Will gas prices hinder the recovery in Las Vegas?

12 May 2011

With the cost of gas on the increase it has hit Las Vegas pretty hard. The cost of gas has affected everything from the price of gas at the pump to the cost of an airline ticket to getting to Las Vegas. This makes analysts worried about the overall effect it will have on the recovery of the gaming business in this well known city of excesses.

Tourists to Las Vegas use their disposable money for the fun they will have gambling whilst they are visiting Las Vegas for their trips away from home. If their disposable income is reduced by the rising cost of gas then it will automatically affect their decision to visit the gaming rooms in Las Vegas.

Analysts believe that if the cost of gas remains level for the next few months it will encourage the visitor back to Las Vegas where they will want to spend more time and money at the resort. Should the cost of gas continue to increase however, then the affect this would have on the gaming industry in Las Vegas would be quite dramatic and certainly profits for the major casinos will continue to drop in the coming months.

Some of the casinos in Las Vegas cater more for the foreigner and would certainly weather the increase in gas prices a lot better than the casinos which rely heavily on the American visitor to their casinos.

Analysts have come to the conclusion that it would take at least six months of elevated gas prices to see just how Las Vegas would be affected by the higher prices the ordinary person has to pay at the pump for their gas. If the average American has to pay an extra $1000 a year for the fuel then that will automatically mean that the trip they planned to Las Vegas would have to be cancelled.

The analysts know that the continued rise in the price of gas would mean that the gaming industry’s future outlook of looking ‘stable’ would certainly turn to ‘negative’ and have confirmed that the resorts that belong to MGM International and Caesars Entertainment would be the casinos most at risk when it comes to be hard hit by the rise in the cost of gas.

Most of the financial analysts believe that the only way to improve the affects of the recession on the Las Vegas gaming industry is to see gas prices remain level but with the outlook being on the negative side they believe that the hard hit gaming industry is suffering from the fact that most Americans are thinking twice about taking a trip to Las Vegas due to the uncertain future not only of the price of gas at the pump but also the cost of an airline ticket to Las Vegas.

This is cause of great concern for all those connected with gaming in Las Vegas and everyone knows that the rise of gas will continue to be a hindrance when it comes to making any sort of financial recovery during the recession.
Tags: las vegas, casinos, gas, caesars, fuel, cost of gas, gaming business,
Posted In: Current Events, News,

Fill out the form on the right to join our CasinoMan newsletter and we'll drop you an email every 2 weeks with the latest blog posts. We'll also periodically send you other useful gambling articles we publish which will keep you completely informed of the latest offers. This newsletter goes out 1 time per month. Naturally, we respect your privacy.

Name: Email: Our newsletter is managed through Aweber's safe and secure service, so please expect a confirmation email from them for your subscription.

Please be the first to leave a comment below.

Name:
Email:
Comment:
CAPTCHA:
	Newsletter Updates - I would like to receive blog bulletins, casino news and exclusive bonuses from the CasinoMan Newsletter. (more info »)