Vegas Economy

Recent activity in Vegas makes me wonder. When will it turn around? Or will it turn around at all? Just in the past week, here are some closing/closed victims, from Las Vegas Advisor news:

- Steve Wyrick Theater in the Miracle Mile at Planet Hollywood
- Bill's Lake Tahoe
- Ice at Riviera
- Aqua Lounge and Aqua Pit at the Plaza
- Rub BBQ and other barbecue restaurants

In addition, many Vegas numbers are not encouraging. Housing and gaming revenues continue to decline.

What's a gambler to do? Well, aside from going to Vegas (when I go, I make frequent deposits at the craps and blackjack tables), I'd say don't panic, don't spread rumors, think positive, and wait it out. Here are some signs that all hope is not lost:

- City Center: this huge project is built on the shoulders of MGM, folks who know a thing or two about the hotel/casino biz. And this is in the Big New Vegas style - an expensive, high-end combination of hotels, shopping and gaming.

- Visitors: Numbers are starting to inch up every-so-slightly. A lot of bargain hunters are going to Vegas right now, and I think they will start encouraging others to go, too.

- Creative Promotion: Vegas is constantly reinventing itself. And when the chips look like they are down, the Convention and Visitors Authority kicks it up a notch.

Vegas also understands the market. I've been wondering for years if Vegas (specifically the Strip) is pricing itself out of the low and mid-range gambler market. Think about the last few completed projects: Encore, Palazzo, and City Center are not built for the average Joe. These joints are not getting rich from the grinds playing $5 blackjack or nickle slots. They need whales with deep pockets (think Larry Flint) who can change the bottom line for a whole financial quarter.

Does this mean that us weekend six packers are out of luck? No - there's still plenty of opportunities for us and always will be, even when the economy picks up.

First of all, there are still places on the Strip that you can find good low-minimum games and entertainment, such as the Stratosphere, Riviera, Circus Circus, and Sahara on the North end of town and the Excalibur and Tropicana on the South Strip. For a few more dollars, you can spend some time at Luxor, MGM Grand, and NY NY. These last three properties are all owned by MGM - a solid corporation that will be in Vegas for along time, catering to everyone from the high end to the spendthrift (that's me) travelers.

Then there's downtown and surrounding areas. Now while the Plaza, Binion's and some of the other carpet joints are suffering, it's not because there's not a market for lower-minimum clientele. The places that are cutting back and closing have razor-thin margins and can't afford it when the competition offers good deals. In the long run, this will either help them, provided they can afford to make more of an investment in their properties, or it will shut their doors and open opportunities for someone else.

Either way, the economy traveler will still have a place to call home. Of course, I'll still peak in to City Center to see how the other half lives. Looking is still free.

Viva,
Mike