Las Vegas Cites $400 Million Loss
The city of Las Vegas was hard hit by the recession. Not that numbers were doing well just prior to the recession’s official beginning; in fact, they were not. Numbers for Las Vegas’ casino industry have been down for over two years. The recession caused a drastic decline in revenues. The Strip used to be a money-generating location that relied on the gambling industry for its revenue. It was a sure-fire money maker that never let down the state’s economy. Due to the recession though, that is changing. New numbers showed that revenue for the Strip were down by 7.6% since the same time last year. This is particularly harrowing news because it was hoped that things would be turning around now that the recession is over.
With revenues down, Las Vegas organizers are reeling from a more than $400 million loss. Nevada’s Gaming Control Board is well aware of how difficult this is going to be to overcome, in particular if the decline in revenue is continued. Both Las Vegas and Atlantic City are fighting for their financial security. They are creating top-notch bonuses and specials, but they are at such a discounted price that unless huge numbers come into the cities to bring in the numbers needed, they will be all but useless. So what should the cities do for recovery? The best thing they can do according to experts is to push through the aftermath of the recession regardless of what the immediate problems are. Though it will take time to see if the promotions are going to work, there are many signs that other aspects of the economy are returning to normal. The unemployment rates are coming down, though slowly. Businesses are starting to hire again, though at minimum wage or close to it. These are small signs, but hopefully they are a small snippet of where the market is moving. People are hopeful for change, but it most likely won’t happen quickly. This means that Las Vegas and Atlantic City are going to have to rely on their former coffers to sustain themselves until the market truly changes for the better.
