0Executive Summary
The COVID-19 pandemic left an indelible imprint on the Southern Nevada tourism industry and the broader regional economy. Compared to recent recessions, the
COVID-19 recession’s magnitude was unprecedented in its depth and speed. Applied Analysis was retained by the Las Vegas Convention and Visitors Authority (the“LVCVA”) to review and analyze the economic impacts of the pandemic on Southern Nevada’s tourism industry in 2020. This brief examines the effects on visitation,
employment and other key metrics as well as the overall decline in the tourism industry’s economic impact due to the pandemic and related response. While theeconomic losses in 2020 were material, it is worth noting that many of the economic conditions and shortfalls have persisted into early 2021.
▪ The global travel industry collapsed in the early months of the pandemic andslowly recovered over the year. In Southern Nevada, travel restrictions, resort
closings and other pandemic-related responses led to a 55 percent drop in
visitor volume to 19.0 million, the lowest annual total since 1989. Convention
attendance also fell to its lowest level in 21 years as conventions, tradeshows and business meetings were canceled through most of the year.

1

end of the year. When evaluated through that timeframe, the year-to-year
impact on visitor spending grows to a 66.5 percent drop.
▪ In 2019, the total economic output related to visitor spending reached $63.6
billion, about half of the region’s gross economic output. In 2020, with fewer
visitors and less overall visitor spending, the economic impact of the tourism
industry dropped by more than half to $29.6 billion.

▪ Southern Nevada’s economy is more dependent on tourism than most otherdomestic tourism destinations. Among major destinations in the U.S., the Las
Vegas metropolitan area in 2019 had the highest share of employment
sourced to the tourism industry at 28.6 percent. The region’s reliance on
tourism made it particularly susceptible to the pandemic and its impacts on
travel, conventions, business meetings and other activities that involve large
gatherings. Unemployment in the region spiked to 33.3 percent in April 2020
and averaged a record 14.7 percent in 2020.

▪ The Southern Nevada tourism industry directly employed an estimated242,500 workers in 2019, and when the ripple effects of visitor spending were
included, the tourism industry supported 376,800 jobs. In 2020, direct
tourism-related employment fell 32.5 percent to 163,800, and total
employment with indirect and induced effects fell by 125,600 to 251,200 jobs,
a 33.3 percent decline. When comparing only the pandemic timeframe, that
impact rises to a 44.5 percent drop in employment.

▪ The economic impacts of Southern Nevada’s tourism industry are driven byvisitor spending on rooms, dining, shopping, local transportation and otheractivities and amenities during their stays. That spending directly supports
jobs, wages and economic activity, and it ripples through the economy togenerate additional impacts via suppliers and vendors (indirect impacts) andby employee spending on goods and services in the community (induced
impacts). The fall in visitation translated to a drop in visitor spending from$36.9 billion in 2019 to $17.6 billion in 2020, a 52.2 percent decline. That
negative impact was concentrated in the period from mid-March through the▪ As the largest regional employer, Southern Nevada’s tourism industry
generates a significant share of worker wages and salaries. In 2019, theindustry supported $11.0 billion in direct wages, accounting for 21.5 percent
of all wages in the region. The additional indirect and induced impacts
supported wages for workers across many sectors of the economy, with a
total wage impact of $17.1 billion in 2019. Due to the COVID-19 pandemic,
wages paid directly to tourism industry workers fell by $3.3 billion to $7.7
billion, and total wages including secondary ripple effects declined by $5.4
billion to $11.6 billion.

Timeline of the COVID-19 Pandemic

2

December 2019

January 20, 2020

January 31, 2020

March 5, 2020

March 11, 2020

March 11, 2020

COVID-19 Virus
Identified
in China

First Confirmed
COVID-19 Case in
the U.S.

