Just heard on the CBS night news, Las Vegas, that "used to be recession-proof," has gambling revenues down nearly 5% this year. They previously only fell once since 1970, 1% after 9/11.
Convention business is down over 10%, and MGM-Mirage's stock price has fallen from over $100 last October to below $49 today. More evidence consumers are tightening.
Tuesday, May 6, 2008
Recession in Las Vegas
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7 comments:
Part of the problem is the high gas price. If you take the I15 you sit in your car for hours burning up gas and going nowwhere fast.
Probably the local casinos will fare a little better than Vegas.
Perhaps the boom in Macau has taken a lot of the Asian market away. I have a friend who has been there several times and prefers it to Vegas.
westside bubble,
I think you need to do a post on 14th Street and all that inventory just sitting there. Is 14th Street the canary in the coal mine for NOM?
I can has foreclosures in Brentwood?
LA Land blogged about it:
http://latimesblogs.latimes.com/laland/2008/05/double-trouble.html
See:
http://latimes.2.homescape.com/SCS/listing_details.jsp?calling_page=listing_result_list&affiliate_name=latimes&filter_max_price=550000&tab_num=1&geo_area_id=47586%2C75629&listing_result_page=listing_result_list&community_sort_id=1210206268797&search_by_type=new_mls%2Cnew_class%2Cnew_const%2Cresale_mls%2Cresale_class%2Cresale&filter_property_type=condo_unit&display_default_state_id=47538&filter_product_id=31347024
and
http://latimes.2.homescape.com/SCS/listing_details.jsp?calling_page=listing_result_list&affiliate_name=latimes&filter_max_price=550000&tab_num=1&geo_area_id=47586%2C75629&listing_result_page=listing_result_list&community_sort_id=1210206268797&search_by_type=new_mls%2Cnew_class%2Cnew_const%2Cresale_mls%2Cresale_class%2Cresale&filter_property_type=condo_unit&display_default_state_id=47538&filter_product_id=34127409
I think that 21 Street and Montana has lowered its price(yet again). It has a red nifty emblem on its "For Sale" sign.
Newgamblecasino.com casino online play
Gaming revenue now makes up less than 1/2 of all revenue. People are coming less and less for the gaming and more for the shopping, shows, and clubs.
If people were really spending less here, you'd see a rash of clubs cutting hours and shows shutting down. (Spamalot is leaving, but is being replaced by Danny Gans, who is being replaced by Terry Fator. Bottom Line: No loss of shows).
Gaming stock prices simply are the public's reaction to all the "Vegas Is Dying" stories. Once again, the true barometer of Las Vegas tourism is occupancy. Let me know when it chronically dips to 85% and then we can talk Las Vegas recession.
I wrote a pretty extensive blog post debunking the national (inaccurate) stories at:
Las Vegas Is Not In A Recession... Puhleeeze
The Strip is packed mid-week. Someone forgot to tell Las Vegas visitors that a recession was happening.
Ted Newkirk
Managing Editor
Access Vegas Insider Vibe
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