VEGAS VISITOR NUMBERS INCH UP IN MAY BUT FLAT OVERALL
July 14, 2008
Las Vegas visitor numbers were up slightly in May, but the
gaming Mecca
continues to struggle with declines in key benchmarks such as hotel occupancy,
room rates and airline passenger counts.
Visitation
eked out a slight gain in May, up 0.4 percent to 3.4 million against an easy
comparison to the 1.2 percent increase last May, according to a report to
investors by Deutsche Bank gaming analyst Bill Lerner. On a year to date basis,
Lerner noted, Las Vegas visitation is flat. During May total occupancy declined
to 89.7 percent with weekend occupancy of 92.7 percent and weekday occupancy of
88.1 percent. The average daily rate dropped 5.5 percent to $135, and RevPAR
was down an estimated 7.9 percent, Deutsche Bank said. In addition, May marked
the fifth consecutive month, and six out of the last seven months, of ADR and
RevPAR declines.
In
addition, passenger counts at McCarran International Airport were down 4.7
percent in May and down 2.4 percent year to date, while vehicle traffic on
Interstate 15 from California was down 5.6 percent in May and down 5 percent
year to date.
“We would point out that while overall visitation is flat, occupancy and
passenger traffic (air and car) are down. We believe this is a function of
several factors, including length of stay, declines in connecting passengers at
McCarran and carpooling from southern CA,” Lerner noted in his report.
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