U.S. Declares
Emergency, Limits
Travel from China

First Confirmed
COVID-19 Cases
in NevadaWorld HealthOrganization
Declares Pandemic

U.S. Limits Travel
From Most
European Nations

March 12, 2020

March 12, 2020

March 12, 2020

March 14, 2020

March 14, 2020

March 15, 2020

Gov. Sisolak
Declares Stateof Emergency

NCAA Cancels
March Madness
Tournament

National Hockey
League Suspends
Operations

Cirque du Soleil
Suspends
Production

State Athletic
Commission
Suspends Fights

Resorts Announce
Closures; K-12
Schools CloseTimeline of the COVID-19 Pandemic

3

March 16, 2020

March 17, 2020

March 18, 2020

March 21, 2020

March 25, 2020

June 4, 2020

NFL Cancels
Draft Eventsin Las Vegas

Non-Essential
Business
Closures OrderedStatewide Gaming
Operations
Suspended

Record 92,300
Nevadans Applyfor Unemployment$2.2 Trillion
CARES Act
EnactedGaming Operations
Resume; Resorts
Start to Reopen

December 14, 2020

December 27, 2020

March 6, 2021

March 11, 2021

April 13, 2021

May 13, 2021

First COVID-19
Vaccines Givenin Nevada$900 Billion
Stimulus Bill
EnactedSpeedway Hosts
NASCAR Weekend
at Partial Capacity$1.9 Trillion
American Rescue
Plan Enacted

Goal Set for 100
Percent Capacity
by June 1

CDC Loosens
Mask Rules for
the VaccinatedAs the Pandemic Evolved, the Southern Nevada Tourism Industry Reacted and Adapted
The COVID-19 pandemic swept across the globe in early 2020 before hitting the United States with a vengeance in mid-March. As the nation and state grappled withthe public health threat throughout the year, Southern Nevada’s tourism industry reacted and adapted to changing capacity restrictions, travel limitations and otheroutside factors that altered the industry’s operating environment. The timeline below illustrates the up-and-down trends of COVID-19 cases nationally and the key
responses by public officials and the tourism industry.
300,000
Statewide state of
emergency declared.

250,000

200,000

Resort and gaming
property closings begin.

Resorts and gaming
properties start toreopen after 78 days.

Statewide gaming
operations suspended.

Statewide mask
mandate implemented
for public places.

100,000

Restaurants and otherbusinesses limited to
50 percent capacity.
Statewide stay-at-homeorder issued

Capacity limits forcasinos and restaurants
rise to 250 people or
50 percent.
Some resorts begin
midweek hotel closuresdue to lagging demand.
Midweek closurescontinue through theholiday months.

Clark County increases
capacity limits to 80
percent.
Social distancing andcapacity limitations end.

Capacity limits reduced
to 50 people or 25
percent for three-weekreopening “pause.”

50,000Mar '20Gatherings increased to
250 people or 50
percent capacity.

Capacity limits rise to
100 people or 35
percent for casinos,
restaurants and otherbusinesses. Stores andother businesses
increase to 50 percent.

Bars ordered to closein Clark County.

Public gatherings
limited to 10 people.

150,000

Bars in Clark County
allowed to reopen.

Apr '20 May '20 Jun '20

Jul '20

Aug '20 Sep '20 Oct '20 Nov '20 Dec '20 Jan '21 Feb '21 Mar '21

Apr '21 May '21 Jun '21

COVID-19 Cases in the U.S. (7-Day Moving Average)
Source: Centers for Disease Control and Prevention

4

Domestic and International Travel Trends Collapse Due to Pandemic
As the COVID-19 pandemic escalated through March and April 2020, travel around the United States and the world collapsed amid mounting public health concerns,
travel restrictions and quarantine requirements. After reaching a relative low point in April, domestic road trips recovered more quickly than air travel through theremainder of the year and into early 2021. Compared with road travel, air travel declined to a greater degree and has recovered more slowly. Domestic air travel has
maintained a steady recovery trajectory but remained more than 40 percent below pre-pandemic levels. International visitation has lagged in its recovery as the U.S.
maintained extensive travel limitations for visitors from many parts of the world.

