Nearly all of the major casino-resorts are now open in Las Vegas. As many analysts predicted, however, tourism rates in this city are still significantly lower than they were at the start of the year. According to new reports, the Las Vegas Palazzo has decided to stop accepting weekday reservations due to the drop in occupancy.
This goes to show how low visitation rates in this city still are. Some believe that more hotel-casinos will begin taking similar measures over the next few months. Today, we’re going to look at what this new decision means for the Palazzo and Venetian Casino-Resort.
Let’s get into it!
Tourism Rates in Las Vegas Remain Low
A city like Las Vegas, known as the gambling and entertainment capital of the United States, relies on tourism to function. That’s especially true on the Las Vegas Strip, where nearly every business is catered to tourists. In March of this year, this city completely shut down to visitors.
Things remained shut down for months. Casino owners were working hard to come up with reopening plans, yet state leaders remained hesitant to start lifting restrictions. Finally, the casinos here were given permission to start opening back up on June 4th.
Analysts were torn on how quickly tourism rates in the city would increase. Some felt that many would flock to the city, looking for an escape from the regulation in their own states. Others believed that visitation would remain significantly lower than it was prior to the shutdown in March.
The latter is proving to be true. Despite the best efforts from casino companies and city officials, tourism rates are much lower here than they were at the start of 2020. As rates of Covid-19 increase throughout the country, these tourism rates are dropping.
It hasn’t been easy for the casinos in Las Vegas. Gambling revenue was virtually non-existent in May. It’s unclear how much revenue these casinos earned during the month of June. We’ll hear more about this at the end of July.
New reports indicate that one of the top casino-resorts in this city is cutting down on its occupancy.
The Las Vegas Palazzo Announces it’s No Longer Taking Weekday Reservations
The Las Vegas Strip is home to some of the biggest and best casino-resorts in the world. Many believe that the Las Vegas Palazzo is one of the top venues for guests in the entire city. It’s a part of the larger complex that comprises the Venetian Casino-Resort, all of which are owned by Las Vegas Sands.
Before the shutdown in March, the Palazzo was one of the most popular hotels in Las Vegas. Unfortunately, occupancy here has remained low over the past few weeks. As a result, the owners of this venue have announced that they are stopping weekday reservations.
Las Vegas Sands spokesperson Keith Salwoski released a statement on this situation to the media this week.
“In response to travel demand for the summer we have made a slight adjustment to our hotel operation to better reflect occupancy patterns,” he said.
This new rule will officially begin on July 21st. As of now, the plan is for only the Venetian to remain open Monday through Thursday. Las Vegas Sands will then open both the Venetian and the Las Vegas Palazzo on weekends.
The hotel here will remain closed on weekdays, yet the casino, restaurants, and parking garage at the Palazzo will remain open. We’ll need to wait and see how long it takes for this venue to open back up on weekends.
Are Some Casinos in Las Vegas in Danger of Closing?
As of now, it doesn’t seem likely that any of the casinos here will be forced to permanently shut down. We’re in unprecedented times, though, and anything is possible at this point. It’s clear that occupancy is still down considerably in this city.
The fact that the Las Vegas Palazzo has stopped taking weekday reservations says a lot. Las Vegas Sands would not make this decision unless it needed to. Some now believe that we’ll see more casinos take this approach over the next couple of months.
It’s still unclear how much gambling revenue is being earned in this city. The tough regulations set in place has taken a toll on tourism numbers here. The fact that masks are now required on the casino floor is also having an impact on visitation.
Much of the US casino industry is now opening back up. Earlier this month, Atlantic City began allowing its casinos to reopen. In fact, several states on the East Coast have recently started allowing their casino industries to resume operations.
It’s a very unusual time for this industry. Las Vegas casinos are now taking completely unique approaches to cut down on costs. We’ll need to wait and see how effective this is over the next few weeks.
Do you plan on visiting Las Vegas this summer? Which hotel will you stay at? Let us know in the comments section below!