The Plaza Lays Off Workers
It is no secret that the Las Vegas gambling market is suffering. Since the recession the area, in fact the entire state, have been struggling with lowered revenue streams. The problem with the area is that it had no secondary market to rely on. It built easily 80% of its revenue stream on gambling. Once the recession happened, people lost their discretionary funds and quickly cut vacations and wagering out of their budgets. Millions of Americans lost their jobs and had no choice other than to cut back on non-necessities—they had to in an effort to make their monthly budgets. For this reason Las Vegas has had a difficult time managing throughout the recession. Now that the recession is over, the city is still having problems. People are returning to their old buying patterns but much slower than anticipated.
The Plaza recently announced that it is taking drastic measures to ensure its financial future. The organization is laying off about four-hundred employees and closing down about 1,000 hotel suites. In addition, they are putting that money saved into renovating the current gaming facility. The hope is that the money will do well to bring in a new customer base and call older customers to return to gaming. Part of the huge problem is the recession, but another problem is the market going on in Macau. Macau is growing by the day in revenue and becoming one of the biggest gaming hubs in the world. It is creating exotic get-a-way vacations for gamers and that is too much of a draw. People are opting for a Macau vacation, rather than a Las Vegas trip. Plus, the prices are about the same with the exception of the plane trip. Gamblers are willing to make the added expense with the hope of going to a far away location for extreme gambling fun. Hopefully the Plaza will be able to reinvigorate the market and bring in more customers. It may take some time but the market is shifting. Plaza owners have to do something now to bring a new notoriety to their gaming products or they may suffer more setbacks.