U.S. Road Trip Travel Index

TSA Airport Screenings

International Arrivals to U.S.

Change vs. 2019 Baseline

Change vs. 2019 Baseline

Change vs. January 2020

20%

20%

20%

0%

0%

0%

-20%

-20%

-20%

-40%

-40%

-40%

-60%

-60%

-60%

-80%

-80%

-80%

-100%

J F M A M J J A S O N D J F M A
2020

2021

-100%

J F M A M J J A S O N D J F M A
2020

2021

-100%

J F M A M J J A S O N D J F M
2020

2021

Sources: Arrivalist; Transportation Security Administration; U.S. International Trade Administration

5

Global Travel Decline Evident in
Lowest Visitor Volume Since ‘89
After reaching the second-highest level
recorded in 2019, Las Vegas visitor volume
plunged 55 percent in 2020 to 19.0 million, thelowest annual total since 1989. The year beganon track to reach a new high as January andFebruary set visitation records in each
respective month.

Las Vegas Visitation
50M
45M
40M

35M
30M
25M
20M

March marked a turning point for the nationand the state, however, as COVID-19 cases 15M
spiked and the community mobilized in 10M
response to the growing threat to public health. 5M
That response included international travel
restrictions imposed by the federal governmentand business operation limits in Nevada that
included closing all gaming establishments for
78 days from mid-March through May.
After resorts started to reopen in June,
visitation trended upward through the summer
with a focus on the leisure segment. Visitation
pulled back in the fall and winter months amid
rising COVID-19 infections and the lack ofsporting events and conventions thattraditionally fill the calendar in those months.

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

4.5M

Visitation

Visitation

Visitation

2001 Recession

Great Recession

COVID-19 Pandemic

4.5M

4.5M

4.0M

4.0M

4.0M

3.5M

3.5M

3.5M

3.0M

3.0M

3.0M

2.5M

2.5M

2.5M

2.0M

2.0M

2.0M

1.5M

1.5M

1.0M

1.0M

0.5M

0.5M

The decline in visitor volume in 2020 was
unprecedented in its speed and depth. On a 1.5M
yearly basis, visitation fell 55 percent, but
1.0M
focusing on the pandemic timeframe of midMarch thru December, visitation fell about 67 0.5M
percent compared to the same period in 2019.
-

'00

'01

'02

'03

'04

-

'07

'08

'09

'10

'11

-

'17

'18

'19

'20

'21

Source: Las Vegas Convention and Visitors Authority

6

Convention and Trade Show
Activity Halts During Pandemic
Similar to overall visitation trends, Southern
Nevada convention attendance in 2020 also
fell to its lowest total since 1989. The 1.7
million convention attendees in 2020 marked a74.0 percent drop from the record of 6.6 million
set in 2019. However, practically all of theyear’s convention attendance occurred fromJanuary through mid-March, effectively
concentrating the annual drop between midMarch and December.

Convention Attendance
7M
6M
5M
4M

3M
2M

The convention and meeting segment depends 1M
on large gatherings of people from across thenation and the world, and the combination of'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
pandemic-related travel restrictions, gathering
limits and public health concerns translated into
Convention AttendanceConvention AttendanceConvention Attendance
a virtual shut down of convention and trade
Great Recession
2001 Recession
COVID-19 Pandemic
1.0M
1.0M
1.0M
show activity in Southern Nevada in 2020.
The convention and meetings segment is an
important piece of Southern Nevada’s tourism 0.8M
economy. Business visitors help boost
occupancy and room rates during midweek
periods with less demand from leisure visitors. 0.6M
At times in 2020 and early 2021, some resort
properties closed their hotel operations during
0.4M
midweek dates due to lack of demand.
Convention and meeting visitors also spend
more per trip on average then leisure visitors, 0.2M
making the recovery of this segment a vital
component of the overall recovery in visitor
volume and economic impact.
'00

