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Visitor numbers drop in August

LAS VEGAS, Nevada -- A drop in conventions and the number of people attending them drove Las Vegas tourism numbers down sharply in August.

The Las Vegas Convention and Visitors Authority on Friday reported that nearly 3.2 million people visited Las Vegas in August, a 4.3 percent drop from the same month last year.

It was the sixth month this year that tourism decreased from 2007. Overall, visitor numbers are down 1.5 percent for 2008.

The monthly drop was driven by a 22.3 percent decrease in convention attendance to 574,184, with 165,031 fewer people attending 103 fewer conventions.

"The convention and business segment is starting to show some signs of pullback," said Brian Gordon, a principal in the local economic research firm Applied Analysis. "Businesses today are struggling with the financial markets, access to capital and a whole host of other issues. That may be factoring in what we're seeing here in these one-month numbers."

Three large conventions held in August 2007 with nearly 71,000 attendees -- World Shoe, Cisco and Orgill -- were moved to different months or rotated out of Las Vegas, said Kevin Bagger, director of Internet marketing and research for the authority.

However, the economic downturn and increased fuel prices are causing fewer smaller conventions to be scheduled and some to be canceled.

"We are seeing small corporate meetings are being affected by the economy," said Bagger, referring to gatherings of 500 attendees or less, which historically have represented half the area's convention attendees.

The trend of lower room rates continued with a 15.3 percent drop to $107.01 per night, marking the third consecutive month of double-digit percentage decreases.

Occupancy dropped 2.9 percent to 88.3 percent and total room nights occupied slipped 0.4 percent.

However, tourist room occupancy nights increased 20.8 percent, offsetting a 29.8 percent decrease by convention attendees.

The increase in tourist occupancy could be a reflection of bargain travelers taking advantage of package deals and incentives offered by hotel-casinos, Gordon said.

The room rate and occupancy figures are from a monthly survey of Las Vegas hotel operators representing about 75 percent of the total inventory, according to the authority.

Overall airline traffic was down 9.9 percent, the largest drop this year, with 3.9 million passengers, the fewest since April.

Charters and direct international service declined 12.2 percent, the fifth consecutive month of sharp declines.

Visitation to Clark County tourist outposts Laughlin and Mesquite also declined.

Laughlin visitation slipped 1.6 percent to 263,267, but room rates increased 14.9 percent to $47.21.

Mesquite visitation dropped 3.2 percent to 118,555, and the room rate was down 41.2 percent to $46.11.

Visitor volumes for 2008 is down 5.9 percent in Laughlin and 2.7 percent in Mesquite.

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