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Posted on January 16, 2023, 12:59 pm
Last Updated: January 16, 2023, 01:15 PM
China recently relaxed its zero-covid policy, which could pave the way for more trips by tourists from that country to the US.
Domestic airports, including Las Vegas’ Harry Reid International Airport, could see pandemic recovery efforts boosted by the resumption of flights from China.
China’s fundamental travel needs are diverse, and the reopening is expected to benefit both business and leisure travel,” Fitch Ratings said in a recent report. This combined demand should be a growth driver for larger airports with large business and international travel segments and whose air traffic recovery has previously focused on domestic, regional airports focused on leisure travel.
The influx of Chinese tourists to Las Vegas could be crucial for strip operators this year against the backdrop of a looming U.S. recession. The economic downturn in the US is forcing consumers to rein in discretionary spending and possibly cancel trips to casinos.
How the Harry Reid airport will meet the growth of China
When it comes to flights to China, Harry Reid International Airport is not considered a gateway to compete with Los Angeles, San Francisco or New York.
Airports in those cities offer travelers direct flights to Chinese cities — in some cases daily or at least several times a week. Flights from China to Las Vegas typically include a stopover or two and the ability to change airlines. Fortunately for Harry Reid International and casino operators, many of the flights stop in Los Angeles and San Francisco, meaning that what works for those airports can also work for Las Vegas.
“Prior to the outbreak, China travel represented only a low-to-mid single-digit percentage of airlines’ total passenger traffic. Still, the growth potential is strong in terms of building economic ties and leisure-oriented interests,” Fitch added.
In addition to China, other Asia-Pacific countries with citizens regularly residing in Las Vegas include Japan, South Korea and Taiwan. A recovery in flight volume from those countries could also be beneficial for Harry Reid International and strip operators.
Strip operators cater to Chinese visitors.
If there’s one country outside of the US that Las Vegas casino operators host, it’s China. Due to the established track in Macau, MGM Resorts International and Wynn Resorts are among the strip operators that benefit from the new influx of Chinese tourists.
Proving their loyalty to Chinese connoisseurs, MGM’s famous conservatory at the Bellagio has a designated Year of the Rabbit exhibit for the Chinese New Year, and the Wynn began decorating with a rabbit theme Monday in mid-February.
It’s also the year of the bunny, when other Strip locations, including MGM’s Aria, many Caesars Entertainment properties and resorts around the world are planning bunny festivities and decorations. Several high street casinos are planning similar offerings, signaling that Las Vegas is doing its best to lure Chinese visitors back to the American gaming hub.
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