MarketWatch: Tough times getting even tougher in Sin City

[marmar]

Tough times getting even tougher in Sin City
Recession tightens grip on Las Vegas as visitation, spending fall off a cliff
By William Spain, MarketWatch


LAS VEGAS (MarketWatch) -- The airport cab stand said it all.

Set up to get thousands of visitors an hour into taxis, there were none of the usual massive lines on a recent weekend afternoon. In fact, there was no queue at all.

"It is worse than after 9/11," remarked one driver as she waited for a fare.

That may be a bit of an overstatement, but perhaps not by much. The town still looks relatively busy, although there is a noticeable drop in crowd levels on the gambling floors and in the restaurants. Even the legendary traffic has eased up as the plunge in consumer spending hammers Sin City.

Arrivals are falling by double-digit percentages, and the corresponding drops in casino and ancillary revenue have operators tightening their belts. Layoffs are rampant, many ambitious development projects have been postponed indefinitely and room prices have fallen through the floor.

Share prices of gambling firms like MGM Mirage, Boyd Gaming and Las Vegas Sands are at or near historic lows with the last, according to its own auditors, needing a $2 billion infusion to avoid potential bankruptcy as it steadily ran out of cash.

So, as the industry gathers for the Global Gaming Expo, the annual trade show, here this week, it is hoping for a change of luck and trying to look past its present straits.

They can take little comfort from the numbers: Visitation was off 10% in September, according to the Las Vegas Convention and Visitors Authority whiled the number of conventions was down 18%. Hotel occupancy fell 7% while the average daily room rate dropped 21% to $112 and change. ......(more)

The complete piece is at: http://www.marketwatch.com/news/story/Tough-times-getting-tougher-Sin/story.aspx?guid=%7BE95D4A0E%2D05B7%2D4967%2D94D4%2DA56CB872648A%7D

[jdlh8894]

1. I thought this was normal

Right before Xmas season.

[marmar]

3. No. September/October are very busy months in Las Vegas.

n/t

[Phred42]

2. We need the Water more than we need LV gambling