'01

'02

'03

'04

0.8M

0.8M

0.6M

0.6M

0.4M

0.4M

0.2M

0.2M

-

'07

'08

'09

'10

'11

-

'17

'18

'19

'20

'21

Source: Las Vegas Convention and Visitors Authority

7

Air Passenger Counts Fall Amid
Global Travel Slowdown

McCarran International Airport Passengers
60M

In 2019, the passenger count at McCarranInternational Airport set a record of 51.5 million. 50M
A year later, the total dropped 56.9 percent to22.2 million, the lowest yearly total since 1992. 40M
Global travel demand in 2020 was severely
hindered by the COVID-19 pandemic and the 30M
effects of travel restrictions to and from theUnited States. The decline in overall travel 20M
demand, including international visitors andbusiness travelers, was reflected in diminished 10M
air travel to and from Southern Nevada.

In line with overall visitation trends, passenger
volumes at the airport have trended up in early2021 as vaccination rates increased and
COVID-19 infections declined. The extent of air
passenger recovery through 2021 and into
2022 will be influenced by the recovery inconvention and meetings activity in Southern
Nevada and the recovery of international
visitation. As of April 2021, the U.S. maintained
broad travel restrictions for visitors from many
parts of the world, including several key feeder
markets for Southern Nevada.

-'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

McCarran Passengers

McCarran Passengers

2001 Recession

Great Recession

5.0M

5.0M

McCarran Passengers

4.5M

4.5M

4.5M

4.0M

4.0M

4.0M

3.5M

3.5M

3.5M

3.0M

3.0M

3.0M

2.5M

2.5M

2.5M

2.0M

2.0M

2.0M

1.5M

1.5M

1.5M

1.0M

1.0M

1.0M

0.5M

0.5M

0.5M

-

'00

'01

'02

'03

'04

-

'07

'08

'09

'10

COVID-19 Pandemic

5.0M

'11

-

'17

'18

'19

'20

'21

Source: McCarran International Airport

8Drive-In Segment Maintains
Some Stability During Pandemic
The drive-in visitor segment typically accounts
for about half of annual visitor volume inSouthern Nevada. With pandemic-related
limitations and safety concerns with air travel
throughout 2020, drive-in visitors provided amore stable source of visitation during the year.
Average daily traffic counts on Interstate 15 at
the California border, an indicator of drive-in
visitation, declined in 2020 but to a much lesser
degree than air passengers. The annual
average daily traffic count of 37,500 dipped
16.2 percent on the year. Historically, the 2020
figure was in line with the 2008 figure.

Daily I-15 Traffic at Cal-Nev Border
50K
45K
40K

35K
30K
25K
20K
15K
10K
5K
-

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

The pandemic-related decline in traffic counts
was not as pronounced or as long as with air
passenger counts, and monthly averages even
60K
exceeded prior year numbers in September
and October before declining through thewinter months. The local recovery in highway 50K
travel was a reflection of a nationwide increasein road trips as travelers sought alternatives to 40K
air travel.
Nearby regional markets such as Southern 30K
California and Arizona are traditionally areliable source of visitation, accounting for 20K
about one in four visitors. During the pandemic,
those and other drive-in markets proved to be 10K
important sources for visitation when accessfrom other markets remained limited.
-

Cal-Nev Border Traffic

Cal-Nev Border Traffic

Great Recession

COVID-19 Pandemic

60K
50K
40K
30K
20K
10K

'06

'07

'08

'09

'10

'11

-

'16

'17

'18

'19

'20

'21

Source: Las Vegas Convention and Visitors Authority

9Occupancy Rate Improves After
Reaching Unprecedented Low

Occupancy Rate
100%

The occupancy rate in Southern Nevada
dropped to an unprecedented 42.1 percent in
2020, a direct result of visitor volume tumbling
amid the COVID-19 pandemic. Prior to 2020,the lowest annual occupancy rate recorded
was 68.0 percent in 1970, and the most-recent
low point was 80.4 percent in 2010 following
the Great Recession.

