Mouseaholic!!!
DIS Veteran
- Joined
- Jul 6, 2007
- Messages
- 1,804
From USA Today - Travel Section
* Museums cut ticket prices as attendance drops
* Advance reservations for Caribbean resorts drops
The news is same each day in the papers.....economy is affecting the tourist industry. I couldn't print all the articles today - but here is one example. (Orlando and Las Vegas always challenge each other for "most popular tourist destination" rating.)
I am not a gambler...but I know the gambling industry always considered themselves recession-proof. Now they are beginning to see a negative impact.
Hasn't Disney always considered themselves recession-proof??
Gas or gamble? Economy forces some to choose
"People have been saying for years that the gaming industry is recession-proof, but that's not a valid statement," says Frank Fahrenkopf, CEO of the American Gaming Association, which represents casinos and manufacturers. "Anything that hurts consumer spending will have an impact on us."
In Las Vegas, several gaming companies report that first-quarter revenue declined. Occupancy at hotels and motels dropped slightly, and room rates have fallen.
In Atlantic City, casino revenue last year fell for the first time since the first casino opened in 1978. Revenue dropped 5.7% last year and is down 6.4% in the first quarter this year, says Linda Kassekert, chair of the New Jersey Casino Control Commission.
At Mohegan Sun, the Native American casino in Connecticut that brings in more revenue than any other casino in the USA, slots revenue during this year's first three months was down compared with the same months last year.
In Colorado, the state gaming division said last month that revenue at casinos took its biggest hit since a statewide smoking ban was implemented in January. March revenue fell 10%, compared with March 2007.
Bill Lerner, senior gaming and lodging analyst at Deutsche Bank Securities, says the weak economy has affected gaming industry revenue and profits more than anticipated. Las Vegas gaming and hotel revenues "are seemingly worsening," and regional casino markets "are faring a bit worse," he says.
But even the upscale markets are feeling the pinch. At the Wynn Las Vegas, first-quarter revenue was $125 million, down from $173 million in last year's first quarter.
Occupancy at the Venetian in Las Vegas, owned by Las Vegas Sands, (LVS) dropped from 99% in last year's first quarter to 91% in this year's first quarter.
"There's no question our customers are feeling the difficult economy," Vice President Rob Stillwell says. "Every time they go to the gas station or the grocery store, it's right there in front of them."
Trump Entertainment Resorts said slot revenue for the fourth quarter dropped 7% to $13 million, compared with a 14% decline at other Atlantic City casinos. Table-game revenue at Trump fell 5% to $14 million.
Wynn Resorts says it has reduced its staff by about 300 employees through attrition.
Tropicana Entertainment, which owns the Tropicana casinos in Las Vegas and Atlantic City, on Monday filed for Chapter 11 bankruptcy protection. The bankruptcy filing will cover nine properties but not the Atlantic City Tropicana, which is being sold.
In March, Deutsche Bank, the senior lender to the partially built Cosmopolitan Resort & Casino, began foreclosure proceedings on a $760 million construction loan after developer 3700 Associates was unable to raise cash.
Says Stillwell of Boyd Gaming: "At the end of the day, people don't have as much money for entertainment. It doesn't get anymore black and white, and there's nothing you can do to change that."
* Museums cut ticket prices as attendance drops
* Advance reservations for Caribbean resorts drops
The news is same each day in the papers.....economy is affecting the tourist industry. I couldn't print all the articles today - but here is one example. (Orlando and Las Vegas always challenge each other for "most popular tourist destination" rating.)
I am not a gambler...but I know the gambling industry always considered themselves recession-proof. Now they are beginning to see a negative impact.
Hasn't Disney always considered themselves recession-proof??
Gas or gamble? Economy forces some to choose
"People have been saying for years that the gaming industry is recession-proof, but that's not a valid statement," says Frank Fahrenkopf, CEO of the American Gaming Association, which represents casinos and manufacturers. "Anything that hurts consumer spending will have an impact on us."
In Las Vegas, several gaming companies report that first-quarter revenue declined. Occupancy at hotels and motels dropped slightly, and room rates have fallen.
In Atlantic City, casino revenue last year fell for the first time since the first casino opened in 1978. Revenue dropped 5.7% last year and is down 6.4% in the first quarter this year, says Linda Kassekert, chair of the New Jersey Casino Control Commission.
At Mohegan Sun, the Native American casino in Connecticut that brings in more revenue than any other casino in the USA, slots revenue during this year's first three months was down compared with the same months last year.
In Colorado, the state gaming division said last month that revenue at casinos took its biggest hit since a statewide smoking ban was implemented in January. March revenue fell 10%, compared with March 2007.
Bill Lerner, senior gaming and lodging analyst at Deutsche Bank Securities, says the weak economy has affected gaming industry revenue and profits more than anticipated. Las Vegas gaming and hotel revenues "are seemingly worsening," and regional casino markets "are faring a bit worse," he says.
But even the upscale markets are feeling the pinch. At the Wynn Las Vegas, first-quarter revenue was $125 million, down from $173 million in last year's first quarter.
Occupancy at the Venetian in Las Vegas, owned by Las Vegas Sands, (LVS) dropped from 99% in last year's first quarter to 91% in this year's first quarter.
"There's no question our customers are feeling the difficult economy," Vice President Rob Stillwell says. "Every time they go to the gas station or the grocery store, it's right there in front of them."
Trump Entertainment Resorts said slot revenue for the fourth quarter dropped 7% to $13 million, compared with a 14% decline at other Atlantic City casinos. Table-game revenue at Trump fell 5% to $14 million.
Wynn Resorts says it has reduced its staff by about 300 employees through attrition.
Tropicana Entertainment, which owns the Tropicana casinos in Las Vegas and Atlantic City, on Monday filed for Chapter 11 bankruptcy protection. The bankruptcy filing will cover nine properties but not the Atlantic City Tropicana, which is being sold.
In March, Deutsche Bank, the senior lender to the partially built Cosmopolitan Resort & Casino, began foreclosure proceedings on a $760 million construction loan after developer 3700 Associates was unable to raise cash.
Says Stillwell of Boyd Gaming: "At the end of the day, people don't have as much money for entertainment. It doesn't get anymore black and white, and there's nothing you can do to change that."
