Las Vegas Nightlife and the economy

[nyc2vegas]

Just a thought: being that there is a little sag in the economy with rising fuel prices etc, im sure that the overall visitor numbers and gambling revenue is down BUT do the nightclubs feel it through less table reservations and sales? Out here in NY the bars and clubs actually do better because people turn to the alcohol to deal with the stress. The bottle boom started around 2003 or so out there and im wondering if it is like most stuff....cyclical? it will be interesting to see if the night clubs change their business model or not. whats everyones opinion??

[EngineerGuY]

numbers are down lately as far as people in the casino gambling their lives away.............. but numbers havent been down at all for VIP reservations and over all club numbers from what I have been told! After all, there isn't anywhere in the USA better to party than vegas!

[HopkinsKid]

You said it best..."little sag in the economy". We're seeing a slowdown...moderate growth. We're not seeing a full blown recession like some of those jacka$$ "experts" are spewing about on CNBC and MSNBC. I suppose it's easier to sell fear right now.....

In the Bay Area, gas is $4.50 per gallon. I drive about 12,000 miles per year...600 gallons....$2700. I used to pay $2300 last year ($3.75), and I enjoyed the days of $2.50 gas back in 2003 ($1200). But let's put all things in perspective here....does it impact me? Sure. But to the extent where I'm drastically changing my lifestyle? No way. Would it have impacted me 8 years ago, when I was right out of college? Of course. But I wasn't going to Vegas all the time back then.

So does $5 gas impact the economy? Sure....it dampens consumer spending, business spending, GDP growth, etc, etc...transportation costs are up, and plane tickets are more expensive. But to the point where the economy (and Vegas' economy) is taking a hit? No way. We tend to over-react to oil prices because it's something we use so much and frequently. But last time I checked, all the other "stuff" that's part of my life (clothing, computer, insurance, cars, food, other basics) aren't suffering inflationary pressures like gas. So they all offset each other, you know?

I don't think rising energy costs and concern over the economy impact high-end stuff like bottle service, high-end shopping, wonderful dining luxury cars, expensive watches, big-time gambling, etc....essentially what Vegas is all about.

Besides, there's been 4 recessions since 1980, so it's tough to really gather all the data points and make an educated opinion. Personally, I thought Vegas was just as crowded during the recession of 2001 as it is now.

[nyc2vegas]

I agree hopkins, its certainly NOT a recession (especially based on the definition) but more importantly, when you break down the numbers the way you did you clearly see that it is not that bad. besides like I said people tend to want to gamble and drink a little more in times like these when they are stressed. And out here even the wall streeters heads are spinning, i have friends that have been short for 2 years listening to the so called "experts" spewing the fear factor, and even they are losing their pants....if things are that bad then people that are short would be rolling in it(for the most part) and their not......what gives??

[ChappStick]

The economy is just an indication that America isn't Partying enough the more we party the more business connections we make the better we do. haha

[HopkinsKid]

Another quick point (which might not matter)....I flew in last Saturday on the early, early morning flight....plane was packed. I flew back Monday on the late, late night flight....plane was packed. Airport was packed. Hotel was packed. Stores were packed. Tryst was packed. Steakhouses were packed. Blackjack and poker tables were packed. Sure, Vegas visitors shouldn't be viewed as true indicators of the American consumer, but looks like everything is healthy to me.

NYC2Vegas, you might have friends that have benefited from shorting the markets on the short-term....but this year will be a wild one with crazy swings (look at January downturn and April upside as examples). Either stay in cash or go long asap....shorting now is crazy! You only short when everyone is optimistic and greedy (2000 tech). I'm not a big fan of Buffet, but he does bring up a good point to "be greedy when others are fearful, be fearful when others are greedy".

I did see Buffet and Gates playing $15 hands of blackjack....they're so wealthy, I was in total awe because they were simply playing minimum hands ....kinda blew my mind a bit. Whether they play $15 hands or $150,000 hands, money simply doesn't matter...they don't care about winning or losing, and it's not like they could truly feel the thrill of hitting 21, or doubling down. They were simply playing for the sake of playing, and the best part was that they were playing with $15 bucks each. Comedy.

[nyc2vegas]

HK,

My friends have been short but NOT capitalizing....because of the "crazy swings" you talk about....my point exactly!! just wanted to clear that up.