90%

After plummeting during the market-wide resort
closures for 78 days through April and May, themonthly occupancy rate improved to the hover
between 40 percent and 50 percent. In
general, occupancy rates have trended in linewith overall visitor volume.

30%

80%

70%
60%
50%
40%
20%
10%
0%

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

The occupancy rates in the early months ofreopening properties reflect only room
100%
inventories for open properties to better reflect
actual room availability. If rooms at closed 90%
properties were included in the calculation, the 80%
occupancy rates would be lower. At the end of
70%
2020, the majority of resort properties had
reopened, but several smaller properties 60%
representing a total of about 5,000 rooms 50%
remained closed.

Occupancy Rate

Occupancy Rate

2001 Recession

Great Recession

100%

Occupancy Rate

90%

90%

80%

80%

70%

70%

60%

60%

50%

50%

40%

40%

40%

30%

30%

30%

20%

20%

20%

10%

10%

10%

0%

'00

'01

'02

'03

'04

0%

'07

'08

'09

'10

COVID-19 Pandemic

100%

'11

0%

'17

'18

'19

'20

'21

Source: Las Vegas Convention and Visitors Authority

10

Room Nights Occupied vs. Room Nights Available
The chart below illustrates total available room nights in Southern Nevada and how many were occupied or vacant. The pink bars represent annual averages, while
the blue bars represent monthly values since the start of 2020. Room nights available have been fairly stable since 2010. That trend shifted in early 2020 when resort
properties closed for 78 days and gradually reopened over the following months. A few larger properties remained closed in early 2021, though room inventory will
expand in mid-2021 with the opening of Resorts World Las Vegas, the first major resort addition on the Las Vegas Strip in 11 years.
Room Nights Occupied

Vacant Room Nights

5.0 M

4.5 M
4.0 M
3.5 M
3.0 M
2.5 M
2.0 M
1.5 M
1.0 M
0.5 M

-

'95

'97

'99

'01

'03

'05

'07

'09

'11

'13

'15

'17

'19

Feb
'20

Apr
'20

Jun
'20

Aug
'20

Oct
'20

Dec
'20

Feb
'21

Source: Las Vegas Convention and Visitors Authority; Applied Anlaysis

11Average Daily Room Rates Fallin Line with Occupancy Rates
With demand for hotel rooms limited through2020, average daily room rates in Southern
Nevada dropped to their lowest level in two
decades. The decline in room rates wasmoderated to a degree as resorts sought tobalance room availability with visitor demandthroughout the year.
Along with an overall reduction in demand,
daily room rates in 2020 were also affected by
the significant decline of international visitors
and business travelers, two segments thattraditionally pay room rate premiums and staylonger than visitors in the domestic leisuresegment.

Average Daily Room Rate
$140
$120
$100
$80

$60
$40
$20
$0

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20$160

Average Daily Rate

Average Daily Rate

2001 Recession

Great Recession$160

Average Daily Rate

$140

$140

$140

$120

$120

$120

$100

$100

$100

$80

$80

$80

$60

$60

$60

$40

$40

$40

$20

$20

$20

$0

'00

'01

'02

'03

'04

$0

'07

'08

'09

'10

COVID-19 Pandemic

$160

'11

$0

'17

'18

'19

'20

'21

Source: Las Vegas Convention and Visitors Authority

12Southern Nevada’s Relative Dependence on Tourism
Southern Nevada’s economy is far more dependent on the tourism industry than most other domestic tourism destinations. Among major destinations in the U.S., theLas Vegas metropolitan area has the highest share of employment sourced to the tourism industry at 28.6 percent. The Southern Nevada economy’s heavy relianceon the tourism industry made it particularly susceptible to the COVID-19 pandemic and the impact it had on limiting travel, dining at restaurants and other activities
that involve large gatherings.

