Las Vegas, the metro economy hit hardest in America, just got another hit

Muoio worked as an event coordinator for a third party of electrical businesses and carefully choreographed the power needs of exhibitors, presenters and participants at the fair in the massive hall.

“There are very long days, and you’re on your feet all the time,” Muoio, 39, said. “Sometimes you do not even have time to eat.”

During a typical January, the presence of CES in and around Las Vegas is unmistakable. Hotel prices are skyrocketing, restaurants and clubs are booming, and workers like Muoio are reporting extra hours to make sure everything goes smoothly for the big money show and related events. Last year, the 170,000 CES participants, according to the Las Vegas Convention and Visitors Authority, generated an estimated $ 169 million in direct spending and a broader economic impact of $ 291.2 million.

The move, which is intended to prioritize health and safety during the Covid-19 pandemic, serves as a further blow to a city already hampered by the current health and economic crises.

In January 2020, the CES conference would have attracted an estimated 170,000 participants to Las Vegas, generated $ 169 million in direct spending and had a broader economic impact of $ 291.2 million.  (Mark Damon / Las Vegas News Bureau)

Money running out

The labor market in Las Vegas was hit hardest among major U.S. metro areas during the pandemic. The region is heavily dependent on travel, discretionary spending, business conferences and large gatherings, but the key pieces have already been eliminated.

In April 2020, downtime led to a 34% unemployment rate in Las Vegas. Although it has improved since then, according to the U.S. Bureau of Labor Statistics, Las Vegas still has the highest unemployment rate among major metro areas.
As of November 2020, the unemployment rate of the Las Vegas metro was 11.5% and 128,000 people – including Muoio – were out of work.

After Muoio was pampered in March, he was permanently discharged in August.

Since then, she says she has applied for hundreds of jobs – including home events that coordinate roles and positions in customer service or marketing – but she has yet to get anything permanent.

While living without health insurance and awaiting a state application pending since August, Muoio said she was happy she had saved money for a final down payment of a home.

“That money is dripping slowly, slowly,” she said. “I’m running out.”

Brandon Geyer faces a similar situation. He has been working since March.

Brandon Geyer, a bartender in Las Vegas, said he has been unemployed since March.

“Come March, when it first happened, I was under the impression that we would be closed for a few weeks,” he says. “Another week goes by, and another week goes by, and suddenly I’m not back to work since March.”

Geyer, 49, has been running a bar for nearly 24 years at Main Street Station, a casino, brewery and hotel in downtown Las Vegas that is temporarily closed due to the pandemic. And while the crowd grew as CES entered the city, Main Street Station drew loyal customers, of whom Geyer had come to know well over the years.

Geyer said he is grateful he received unemployment benefits, that his wife still has her job and that they are saving money to support themselves and their two children. The Culinary Workers Union Local 226 also helped obtain weekly food aid and groceries.

But the loss of full and steady income is taking its toll, Geyer said. He is hopeful that his union will strive for Clark County, Nevada, to establish a “Right to Return” policy, which requires employers to give fired workers the right to return to their old jobs when businesses reopen.

“We just wonder when we’ll go back to work,” he said.

The main street station owned by Boyd Gaming is expected to reopen sometime in 2021, CEO Keith Smith said during the company’s most recent earnings call in October.

Greedy empty

This time last year, optimism was high that 2020 – and CES 2021 – would be quite prosperous for Las Vegas, said Steve Hill, chief executive of the Las Vegas Convention and Visitors Authority.

‘We stated [room tax dollars] records in seven of the previous ten months, “he said. It looked like it would definitely continue. “

Construction of hotel and resort projects was underway, and the city would not only have presented the NFL concept in April, but also filled the $ 1.94 billion Allegiant Stadium with fans around the recently relocated Raiders Encourage NFL team.
And for January 2021, CES would be the first event held in a nearly $ 1 billion expansion of the Las Vegas Convention Center, and serves as the debut for a futuristic ‘People-Mover’ project from Elon Musk’s The Boring Company.
The Las Vegas Convention Center has undergone an expansion of nearly $ 1 billion, and CES 2021 was the first event to be held in the newly built West Hall.  Instead, the event is completely digital due to the pandemic.

Instead, the 1.4 million-square-foot new West Hall sits empty, Hill said.

Hotels that charged more than $ 400 a night for rooms during CES 2020 week advertised rates in the $ 25 to $ 45 range this year, according to Hotels.com data followed by the Las Vegas Review Journal . Some hotels, including the Mirage and Encore in Wynn, have even closed mid-week rooms due to low demand.

The expectation from the visitor authority and the CES organizers is that the event will return to Las Vegas in 2022 and beyond. Although it will probably look a little different when it returns.

“The future of events will most likely include a digital component,” officials from the Consumer Technology Association, which hosts CES, said in a statement. “Throughout this pandemic, the opportunity industry had to innovate, change business models and adapt to our new circumstances.”

On Monday night, more than two dozen parties were lit at properties along the famous Las Vegas Strip with the message: “We miss you, CES. Can’t wait to welcome you back in 2022.”

And on Twitter, the CES 2021 account compensated the sentiment, tweeting, “I feel homesick, but we’ll see you soon @ Vegas.”
On Monday, more than a dozen parties lit up the Las Vegas Strip with the message: "We miss you, CES.  I can not wait to welcome you back in 2022."

“All commitments are off”

The American Travel Association, citing data from research firm Tourism Economics, estimates that the Covid-19 pandemic has led to $ 500 billion in cumulative losses for the country’s travel economy since March, estimated at $ 64.4 billion for the federal , caused state and local taxes. income.
While recreational travel is expected to fuel the recovery of tourism and tourism, travel after 2022 is not expected to return to pre-pandemic levels, said Adam Sacks, president of Tourism Economics in December during a U.S. Travel Association webinar . It will likely take until 2024 or later before business travel and corporate travel return in full, he said.

John Restrepo, head of RCG Economics in Las Vegas, said cities like Las Vegas need to see significant economic improvement, they will need to feel comfortable traveling again, being indoors and spending money.

“And until vaccinations are widespread, all commitments are gone,” Restrepo said.

The lack of diversification in Nevada is likely to hamper job creation, just as it did after the Great Recession, he said. After the downturn in 2008, the state took nine years to surpass the number of jobs before recession.

This time, Restrepo predicts that it will take at least three years before the state reaches the constant annual growth rates seen in key economic indicators before the pandemic. It will take even longer to return to the actual levels of jobs, turnover taxes, game revenue and event attendees.

“It’s going to be a long blow from this quarry here in southern Nevada,” he said.

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