Quit your grumbling about the high cost of having fun in Las Vegas
Even as locals complain about the rapidly rising cost of entertainment in Las Vegas, the vice president of economic development at UNLV says the city should press to continue its role in “the fun economy.”
Bo Bernhard says Las Vegas may be the best example of a destination that has capitalized on the confluence of tourism, sports and entertainment and that it will continue to flourish, even as local residents complain about the high cost of sports and concert tickets and regular visits to casinos, and while frequent Las Vegas visitors make fewer trips here.
Bernhard, who first started using the “fun economy” terminology a year ago and has since made TED Talk presentations on the topic earlier this year, said Las Vegas’ role in providing joyful experiences to guests is a long-running global story and more than just a locals conversation.
In his public presentations, Bernhard has said the combination of Las Vegas growing into a sports and entertainment powerhouse on top of its well-established gaming history has made it the top exporter of fun experiences.
“We’re the first city that sells experience and sends it out to a happy planet who’s really happy to buy it,” Bernhard said in an interview.
Bernhard said for the first time in history, in 2019, 10 percent of the economy worldwide was built around tourism but when sports and entertainment are added to the mix, it rises to nearly 14 percent.
That’s nine times the size of the pharmaceutical industry, seven times the apparel industry and three times the agricultural contribution.
“What that means,” Bernhard said in a February TED Talk distributed earlier this summer, “is that we can no longer dismiss cities like Las Vegas as superfluous and fun, but not important. Not when it’s 10 percent of the economy.”
Still, local residents lament losing the Las Vegas of old.
High cost of Vegas
They’ve gone to social media to complain about the high cost of tickets to see entertainment superstars perform at Allegiant Stadium, Sphere and all the major performance venues affiliated with local resorts.
They grumble that only the ultra-rich can afford to go to NFL games and events like Formula One.
They’re upset about paying for Strip parking — although many resorts have deals that enable locals to park free for a limited number of hours.
They’re even irritated with casino odds that give a greater advantage to the house, like 6-to-5 blackjack play and triple-zero roulette wheels.
Bernhard views that as a separate issue and that local residents should be grateful for the big-picture strategy that brings increasing numbers of people to Las Vegas and provides jobs.
Bernhard’s point is that the fun economy flourishes because for the first time in history, more than half the world’s inhabitants are considered middle class and that buying experiences – such as travel – makes them happier than buying things.
“What growing up in America and just living in America sometimes blinds you to is the global story that 35 million people in India went from poverty to the middle class last year,” Bernhard said. “What’s the first thing you buy when you escape the clutches of poverty and join the newly liberated ranks of the middle class? You buy a trip. Sure, there are going to be blips and hiccups and that’s part of the news cycle is making, but over time there’s no possible way for the economy to start to go in the opposite direction. So if it’s 14 percent today, it’s going to be upwards of 20 percent, and that’s more than five times the size of the automobile industry.”
Variety of guests
Nasim Binesh, an assistant professor at the University of Florida’s Department of Tourism, Hospitality and Event Management, said Las Vegas is well positioned to accommodate guests at a variety of income levels and that overall, the higher prices would benefit the city.
“The entertainment industry in Las Vegas remains strong, with the city ranking as the third-highest grossing concert market in 2024,” Binesh said. “The average ticket price for concerts has increased by 16 percent, reaching around $175.91, which is significantly higher than in other major markets like Los Angeles.
“True, a ratcheting up in rates could change the mix of visitors — but probably to the city’s benefit,” she said. “Higher prices would result in extra income for casinos, hotels and other companies, further increasing state tax revenue and driving economic expansion.”
Binesh said over several decades, Las Vegas has continued to grow and has maintained its hospitality infrastructure. She says that the city is attractive to everyone, from high-rollers to budget tourists.
“For all of this variation, Las Vegas is also moving more and more toward catering to wealthier customers — just like Dubai and Monaco, other places known for over-the-top luxury that manages to attract loads of visitors each year, even though it can be an expensive visit,” she said.
“That said, it is a city that has effectively tiered its market — providing premium experiences for those who want and can pay and still being accessible to budget-minded visitors. This helps Las Vegas keep its broad appeal, with the rising prices segment and increasing profitability in many areas.”
Bernhard said locals who resent the steeper prices shouldn’t blame the corporate suits for doing their jobs.
People are buying
“They’re supposed to make money for their shareholders and that’s the way you do it, by offering these things at what many locals might look at as an exorbitant price,” he said. “But at the same time … people are buying it, right?”
Bernhard said Las Vegas benefits from reminders all over the world about how fun the city is. And he said it’s unfortunate that some locals aren’t seeing the big picture of marketing to the world.
“There are people that kind of lament the investment that the (Las Vegas Convention and Visitors Authority) and others are putting into things like Formula One here. But the reality is that it does draw people in from foreign countries that spend more and it’s going to broaden our economy to a level that we haven’t ever seen before.”
In the long run, Binesh said Las Vegas will continue to prosper from the fun economy.
“If managed well, this trend will bring more jobs, increased tax revenue, and continued investment in the city’s infrastructure,” she said. “The evolution of Las Vegas into a more exclusive destination may mirror the trajectory of cities like Dubai, where higher prices do not deter visitors but instead attract a different, potentially more lucrative demographic. Ultimately, Las Vegas stands to benefit from this price increase, solidifying its status as a premier global city.”
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.