Leisure and Hospitality Employment Share

29%
22%

14%

Las Vegas

Orlando13%

San Diego Los Angeles

11%

11%

11%

Atlanta

Phoenix

Chicago10%

10%

SeattleNew York

10%

Philadelphia
Source: Bureau of Labor Statistics

13

Southern Nevada’s Relative Dependence on Tourism
In April 2020, the Las Vegas metropolitan area recorded an unemployment rate of 33.3 percent, highest among large metro areas. The chart below illustrates theunemployment rates of nearly 300 metro areas in relation to their concentration of employment in the leisure and hospitality industry. Bubble sizes correlate to thenumber of workers in that industry. Southern Nevada’s unemployment rate has improved over the past year, but it has had one of the nation’s highest unemployment
rates for most of that time.

Unemployment Rate by Tourism Dependence
35%
Average

Percent Employed in Leisure and Hospitality

By Metropolitan Area (April 2020)

30%
25%

Las Vegas, NV

33.3%

20%

Unemployment Rate

15%
10%

Average

5%
0%
0%

5%

10%

15%
20%
25%
MSA Unemployment Rate

30%

35%

40%
Source: Bureau of Labor Statistics

14

Southern Nevada’s Relative Dependence on Tourism
For the year, Southern Nevada’s unemployment rate average was the highest among large metropolitan areas at 14.7 percent and was the fifth-highest among morethan 300 metro areas in the United States. Two of the areas with higher unemployment rates were in Atlantic City, New Jersey, and Kahului, Hawaii, two smaller
metropolitan areas with larger shares of leisure and hospitality employment than Southern Nevada. The region’s unemployment rate improved into early 2021, falling
below double digits as COVID-19 infections declined and vaccination rates climbed, though it remained among the highest in the nation.

Unemployment Rate by Tourism Dependence
35%
Average

Percent Employed in Leisure and Hospitality

By Metropolitan Area (2020 Annual Average)

30%
25%

Las Vegas, NV

14.7%

20%

Unemployment Rate

15%
10%

Average

5%
0%
0%

5%

10%

15%
20%
25%
MSA Unemployment Rate

30%

35%

40%
Source: Bureau of Labor Statistics

15

Southern Nevada’s Relative Dependence on Tourism
The annual average unemployment rate of 14.7 percent in 2020 was the highest in Southern Nevada history. The previous annual high was 14.0 percent in 2010 in
the wake of the Great Recession. The recovery from the Great Recession period was prolonged, with the annual unemployment rate remaining in double-digit
territory for five straight years. Much uncertainty remains for the path of recovery from the COVID-19 recession, but economic, fiscal and public health indicators inearly 2021 suggest a quicker recovery is possible.

Unemployment Rate in Southern Nevada
Annual Average
16%
14.0%

14%

14.7%
13.5%

11.9%

12%

11.7%
10.0%

10%
8%

8.2%
6.9%

6.8%

5.9%

6%

5.2%

4.6%

4%

4.1%

2%

0%

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: Bureau of Labor Statistics

16

Leisure and Hospitality Employment Recovery
The leisure and hospitality industry accounts for the largest share of employment in Southern Nevada and is an important indicator of the region’s overall economic
health. The chart below illustrates the recovery of employment for Southern Nevada’s six largest employment sectors compared to February 2020. The sectors haverecovered to varying degrees, but the leisure and hospitality industry stands apart in its lagging recovery, which remained about 30 percent below pre-pandemic
levels.

