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Some Las Vegas Casino Workers Return

14 October 2001

by Dave Berns

LAS VEGAS, Nevada -- Oct. 13, 2001 -- Twenty-five percent of the 15,000 local casino industry workers who lost their jobs in recent weeks have returned to part-time status at the Las Vegas megaresorts of MGM Mirage, Mandalay Resort Group and Park Place Entertainment, company executives said Friday.

The move comes as Las Vegas hotel-casinos experience a weekend surge in occupancy rates to near-capacity levels.

But that rebound from post-Sept. 11 lows has been followed by a sizable weekday decline, with some hotel operators reporting occupancy rates of as low as 60 percent.

It's a dynamic that had led to what Mandalay Resort Group Senior Vice President John Marz characterized as a "paradigm" shift.

"This thing changes daily for us," he said. "Who knows what tomorrow will bring?"

That unusual split in a city that is accustomed to occupancy rates approaching 100 percent has left MGM Mirage and Mandalay Resort Group seeking additional weekend staff but not needing those same workers during the midweek lull.

"What we have to do is scale our expenses to meet those lower revenues without compromising guest service in any way," said MGM Mirage spokesman Alan Feldman.

Mandalay has rehired 1,582 workers on a part-time basis, or about one third of the 4,500 workers who lost their jobs last month at the company's Nevada properties.

The typical returning employee averaged 28 hours of work during the first week of October, company officials said.

Mandalay has extended for an additional two months the health benefits of nonunion members who lost their jobs. Benefits run through the end of the year for newly laid-off workers who belong to the Strip's largest labor union, Culinary Local 226.

MGM Mirage has rehired about 1,800 of the 6,000 people it previously laid off.

Park Place Entertainment has rehired on a part-time basis about 500 of the 1,500 workers laid off from four of its five Las Vegas megaresorts, while an additional 100 have been return to full-time status.

High-end restaurants and pricey shows have been victimized by the business dropoff, as value-conscious travelers have descended upon Las Vegas.

Earlier this week, standard rooms at MGM Mirage's Bellagio cost $129 a night, or one half to a third of what they typically cost this time of year. Wednesday night, gamblers sat at Bellagio blackjack tables where they made minimum bets of $5 and $10, rather than the typical minimums of $25 and $100.

In The Forum Shops at Caesars, the Stage Deli restaurant had just three customers at 9:15 p.m. Wednesday, as several waiters and waitresses were sent home early, while the remaining servers divvied up the few customers.

"All of this is set against the context of lower revenues everywhere," Feldman said. "The higher end restaurants are still more significantly affected by this than the casual dining outlets."

Mandalay Resort Group, which operates Mandalay Bay, Luxor, Excalibur, Monte Carlo and Circus Circus among its 11 Nevada properties, has marketed extensively to the millions of customers whose names are in the company's database and live within driving distance or a short flight from the city.

But the average amount of money spent by those customers has declined during their post-Sept. 11 visits.

"I think a lot of our customers are here taking advantage of these very good offers," Marz said.

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