The Las Vegas entertainment economic model, far from recession as predicted, seems to be reinventing itself towards new horizons and strategies. It expects 2024 to see investments increase after 2023, with gaming revenues falling by 10% as a result of inflation and loss of purchasing power.
Although 2024 is the year of full recovery driven by the convention and convention business, the city remains largely dependent on tourism in economic terms. In recent years, the city has been incorporating new high-profile companies such as the Raiders, the NHL's Golden Knights or the Spheres, preparing for the huge economic impact of events such as the Super Bowl, which takes place early next month. February will be.
Population estimates put the Las Vegas metropolitan area at about 115 new residents per day, with most coming from California. It represents an important injection into the local economy, which has slowed down due to the pandemic and economic recession.
Economic impact of entertainment
A recent economic growth report prepared by UNLV details that the entertainment economy worldwide represents $13.7 trillion, equal to 13.7% of total GDP (about $100.7 trillion). Therefore, a business market is structured more advanced than apparel industry, automobile manufacturing, construction and agriculture.
In addition, the city of Las Vegas has seen how the concept of an entertainment economy is encouraged by the $330 billion capital injection provided by the sports industry over the past four years. Last year alone the global entertainment industry was worth $2.7 trillion.
Diversification of your economy
Despite all that, Las Vegas is reducing its reliance on the entertainment economy and focusing its economic plan and wealth on other sectors. However, UNLV's annual Population Project Report ranks Las Vegas 50th out of 56 largest metropolitan areas. Added to this is a report by Brookings University which confirms that economies based on high technology, research and intensive capital grow faster than regions dependent on sectors such as hospitality and retail.
Las Vegas' economic future, like the gaming industry's during the pandemic, involves continuous learning. In this way, sports organizations must rely on its existing entertainment economic infrastructure, such as entertainment venues and states, to constantly update and adapt to new tourism statistics that present different demands.
Despite everything, the entertainment economy will continue to be central to 2024. Examples include the attempt to turn Las Vegas into an electric vehicle hub with Faraday Future, although the model did not succeed. A good example is that poorly developed tests can lead to huge economic losses.
Hidden problems in your economic model
As the population continues to grow, the economy recovers and tourism reaches new heights, Las Vegas will face serious issues such as water consumption, lack of affordable housing, high cost of living and traffic problems.
Although the city hosts major sporting events such as the Formula 1 Grand Prix, which generates millions of dollars in economic development, most residents cannot attend and face significant traffic problems.
What will 2024 look like?
With a less severe recession and a recovery in the entertainment economy, Las Vegas is projected to see healthy secular growth in terms of gaming revenue in 2024. It will be supported by the hotel and hospitality sector.
The growth of professional sports in Las Vegas has only diversified what the entertainment economy has to offer. So, apart from the NFL Raiders, Allegiant Stadium and the Formula 1 circuit, events like the Super Bowl and NCAA March Madness bring huge economic benefits to the city's wealth.
Renovate or die is the philosophy of the Nevada state center, which sees how the recovery of the entertainment economy depends heavily on diversifying into other leisure models outside of casinos to survive and create new jobs. employment.
However, keep in mind that as the economy slows and worsens, attendance at group events may weaken as companies adjust spending.
