The tourism industry in Nevada is booming alongside its real estate industry, one which has seen an increase in the sales of properties on the Las Vegas Strip in recent times, amounting to billions of dollars. As Las Vegas positions itself for more good tidings to come, the retailers in Las Vegas are also beginning to smile to the bank with a lot of cash in their hands, thanks to international tourism which has increased exponentially.
Over the years, companies such as Berger & Son Fine Jewelers who have been in business on the Strip since the 80s have not only seen an increase in the number of customers patronizing them, the number of their international clients has also skyrocketed, contributing as much as 80% of their profits.
When Berger noticed an increase in the number of international clients patronizing his business, he researched and came up with a unique concept that allowed him to create a steady stream of customers from China, United Kingdom, Russia as well as Brazil, from the airport to his business premises at the Fashion Show Mall. When he was asked to share the secret, he said “Go to McCarran airport and see what the flight schedule looks like for the day, and that is my customer”, leveraging on the women’s penchant for shiny jewelry and men’s taste for whatever is hot to improve his business.
According to Statistics released by Chris Jones the chief marketing officer at the McCarran International airport, the number of foreign visitors at the airport leapt from 2,729,997 to 3,436,619 in 12 months, indicating a 26% increase, and would hopefully increase when airlines such as Hainan Airlines begins their three-day-a-week flights from Beijing China to Las Vegas.
How do these retailers leverage on international tourism to make good profits from their business?
CEO of Fashionbi, Milan, Ambika Zutshi says, “different factors in different countries have led to growth in shopping tourism in the recent years”. He cited some of the following factors as some of the main reasons international tourism has increased.
- Product unavailability in foreign countries
- High tax rates in Asia drive Asians to the United States (he pointed out that the cost of products in Asia could cater for travel expenses and the goods itself in Europe)
- Authenticity of products in foreign countries where they are produced
- Prestige attached to shopping directly from manufacturers stores or showrooms.
These factors have led retailers to start
- Marketing to them as from their home countries till they enter Las Vegas through social media campaigns
- Partnering with hotels to offer discounts for guests who would purchase their products
- Partnering with authorities at tourist hotspots such as the casinos and museums
- Opening duty free shops or offering huge discounts at peak travel seasons
There’s a likelihood of more retailers benefitting from the boost in international tourism in Las Vegas in coming months. Retail shops like Bonanza are gearing up to provide shoppers more souvenirs and gifts now they’ve been bought out by Hiam Gabay in a $50 million deal.