A new analysis of the White House‘s latest set of proposed economic stimuli tells us not to expect much … and why. Since the main target for pump-priming is small business, we’ll not expect much of any direct benefit to the casino industry and, in terms of consumer spending, not a heckuva lot of trickle-down either. People who are working 32 hours a week going back to full-time employment is a good thing but highly unlikely to support, say, a Las Vegas Strip that was predicated on a coked-up economy floating blissfully atop a bubble of cheaply obtained debt. We’re all running hard to stay in place, never mind get back to the lifestyle we enjoyed a few years ago.
My personal hope is that there’s a sufficient loosening of consumer spending that all those casino workers who have seen their schedule (and, consequently, pay) whacked by 20% or more, can enjoy the benefits — literal and figurative — of a 40-hour work week once again. As for the industry in general, it probably ought to pretend that the 2004-7 revenue bubble never occurred. It will make for a more realistic set of expectations. It’s been said several times over that, when a recovery comes, Nevada will feel it last (even later than Atlantic City — surely not!), so we’d better settle in for a long wait.
Atlantic city recovering before Vegas? Have you been there lately? It’s a rat hole. No entertainment to speak of. All of the great old buildings gone. The Boardwalk is gloomy. Sorry AC is only good for slots not living large. But watch out for the new Mount Airy casino in the Poconos. That’s the kind of place that could cramp the Vegas style
I think Atlantic City’s best days are irretrievably gone. I’ve been hoarding some facts & figures on the subject, intending to go in depth, but other commitments have gotten in the way. Sorry, readers.
I agree about Atlantic City but it’s partly due to marketing — Las Vegas has done a much better job of marketing itself than AC. However, I don’t think either destination has taken full advantage of it’s natural advantages. AC has a terrific beach but somehow is never identified with sand and surf. Likewise, Las Vegas is a natural gateway to the most spectacular natural areas in the world — most notably Zion and Grand Canyon National Parks — but never trumpets the connection in it’s marketing. Its going to take more than slot machines, free flowing booze and dental floss waitress outfits to make it worthwhile for visitors to go out of thier way to go to Las Vegas in the 21st century, especially international tourists.
I think business will start improving again in Las Vegas this year. Prices in airfares have stabilized over the last month or so and the economy is improving overall (except for unemployment which is at 10%). Hopefully some new jobs will be created so the unemployment rate starts dropping again.