Eureka Chief Expects Solid Post-COVID Recovery

By VERNON ROBISON

The Progress

The tourism and gaming industry in southern Nevada seems to be seeing a light at the end of what has been a very dark tunnel. And that is especially true for the local resorts in Mesquite.

The first quarter of 2021 has been very promising for hospitality and gaming in Mesquite. According to Las Vegas Convention and Visitors Authority reports, gaming revenues from January and February this year have outstripped the previous year’s revenues by 6.3 percent and 5.1 percent respectively. With the sudden strike of COVID-19, the March 2020 numbers were too much of an anomaly for comparison. But the 2021 gross gaming revenue numbers in Mesquite have exceeded those of 2019 by no less than 16 percent.

“There is no doubt that we are seeing a recovery in southern Nevada in general,” said Eureka Casino President and Chief Operating Officer Andre Carrier in an interview with The Progress last week. “And in Mesquite the recovery has been even more pronounced.”

The year of COVID was brutal for the gaming sector. It started off well enough in the first few weeks. But then the pandemic hit in mid-March and everything came to a halt. Gaming revenues across the state dropped to virtually nothing for a couple of months as Nevada casinos, large and small, were ordered to be shuttered completely.

As casinos were given a green light for a limited reopening last summer, numbers rose slowly. But it was a long, hard road. Year end 2020 gaming revenues in Las Vegas ended down 47 percent from 2019.

Interestingly, Mesquite saw a slightly less dismal picture. By June of last year, the gaming revenue numbers in Mesquite were actually starting to come back and level off. In the usually busy Fall months, Mesquite revenues were seeing healthy gains over the previous year. By year end, the Mesquite’s gross revenues were down only 20 percent from 2019.

“It was an easier comeback in Mesquite and the recovery was simpler,” said Carrier. “That is because the Mesquite market has some distinct advantages in this particular environment.”

Firstly, Mesquite benefitted from being predominantly a tour and travel market, rather than a convention and meeting market like exists in Las Vegas, Carrier said.
“Mesquite isn’t dependent upon those convention events that have been completely shut down,” Carrier said.

In addition, nearly all of Mesquite’s visitors come by automobile, and very few by air travel, Carrier said.
“There was a much faster return for the drive-in market that we have here in Mesquite,” he said. “Flying anywhere was kind of a daunting proposition in 2020. So most people just didn’t do it.”

That leads into the final advantage enjoyed by Mesquite. Local visitation has always been primarily regional in nature, rather than drawing on a national market.
“As things progressed last year, people did begin returning to travel, but they tended to stay closer to home,” Carrier said. “So again that helped bring things back in Mesquite.”

The hope is to see continued recovery throughout the rest of the year, Carrier said.
“I think the forecast is for a good 2021 throughout southern Nevada,” he said. “Demand looks particularly high for the fourth quarter when temperatures cool down.”

The southern Nevada gaming and hospitality market tends to see a lull during summer months, Carrier said. But even then, Mesquite hotels benefit from a rather transient market segment.
“During the summer, Mesquite has a lot of people stop here as they are passing through,” Carrier said. “It is a good central stopping place for people in travels from northern Utah going to California; or from Californians going to the National Parks.”

On that last note, Carrier predicts that the National Parks in Utah and Arizona may break all time visitation records this summer. “They are outside and there are no mask or social distancing requirements,” he said of the Parks. “It is a good place for people to get away from all the health restrictions.”

Even with all these positives, there are still some hurdles for the gaming/hospitality industry in Mesquite and southern Nevada, Carrier said.

Perhaps chief among those is a scarcity in the workforce. “That has always posed a bit of a challenge in Mesquite and it is particularly so now, all across the country,” Carrier said. “The fact is, our growth is very much tempered by our ability to provide a workforce. And that is something that is on everyone’s mind all across the country.”

Even so, Carrier said that Eureka is positioned well to compete for the available workers out there. “We are the only employee-owned casino/resort company,” he said. “That means that our employees are vested in the financials of the company which provides them long-term retirement benefits. That is advantageous, especially in this challenging labor environment.”

Another workforce hurdle is in housing supply. This is another widespread problem currently. But it is especially acute in Mesquite.
“The challenge is how do our employees find affordable places to live in the community,” Carrier said. “We have seen huge demands placed on housing inventories all across the region.”

Carrier acknowledged that southern Nevada is still on the receiving end of what has been called the Great Migration: a trend of people moving from the Midwest and Eastern United States toward the Southwest.

“There is strong growth potential with all these people wanting to move here,” Carrier said. “It is a great opportunity. But what actually becomes of that opportunity is yet to be seen. It all depends on what we make of it. That is the question.”

Carrier said that there were exciting things coming up for the Eureka in Mesquite. Foremost among these will be the return of the Rockets over the Red Mesa event on July 4th this year.
“We will return back to the full event that we have had in past years,” Carrier said. “We will have the Nevada Pops Orchestra here. And it will be the biggest fireworks display in the event’s history!”

Since last year’s major event had to be cancelled, Carrier said that the fireworks for it were set aside in storage. These 2020 fireworks will be added to the ones being purchased for this year’s event to make it a pyrotechnic show to remember.

“It will be a major coming-out party for the community after the past year of pandemic,” Carrier said.

In addition, the Eureka resort facility will undergo some remodels and updates during the summer. “We are adding a couple of new things that will bring some fun additions and amenities in the fall,” he said.

Finally, the company is gearing up for a full reopening of the Rising Star Ranch property in the Fall.
“Sports tourism is in high demand right now,” Carrier said. “We are looking forward to filling the Rising Star with some big events.”