Is Vegas immune to recession?
If you look at current trends, the answer is no.
Gambling revenue and hotel occupancy are down. Resorts are dropping room rates and offering coupons or free nights. Casino operators are laying off hundreds of workers, and their stock prices have plummeted as much as 50 percent since October. Credit is drying up for hotel and condominium projects planned before the slowdown hit.
And those showing up are spending less. Historically, Las Vegas has been resistant to recessions, entering them later and exiting them sooner than the United States at large. Gamblers, particularly high rollers, tend to play whichever way the economic winds are blowing.
But executives here worry this recession is different from the last two - in 1990-1991 and 2001 - when consumer spending was propped up by easy credit. Now credit is drying up. High gasoline and food prices, falling home values and rising unemployment are keeping many Americans closer to home.
The good news: More foreigners are taking advantage of the weak dollar and coming to Vegas. However, they only represent 13 percent of total visitors.
