An investigation by Fitch Ratings forecasts that the Strip may have to wait until 2024 for a full recovery.
US.- Fitch Ratings said it could take as long as four years for the Las Vegas gambling industry to see a full recovery from the pandemic.
An update released by the credit ratings agency said: “A full recovery to pre-pandemic levels is not expected until 2024. The Las Vegas Strip will experience the slowest recovery relative to other major gaming markets and segments globally.”
It concluded that aggregated gross gaming revenues for casinos on Las Vegas Strip are projected to be down by 60 per cent year-on-year this year.
Fitch predicts that the losses in aggregated gross gaming revenue will continue down by 50 per cent, and 20 per cent for the next two years respectively.
The owner of South Point casino in Las Vegas, Michael Gaughan, also fears Las Vegas might take years to recover.
He said: “I’ve been here since 1952 and this is probably the worst thing that’s ever happened to [Las Vegas].
“Strip hotels will have their work cut out for them. I do think that by the start of 2022, we should be back to completely normal. I just hope Las Vegas can get back to where it was. Everybody is trying to survive and keep as many working as they can.”
Fitch’s examination found that other regional gaming industries in the US have already begun to recover due to, “lower reliance on fly-in visitation, limited alternative entertainment options and government stimulus supporting consumer discretionary income.”
Yet measures are being taken at a national level to stimulate recovery in the hospitality and tourism industries. An act was introduced by Senators that establishes tax credits to encourage the return of tourism and conventions.