During the COVID-19 pandemic, cities and towns that rely on business and convention traffic have been particularly hard-hit. For example, Las Vegas plays host to some of the biggest conventions across all industries, most of them filling up the large hotels and casinos along the famed Las Vegas Strip. Most of the major events for 2020 have rescheduled, and some of 2021's most anticipated events, including the annual CES conference in January, have switched to a virtual format. All this has been devastating, not just for hotel businesses but for all businesses that serve the millions of tourists who visit each year. But is there hope?

All of these changed plans have had a direct impact on the entire economy of Las Vegas. September data from the Las Vegas Convention and Visitors Authority indicates visitor volume is down 51%, and the number of people arriving via airplane is down nearly 61%. In September, total hotel occupancy reached 46.8% overall, down 41.5% year over year, while weekend occupancy was at 66.1%

The big casino brands have been feeling the pain. In the third quarter, Las Vegas Sands (NYSE: LVS), owner of the Venetian and the Palazzo on the Las Vegas Strip, reported net revenues from its Las Vegas properties fell by 62.6% to $152 million. Revenue per available room (RevPAR) was down 66.1% year over year. Sheldon Adelson, CEO of the company, is said to be exploring a $6 billion deal to sell the Las Vegas properties to focus on the Asian market.

Gaming revenue in Clark County for September tells an interesting story. While Las Vegas Strip revenue was down by 39.1%, gaming revenue for the area was down by only 26.9%, and revenue in the Boulder Strip area was up by 1.8%. Part of the reason for this is that while air travel has slowed dramatically, traffic hasn't fallen nearly as much, and locals are taking advantage of the entertainment options in their own town.

Says Hayim Mizrachi, CCIM, partner/president at MDL Group/CORFAC International:

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The Las Vegas Gambling Scene Has Gone Off-Strip. Here's What Investors Need to Know - Motley Fool