Las Vegas Strip recovery from the pandemic is coming faster than analysts and experts predict. Strong domestic visitations to the Strip are placing the casino hub at a pace to reach the pre-pandemic gaming revenue sooner than expected.
Fitch Ratings research firm believes that domestic traffic is enough to return Sin City to the level it was in 2019 in 2023, before the previously forecasted 2024.
“We have revised our Las Vegas Strip recovery assumptions to reflect a full return to pre-pandemic revenues by 2023 rather than 2024.”
Fitch now estimates that revenues will be down by 20 percent and 6 percent in 2021 and 2022 respectively when compared to the 2019 level. The previous forecast estimated that the Strip revenue would be 50 and 20 percent in 2021 and 2022 respectively.
The research firm claim that the surging domestic leisure gaming is one of the catalysts for quick recovery. However, Fitch is concerned about the slowing domestic vaccinations and uncertainty regarding virus variants.
However, the recovery of Las Vegas remains speculative, as traffic that drives the Strip economy remains scant. As several Strip operators noted, resorts booking remain challenged Sunday through Wednesday due to lack of convention and meeting activity.
Still, business traffic is expected to uptick later this year and more noticeably in 2022. Though the pace remains slow, data indicates that leisure travelers are doing plenty of lifting.