In recent year, Las Vegas has tried in countless ways to expand their attractions to make the strip more widely marketable as a destination not just for people who want to test their luck in gambling but also as a destination for families. They have done this by adding features such as top of the line retail centers, deluxe spas, celebrity chefs, marquee shows like Cirque du Soleil and excellent golfing. They have succeeded in bringing in a more diverse clientele who are looking to spend their disposable income on more than just slot machines or poker games.

While the efforts of Las Vegas in making their revenue model less dependent on gambling have found success, it has also made the city more vulnerable to recession and times of extreme economic hardship. Last year, the non-gaming revenue for Las Vegas casinos was 52.1% of the total amassed as opposed to 44.3% that they had ten years ago.

But this increase in other revenue has made the exuberant wealth and luxurious pull of escapism of Las Vegas not quite as impermeable to the highs and lows of the national financial situation. Unlike blackjack or slot machine games, their new and improved economic model has itself wrapped up in long-term fixed costs that are not reconfigured with ease to respond fast to demand.

Overall, the city’s numbers are not looking so hot. Visitor volume has been falling in recent years. And gaming revenue along the strip has gone down 7% in the past year. Additionally, convention attendance has sunk by 22% and occupancy levels have dropped 3%, even though they average daily room rate has been reduced by more than15%.

Tags: Las Vegas Casinos, las vegas revenue

This entry was posted on Tuesday, November 18th, 2008 at 1:20 am and is filed under Las Vegas Casinos. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.