Las Vegas residents face one of the highest gasoline prices in the country. This could hugely affect the number of patrons visiting casinos in Nevada, especially at this time when they are recovering from the Coronavirus pandemic.
Last week, the average price for a gallon of regular unleaded was $5.12, while that of diesel fuel was a record high of $5.47 per gallon. In March 2021, the price of regular unleaded was $3.10.
According to the director of research at the Center for Business and Economic Research and economist at UNLV, Stephen Miller, fuel prices affect the cost of vacationing in Reno and Las Vegas. With most visitors going to these cities by driving or flying, the cost of fuel affects their decision to travel.
Usually, a higher cost of fuel discourages traveling. Miller added that having more visitors visiting Reno or Las Vegas would cut the number of trips. The price of gasoline is so high that even the Las Vegas Metropolitan Police has warned motorists of gasoline thieves during summer.
Higher Fuel Prices Could Affect Prices for Vacations
Meanwhile, the Las Vegas Convention and Visitors Authority is monitoring visitors heading to Sin City. In other words, it is still early to conclude that the price of gas could impact travel.
However, some people still insist that the rising prices could have an impact on how visitors spend money in Sin City. According to the Reverend Richard McGowan, a professor at Boston College and an avid gambling follower, the high gas prices will affect entertainment plans.
McGowan also cautioned that regional casinos would be more affected than those in Vegas. The reverend said that people need to travel to regional casinos such as those in New England. Unfortunately, patrons might ignore these casinos after considering gas prices.
National Gasoline Record Price
According to AAA’s spokesperson John Treanor, the price of gasoline increased by 20 cents last week compared to the week before that. Today, the regular unleaded price is an average of $4.43. Treanor explained that the gasoline’s price directly affected the cost of oil.
Meanwhile, various people have floated possible reasons for increased gas prices. Some say the Ukraine war, while others suggest the ban on Russian oil. Other reasons include the cancellation of oil and gas leases by Biden’s government and the curtailment of drilling.
Miller suggested that casinos can offer casino visitors free parking or a free tank of gas for visitors coming from outside Nevada to minimize negative effects on their economy. Miller explained that offering these perks to visitors would offset the rising traveling prices.
Las Vegas Is Still Recovering
The Las Vegas economy was badly hit during the peak of the COVID-19 pandemic. Although the city is recovering, the number of visitors is yet to reach its previous peak. Meanwhile, Reno is doing much better.
Apart from the fewer numbers of visitors, businesses and casinos also worry about filling their vacant positions. Miller noted that each person seeking employment has two job openings.
Miller worries about the country’s risk of a recession which is estimated to be between 30 and 50 percent. He said that the situation is similar to landing a fighter jet on an aircraft carrier with a short runway. According to him, the jet would easily slide off and fall into the ocean.