Aug
10
Las Vegas learns a lesson
Filed Under Las Vegas, Las Vegas Economy
One of the reasons this economic downturn seems to have caught people off guard (stock markets, builders, casino operators, me, everyone) was because Las Vegas is not as dependent on casino gambling as it has been in the past. There is a lot more to do on the strip now, and the casino companies make about half of their revenue on non-gaming activities, which really fluctuates with a consumer’s discretionary income. People may come to Vegas, but they may not eat at the fancier restaurant, not buy as many drinks, or skip that extra show.
So chalk this up as a lesson learned to the new Vegas, and take a second to read through this nice article that discusses this phenomenon:
According to Sherman Bradley, gaming analyst at OCA, “This is not to say all the flash and glitz must go, but that, if casino managers want an industry unaffected by downturns and recessions, the sparkle must resume its proper place, as a draw for gamblers. Comps and freebies must be brought back en masse, and luxuries and status items should be used as enticements, not revenue generators.
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