From world-renowned shows to a level of 24/7 accessibility you’ll find no place else, it’s no secret that Las Vegas is unlike any other locale when it comes to entertainment. But how, exactly, does its one-of-a-kind entertainment industry affect the local economy? Today, we’re breaking down all we know about the economic impact of entertainment in the City of Lights.
What we know about the current economy…
Before we dive in, here’s what we know about where the economy currently stands: while leading indicators suggest that the market is slowing down, economists—both locally and nationally—predict continued growth. While no expansion continues forever, the recent decrease in federal regulations and increase in wages are helping to extend the current expansion—giving us no sign that Las Vegas’ booming sports and entertainment industry are ready to slow down anytime soon.
- It drives the local economy in impressive ways.
Las Vegas’ entertainment industry is unlike that of any other city, and, because of that, it acts as the local economy’s backbone in so many ways—driving tourism, increasing spending, and creating jobs in a way no other entertainment industry can. In 2018, the local sports and entertainment industry alone had a $3.9B spending impact on the area, a $1.1B wage and salary impact, and a 27,700 job impact. Numbers like these show us that the impact of Las Vegas’ unique entertainment industry on its local economy can help to lessen the impact of any recession.
- Special events are overshadowing gaming.
In 2017, visitors citing special events as their primary purpose for visiting Las Vegas surpassed the amount of visitors who cited gaming as their primary purpose. From music festivals to NASCAR, visitors are now flocking to Vegas for far more than the city’s sports books and slot machines.
- A diverse mix of entertainment creates an industry unlike any other.
Las Vegas’ entertainment industry doesn’t just draw in a single type of visitor—sports fans or music lovers or equestrian enthusiasts. Our Valley hosts an array of sports and entertainment events—and draws in a diverse tourism pool as a result. In 2017, the top five special events in Las Vegas were: Electric Daisy Carnival (EDC), Wrangler National Finals Rodeo (NFR), Life is Beautiful, The NBA Summer League, and Cowboy Christmas Gift Show. This impressively diverse array of entertainment helps to ensure a healthy local economy—overall, visitor spending has a 5-year average impact on the local economy of $3.3B, with a $1B impact on wages and salaries, and a 24,300 job impact on employment.
- Pro sports teams are having a huge impact.
With the 2017 arrival of the Las Vegas Golden Knights and the 2020 arrival of the Las Vegas Raiders, we’re seeing a new element to the Las Vegas entertainment industry that didn’t always exist: the addition of pro sports teams. The Las Vegas Golden Knights have an average home game attendance of 18,042—which, thanks to standing-room space, is higher than the T-Mobile’s game seating capacity of 17,500 (Go Knights, Go!). Plus, the incremental visitor spending impacts for existing and future sports teams in the area are currently at an impressive $636M for spending, $173M for wage and salary, and 4,300 for jobs.
- Venues and infrastructure make the area better poised to host events.
The Valley’s impressive infrastructure and array of venues (combined with its seasoned hospitality industry) make Las Vegas better poised than any other area to host sports and entertainment events. At $164.4 million, Las Vegas’ T-Mobile Arena currently holds the title of the world’s top-grossing arena. With everything from Thomas & Mack Center to City National Arena, the seating capacity of current venues in Las Vegas is 260,000—but is poised to increase sharply to 352,000 with the addition of the slated MSG Sphere, the Las Vegas Ballpark, and the Las Vegas Raiders Stadium. The estimated five-year average of the visitor spending impact of venues is $3.5B for overall output—with a $1B impact on wages, and a 25,300 job impact on employment.
Overall, it’s no surprise that the economy of the entertainment capital of the world is impacted by, well, entertainment. Keeping a regular eye on just how our sports and entertainment industry affects the local economy is a proactive way to ensure you’re empowered with the market information you need before you list your land for sale in Las Vegas or purchase Las Vegas property. If you’re wondering more about what the area’s evolving entertainment industry—and its local economic impact—mean for buying or listing property for sale in Las Vegas, reach out to our team of Las Vegas land realtors today.