' drivel spilling out of many click-whore Vegas influencers (ok that's intense but it contributes to self-fulfilling prophesy). This too shall pass, so remember, locals have influence too. The "Vegas is too expensive" and "Vegas was better when the 'Mob' ran it" narratives are in some ways true, but let's take a closer look at it... Back in the 50's through the early 90's, Vegas offered gambling that was illegal most everywhere else along with those $9.95 buffets and cheap steak dinners. But there weren’t over 100 celebrity chef restaurants among the 7,000 restaurants available within an hour drive. There weren't iconic one of a kind resorts like Luxor, Strat, NYNY, Bellagio, Venetian and Paris or world-class lodging like Caesars, Resorts World, Wynn, Cosmopolitan and Fontainebleau. There was no Sphere, Fremont Street Experience or NHL Hockey, NFL Football, WNBA Basketball, Formula One, Nascar, UFC or AAA baseball (and soon Major League baseball). All of that results in far more reasons to visit Las Vegas than the gambling, cheap food and drinks version of what was then aptly dubbed 'Sin City'. And it costs more. But how much more? HOTELS: There are over 150,000 rooms in the Las Vegas valley, making it easier to find a reasonably priced room than most tourist destinations. A 2024 study of the average rate for 3-4 star hotels in cities with populations over 200,000 revealed the most expensive as Boston, Jersey City, Manhattan, Raleigh and Austin - all averaging over $250 per night. Las Vegas came in at number 82 at $132 per night. But what about all those fees that are added to the cost? Adding the 13.38% 'bed tax' and a $50 resort fee, brings the Vegas average to $200 per night, still out of the top 20 and similar to prices in cities like Buffalo, Anchorage and Sacramento. RESTAURANTS: Along with the trend toward themed mega-hotels, the 1990s initiated the move away from cheap buffets and steak dinners to higher quality buffets, restaurants and world-class culinary experiences. Because of that, Vegas is among the top 10 in cost for a quality dinner, along with Manhattan, Honolulu, Miami, Charleston, New Orleans and San Francisco. Menu prices are the same at various national chains like Capital Grille, Nobu and Giordano's, but simply get out of the tourism corridor (Strip to Downtown) and you'll find inexpensive lodging, gambling and reasonably priced exceptionally high quality restaurants. It's true that corporate hotels have taken to the continual process of adding charges to hotel rooms, dinners, drinks, entertainment and whatever else they can think of, but despite the trend the 'Entertainment Capital of the World' remains among the best dollar-for-dollar vacation destinations in the world.
The allure of the Las Vegas Strip entices most people, yet residents of the valley enjoy saying they never go to the Strip. But why? The reason is simple - low limit gambling, great restaurants and personal attention can be found more affordable, and often better, nearer home. And it's available to everyone. As a metropolitan area, the Las Vegas Valley offers more than most other cities, with bars, restaurants, activities and attractions all available within a short drive. There's Henderson's Green Valley, Water Street District, and Lake Las Vegas, Spring Valley's Chinatown, in Summerlin there's Downtown including Las Vegas Ballpark and City National Arena. Every criticism of the Strip, in large part, you won't find in a less than 20 minute ride from the Strip. Don't declare Vegas a thing of the past if you only visit things of the past. With its free volcano show, dolphin habitat, rainforest atrium, Siegfried & Roy and Secret Garden, Mirage established the evolution of Las Vegas into the Entertainment Capital of the World, known for the Strip's unique, themed landscape. But today, with casino gaming, sports betting and more available within driving distance of almost anywhere, the destruction of the Mirage is a blow to that landscape of the greatest city in the world. So be careful Las Vegas, Park MGM is not the Monte Carlo, Cromwell is not Bill's or the Barbary Coast, Harrah's is not the Holiday Riverboat and even the Sahara is not the Sahara. Keep in mind tourists can already stay and gamble at casinos that resemble office buildings, and already can visit a hotel shaped like a guitar with a broken neck.
It's been a while, but with recent the demolition of the Mirage and Tropicana, it's appropriate to review the fate of another of the original iconic Vegas resorts. Opened in 1955, the Riviera was the first skyscraper and tallest building on the Strip. Over the years, it represented Vegas in films like Ocean's Eleven, Casino and the Hangover, along with providing millions of visitors enduring memories of the 'old days' that many lament. In 2015, 60 years later, 'the Riv' (as it had become affectionately known) was demolished to make way for the expansion of the Las Vegas Convention Center. A full decade after its demolition, an empty ten acres of the Riviera land facing the Strip now serves as a reminder of its contribution to the lore of old Vegas. It also serves as the most expensive unused parking lot in Las Vegas - maybe the world. ...Don't it always seem to go, that you don't know what you got 'til it's gone?
