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The iconic Bellagio on the Strip …
Of course , MGM Resorts also faced down a cyberattack prompting the operator to shut down systems as well as weather disruption at its properties .
The business “ went to hell and back ” in the attack , Hornbuckle said after its Q3 results . During this period staff “ showed resilience and professionalism but more importantly , a commitment to our culture of taking care of our guests and each other ,” he says .
“ We ’ ve been humbled by the feedback from many of our guests who took the time to call out the exceptional service they received .”
For MGM Resorts , a recession would have a different impact on Las Vegas compared to its regional properties . And in Vegas , Hornbuckle sees few telltale signs of an economic crash coming .
“ When you look at the Bellagio , Aria , The Cosmopolitan and to an extent MGM Grand and Mandalay Bay , we don ’ t see it in the quantum of room bookings and average rate over time ,” he explains . “ But Las Vegas is unique in many respects ; going back to the Great Recession , even in 2008 we ran at 82 % capacity as a city .”
… and its neighbour , The Cosmopolitan
“ It ’ s a dogfight every day , but it ’ s a fun and interesting dogfight . We ’ ve got a few more years left in us ”
The question then becomes , what are these visitors prepared to spend when they come to town ? That ’ s where Hornbuckle expects to see an impact if a recession kicks in . But the advent of sports provides extra protection and a reason to go to Vegas .
“ It doesn ’ t mean it won ’ t . It doesn ’ t mean it can ’ t . We ’ re mindful of it , we just haven ’ t seen it yet .”
REGIONAL REVERBERATIONS
Las Vegas as a destination may be shielded , but regional properties may bear the brunt of a recession , analysts suggest . That ’ s not necessarily the case for MGM Resorts .
Its regional properties “ behave very differently ”, Hornbuckle points out . Each of Borgata in New Jersey , National Harbor in Massachusetts and MGM Grand Detroit generate more than $ 200m a year .
Borgata and Beau Rivage in Biloxi , Mississippi , with their inbound traffic , are more akin to destination casinos than regional hubs .
There will be properties more at risk , he admits . For Empire City Casino in Yonkers , New York , 90 % of volume comes from within 15 miles . General and regional economic vagaries , such as the collapse of the Detroit auto industry , also have an impact .
There are additional headwinds , too . International travel hasn ’ t yet returned to pre-pandemic levels , especially from Asia . Visa processing from countries such as Mexico , India and Brazil is painfully slow .
As chair of the US Travel and Tourism Advisory Board , Hornbuckle is working to resolve these issues , as well as others closer to home . Vegas visitor numbers have recovered , but there ’ s always room for improvement .
ICE LONDON 2024 • ISSUE 135 • 59