Las Vegas suffering

Las Vegas still suffering in recession

“This is a severe lengthy recession” said Keith Schwer, Director of the Center for Business and Economic Research at University of Nevada, Las Vegas when speaking at his 2009 Mid Year Economic Outlook at the Mirage. Total employment is forecast to drop 5% and gross gaming revenue by 2.5% for the remainder of the year but some improvement in the economy is seen for 2010. At 17 months and counting it is the longest recession since World War 2 with increasing unemployment in other areas of the USA and a corresponding reduction in discretionary spending hitting the travel and tourism industry on which Vegas depends. Nevada State unemployment is forecast to rise to 12% and the population of Las Vegas is declining as more people move out than move in. Twice as many homes as normal are empty in the city which is also in part a correction to the overbuilding in recent years.

Some believe that the building of billion dollar strip resorts that charge upwards of $300 per night for a room has altered the perception of the city being a cheap tourist destination. That was fine in the good times but people are no longer willing to spend that kind of money. Even a comment by President Barack Obama about companies receiving government bailout money holding meetings in Las Vegas could affect business.

There is still hope that the end might be in sight although how quickly the economy recovers is still a question mark.