Las Vegas’ Elusive International Visitation Target

The Las Vegas Convention and Visitors Authority (LVCVA) is about midway through its decade-long plan to boost international visitation to 30 percent by 2020, but recent setbacks jeopardize that goal.

In 2011, international visitors comprised 16 percent of people who came to Las Vegas, according to the LVCVA. International visitation rose to 17 percent in 2012, and peaked at 20 percent in 2013.

At that point, the aim of reaching 30 percent visitation from international destinations seemed likely. But, then the Asian economy and China in particular ran into rough waters, and since then, international visitation has regressed to 19 percent in 2014 and bottomed out at 16 percent last year – right where the LVCVA began at the start of its 10-year plan.

Adding to the problem of a percentage-based visitation goal is the increase in domestic travel to Las Vegas, which drew a record 42.3 million visitors from all locations last year and is on pace to set a new record this year.

Total visitation rose in Las Vegas last year, despite a drop in international travel. That means domestic travel is outpacing international travel, and that is a problem if the LVCVA wants to meet is 30 percent target in the next five years.

In 2011, 84 percent of Las Vegas visitors hailed from within the United States. As international visitation numbers rose, domestic travel numbers dropped, reaching 80 percent in 2013 – the same year international travel topped out at 20 percent.

Now, with international travel back down to 16 percent, the domestic travel numbers at back where they were in 2011, is the percentage of international travelers.

That doesn’t mean Las Vegas isn’t attracting more international visitors than it did five years ago. It just isn’t reaching the same percentage, and that means trouble for the LVCVA’s international tourism goal.

Fortunately, the LVCVA is undertaking measures to continue improving the numbers of international travelers, primarily through the addition of more direct international flight routes.

Another big part of the LVCVA’s plan is the $2.3 billion Las Vegas Global Business District project, which includes expanding the Las Vegas Convention Center and adding a World Trade Center to facilitate greater participation in more large events by international visitors.

To boost international travel, the LVCVA is working to secure more direct routes from BRIC nations – Brazil, Russia, India, and China, and other international travel. But economic downturns in China in particular and Brazil have reduced demand for those routes.

The Chinese government in particular is cracking down on international trips to gambling destinations, like Macau and Las Vegas. That has international visitor numbers down, and in particular has taken a toll on baccarat tables on the Las Vegas Strip.

Baccarat is a highly popular game among Chinese gamblers, but reductions in baccarat revenues have reverberated throughout the Las Vegas Strip, which has struggled to post positive gaming growth numbers while baccarat play is down.

To boost baccarat play and international visitation, the LVCVA needs to focus on adding more airline routes to locales where the game is popular. An obvious choice would be Singapore, which is one of the most lucrative markets in Southeast Asia has no direct flights to Las Vegas.

Las Vegas consistently ranks as the top trade show destination on North America, and the world, for that matter.

Singapore, likewise, consistently ranks as the top trade show destination in Southeast Asia. It also is one of the wealthiest per-capita nations, and a population comprised of about 70 percent Chinese, and English is Singapore’s official language.

Singapore also has one of the world’s best-rated airports and one of the world’s top-rated airlines. Yet, there are no direct flights to Las Vegas, and it’s one of the world’s longest air routes.

About the only downside to Singapore is its relatively small population of about 5.4 million, and the exceptionally long flight required to travel from Singapore to Las Vegas.

A recent press trip to Singapore required a short flight aboard Virgin America to San Francisco to connect with Singapore Air.

From San Francisco, Singapore Air takes an about 12-hour flight to Seoul, South Korea. Because the plane is traveling against the Jet Stream, the trip to Asia requires flying north along the Pacific Rim, skirting the Alaskan and Russian coasts before continuing down along the Chinese coast to the Korean Peninsula.

Passengers then debark the plane with their carry-on bags and re-board after airport workers inspect, refuel, and remove luggage of those not continuing on to Singapore.

From Seoul, an about six-hour flight takes passengers to Singapore and Changi International Airport.

The current route from the Las Vegas to Singapore requires two airport connections and about 20 hours of airline travel. The return route, with the Jet Stream as a tail wind, enables the airline to fly more directly across the Pacific Ocean and reduces the travel time by about two hours.

Due to fuel considerations, it might not be possible for Singapore Airlines to fly directly from Singapore to Las Vegas. But its Seoul-to-San Francisco flight path suggests Las Vegas is within reach of Seoul and Singapore Airlines.

While one or more direct routes to Singapore stands a good chance of success and boosting baccarat gaming on the Las Vegas Strip, it’s just one of several international destinations the LVCVA might target.

Currently, McCarran International Airport has more than 920 daily flights arriving, and about half of all visitors coming to Las Vegas from all locations use airline service. As more routes are added, more international visitation will rise, too.

Meanwhile, the planned 2019 opening of the Asian-themed Resorts World Las Vegas, the creation of the Las Vegas Global Business District, and an array of other projects on the Las Vegas Strip are helping to create the kinds of international attractions that should help the LVCVA to make a run for its 30 percent goal, particularly if economic conditions improve in China and other international locales.