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Home / Business / Las Vegas, the worst-hit metropolitan economy in the United States, has been hit hard again

Las Vegas, the worst-hit metropolitan economy in the United States, has been hit hard again



Muoio served as an event coordinator for a third-party electrical supplier and carefully arranged the power needs of exhibitors, demonstrators and participants at trade fairs held in large halls.

39-year-old Muoio said: “The days are long. You always stand on your feet during the whole process. Sometimes, you don’t even have time to eat.”

In a typical January, CES in Las Vegas and its surrounding areas will undoubtedly exist. The prices of hotels are skyrocketing, restaurants and clubs are crowded with people, and workers like Muoio spend extra time to ensure that everything goes smoothly without affecting large-scale profitable performances and related events. According to data from the Las Vegas Convention and Visitors Authority, an estimated 1

70,000 CES participants directly generated US$169 million in revenue last year and had a wide-ranging impact on the economy of US$291.2 million.

The move aims to prioritize health and safety during the Covid-19 pandemic, which has dealt yet another blow to cities that are already in trouble due to the current health and economic crisis.

By January 2020, the CES conference is estimated to have attracted 170,000 attendees to Las Vegas, and generated $169 million in direct expenditures and a broader economic impact of $291.2 million.  (Mark Damon/Las Vegas News Service)

Run out of money

During the pandemic, the job market in Las Vegas was the worst-hit area in the US metropolitan area. The region relies heavily on travel, discretionary spending, business meetings and large gatherings, but these key messages have been shut down.

In April 2020, the work stoppage caused the unemployment rate in Las Vegas to reach 34%. According to the US Bureau of Labor Statistics, despite improvements since then, Las Vegas still has the highest unemployment rate in the metropolitan area.
As of November 2020, the unemployment rate in the Las Vegas metropolitan area is 11.5%, and 128,000 people, including Muoio, are still unemployed.

After taking a vacation in March, Muoio was permanently fired in August.

Since then, she said she has applied for hundreds of jobs, including full-time activities coordinating roles and positions in customer service or marketing, but has not found any permanent positions.

Muoio said that living without medical insurance and waiting for the state unemployment benefit application that has been waiting since August, Muoio said she is lucky that she has some money to pay for the final home down payment.

She said: “The money is dripping slowly, slowly.” “I’m almost out of money.”

Brandon Geyer faced a similar situation. He has been out of work since March.

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

He said: “In March, when this first happened, I gave us the impression that we will be closed for a few weeks, no big deal.” “Another week passed, another week passed, and suddenly, since Since March, I have not returned to work.”

For nearly 24 years, Geyer, 49, used to operate a bar in the Main Street Station of a casino, brewery and hotel in downtown Las Vegas, but was temporarily closed due to the pandemic. Although there will be more and more people every time CES comes to the town, Main Street Station attracts loyal customers, many of whom Geyer has known well over the years.

Gal said that he is very happy to receive unemployment benefits, his wife still has a job, and they have some savings to support themselves and their two children. The local culinary workers’ union 226 also helped to obtain weekly food assistance and groceries.

Gale said, but the loss of full and stable income is suffering. He hopes that the union can push Clark County, Nevada to adopt a “right of return” policy, requiring employers to provide laid-off workers with the right to return to their old jobs when the company reopens.

He said: “We just want to know when we will resume work.”

CEO Keith Smith said on the company’s most recent earnings conference call in October that the Main Street Station owned by Boyd Gaming is expected to be reopened sometime in 2021. open.

Empty

Steve Hill, CEO of the Las Vegas Convention and Visitors Authority, said that optimism for 2020 and CES 2021 at this time last year was very good for Las Vegas.

“We have set [room tax dollars] He said there were 7 months of records in the past 10 months. It seems that this situation will definitely continue.

Hotel and resort construction projects are underway. The city not only plans to host the NFL Draft in April, but also has a $1.94 billion glorious stadium. Fans are everywhere, cheering for the recently relocated Raiders NFL team.
By January 2021, CES is planned to be the first event to be held in the nearly $1 billion expansion of the Las Vegas Convention Center, and it is Elon Musk’s “The Boring Company.” Boring Company) debuted the futuristic “democracy movement” project.
The Las Vegas Convention and Exhibition Center has undergone a nearly $1 billion expansion, and the CES 2021 plan is the first event to be held in its newly built West Hall. On the contrary, due to the pandemic, events are all digital.

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

According to Hotels.com data tracked by the Las Vegas Review, during the 2020 International Consumer Electronics Show, hotels with a nightly room rate of more than US$400 will advertise between US$25 and US$45 this year. Due to low demand, some hotels including Wynn’s Mirage and Encore even closed their rooms on Wednesday.

The visitor authorities and CES organizers expect the event to return to Las Vegas in 2022 and beyond. Although it may look a little different when returning.

An official from the Consumer Technology Association, which is hosting CES, said in a statement: “Future events are likely to include the digital part.” “The event industry must innovate throughout the pandemic, change business models and adapt. Our new situation.”

On Monday night, among the houses along the famous Las Vegas Strip, more than twenty dozen tents marked the following message: “We miss you, CES. Can’t wait to welcome you back to 2022.”

On Twitter, the CES 2021 account conveyed this view and tweeted: “I miss home, but we will see you at @Vegas soon.”
On Monday, more than a dozen marquees along the Las Vegas Strip lit up the following information:

“All bets are gone”

The American Travel Association cited data from the research company’s tourism economy and estimated that the Covid-19 pandemic has caused a cumulative loss of 500 billion U.S. dollars in the country’s tourism economy since March, and an estimated $64.4 billion in federal, state and local tax losses.
Adam Sacks, President of Tourism Economics, said at the American Travel Association webinar in December that although leisure travel is expected to drive the recovery of travel and tourism, it is expected that these travels will not return to the pandemic until 2022. The previous level. He said that business trips and company trips may not fully resume until 2024 or later.

John Restrepo, head of RCG Economics in Las Vegas, said that for cities such as Las Vegas to see meaningful economic improvements, people will have to travel again, enter the interior again and Willing to spend money.

Restrepo said that before the vaccine became widespread, “all the bets are gone.”

He said the lack of industry diversification in Nevada could hinder employment recovery as it did after the Great Depression. After the 2008 recession, it took nine years for the state to exceed the number of jobs before the recession.

Restrepo predicts that before the outbreak, it will take the state at least three years to reach the steady annual growth rate shown in key economic indicators. He said that it will take even longer to recover to the actual working level, business tax, gaming revenue and conference service providers.

He said: “In southern Nevada, this kind of rutting will go a long way.”




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