World Financial Downturn Starting to Hit Las Vegas Casinos

November 21, 2008

The much publicised world financial downturn is now being seen to be affecting Las Vegas casinos. Recent figures have shown that September 2008 saw a fraction more than 10% less visitors to the city compared with the same month a year ago, and those who did visit paid more tan 20% less on rooms. Casinos revenue was more than 5% down over the same period comparison.

Many companies have paused construction on some of their projects, including some fairly large-scale ones, which means the Strip is likely to look like a building site for a few years more at least. It it also probable that some of the smaller casinos are likely to fall into trouble and run the possibility of closing.

Las Vegas as a tourist destination may not be so well equipped to cope with the current financial crisis as it was in the past - previously hotel rooms were kept low in order to attract visitors to the casinos where revenue could be taken, but recent years have seen hotels raise their prices as Las Vegas as a destination has become more popular in general appeal. Will the hotels have to resort to slashing prices to attract tourists? And if they do will these visitors have enough money to gamble in the casinos to compensate for this loss? All this remains to be seen, suffice to say these are definately difficult times for Las Vegas casino executives.

Written by admin · Filed Under Las Vegas News and Views