Corporate Vegas has successfully severed yet another tie to the storied past. Just short of 70 years, and still profitable, the 'Trop' will be replaced by a Major League Baseball stadium, home to the former Oakland A's (yes, another struggling team jettisoned from Oakland, California). Baseball on the Strip? Sure, why not? Professional football, baseball and hockey will all be within walking distance of each other (if you consider one mile walking distance). And walk we all will, because the traffic on and near Tropicana Ave will be significant (yes, it's still named that, as a constant reminder of what was).
In 1993, a 30 story glass pyramid with the strongest beam of light and largest atrium in the world opened. Although some of its attractions didn't survive the years, the heavy Egyptian theme is still unmistakable. Unfortunately, on the outside, the billion dollar investment has become what it seems may be the world's most expensive billboard. MGM made it painfully evident that there will be no theme involved when the venerable Monte Carlo became Park MGM (unless of course its office building theme is lost on me). Thankfully the Venetian hasn't yet thought to put bumper stickers on the gondolas.
For those new to the wisdom of the Regional Transportation Center (RTC), there once was a more efficient bus system that worked in concert with the Deuce. That bus was called the SDX (Strip and Downtown Express). It became a casualty if the COVID-19 pandemic, never to return, leaving tourists and locals to rely on what is now only the overcrowded Deuce. So let's review the only bus system available to over 40 million visitors per year: The typical wait: 15 to 20 minutes. The riders: tourists now share the ride with many locals traveling to and from work - forced onto the only remaining economical means of transportation The ride: 27 stops over 9 miles - one every 600 yards The time: One mile in 11 minutes (the complete N-S route can take up to two hours) The traffic: There is no dedicated bus lane, frequently causing even slower times due to construction and traffic congestion (particularly in the evening during the many sports and entertainment events on the Strip) The occupant's health: Remember COVID-19? It's not the only illness that can be transmitted on an overcrowded bus with standing room only occupancy This is no way to treat those who make Las Vegas the "Entertainment Capital of the World", the lifeblood of our economy. Fortunately there are private transportation options available, including the underutilized Monorail (try to find the stations along that route). Hopefully the promised underground Las Vegas Loop system will help alleviate both the traffic and psychological stress caused by the death of the SDX (that is, if you don't mind riding underground in a Tesla).
No one knows how many cones, barrels and barricades there are on the roads of the Las Vegas Valley, but likely it represents the most per capital in the United States, if not the world. Locals, in fact, have facetiously dubbed the orange obstructions Nevada’s state flower. In fact, recognizing this dubious achievement of the Clark County Public Works Department there actually is an Arts District exhibit entitled ’State Flower’ showcasing traffic cone art (surprisingly there were actually some available for the display). The multitude of work zones void of humanity would suggest there aren’t remotely enough employees to work on the repairs and improvements needed on the many roads obstructed by the little nuisances. Therefore, it seems they are simply being stored in plain sight, suggesting progress is imminent. Perhaps the DPW should instead consider a warehouse for storage.
Las Vegas was built on a foundation different than other cities - casino gaming, world class entertainment, buffets, sports betting, inexpensive rooms, free drinks and beginning in 1989, unique architecture. Many of those features are now available elsewhere. The corporate response to the previously non existent competition has been to increase the cost of everything, eliminate or reduce what Vegas had become known for and, because corporate greed has neither sensitivity nor boundaries, fabricate new and often hidden revenue streams. Everyone is now familiar with the ill-defined and ever rising 'resort fee' and increased parking fees (charging to patronize a business). But are you familiar with the live entertainment tax (LET)? How about the concession and franchise fee (CNF) or the Automatic Gratuity (originally to assure appropriate tipping from large groups but now sometimes applied to parties of any size)? Free attractions it seems are now viewed as a drag on individual resort's bottom line, but collectively they've always contributed to drawing what are now over 42 million visitors annually. The perception that every square foot of real estate should generate revenue has resulted in removal of many of the free attractions that enticed visitors to Vegas in the first place. It wasn't that long ago visitors were treated to the Pirate Battles at Treasure Island, the MGM Lion Habitat, Rio casino's 'Show in the Sky', the Dragon at Excalibur or the Luxor 'Nile River' (the original free attraction, the Mirage Volcano, will soon join the list). All this despite gambling revenue reaching record levels three consecutive years ($8.3 billion in 2022). An