Officials Assure Higher Gas Prices from the Iran War Won’t Affect Las Vegas Tourism

Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority (LVCVA), said it is still too soon for Las Vegas to respond to the recent surge in gasoline prices that have followed the start of the Iran war.

Las Vegas Tourism Won’t Be Affected, LVCVA President Says

Hill noted after Tuesday’s LVCVA board meeting that travel packages can often be structured in ways that offset the impact of higher fuel prices. He added that while gasoline costs are an important factor, they typically account for only a small share of the overall expense of a trip to Las Vegas and are unlikely to represent 10 to 20% of the total cost.

Despite rising gasoline prices driven by unrest in the Middle East, Las Vegas experienced a strong convention week. Hill noted that the immediate impact of the fuel price surge was offset by ConExpo-Con/Agg, the major construction equipment trade show held every three years, which drew an estimated 140,000 attendees to the city.

Many of the event’s attendees were already in Las Vegas or en route on February 28 when joint airstrikes by the US and Israel against targets in Iran marked the beginning of the war. In the days that followed, the conflict intensified and still continues now. This resulted in diminished oil production and slowed the movement of oil shipments through key routes such as the Strait of Hormuz, where 20% of the world’s crude oil goes through.

Gas Prices Around Las Vegas Have Gone Up

Gasoline prices have jumped sharply over the past week due to instability in the Middle East, which was only exacerbated by the current conflict in Iran. On Tuesday, AAA reported that the national average price for gasoline reached $3.539 per gallon – up 1.8% from Monday and 13.8% higher than a week earlier, on March 3. Prices are also 21.2% higher than a month ago and 15% above levels from a year ago.

In the Western United States, where Las Vegas relies heavily on drive-in visitors from California, Arizona, and Utah, gasoline prices are generally higher than the national average. While the US average stood at $3.539 per gallon on Tuesday, Nevada’s average was $4.297, Arizona’s was $3.968, and California’s climbed to a steep $5.29 per gallon. Utah was the only exception, with an average price of $3.40 per gallon.

AAA spokesperson John Treanor said the organization does not issue forecasts on gasoline prices, but noted that instability in the Middle East has clearly contributed to the recent spike in fuel costs. Treanor added that a comparable surge in prices occurred in 2022 when Russia, another major oil producer, launched its attack on Ukraine.

Ultimately, more time is needed to see if the war in Iran would have a negative impact on Las Vegas visitation numbers, according to Hill.

In other news regarding Iran, both Kalshi and Polymarket saw users bet on the death of the country’s supreme religious leader, which resulted in scrutiny as some said Washington insiders had known that he would be killed.