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Swot Analysis of the Vegas Tourism Industry and Marketing

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The largest strength Las Vegas tourism has is its brand recognition of its famous phrase, “What happens in Vegas, stays in Vegas”. Other phrases such as “Your Vegas is showing” are in the works. Vegas also has an enormous bank of existing visitors- over 38.9 million a year. These visitors produce a city wide average occupancy of about 90%, the largest in the country. Las Vegas is one of the most well know tourism destinations in the world and its presence in the global tourism industry is only growing. The Las Vegas Convention and Visitors Authority (LVCVA) is developing plans to market more aggressively to an international demographic. For example, the LVCVA will exhibit at this year’s World Travel Market, November 12-15, 2007 in London.

The World Travel Market is one of the world’s largest international travel industry trade shows, and it attracts approximately 50,000 travel professionals. The United Kingdom is Las Vegas’ top overseas market. More and more money is being spent in Vegas and by the LVCVA; money attracts people to live there and jobs are generated. Activities such as gambling and prostitution, which would elsewhere be illegal, are legal in parts of Nevada and therefore create a competitive advantage over other states.


One of Las Vegas’s largest weaknesses is it has failed to capture other demographics such as family tourism and those concerned with the environment. Environmentally, Vegas is not in the best shape. Vegas has a demand for water that far exceeds its supply- an average of 300 gallons per day per person. Without the water from the Colorado River, Las Vegas would not be able to sustain even a fraction of the population and tourists they do today. In addition, Vegas has an insatiable need for electricity. Las Vegas is also an isolated location, meaning nothing else around the city attracts guest to stay there. More of the transient occupancy taxes, or room taxes, are going to Clark County instead of the Las Vegas Convention and Visitors Authority. The rapid growth of Las Vegas and its tourists have created traffic congestion on roads and in the airport. The room tax has recently been reallocated so a lesser amount goes to meet the needs of tourists and a marketing campaign. With the success of its famous phrase “What happens in Vegas stays in Vegas” the LVCVA has increased spending and efforts to thwart imitators of its trademark slogan.


Because Las Vegas is so isolated there is space to expand. The Mojave Desert brings warm weather during winter months, which attracts guests from colder areas of the country to vacation or hold a conference there. Vegas does more than just attract tourists, over 5,000 people are moving to the Las Vegas valley a month; that’s more money coming to the casinos, shops, and restaurants. Some natural attractions in the surrounding area such as Red rock canyon are still underdeveloped. If the LVCVA gave some attention to its surrounding area, they could include another demographic to their market, a more nature oriented (hiking, wildlife, wild horses, donkeys…). The LVCVA can still broaden their efforts to attract foreign consumers, ethnic minorities, and gay and lesbian markets in the United States. If Las Vegas is still expanding at its present rate in years to come, a second strips west and east of Las Vegas Boulevard are possible ideas.


The Mojave Desert also brings hot weather during summer months, which discourages travelers to visit; the seasonal highs in July are 105 degrees. In years to come, global warming may have devastating effects on weather, extremely hot and dry, sandstorms etc. The world population is becoming increasingly sensitive and aware of a more eco-friendly tourism approach. Electricity prices will continue to increase, making it less profitable to run the businesses in Vegas. The average vacation is now two to three nights allowing for less time to spend money. Dubai is becoming a main competitor in the world market creating a possible loss of interest for Vegas. Indian reservation gambling is becoming a more developed business and may take away an important market share.

Indian reservation casinos provide convenience and satisfy the needs of guests that only want to gamble. Vegas depends on the labor of hundreds of thousands of employees behind the scenes. Many of the casino and hotel laundry workers are union employees, a strike would be devastating to the labor force. Gang violence and crime are on the rise around the strip. Increased incidents would discourage repeat visits. Heightened security and legislations may make it difficult for foreigners to visit the United States. Drops in the economy will spur drops in travel and leisure spending.


Spillman, Benjamin. “Authority’s slogan slog continues.” Las Vegas Review Journal 11 June 2007. 14 September 2007 .

Weidner, William. “Put room tax growth to work.” Las Vegas Review Journal 20 May 2007. 14 September 2007 .

Duggan, Brian. “Balance of security, tourism touted.” Las Vegas Review Journal 02 June 2007. 14 September 2007 < http://nl.newsbank.com/nl-search/we/Archives?p_action=list&p_topdoc=51>

“City of Las Vegas.” Fun Facts. . . 13 September 2007 .

“Las Vegas.” . 2007. Las Vegas Convention and Visitors Authority. 13
September 2007 .

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