Bonzer Wolf™ (bonzerwolf) wrote,
Bonzer Wolf™
bonzerwolf

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Las Vegas Luck Running Out?

Is Las running out of luck?  Not when the she wolf is in town but she's back in Dallas.  This recession is really hurting everyone. It's even hurting  Las Vegas, the economy that was once thought to be impervious to the economic swings suffered by the rest of the country. Not anymore.  What's leaving Las Vegas more susceptible to this economic crisis than to previous ones? Diversification. Roughly 60 percent of the Las Vegas Strip's revenues now come from nongaming activities. By contrast, in 1991 and 1992, when the last comparable slowdown occurred, nongaming activities provided just 42 percent of overall revenue.  It doesn't help that the city's convention business is slipping.  The mortgage mess and the subsequent credit crunch have taken a toll on Vegas. Several major construction projects on the Strip are delayed due to financing problems, including a second tower for Donald Trump's new condo-hotel. Also delayed is a plan to build a $6 billion version of New York City's famed Plaza Hotel.  Nevada’s foreclosure rate leads the nation. A UNLV economist says the Las Vegas economy could be weak through 2010.  Gold1020 recented commented in the Las Vegas Sun," I think it'll take longer than 2010 to turn the Vegas economy around. The reason Vegas had 7 great years was because of easy credit & easy money. People in the U.S. had a boatload of discretionary income. The days of easy money are gone-and they're not coming back any time soon. Also-with Vegas portraying itself as a luxury destination-they've effectively thumbed their noses at all the middle income customers. People don't need Vegas. They've all got casinos within an hours drive from their own homes."

The Wolfs are returning to Las Vegas in March for a wedding.  Room rates were as low as I can remember in 2008 and continue to fall in 2009.  But the days of of risking  the Bonzer bankroll, even on positive expectation games like Full Pay Dueces WIld (100.76% return) six to eight times a year are definitely on hold. Cash is king and Bonzer can't see the light at the end of  this recession tunnel. The real question we need to ask ourselves, "is the luck that made this the greatest country on earth starting to run out?"



Photos: Las Vegas Luck Running Out? | Newsweek Business | Newsweek.com


Tags: economy, las vegas, recession, road trip
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