Economic Impact of Visitors 2021 FINAL
Economic Impact of Visitors 2021 FINAL
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Executive Summary
2021 was a year of recovery for Southern Nevada’s tourism industry following a year of staggering impacts related to the COVID-19 pandemic. Applied Analysis
(“AA”) was retained by the Las Vegas Convention and Visitors Authority (the “LVCVA”) to review and analyze the economic impacts of Southern Nevada’s tourism
industry on its road to recovery from the economic damage created by the pandemic and related response. This brief outlines the economic impacts associated with
the region’s tourism industry, its convention travel segment and convention travel served by the Las Vegas Convention Center (“LVCC”) in 2021.
▪ Travel and tourism steadily climbed through the year with the development reflected in a reduced spending share for food and beverage. Visitors shifted
and widespread availability of effective vaccines and declining caseloads spending to other activities, most notably shopping, which increased from
across the United States. In Southern Nevada, monthly visitation peaked at 18.7 percent to 25.4 percent of spending budgets. Gaming and sightseeing
3.4 million in October, and monthly visitation over the second half of the year spending shares also increased as part of the shift in visitor spending.
averaged 3.1 million, approaching the 3.5 million monthly average of 2019.
For the year visitation totaled 32.2 million, a 69.4 percent increase from 2020 ▪ In 2021, the total economic output related to visitor spending (including direct,
but 24.2 percent below the 2019 total. Overall visitation was limited by the indirect and induced impacts) reached $60.6 billion, about half of the region’s
relative lack of convention activity and the absence of international visitors, gross economic output. Total tourism-related output in 2021 was more than
who were subject to travel restrictions for most of the year. twice the $29.6 billion in total output of 2020. Even as it continued to recover
from the severe workforce cuts in 2020, Southern Nevada’s tourism industry
▪ The economic impacts of Southern Nevada’s tourism industry are driven by remained the largest regional employer in 2021, directly employing an
visitor spending on rooms, dining, shopping, local transportation and other estimated 189,100 workers. With direct and indirect impacts included, total
activities and amenities during their stays. That spending directly supports employment impacts reached an estimated 290,100, which represented a
jobs, wages and economic activity, and it ripples through the economy to 15.5 percent increase from the prior year.
generate additional impacts via suppliers and vendors (indirect impacts) and
by employee spending on goods and services in the community (induced ▪ Southern Nevada’s tourism industry supported $9.2 billion in direct wages in
impacts). Despite the decline in annual visitation, visitor spending rebounded 2021, or 17.0 percent of all wages in the region. The additional indirect and
to near pre-pandemic levels, reaching a total of $36.1 billion. The rise in induced impacts supported wages for workers across many sectors of the
aggregate visitor spending was driven by a 29.2 percent rise in per-visitor economy, with a total wage impact of $13.9 billion, or 29.3 percent of all
spending compared to 2019, which was largely tied to pent-up demand for regional wages.
travel following the pandemic along with higher incomes and savings levels
▪ Convention attendance for the year climbed to 2.2 million in 2021 while the
among American households.
pandemic continued to affect large group gatherings. Convention visitor
▪ Southern Nevada visitors shifted how they spent their money in 2021 in spending directly supported an estimated 13,350 jobs, $649.5 million in
response to pandemic-related closures and limitations. With many wages and $2.5 billion in direct economic impact. When the indirect and
entertainment venues closed or operating with limited capacities, visitor induced impacts of convention visitor spending are included, the convention
spending shares on entertainment fell by half compared to 2019. Similarly, sector supported an estimated 20,480 jobs, $981.9 million in wages and $4.3
many restaurant and bar options were limited early in the year, which was billion in overall economic output.
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A Year of Recovery for Southern Las Vegas Visitation
Nevada’s Tourism Industry
Following the staggering impacts of the COVID-19 42.3 M 42.9 M 42.2 M 42.1 M 42.5 M
39.7 M 39.7 M 41.1 M
pandemic in 2020, 2021 was a year of recovery for
Southern Nevada’s tourism industry. With the
development and widespread availability of effective 32.2 M
vaccines and declining caseloads across the United
States, travel and tourism steadily climbed through
the year before the momentum was interrupted late 19.0 M
by coronavirus variant waves.
The second half of the year included the highest
visitation months of the pandemic era, with a peak
of 3.4 million in October. Over the last six months of
the year, monthly visitation averaged 3.1 million, a
marked improvement from the 1.2 million monthly '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
visitors in the first year of the pandemic, and it was
closing in on the monthly average of 3.5 million Monthly Visitor Volume Monthly Convention Attendance
visitors in 2019. For the year, visitation reached 32.2 2019-2021 2019-2021
4.5M 0.8M
million, a 69.4 percent jump from 2020 but 24.2
percent below the 2019 total. 4.0M 0.7M
Convention and trade show activity rebounded from 3.5M 0.6M
the negligible levels of 2020 to reach 2.2 million
3.0M
convention attendees in 2021, with a monthly peak 0.5M
of 475,000 attendees in October. Yet the annual 2.5M
total was just a third of the record 6.6 million 0.4M
2.0M
convention attendees in 2019.