Employment Recovery by Sector
Compared to February 2020
10%
Trade, Transportation & Utilities
0%

-10%

Education & Health Services
Government
Construction
Professional & Business Services

-20%

-30%

Leisure & Hospitality

-40%

-50%

-60%
Feb '20 Mar '20 Apr '20 May '20 Jun '20 Jul '20 Aug '20 Sep '20 Oct '20 Nov '20 Dec '20 Jan '21 Feb '21 Mar '21
Source: Bureau of Labor Statistics

17

COVID-19 Impacts on Visitor Spending and Economic Output
The economic impacts of tourism in Southern Nevada are driven by the spending from visitors on rooms, dining, shopping, local transportation and other activities
and amenities during their stays. That spending directly supports a significant amount of employment, wages and economic activity. Visitor spending also ripples
through the economy to generate additional impacts via suppliers and vendors (indirect impacts) and by employee spending on goods and services in the community(induced impacts). In 2019, the total economic output related to visitor spending totaled $63.6 billion, about a third of the region’s gross economic output. In 2020,
with fewer visitors and less overall visitor spending, the economic impact of Southern Nevada’s tourism industry dropped by more than half to $29.6 billion.

2019
2020
COVID-19
Impact18$36.9 Billion$11.4 Billion$15.4 Billion$63.6 Billion

Direct Visitor
Spending

Suppliers
and Vendors

Employee
Spending

Total Economic
Impact$17.6 Billion$4.9 Billion$7.0 Billion$29.6 Billion

Direct Visitor
Spending

Suppliers
and Vendors

Employee
Spending

Total Economic
ImpactDirectIndirectInducedTotal$19.2 Billion$6.4 Billion$8.4 Billion$34.0 Billion

52.2%

56.7%

54.3%

53.5%

COVID-19 Impacts on Employment
Southern Nevada’s tourism industry is the largest employment sector in the region, with a workforce comprised of employees at the region’s resorts, hotels andcasinos as well as the workers in bars, restaurants, nightclubs, retail outlets, sightseeing tour companies, taxicab operators and all other tourism-related businesses
that cater to visitors. In 2019, the tourism industry directly employed an estimated 242,500 workers, or 23.8 percent of the regional workforce. When the ripple effectsof visitor spending are included, the tourism industry supported 376,800 jobs. The impact of COVID-19 through 2020 suppressed direct employment as visitation fell
and tourism-related businesses scaled back operations or closed. The pandemic-related declines that affected direct employment also applied to the secondary
employment impacts, reducing the total employment impact of the tourism industry by more than 125,000 jobs.

2019
2020
COVID-19
Impact19

242,500

57,50076,900376,800

Jobs

Jobs

Jobs

Jobs

Direct Impacts

Indirect Impacts

Induced Impacts

Total Impacts

163,800

35,80051,700251,200

Jobs

Jobs

Jobs

Jobs

Direct Impacts

Indirect Impacts

Induced Impacts

Total Impacts

DirectIndirectInducedTotal

78,70021,80025,200125,600

32.5%

37.8%

32.7%

33.3%

COVID-19 Impacts on Wages and Salaries
As the largest regional employer, Southern Nevada’s tourism industry generates a significant share of worker wages and salaries. In 2019, the industry supported$11.0 billion in direct wages, accounting for 21.5 percent of all wages earned in the region. The wages and salaries earned by tourism industry workers was roughly
equal to the total earnings by employees in Clark County’s manufacturing, professional services and information industries, combined. The additional indirect andinduced impacts supported wages for workers across many sectors of the economy, with a total wage impact of $17.1 billion in 2019. Due to the COVID-19
pandemic, wages paid directly to tourism industry workers and to workers through the secondary ripple effects dramatically declined by a third to $11.6 billion.

