Updated August 16, 2022 - 8:47 am
Hotel room tax revenue that pays off the bonds used to build the $2 billion Allegiant Stadium reached post-pandemic monthly highs in recent months as visitation continues to bounce back.
In May, the 0.88 percent tax on hotel rooms in Clark County generated $5.3 million, besting the previous post-pandemic high of $5 million set in October 2021. The month before, in April, the tax collected another $5.1 million, according to the Las Vegas Stadium Authority’s latest report.
June didn’t surpass the $5 million mark, but the $4.6 million generated was 15.5 percent higher than the same month in 2019, the report showed. Data for July is not yet available.
Since going into effect in March 2017, the room tax has generated $224.6 million in revenue. That’s 2.4 percent above the projected amount of $219.4 million. The money is used to repay the bonds sold to fund the $750 million public contribution to the stadium.
The strong monthly totals are further indication that tourists are returning to Las Vegas after visitation fell dramatically in the early months of the pandemic. In the first six months of this year, Southern Nevada has recorded 18.58 million visitors, 37.8 percent ahead of 2021.
Because of the drop in tourism amid the pandemic, Clark County twice had to tap a debt reserve account to make scheduled bond payments. However, it did not need to tap the reserve for either the December 2021 payment or the payment due this June, and the fund has been inching higher.
As of July, the fund stands at $66.7 million, or 26 percent shy of reaching the fully funded amount of $90.3 million. When fully funded, the fund is set up to make two full years of stadium bond payments if $0 in room tax was being generated.
The account saw a $10.5 million bump since the last report in April. Barring any unforeseen circumstances, the debt reserve account should be fully funded sometime in fiscal year 2024.
Stadium bond payments are made twice annually, with the next scheduled payment of $15.9 million set for Dec. 1.