The newly appointed president and CEO of the Las Vegas Global Economic Alliance (LVGEA), Danielle Casey, emphasized the importance of economic diversification for Southern Nevada during a recent meeting with business leaders at The Orleans.
Casey highlighted that the region has the potential to capitalize on opportunities presented by oversaturated and overpriced markets in other communities.
However, she noted that it is crucial for the region to determine what the future job landscape will look like, identify desired industries, and develop strategic plans to attract and foster them.
While there remains significant interest from job-seekers in the sports entertainment and hospitality sectors, Casey stressed the need for better communication regarding career opportunities and the provision of training for potential workers.
“That’s a big interesting thing of consideration we will be looking at deeply,” Casey stated.
She shared that the LVGEA is in the process of engaging with national site selection consultants to position Las Vegas favorably among potential businesses.
Her goal is to ensure Las Vegas remains competitive in attracting new enterprises by controlling the narrative surrounding the workforce and labor market.
“We’re off the list before we even know we’re on it,” Casey explained. “We have to be extremely proactive in telling the story one by one.”
Despite the need for diversification, Casey remains a strong advocate for celebrating and building upon Las Vegas’s existing strengths in tourism and hospitality.
“It would be a little nuts to get away from what Las Vegas is good at; instead, we should add onto that,” she asserted.
Casey pointed out that other markets are becoming increasingly saturated, resulting in heightened competition.
She believes this creates a unique opportunity for Las Vegas, given that cities like Phoenix and Nashville are witnessing inflated costs and constrained availability.
Her comments resonated with the theme of the NAIOP October meeting, focused on “Economy in Motion: Shaping What’s Next for Southern Nevada.”
The panel included insights from Steve Hill, CEO and president of the Las Vegas Convention and Visitors Authority, and Andrew Woods, director of the Center for Business and Economic Research at UNLV.
Woods noted that while there is cautious stability in the economy, multiple warning signs such as labor market challenges and inflation persist.
He outlined three key forces that are anticipated to shape Southern Nevada’s economy in the coming years: population growth, job creation, and affordability.
Woods projected that Southern Nevada could see an influx of 387,000 new residents over the next decade, a significant boost for the region.
However, the growth in job opportunities is not aligning with the interests of the workforce.
“There’s a lot of growth in jobs, but it’s not necessarily the jobs that match up with what workers are saying they want to go into,” Woods explained.
The healthcare sector is expected to experience the fastest growth, followed by the transportation, warehouse, and professional services industries.
Woods expressed concern about the disparity between job demand and the preferences of potential workers, particularly as immigration policies shift and migration trends from states like California may slow down.
To address these challenges, Woods emphasized the necessity of finding innovative ways to integrate new workers into the workforce and the importance of incentives related to this process.
Woods pointed out that housing affordability will be a critical factor in attracting companies to the area.
Inflated home prices, which have risen by 50 percent over the past five years, present ongoing challenges for prospective residents and employers alike.
“We know homes in Las Vegas have gone up 50 percent in five years,” Woods remarked.
He urged the need for a long-term planning vision that can facilitate improvements in housing availability, akin to successful efforts in water conservation.
“Let’s do the same thing with housing,” Woods stated, cautioning that meaningful progress is a long-term endeavor that could take a decade or more.
With the projected population increase equivalent to that of Henderson, Woods called for a collective vision for Southern Nevada’s identity and future trajectory.
He concluded by underscoring the need for collaboration among various entities to dismantle obstacles to growth and enhance the region’s quality of life.
Hill then addressed the audience, highlighting the stagnation in employment growth within the tourism and hospitality industries.
He noted the current workforce in the sector stands at around 300,000 employees, unchanged from levels seen in 2018.
Despite efforts to diversify, Hill underscored that the gaming and hospitality industry remains critical to the region’s economy and that ongoing efforts are required to sustain its growth.
“The growth of our industry is not a given,” Hill warned, referencing his concerns about future employment levels in the sector as the region’s population approaches four million in the next 20 years.
He acknowledged the significant changes in workforce requirements and costs experienced in recent years, driven in part by increased wages for hospitality workers.
Hill expressed optimism regarding Las Vegas’s enduring appeal, citing recent upticks in visitation rates.
He noted that September showed improvements in visitor numbers.
While acknowledging some economic hardships faced by potential visitors, Hill asserted that Las Vegas’s unique attractions and events continue to position the city for strong growth in the upcoming year and beyond.
“We feel like there’s a ramp out of this slowdown… the next 15 months looks exceptionally strong,” Hill shared with hope.
He attributed the decreased visitation numbers partially to economic conditions that have affected potential guests’ financial situations.
Higher labor and operational costs in the hospitality industry have led to higher prices, prompting resorts to implement promotional strategies to attract visitors.
Looking ahead, Hill addressed the construction of new hotels, including the Hard Rock Las Vegas on the Strip and a planned resort on the former Tropicana Las Vegas site.
He predicted that these may represent the last major resort projects in the area for some time due to current economic conditions.
“It’s going to be a while,” Hill stated, expressing concerns about the viability of new developments in the present climate.
He elaborated that high-interest rates currently impede the feasibility of building new properties along Las Vegas Boulevard.
“Until interest rates come down, I don’t see properties being built on Las Vegas Boulevard in the resort corridor starting this decade,” he concluded, emphasizing the need for economic stability before pursuing further development.
image source from：businesspress
