Having taken part in the Downtown Gaming Forum, what were the most prominent topics discussed and how do you feel it helped better inform the Las Vegas public?
The panel gave people real-life insight into how different properties are faring and, while there's some good indicators, obviously the real challenge is where the city sits today in terms of occupancy. That was a big part of the conversation. ‘Why are rates down... why is tourism down?’ and all the other variables that are going on in the market right now.
During the discussion you brought up post-Covid-19 results in terms of why visitation rates may be down. Would you say these concerns are overplayed or could this genuinely impact Las Vegas' long-term popularity?
No doubt there's some truth to the social media criticisms, but social media today is amplifying everything, whether it's Vegas' tourism or other issues going on in the world. It would be wrong of us to discount the consumer concern that Las Vegas has gotten too expensive, but it would also be wrong to say these influencers are not doing it for clickbait and getting a lot more attraction and engagement, which is ultimately their goal.
Tourism in other cities is also down, so it's not necessarily a Las Vegas problem entirely. Two things can be true at once. There is a valid issue in Las Vegas and that has been driven by major investments into certain properties or attractions like The Sphere, but then there's also a reality that it's just been way overamplified. There are still great deals in Las Vegas and there's still a great value proposition.
As a Downtown casino operator, how would these potential concerns affect your property as compared to a casino-resort on the Strip?
The biggest challenge we're seeing right now is that we're able to attract the gaming customer because of our offerings, but it's very hard for us to compete on rooms if the Strip drops its rates. Downtown is going to be impacted because we don't have the same amenities they have on the Strip. So when they drop their rates, we are in some cases a function of the market and have to drop our rates too. That's the biggest area where we're being impacted by less tourism... when the Strip is panicking and dropping their rates. We're impacted by that directly.
Where does The Plaza’s main focus for customer acquisition currently lie: bringing in international tourists, those from around the US or Las Vegas locals?
Downtown really isn't the locals business, but that is changing as you get more apartments and residential homes built in the area. The biggest international market we have is Canada and Mexico, and we have seen big decreases in those areas. We haven't seen a lot of other international business, but the problem is those people would fill up the Strip. If they're not coming as much, occupancies on the Strip are going down.
The NGCB released its February gaming revenue report for Nevada in March, which included a near 1% increase in revenue for the Strip, whereas Downtown fell 4%. Is that a concern for someone in your position?
We generally don't pay much attention to those numbers because they are often skewed by sports betting holds, which we don't really participate in. We have seen incredible growth, and that's on top of the record growth we've had over the past few years.
There are still great deals in Las Vegas and there's still a great value proposition
I'd have to dive into those numbers you're talking about because there's a good chance they are being skewed by other factors. It might be a low hold on baccarat, it might be other things; but I'm not worried about it because I see The Plaza on a granular level, and I think there's great momentum in Downtown.
Are there ways in which The Plaza can collaborate with Strip properties or fellow Downtown casinos to ensure sustained success in Las Vegas?
We talked to operators on the Strip, but I think they're focused on themselves. They're not thinking about Downtown as a whole. One of the things I talk about a lot is making sure the Strip and LVCVA don't just focus on big events, but on Las Vegas as a destination and a brand. Making sure people who are in diverse markets feel that Vegas is a fun, cool and great place to visit for a long weekend or a midweek trip. That's the brand Las Vegas needs to focus on and ensure is still happening, not just ‘let's go to Vegas because the Raiders are playing or because Formula One’s on.’ We have to get people here just to have fun – that’s the way they used to do it.
Finally, following the Vegas Live Casino Network’s debut in February, what type of early feedback have you received and how has the channel helped broaden The Plaza’s consumer base?
The Vegas Live Casino Network is a very interesting idea. It's the first-of-its-kind and has really never been done. It's fascinating to see the way people interact with it. We're going very slow with it. We're not promoting it yet or really pushing it out in terms of content, because we want to really get it going and ensure we're happy with the finished product.
We just hit over 1,000 subscribers and the idea is that live streaming and social media are a big part of everyone's life at this point. Let's embrace it within the casino framework and not just make influencers the stars. Let's make everyone feel like they can be a star.
The Plaza Hotel & Casino played host to the USA Pickleball Golden Ticket tournaments from February 18-22, where participants competed to secure priority registration to the Nationals stage