2019
2020
COVID-19
Impact20$11.0 Billion$2.8 Billion$3.2 Billion$17.1 Billion

Wages

Wages

Wages

Wages

Direct Impacts

Indirect Impacts

Induced Impacts

Total Impacts$7.7 Billion$1.8 Billion$2.2 Billion$11.6 Billion

Wages

Wages

Wages

Wages

Direct Impacts

Indirect Impacts

Induced Impacts

Total Impacts

DirectIndirectInducedTotal$3.3 Billion$1.1 Billion$1.0 Billion$5.4 Billion

30.0%

38.1%

32.4%

31.8%

COVID-19 Impacts Magnified Without First Months of 2020
Prior to the COVID-19 pandemic, Southern Nevada visitation in early 2020 was on pace to exceed the 2019 total of 42.5 million. When those strong early months are
excluded, the profound impact of the pandemic on the tourism industry becomes more evident. The illustrations below show the difference in pandemic-related
impacts between 2019 and 2020 for the entire year compared to the period from mid-March through the end of the year.

Full Year
ImpactPandemic Period
ImpactFull Year
ImpactPandemic Period
Impact-52.2%-66.5%-53.5%-67.4%

VisitorSpending

Total
Employment

21

Total
OutputFull Year
ImpactPandemic Period
ImpactFull Year
ImpactPandemic Period
Impact-33.3%-44.5%-31.8%-44.1%

Wages &
Salaries

Methodology and Limitations
METHODOLOGY
General and industry-specific employment and wage data reported on a quarterly basis were obtained from the Nevada Department of Employment, Training andRehabilitation. Baseline travel volume, visitor spending data and room tax collections were obtained from the Las Vegas Convention and Visitors Authority, theNevada Gaming Control Board, Clark County School District and the Nevada Commission on Tourism. Gross domestic product estimates were obtained from the
Bureau of Economic Analysis.
Beginning in the 2019 fiscal year, the Gaming Control Board implemented new accounting procedures for departmental revenue reporting as follows: with regards toFinancial Accounting Standards Board (“FASB”) accounting standards codification 606, revenue from contracts with customers, all non-restricted licensees (public
and nonpublic organizations as defined by FASB) were required to follow the new accounting standard when preparing standard financial statements. While theanalysis contained herein is reflective of the latest economic activity, there may be modest variances from prior year editions of this report as a result of third-party
reporting changes.

To identify the interrelationships in a regional economy, the IMPLAN (Impact Analysis for Planning) software, databases and methodology were used when estimating
the economic impacts generated by the Southern Nevada resort and tourism industry. IMPLAN is one of three generally accepted applications used to model industry
interrelationships within an economy. The model attempts to demonstrate mathematically how the outputs of one industry become the inputs of other industries.
IMPLAN employs a regional social accounting system that is used to generate a set of balanced accounts and multipliers. The social accounting system is anextension of input-output analysis. Input-output analysis has been expanded beyond market-based transaction accounting to include non-market financial market
flows by using a social accounting matrix framework. The model is designed to describe the transfer of money between industries and institutions (e.g., households)
and contains both market-based and non-market financial flows, such as inter-institutional transfers. IMPLAN uses regional purchase coefficients generated bycomplex econometric equations that predict local purchases based on a region’s characteristics. In this case, the region is Clark County, Nevada. Output from themodel includes descriptive measures of the economy including total industry output, employment and value-added contributions for over 500 industries.
ANALYSIS LIMITATIONSThis analysis used the best available data to analyze the economic impacts of Southern Nevada’s tourism industry. It relies heavily on data reported by third-party
data providers; and, although we have no reason to doubt the accuracy of these data, they have not been subjected to any auditing or review procedures by Applied
Analysis. Input-output models, as is the case with all economics-based models, are not without their limitations. The static model used in this analysis, IMPLAN, forexample, assumes that capital and labor are used in fixed proportions. This means that for every job lost or created, a fixed change in investment, income andemployment will result. In reality, developers, operators, consumers and governments deal with a changing economy in very complex ways, constantly altering theirmix of capital, labor and levels of investment.
Finally, it is important to note that this is a preliminary undertaking that will be supplemented by on-going and future analyses. This report is not intended to becomprehensive and may not be appropriate for all purposes.

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