Vegas Casinos Brace for Impact Amid Corona Outbreak
The glittering lights of the Las Vegas Strip, a beacon for tourists worldwide 365 days a year, have recently dimmed in the wake of the Corona outbreak. The once bustling boulevards have seen a noticeable dip in foot traffic, particularly from Asian tourists, following the U.S. government’s travel restrictions in response to the virus now known globally as COVID-19.
Las Vegas casinos have implemented rigorous health and safety protocols in response to COVID-19, including mandatory FDA-authorized testing for employees, mask requirements for guests, thermal scanning at entrances, plexiglass barriers at gaming tables, enhanced cleaning with hospital-grade disinfectants, and social distancing measures to protect both guests and staff, as outlined by major operators such as Station Casinos and Caesars Entertainment.
Major Vegas-based companies such as Wynn Resorts, Las Vegas Sands, and MGM Resorts International have already felt the sting from the closure of their Macau casinos due to the virus’s spread. This event alone has triggered concern over the potential financial impact on their Las Vegas operations, with travel restrictions posing a significant threat.
The Economic Ripple Effect of COVID-19 on Las Vegas
The financial ramifications of the Corona outbreak are not easily dismissed. Gaming giants like Wynn have openly addressed investors about the possible negative outcomes on their Las Vegas properties due to diminished international travel, especially from Mainland China, a key market for premium customers. The uncertainty surrounding the duration and severity of the outbreak makes it challenging to predict the full extent of its impact on future operations.
Despite the looming threat, the Las Vegas Convention and Visitors Authority reported a 3.9 percent increase in visitor volume and hotel occupancy in January 2020 compared to the previous year. Additionally, gaming revenues on the Strip saw a 7.49 percent rise. However, the cancellation of high-profile events like the ASEAN summit and a Google corporate gathering in March signals a potential shift in the city’s fortunes.
Financial analysts and gaming executives alike are keeping a vigilant eye on the situation, acknowledging the virus’s near-term impact but expressing confidence in the resilience of their business models. The overarching sentiment is one of cautious optimism, with companies like Caesars Entertainment reporting no immediate decline in visitation or business from Asia despite the global concern.
Strategies and Contingencies in Place
In light of the ongoing crisis, Las Vegas’s gaming and hospitality industry is not sitting idle. Executives have highlighted the development of contingency plans to mitigate any potential downturn. The emphasis is on maintaining transparency, communication, and knowledge sharing both within the industry and with the public to navigate the challenges posed by the Corona outbreak.
Internationally, the effect of COVID-19 is palpable, with over 92,000 infections and a death toll surpassing 3,000. The U.S. has not been spared, with multiple cases and deaths reported, impacting various sectors including the gaming industry in states like Washington.
As Nevada remains vigilant with no confirmed cases to date, Governor Steve Sisolak assures that the state is preparing for all scenarios with the welfare of its residents and visitors in mind. The collaborative effort between state officials, health authorities, and the gaming community underscores a comprehensive approach to facing the uncertain tide brought on by the Corona outbreak.
In these trying times, the iconic Las Vegas Strip and its denizens stand resilient, ready to adapt and overcome the challenges ahead with the hope of brighter days on the horizon.