Las Vegas Tourism Is Still Struggling to Recover from the Pandemic — But It’s Not Why You Think

The pandemic dealt a severe blow to the tourism sector, especially in cities like Las Vegas where out-of-town visitors drive the local economy.  

Luckily, tourism has come roaring back in Vegas with visitor spending reaching a record $79.3 billion last year, almost 25% higher than the previous record set just before the pandemic in 2019, according to the Las Vegas Convention and Visitors Authority.

What's holding the city's growth back now is the tight labor market, local business officials say.

The Westgate Las Vegas Resort, which has more than 2,950 hotel rooms, currently has 200 job openings it's trying to fill, spokesman Gordon Prouty told Fox Business news. He said the hotel's had to raise wages and "become more aggressive” in its recruiting efforts. 

Prouty said some long-time employees have retired while others chose to change industries after the pandemic.

Meanwhile, Renaissance Catering, located a 12-minute drive from the Westgate Resort, said its catering business hasn't fully bounced back yet from the pandemic.

The company is “nowhere near back to where we used to be," co-owner and chef Reymundo Cortez told Fox.

And when it does get orders, Cortez said they are more difficult to fill, in part because the company is understaffed. 

He said that if he needs five people, he’s likely to ask for 10, in part because “I know three to four of them are not going to show up.” 

According to Cass Shum, an associate professor at the University of Nevada, Las Vegas’s Department of College of Hospitality, job uncertainty, coupled with the demanding nature of the industry has pushed people away from jobs in the services industry.

Shum told Fox that there is an increase in “more service robots being implemented in the hospitality workplace,” adding that the AI-powered workers are “helping to fill the gaps.” 

What's more, an influx of sporting events, concerts and conventions all drive competition for the same pool of skilled individuals.