2015 Nevada Gaming Fact Book a Letter from the Nevada Resort Association

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2015 Nevada Gaming Fact Book a Letter from the Nevada Resort Association Education $219 M Local Jurisdictions $101 M Tourism & Convention Centers $228 M General Fund $1.4 B Transportation $72 M Nevada Resort Association | 50 Years Focusing on Our Community 2015 Nevada Gaming Fact Book A letter from the Nevada Resort Association The Nevada Resort Association (NRA) was established Nevada’s 263 non-restricted gaming licensees also in 1965 to be the primary voice of Nevada’s emerging utilize thousands of vendors, the vast majority of which gaming and resort industry. Today, that once emerging are located in Nevada. The industry buys everything industry is the state’s largest, supporting more jobs, from concrete to casino chips from local companies, paying more in wages and benefits, and contributing whose employees, wages and business receipts are more in business receipts than any other sector of the sourced, at least in part, to the gaming industry’s state’s economy. continued investment. Today, there are more than $9 billion in tourism-related projects planned or currently People tend to associate Nevada’s gaming and resort underway, bolstering demand for construction goods industry with the energy and excitement of the Las and services and giving visitors a new reason to come Vegas Strip, with the 53 million travelers who visit back to Nevada. Nevada each year, or with some of the nation’s largest and most coveted conventions, tradeshows When we think about the things that make our and special events. While the industry has invested community work, we think of services like police and more than $45 billion in the assets most commonly fire protection, schools and universities, roads, parks associated with resorts, gaming and tourism; the role and jails. The gaming and resort industry is the largest the industry plays in the state of Nevada extends well taxpayer in the state by a significant margin, paying all beyond this frontline infrastructure. of the taxes imposed on businesses generally, as well as $1.5 billion in industry-specific taxes like gaming There are 263 non-restricted gaming licensees in fees, room taxes and live entertainment taxes. Nevada Nevada, a mere fraction of the 74,500 businesses residents and businesses pay some of the lowest that call Nevada home. These 263 gaming businesses, taxes in the nation, because resort hotels and visitors however, directly account for 180,000 employees generate more state and local tax revenue in Nevada and more than $23 billion in total business receipts. than almost anywhere in the country. Those same businesses pay their employees $5.4 billion annually in wages and salaries. These wages Since the NRA’s inception nearly 50 years ago, the are spent in neighborhood grocery stores, movie industry has always been at the table working with theaters and restaurants, supporting additional lawmakers and other community leaders to make employment, wages and output in every corner of Nevada a stronger state. We have paid in, and we Nevada’s economy. Moreover, the industry also pays have put in. Last year alone, the industry contributed $1.5 billion a year in employee benefits – more than over $22.6 million and tens of thousands of volunteer any other industry – supporting health and wellness hours to charitable activities. within businesses of all kinds. This “ripple effect” is easily overlooked, but every time a hotel employee We are proud of our industry and our employees. We buys a car, pays their mortgage or buys a holiday gift are proud to call Nevada our home. Finally, we are that spending is made possible because a visitor chose honored to share a few facts about who we are and to get on a plane or in a car and come to Nevada. what we do in this year’s Nevada Resort Association Fact Book. L-2 Corey Sanders, Chair Virginia Valentine, President Table of Contents State of the Industry ....................................... 2 › Summary 2 › Investments 4 Economic Impacts of the Hospitality Industry ....................................... 