Vegas eyes attack’s effect on tourism
LAS VEGAS — Las Vegas’ tourism sector is bracing for changes in the aftermath of the massacre that killed 58 people at an outdoor music festival.
Analysts who closely track the finances of the city’s casino companies say Las Vegas will see a short-term dip in visitors in response to the shooting.
Casinos and police may have to impose new security measures after gunman Stephen Paddock brought more than 20 rifles into his hotel room and drove a car filled with explosives into the parking garage.
Electronic billboards that typically promote restaurants, concerts, a topless pool and other entertainment are now showing a dedicated phone line for victims and their families, along with words of appreciation for first responders and casino employees.
It’s hard to quantify the effect the shooting will have on Las Vegas tourism. Airplanes still carry loads of tourists to the desert oasis, convention-goers fill large halls to discuss the latest industry trends, and slot machines ring in the casinos.
But stock prices of the main Las Vegas casino companies all took a minor tumble after the shooting, in an indication the attack will have some effect on the industry. Analysts with investment bank Morgan Stanley forecast the shooting will decrease demand for the Las Vegas market for about six months and have a 4 percent to 6 percent economic effect.
The analysts looked into the effect of terrorist attacks on “revenue per available room,” a key gauge of a lodging company’s performance, across different markets to measure the shooting’s potential impact. The report said not all markets are alike, but the effects on tourism of events such as the Orlando, Fla., nightclub attack have gradually become less pronounced and shorter.
A tour of several major resorts found no apparent new security measures other than guards checking room keys at Mandalay Bay.
Las Vegas hotel operators must make their guests feel valued and comfortable in the aftermath of the shooting, said Michael McCall, Michigan State University professor of hospitality business. He suggested resorts offer room upgrades or discounted tickets to customers as tokens of appreciation.
But he said many casinos and hotels will tread lightly when it comes to airportstyle security in a city where people want to let loose.
“You don’t want it to become a sort of ground zero military-type of operation,” McCall said. “People are going there largely for fun.”
MGM declined to comment on any hotel room or convention cancellations. Caesars said its properties haven’t received out-of-norm room cancellations, and no conventions were called off.
Luis Barros visited Las Vegas for an aviation conference last week and said: “I figured this is probably going to be one of the safest places after what just happened. I think I’m more concerned about the somber feeling, but as far as security-wise, no, not at all.”