0.3M
1.5M
The full recovery of Southern Nevada’s convention
and meeting segment, as well as the return of 1.0M 0.2M
international visitors after prolonged travel 0.1M
0.5M
restrictions during the pandemic, will be keys in the
continued rebound of regional visitation in the -
J F MAM J J A S ON D J F MAM J J A S ON D J F MAM J J A S ON D
-
J F MAM J J A S ON D J F MAM J J A S ON D J F MAM J J A S ON D
coming years. '19 '20 '21 '19 '20 '21
Source: Las Vegas Convention and Visitors Authority
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Visitor Spending Rebounds as Las Vegas Visitor Spending
Activity Mix Shifts Due to Pandemic
$36.9 B $36.1 B
$35.5 B $34.8 B $34.5 B
Visitor spending in Southern Nevada rebounded to
near pre-pandemic levels in 2021, reaching a total $30.5 B
$29.8 B
of $36.1 billion. Despite the relative decline in $27.5 B $27.4 B
visitation compared to 2019, the overall increase in
spending was driven by a 29.2 percent rise in per-
visitor spending compared to 2019.
$17.6 B
Higher spending levels were related to broader
trends in the national economy. Americans had high
levels of savings in 2021 after a year of reduced
household spending plus additional income from
federal stimulus payments and other aid programs.
Inflationary conditions in the latter part of the year
also played a role in the rising per-visitor spending '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
profile.
Compared to historical norms, Southern Nevada Spending Per Visitor Spending Shares by Category
$1,120 2019 2021
visitors shifted how they spent their money in 2021
in response to pandemic-related closures and Gaming Budget
22.9%
limitations. With many entertainment venues closed $926 23.8%
$867 18.7%
or operating with limited capacities, visitor spending $827 $824 $819 Shopping
25.4%
shares on entertainment fell by half compared to $721 15.7%
2019 (6.0 percent to 2.9 percent). Similarly, many Room
12.4%
restaurant and bar options were limited early in the 11.9%
year, which was reflected in a shift in spending on Food & Beverage
9.5%
food and beverage (11.9 percent to 9.5 percent). 10.8%
Other
9.8%
Visitors moved spending to other activities, most
10.7%
notably shopping, which increased from 18.7 Local Transportation
11.6%
percent to 25.4 percent of spending. Gaming and 6.0%
sightseeing spending shares also increased as part Entertainment
2.9%
of the trend in shifting visitor budgets. 3.4%
Sightseeing
'15 '16 '17 '18 '19 '20 '21 4.6%
Source: Las Vegas Convention and Visitors Authority, Applied Analysis
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Employment Impacts of the Southern Nevada Tourism Industry
Southern Nevada’s tourism workforce is a core component of the regional economy and has remained so throughout the pandemic period. In 2020, the region’s
tourism workforce declined by a third as it bore the brunt of the slowdown of the global travel industry. As tourism activity has recovered, so has the workforce
comprised of employees at the region’s numerous resorts, hotels and casinos as well as the workers in bars, restaurants, nightclubs, retail outlets, sightseeing tour
companies, taxicab operators and all other tourism-related businesses that cater to visitors. Although the direct tourism workforce of 189,100 in 2021 was smaller
compared to 2019, it continued to account for the largest share of Southern Nevada employment.
Hotels and casinos are one of the largest employers in Southern Nevada, directly employing 116,430 workers in 2021. That total represented 12.1 percent of the
region’s total employment and 13.5 percent of all private employment. An additional 72,670 employees working in other tourism-related businesses were estimated to
be directly supported by visitor spending. Combined, the Southern Nevada tourism industry directly employed an estimated 189,100 workers in 2021, or 19.7 percent
of the region’s total workforce and 22.0 percent of private sector employment.
Beyond the workers directly supported by visitor spending, additional jobs throughout Southern Nevada were created by the ripple effects of that spending. Indirect,
or secondary, impacts are generated by tourism-related businesses contracting with suppliers and other businesses, which in turn have their own employees.
Additionally, tourism industry employees spend their earnings throughout the community in their day-to-day lives, supporting other jobs in what are known as induced
impacts. In all, the employment impacts of visitor spending total 290,100 jobs when indirect and induced impacts are combined with direct employment. That total
accounted for 30.2 percent of Southern Nevada employment in 2021.