6 › Employment 6 *The dollar amounts included in the cover illustration represent many of the tourism industry’s contributions to › Ripple Effects 8 Nevada in the form of taxes generated in fiscal year 2014. Contributions to › Wages, Salaries and Benefits 11 education, transportation, tourism and local jurisdictions represent specific components of the transient lodging Fiscal Impacts tax, while the Nevada General Fund of the Hospitality Industry .......................................13 contribution includes other industry- specific and non-industry-specific taxes › Industry Specific Taxes 13 and fees paid. Throughout the 2015 Nevada Gaming Fact Book, fiscal year (FY) 2014 generally refers to the period › Other Tax Contributions 15 beginning July 1, 2013 and ending June 30, 2014. › Room Tax Overview 18 Social and Environmental Impacts of Nevada’s Tourism Industry .................................20 L-3 2015 Nevada Gaming Fact Book Table of Contents 1 State of the Industry Summary evada’s hospitality industry has made great strides › The state welcomed roughly 52.8 million visitors in fiscal year 2014, up 1.5 percent from the prior year. since the Great Recession, but it has yet to reach back › There are more than 194,000 hotel rooms in the state Nto peak performance levels in a number of areas. While of Nevada. hotel room nights occupied reached a record high of 57.0 million in › Vehicle traffic entering Nevada increased 5.3 percent fiscal year 2014, other major indicators remain well below their pre- in the latest period, while airport passenger counts increased a more modest 1.0 percent. recession highs. In addition, the industry has witnessed significant › Convention attendance remains down 21 percent from changes in the past 20 years as casino gaming continues to make up the peak, but it reported a gain of 4.0 percent in the a smaller share of total revenue reported by resort hotel-casinos in past year. the state (45 percent in 2013 vs. 61 percent in 1993) and increasingly › Nevada reported $11.2 billion in gross gaming revenue in fiscal year 2014, up 2.9 percent from a year ago but more emphasis is placed on non-gaming amenities, such as shopping, down 11.9 percent from the peak. dining and entertainment. Additional key performance metrics are › For the fifth straight year, hotel-casinos in Nevada have noted to the right: reported a net loss before federal income taxes and extraordinary items (-$1.3 billion in 2013). Revenue Distribution by Department Net Income (Loss) Before Federal Income Taxes Gaming Rooms Food Beverage Other and Extraordinary Items $3 7.5% 10.9% 12.0% $2 5.6% -$6.8 B -$3.4 B -$4.0 B -$1.2 B -$1.3 B 5.5% 7.2% $1 11.8% 13.6% $0 15.0% 13.9% -$1 Billions $2.3 B $0.7 B 18.6% 20.8% -$2 -$3 -$4 61.1% -$5 51.5% 45.1% -$6 -$7 -$8 FY '93 FY '03 FY '13 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 Source: Nevada Gaming Control Board, Gaming Abstract. Source: Nevada Gaming Control Board, Gaming Abstract. GAMING CONTINUES TO MAKE UP A SMALLER SHARE OF TOTAL HOTEL-CASINO REVENUE 1993 61% GAMING 2013 TOTAL REVENUE 45% GAMING in Nevada L-4 2 State of the Industry [Summary] 2015 Nevada Gaming Fact Book Selected Industry Indicators Prior Year to Indicators Present (FY '14) Prior Year (FY '13) Peak Peak Year Peak to Present Present Visitor Volume 52,839,229 52,058,741 54,498,885 FY '07 -3.0% ▼ 1.5% ▲ Airport Volume 46,100,735 45,665,931 52,988,031 FY '07 -13.0% ▼ 1.0% ▲ Vehicle Traffic Volume(Entering Nevada) 29,315,359 27,840,768 29,688,427 FY '08 -1.3% ▼ 5.3% ▲ Convention Attendance 5,817,567 5,593,855 7,359,902 FY '07 -21.0% ▼ 4.0% ▲ Hotel Occupancy Rate 80.5% 79.4% 85.2% FY '07 -4.8% ▼ 1.1% ▲ Hotel Room Nights Occupied 57,044,803 56,400,224 57,044,803 FY '14 0.0% u 1.1% ▲ Hotel Room Inventory 194,227 194,708 194,798 FY '12 -0.3% ▼ -0.2% ▼ Average Daily Room Rate $112.58 $107.96 $124.84 FY '08 -9.8% ▼ 4.3% ▲ Gross Gaming Revenue (in millions) $11,227 $10,906 $12,739 FY '07 -11.9% ▼ 2.9% ▲ Source: Nevada Commission on Tourism, Discover the Facts; Nevada Gaming Control Board; Las Vegas Convention and Visitors Authority (LVCVA); Reno-Sparks Convention and Visitors Authority (RSCVA) and Applied Analysis. Visitor Volume Average Daily Room Rate Trailing 12-Month Totals 56 ons $120 li 54 Mil 52 $80 50 $40 48 46 $0 '07 '08 '09 '10 '11 '12 '13 '14 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 Gross Gaming Revenue Hotel Occupancy Rate Trailing 12-Month Totals Trailing 12-Month Averages 86% $13 ons 82% illi B $11 78% $9 74% $7 70% '07 '08 '09 '10 '11 '12 '13 '14 '07 '08 '09 '10 '11 '12 '13 '14 Airport Volume Hotel Room Nights Occupied Trailing 12-Month Totals Trailing 12-Month Totals 55 57 ons 50 illi 55 M Millions 45 53 40 35 51 30 49 '07 '08 '09 '10 '11 '12 '13 '14 '07 '08 '09 '10 '11 '12 '13 '14 L-5 2015 Nevada Gaming Fact Book State of the Industry [Summary] 3 State of the Industry Investments he tourism industry has invested nearly $40 billion during Total Value of Fixed Assets the past two decades in fixed assets alone, with cumulative FY 1990 – FY 2013 investments now totaling more than $45 billion. Numerous T $60 2013 projects totaling more than $9.1 billion are currently under $45.2 B $50 construction or planned throughout the state with completions $40 expected over the next several years.
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