Las Vegas Hit Hard by Economic Impact of Pandemic

Las Vegas Hit Hard by Economic Impact of Pandemic

Much like the rest of the country, Nevada is on lockdown, and Las Vegas is looking very different.

In a given year, the city would draw in roughly 42 million tourists. That is about 3.5 million per month, and now, that number is just about zero.

Last week, Caesars furloughed 90% of their domestic workforce, while Penn National Gaming Inc. announced it would be selling the iconic Tropicana casino for $307.5 million, which was reported to be $50 million less than it paid for the property five years ago.

The situation looks bleak for the city.

Bill Robinson, a professor of economics at the University of Nevada Las Vegas, had this to say: ” If this lasts nine to a year, the we’re dead.”

There is no other state that relies more heavily on its tourism than Nevada. Leisure and hospitality accounted for roughly 40% of the cstate’s general fund in 2018.

The social distancing measures that have been put into place have appeared to be working, but the economic effects of that are being felt across the country. With so little people going out, traveling, and attending events, many places like Las Vegas are now being left empty and devoid of their usual income and traffic.

So with casinos and the big names of the strip struggling, imagine the impact of the smaller companies in the city, as well. As this pandemic continues, many people are going to be waiting anxiously for businesses to re-open and money to come in again.

How long it will be is up to anyone’s guess.

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