Visitor Spending on Casinos, Hotels, Suppliers and Vendors Spending by Employees Directly Total Economic Impacts
Restaurants, Shopping, etc. Supported by Visitor Spending Supported by Visitor Spending Generated by Visitor Spending
Calculations are based on IMPLAN, an input-output econometric model. Refer to the Methodology section of this analysis for further detail.
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Wage and Salary Impacts of the Southern Nevada Tourism Industry
Southern Nevada tourism workers earned wages and salaries of $9.2 billion in 2021, a total that reflects both the decline in tourism employment as well as earnings
gains in late 2021 as leisure and hospitality industry wages surged due to a tight labor market. The direct wages earned by the tourism workforce in 2021 accounted
for 17.0 percent of all wages earned in Southern Nevada during the year and 19.4 percent of all earnings among private industry workers.
When visitors spend at hotels, restaurants and other locations in Southern Nevada, the impact of each dollar ripples through the economy. These additional indirect
and induced impacts multiply the overall wage impacts of direct visitor spending, generating additional wages for workers across many sectors of the economy. In
2021, indirect wages supported by tourism businesses paying suppliers, vendors and other service providers were estimated at $2.1 billion. Induced impacts are
generated as tourism industry employees spend their wages throughout the community at stores, doctor’s offices, restaurants, and other local businesses. These
induced impacts were estimated at $2.6 billion in 2021. When the direct, indirect and induced impacts are combined, they total $13.9 billion in wages and salaries
throughout Southern Nevada that were supported by visitor spending. That total accounted for 25.7 percent of all wages paid in Southern Nevada and 29.3 percent
of all private wages during the year.
Visitor Spending on Casinos, Hotels, Suppliers and Vendors Spending by Employees Directly Total Economic Impacts
Restaurants, Shopping, etc. Supported by Visitor Spending Supported by Visitor Spending Generated by Visitor Spending
Calculations are based on IMPLAN, an input-output econometric model. Refer to the Methodology section of this analysis for further detail.
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Total Economic Impacts of the Southern Nevada Tourism Industry
The direct economic output associated with Southern Nevada’s tourism industry is equal to the $36.1 billion of visitor spending in 2021. That total accounted for
nearly a third (30.2 percent) of the region’s gross economic output of $119.4 billion. Although these two concepts are not perfectly aligned, the relationship illustrates
the relative size and significant importance of Southern Nevada’s tourism industry to the regional economy as a whole.
The ripple effects of visitor spending apply to output impacts as they do with employment and wage impacts. The indirect impacts of supplier and vendor activity
related to the tourism industry totaled $10.1 billion, while the induced impacts generated by tourism industry employees totaled $14.4 billion. When these rippled
impacts are combined with the direct spending impacts, the overall impact of visitor spending on the Southern Nevada economy grew to $60.6 billion, equating to
50.7 percent of the region’s total gross product.
Visitor Spending on Casinos, Hotels, Suppliers and Vendors Spending by Employees Directly Total Economic Impacts
Restaurants, Shopping, etc. Supported by Visitor Spending Supported by Visitor Spending Generated by Visitor Spending
Calculations are based on IMPLAN, an input-output econometric model. Refer to the Methodology section of this analysis for further detail.
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Total Economic Impacts of the Southern Nevada Tourism Industry
As demonstrated by the previous pages, the direct impacts of Southern Nevada’s tourism industry and the spending of the 32.2 million visitors were significant even
in a year of recovery. In 2021, the industry directly accounted for roughly 20 percent of employment, 17 percent of wages earned and 30 percent of total output in the
regional economy. Those impacts are magnified when the ripple effects of that direct spending generate additional economic activity. Suppliers of goods and services
to businesses in the tourism industry providing food, cleaning supplies, uniforms and other inputs stimulate economic activity and create jobs. Many of these
suppliers are based in Southern Nevada, keeping those dollars in the region and stimulating job growth in other sectors of the economy. Additionally, as tourism
industry employees spend their wages at local businesses throughout the community, such as grocery stores, movie theaters, doctor’s offices and retailers, they spur
additional commerce in the local economy known as induced impacts.
Once these indirect and induced impacts of the tourism industry are combined with the direct impacts, the industry accounts for an estimated $60.6 billion in
aggregate economic output (50.7 percent of the region’s gross product), supporting 290,100 jobs (30.2 percent of regional employment) while generating $13.9
billion in local wage and salary payments (25.7 percent of total wages and salaries in the region).
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Total Economic Impacts of the Convention and Meeting Segment
The conventions and meetings segment began its recovery in 2021 while continuing to manage the effects of the pandemic on large group gatherings. Convention
attendance for the year climbed to 2.2 million, a third of the record 6.6 million attendees in 2019. Historically, the convention segment boosts visitation during
weekdays and helps keep room occupancy rates high when leisure visitors are less likely to be in town. While this impact was diminished in 2021, the Southern
Nevada’s convention and meeting segment generated notable economic impacts during the year.
