Vegas is still booming.
Despite inflation at a four-decade high, and jitters over a looming recession, people are flocking to the entertainment and gambling oasis. Executives with Caesars CZR -5.98%▼ Entertainment Inc. and MGM Resorts MGM -1.68%▼ International this week reported record-high performances for their Las Vegas properties in the latest quarter.
Older consumers are returning to the Strip, shaking off pandemic concerns. International travelers began coming back in recent weeks and the convention calendar looking ahead is getting busier, executives said. “There are not strong enough words to convey how well it’s going in Vegas for us,” said Caesars Entertainment Chief Executive Tom Reeg on an investor call this week. Families are deciding whether to go on long-delayed vacations, in light of rising grocery bills and fears of an economic recession. But a rush of pent-up travel demand that brought Las Vegas back over the past year is continuing, according to executives and analysts. The Covid-19 pandemic revealed the particular fragility of Las Vegas’ hospitality economy like never before. On the Strip, casinos that once stayed open 24 hours a day were temporarily closed, sending the Las Vegas area’s unemployment up to more than 31% in April 2020, according to federal statistics.