Nevada gaming industry’s recovery looks like long odds
Government rescue package cure may not be enough in COVID-19 aftermath
As businesses the world over go through a period of study to seek ways to revitalise industries in the aftermath of COVID-19, it will be interesting to see how Las Vegas reinvents itself one more time.
The American Gaming Association (AGA), through its President and CEO Bill Miller has welcomed the U.S. Senate’s passage of the CARES Act, “which will bring meaningful relief for employees, employers, and tribal governments during this unprecedented public health crisis.”
And while such measures will stem the hardship that will plie up on employees and businesses for a limited period, it might take a lot more to see the industry through during the recovery stages, as travel and tourism to vacation destinations will never again be the same.
The Nevada Resort Association made a plea to the state’s congressional delegation for economic relief, prior to the Senate approving CARES Act earlier in the week, stating that the region’s economy could be set for “devastating impacts due to the unprecedented shutdown of nonessential businesses,” that included hotels and casinos.
Virginia Valentine, president of the association, said that should Nevada’s tourism industry remain stagnant for a period of 30 to 90 days, recovery could take 12-18 months, putting at risk “nearly 160,000 jobs, US$7.7bn in wages and salaries, US$39bn in total economic output and more than US$1bn in lost tax revenue.”
In a letter sent to senators Catherine Cortez Masto and Jackie Rosen, and representatives Dina Titus, Susie Lee, Steven Horsford and Mark Amodei, Valentine, wrote: “No other state in America depends on travel and tourism at the magnitude Nevada does. Nevada depends more on tourism than Alaska does on oil; Wyoming does on coal mining; or, New York City does on the financial sector. Las Vegas, the state’s largest economic centre, is more dependent on tourism than Detroit is on auto manufacturing; Seattle is on aerospace; or, Nashville is on music and entertainment.
“Each year, we welcome nearly 57 million visitors from around the world. As the state’s No. 1 industry, we are the largest employer, the largest taxpayer and the economic foundation the state thrives upon.”
Welcome though the CARES Act is, the feeling in Nevada, especially from smaller local restaurants, hotels and bars is that there is still no cure for all the pain that COVID-19 is inflicting upon the gaming industry in Nevada. One hopes that the Las Vegas, Nevada, reinvention this time includes at least some economic respite, because a cure looks like very long odds.