Traditionally, survey data indicates that convention visitors typically spend more per visit than the average leisure visitor. This relationship held true in 2021, with the
average convention visitor spending $1,155 per trip being slightly higher than the $1,118 spent by the average leisure visitor. Because of their higher average
spending profile, convention visitors generate higher per-capita economic impacts on Southern Nevada than leisure visitors. In 2021, convention visitor spending
directly supported an estimated 13,350 jobs, $649.5 million in wages and $2.5 billion in direct economic impact. When the indirect and induced impacts of convention
visitor spending are included, the convention sector supported an estimated 20,480 jobs, $981.9 million in wages and $4.3 billion in overall economic output in
Southern Nevada, illustrating the segment’s importance to the tourism industry as a whole.
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Total Economic Impacts of the Las Vegas Convention Center
The Las Vegas Convention Center (“LVCC”) is a key component of Southern Nevada’s convention and meeting segment, hosting about one-fifth of regional
convention attendees per year. Like the broader segment in 2021, the LVCC’s impacts were limited by the ongoing effects of the COVID-19 pandemic. During the
year, the facility hosted 33 conventions* with a combined attendance of 436,000.* The direct impacts of those attendees was 2,640 jobs, $128.3 million in wages and
$503.4 million in total output. When the indirect and induced impacts are included, those totals rise to 4,050 jobs, $194.0 million in wages and $845.6 million in
economic output.
The completion of the LVCC West Hall expansion in early 2021 provides the facility more space to increase attendance and economic impacts as the convention and
meeting segment continues its recovery. The expansion added 600,000 square feet of exhibit space and 150,000 of meeting space that will allow existing
conventions to expand and accommodate additional visitors as well increased capacity for hosting additional events.
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Methodology and Limitations
METHODOLOGY
General and industry-specific employment and wage data reported on a quarterly basis were obtained from the Nevada Department of Employment, Training and
Rehabilitation. Baseline travel volume, visitor spending data and room tax collections were obtained from the Las Vegas Convention and Visitors Authority, the
Nevada Gaming Control Board, Clark County School District and the Nevada Commission on Tourism. Gross domestic product estimates were obtained from the
Bureau of Economic Analysis.
Beginning in the 2019 fiscal year, the Gaming Control Board implemented new accounting procedures for departmental revenue reporting as follows: with regards to
Financial Accounting Standards Board (“FASB”) accounting standards codification 606, revenue from contracts with customers, all non-restricted licensees (public
and nonpublic organizations as defined by FASB) were required to follow the new accounting standard when preparing standard financial statements. While the
analysis contained herein is reflective of the latest economic activity, there may be modest variances from prior year editions of this report as a result of third-party
reporting changes.
To identify the interrelationships in a regional economy, the IMPLAN (Impact Analysis for Planning) software, databases and methodology were used when estimating
the economic impacts generated by the Southern Nevada resort and tourism industry. IMPLAN is one of three generally accepted applications used to model industry
interrelationships within an economy. The model attempts to demonstrate mathematically how the outputs of one industry become the inputs of other industries.
IMPLAN employs a regional social accounting system that is used to generate a set of balanced accounts and multipliers. The social accounting system is an
extension of input-output analysis. Input-output analysis has been expanded beyond market-based transaction accounting to include non-market financial market
flows by using a social accounting matrix framework. The model is designed to describe the transfer of money between industries and institutions (e.g., households)
and contains both market-based and non-market financial flows, such as inter-institutional transfers. IMPLAN uses regional purchase coefficients generated by
complex econometric equations that predict local purchases based on a region’s characteristics. In this case, the region is Clark County, Nevada. Output from the
model includes descriptive measures of the economy including total industry output, employment and value-added contributions for over 500 industries.
ANALYSIS LIMITATIONS
This analysis used the best available data to analyze the economic impacts of Southern Nevada’s tourism industry. It relies heavily on data reported by third-party
data providers; and, although we have no reason to doubt the accuracy of these data, they have not been subjected to any auditing or review procedures by Applied
Analysis. Input-output models, as is the case with all economics-based models, are not without their limitations. The static model used in this analysis, IMPLAN, for
example, assumes that capital and labor are used in fixed proportions. This means that for every job lost or created, a fixed change in investment, income and
employment will result. In reality, developers, operators, consumers and governments deal with a changing economy in very complex ways, constantly altering their
mix of capital, labor and levels of investment.
Finally, it is important to note that this is a preliminary undertaking that will be supplemented by on-going and future analyses. This report is not intended to be
comprehensive and may not be appropriate for all purposes.
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