The return of the Formula One Grand Prix to the Las Vegas Strip in November failed to deliver the tourism boost many stakeholders had hoped for.
According to data from the Las Vegas Convention and Visitors Authority (LVCVA), visitation to the city dropped 5% year-over-year to 3.14 million, continuing a troubling trend of decline that has persisted throughout late 2024 and into the current fiscal year.
Gaming Revenue Analysis
While statewide gaming revenue managed a slight 2% increase to $1.34 billion, buoyed by ancillary markets like downtown Las Vegas and Boulder, the Las Vegas Strip itself was stagnant. Strip Gross Gaming Revenue (GGR) came in at $784.3 million, a 0.5% decrease compared to the previous year.
Baccarat, typically a major driver of high-roller revenue during elite international events, fell 5.7% to $137 million. This decrease suggests that the influx of F1 attendees did not translate into the massive high-stakes gaming volume seen in previous years.
LVCVA CEO Steve Hill acknowledged the limitations of the event in an interview with Nevada Newsmakers. “It fills about half the [city’s 150,000 hotel] rooms,” Hill noted. “It is a great event around the circuit. But you need alternative programming. You need everything that Las Vegas has to offer, in addition to Formula One, for Las Vegas to be Las Vegas.”
Aviation and International Struggles
The city’s air traffic numbers were particularly concerning. Harry Reid International Airport reported a 9.6% drop in passengers, marking the 10th consecutive month of decline. Even more surprisingly, international traffic in Las Vegas plunged 21%, despite the global appeal of Formula One.
Officials noted that the bankruptcy of budget carrier Spirit Airlines weighed heavily on the numbers, with its traffic down 70% year-over-year.