additional cause for concern is the direction of new construction. Aria and Cosmopolitan, though beautiful, evoke thoughts of other large cities. Park MGM is not Monte Carlo and a giant guitar will never replace an erupting volcano. It seems Las Vegas, once a unique paradise of value, where the average person could afford to be treated like a celebrity while enjoying sights and diversions unrivaled in the world, has lost that vision in its myopic attention to the quarterly balance sheet Be careful what you wish for Las Vegas, the slow erosion of what made this city unlike any other might just make it like many others. It should be noted that not all casino ownership subscribes to the aforementioned. In 1995 after reaching the point where 80% of all casino profits were at the Strip, the four original casinos Downtown recognized the power of collective attraction, combining to construct the Fremont Street Experience (and there are still many local casino that still treat patrons with old Las Vegas style). * automatic gratuity is considered a compulsory fee and as such becomes restaurant revenue that may or may not be distributed completely to its employees
Are showgirls really still representative of Las Vegas? It would seem so, even though with the closing of Bally's Jubilee over 6 years ago, Las Vegas no longer offers any shows that include the tall, beautiful talented dancers. Those elegant casino showgirls have been replaced by the by shorter, often wider, g-string clad outdoor facsimiles - hustling tourists, alongside Spider Man, for the $20 photo. Recently, perhaps in an attempt to rekindle the memories of the iconic attraction that only those her age could appreciate, the Mayor authorized installation of twin 26 foot cartoon-like showgirl signs to greet tourists entering 'old Vegas' (game on, Paradise). And now, barely a year later, in the typical Vegas style of excess gauche, those 26 foot eyesores will be replaced with 50 foot versions (fear not - the original 'girls' are being refurbished and will greet visitors to the 18b Arts District). Perhaps more than their scantily clad photo-hawking facsimiles, the attraction that best laments the loss of the beauty and class of the original showgirls will be the numerous selfies featuring the lower extremities of the gigantic cartoon versions.
Stardust, Riviera, Aladdin, Dunes, Landmark, Sands and so many others made Las Vegas the gambling capital of the country. With its free volcano show, dolphin habitat, rainforest atrium, Siegfried & Roy and Secret Garden, Mirage established the evolution of Las Vegas into the Entertainment Capital of the World, known for the Strip's unique, themed landscape. But today, with casino gaming, sports betting and more available within driving distance of almost anywhere, the destruction of the Mirage is a blow to that landscape of the greatest city in the world. So be careful Las Vegas, Park MGM is not the Monte Carlo, Cromwell is not Bill's or the Barbary Coast, Harrah's is not the Holiday Riverboat and even the Sahara is not the Sahara. Keep in mind tourists can already stay and gamble at casinos that resemble office buildings, and already can visit a hotel shaped like a guitar with a broken neck.
For more than two months annually, the entertainment capital of the world makes its most well known attractions partially or completely unavailable. The world renowned Bellagio Fountains blocked by massive viewing stands, the Venetian 'canal' drained, overpasses visually blocked (lest a non-paying passerby may see an F1 car for the millisecond it takes to roar past at 200 mph). Lighting, fencing, road closures, lane reductions, barricades and restricted access all along and near the 3.75 mile 'track' surrounding the Strip. The race lasts about two hours. Sound crazy? There is that $1,000,000,000 (that's billion, with a 'B' as they say) spent by the 175,000 visitors that week. It will take some getting used to. We'll have the chance to find out. The current contract lasts through 2027.
Las Vegas is in the Mojave desert. Southern Nevada, however, is one of the most water-secure communities in the West. Las Vegas treats and recycles nearly all indoor water from sinks, toilets, and showers - about 200 million gallons daily (73 billion annually). The 2.3 million locals use about 84 billion gallons per year, while the 40 million Vegas visitors consume an additional 28 billion gallons (the deficit hopefully filled by regional precipitation). Outdoor water usage cannot be captured however, and a large portion of the treated waste water is ultimately used outdoors - watering home lawns and irrigating parks and golf courses. To address outdoor consumption, Las Vegas has enacted strict (?) watering laws: Only six days a week in the summer, three days per week in the fall and one day per week in winter. Additionally, watering is prohibited on Sundays, as is watering with sprinklers between 11 a.m. and 7 p.m. (to a maximum of 12 minutes per day). Lake Mead, the largest reservoir in the United States, was designed to hold 9.5 trillion gallons. The lake dropped to 3.7 trillion gallons since 2000 (about 39% of capacity) due to reduced precipitation and higher temperatures in the southwest. There are many reasons to enjoy living in the Las Vegas area. Lack of a natural grass lawn seems a small sacrifice. Las Vegas is in the Mojave desert.