Down on Its Luck, Las Vegas used to be recession-proof. Not anymore.

[Stuart G]

Source: Newsweek

http://www.newsweek.com/id/135638

Down on Its Luck

Las Vegas used to be a recession-proof oasis. Not anymore.





On the third weekend of every April, Emily Ann Frankston and her family—spread out over five states—meet up in Las Vegas for their annual family vacation. This year was different. The only ones to show up were Frankston, her husband and her brother-in-law, and they stayed just two nights instead of the traditional three. "My two sisters back east said airfares were too high, my mother-in-law lost her job in January, and some of the others said they were busy, but we think they didn't want to spend the money," says Frankston, 37, who drove in from the Phoenix area. "We've done this for the past nine years. Even after 9/11 we all came. But this year's it's just us. This recession is really hurting everyone."

It's even hurting the city of Las Vegas, the economy of which was once thought to be impervious to the economic swings suffered by the rest of the country. Not anymore. According to the Las Vegas Convention and Visitors Authority (LVCVA), Las Vegas has seen gambling revenues fall only once since 1970: in the aftermath of the Sept. 11 terror attacks they dropped 1 percent in 2002 from 2001. So far this year they've fallen 4 percent, the number of conventions held has dropped 10.4 percent, and average daily room rates were off 3.8 percent in the first two months of 2008, according to the most recent data available. Visitor volume was up 1.2 percent through February, but market analysts say that's because of the extra day provided by this being a leap year; March's figures will likely put the year-to-date numbers in negative territory. The stock price of MGM Mirage, owner of Bellagio, Mirage and eight other Strip resorts, has halved, from $100.50 in October to about $49 on Friday. In recent weeks the company eliminated 440 middle management jobs to save $75 million annually. "We made a structural change in our company to become more efficient and provide the same level of service, but we did have to advance that effort because we were also seeing a softening in the marketplace," says MGM Mirage spokesman Alan Feldman.

Read more: http://www.newsweek.com/id/135638

[mrreowwr_kittty]

1. I'd figure they'd attract a lot of foreign travelers because of the cheap dollar. nt

[hobbit709]

3. Most foreign travelers don't want to put up with the HS BS.

[Mabus]

2. Looks like what happens in Vegas, stays in Vegas

because no one is there to take it elsewhere.

[OmahaBlueDog]

4. Could part of the reason Vegas is hurting also be that casino gaming is so much more prevalent?

It used to be that if you wanted to gamble, you had to go to Nevada. Now, if there's a tribe near you, there's a casino.

[Systematic Chaos]

5. No, I really don't think so.

About half the Vegas weekend business comes from either California or the Phoenix area, and there are lots of casinos in California and around Phoenix. Canada also has a lot of people coming here, and if anything they should be helping to keep tourism up because their dollar has become so strong. Not so. Oh yeah, they also have a lot of casinos there, too.

I don't believe any region with gaming is having an upturn right now, but I'd love to see some statistics showing otherwise.

[global1]

6. This Will Not Only Happen To Las Vegas But Will Begin Happening To......

all facets of business - restaurants, car rentals, hotels, car dealers, retail malls, etc, etc, etc.

What do they expect to happen when the goal is to wipe out the middle class? Who is going to use and buy their products? Who can afford to?

When everything goes up in price and wages go down or people can't find jobs - what is left?

So I guess the rich that got all the tax breaks and have all the money will fill in? Oh yes - most of these rich people make money off of us low lifers. Guess they might begin to feel the pinch too.

The way to stimulate this economy is to create jobs and raise peoples wages. When people are secure in the fact that they can earn money and have money - they will spend it.

I felt like such a sap as I filled up with gas yesterday. $3.83 per gallon. Right into the hands of the oil companies. I might as well just sign my paychecks over to the oil companies for a tank of gas a week - to be able to get to work - so that I can sign my next check over to them.

So as what we read here about Las Vegas catches up with the rest of the country - maybe things will begin to sink in. Maybe people will think twice about how we're being had. Maybe people will start to think with their votes.

It's the economy stupid. Not gay rights; abortion; immigration; gun control; stem cell research........

End this so-called war. Bring our troops home. Stop this incredible spending. Start giving people jobs. Rebuild the infrastructure of this country and never let a Republican near the White House again.

[Stuart G]

7. Very true, I saw this on Saturday..

I was in two large stores last Saturday....Best Buy, and ABT (very large electronics store in a suburb of Chicago)..Both had very poor business for a Saturday. My friend who often goes there for computer stuff, (I needed a new screen) said he had never seen it that empty on a Saturday. At the ABT, I needed to buy a new refrigerator,and business was also very light there. You are right.."end this so called war, and never let a Republican near the White House again."....Outstanding advise.

[global1]

8. We Went Into The Great Indoors Store In A Chicago Suburb.....

and it was like a ghost town. They didn't even have all the lights on in the store. It was kind of dark and eerie. Already the competitive store "Expo" that was in the same general vicinity - went out of business a while back. From the looks of things at this "Great Indoors" might be next.

[Trajan]

9. It is WAGES ! ....

The intentional suppression of wages and compensation for American families has long been in effect, and now we can see the results ....

[BobTheSubgenius]

10. I don't rejoice in the misfortune of Vegas...

...but I can't think of another "destination" I would rather visit less. There is NOTHING about it that appeals to me.

[soothsayer]

11. Since it's primarily a business destination, that's probably what's hurting 'em

more than these little one-off family vacations. No junkets, and all of a sudden you've got alot of empty rooms.