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Vegas Feels Pinch from Economy Slump

"During the torrid '90s, the spotlight in Las Vegas shifted from slot machines to elaborate themed resorts. A faux Eiffel Tower, Empire State Building, roller coasters and Venetian canals became part of the city's landscape. That hotel-casino building boom, in which richly detailed themed resorts became the attractions, drew waves of new tourists and lessened the city's reliance on gamblers for its income.

"But luring tourists requires a healthy economy. And that's why Las Vegas has been stuck in a three-year tourism slump.

"…As Americans get ready to take summer vacations -- typically Las Vegas' slowest season -- the gambling and entertainment mecca will have to wait at least until winter to see whether the hoped-for recovery has taken hold. Winter is the city's big season, and last winter Las Vegas suffered another disappointing period, with tourist traffic well below its peak of a few years ago.

"…The lengthy slump is evident in falling passenger counts at McCarran International Airport, in declining Clark County hotel room tax collections and in smaller gaming revenue for casinos.

"Last year, Las Vegas casinos filled 84 percent of their rooms, a high number for most cities, but it was the lowest occupancy rate in Las Vegas since 1992, according to the city's Convention and Visitors Authority. And casinos collected less money for those rooms, as the average daily room rate dipped 5 percent to $99.90 last year, the Nevada Gaming Commission reported.

"…Along the way, the money flow shifted from gamblers to tourists.

"…Just how much Las Vegas has shrunk its reliance on gaming becomes apparent in the internal corporate numbers of the big casino companies. Gambling accounts for 90 percent of the revenue at Park Place Entertainment's operations in Atlantic City, but only 49 percent at its Western division -- primarily Las Vegas.

"…The number of visitors traveling to Las Vegas peaked at 35.8 million in 2000, then fell to about 35 million in each of the last two years. The decline would have been even greater had Las Vegas not been successful in wooing some convention and conference business from other cities. But Las Vegas' convention business declined in February and March…"

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