Editorial: Keep local economy strong

Thursday, Sept. 20, 2001 | 8:46 a.m.

One consequence of the terrorist attacks on the World Trade Center and the Pentagon last week is the adverse impact those tragic events are having on the Las Vegas economy. With Americans understandably skittish about air travel, and airlines reducing their routes and work forces, Southern Nevada's dominant tourism industry is bracing itself for a sharp decline in business. What is frustrating is that no one can predict with certainty the duration or severity of the economic downturn.

The initial signals have not been encouraging. Hotel vacancy rates have skyrocketed, conventions have been canceled and gaming stocks continue to plunge. Regrettably, this has led many resorts to consider employee layoffs. Park Place Entertainment Corp. and Mandalay Resort Group have already announced layoffs and hundreds of employees have lost their jobs. Park Place also decided to delay a planned $475 million expansion at Caesars Palace.

In these times of belt-tightening we would encourage the resorts to look at the long-term economic picture rather than make hasty short-term decisions that could hurt the local economy more than necessary. Massive short-term layoffs could trigger layoffs at, and perhaps even closure of, retail and service businesses throughout the Las Vegas Valley. Many of those businesses are small operations that likely would have a difficult time reopening.

This would be a good time for political and business leaders to meet and develop strategies that could help cushion the blow Las Vegas feels from a sour economy. Resorts should be encouraged to come up with creative ways to retain as many employees as possible. If layoffs are the only alternative, we would hope that they are staggered as much as possible so that other businesses that rely on gaming employees for survival can make adequate preparations to stay open.

We would also encourage state and local government officials faced with potentially sharp declines in sales and gaming tax revenues to use prudence when considering budget cuts. Unfortunately, the people most often hurt by budget cuts are those who lack the resources to lobby for their cause. Two constituencies that come to mind are mental health service clients and foster children. Any cuts in government services should be even-handed, not lopsided against individuals who cannot fend for themselves.

The gaming industry already recognizes that it will have to increase promotional efforts to continue the flow of Southern California tourists here. Some resorts have already announced discounts on weekend room rates. That is a good start but it should not stop there. Tourists on tight budgets will be looking for the biggest bang for their entertainment dollars. The resorts should accommodate them through discounts on meals, shows and movies. Gaming establishments also should consider offering at least partial rebates of gasoline bills to hotel guests driving from California, Arizona or Utah. Discounts beyond those currently available also should be given to local residents to encourage their continued patronage of local casinos.

Southern Nevada residents, in turn, must do all they can to support the local economy. We are all in this together. We will be able to survive the stormy times ahead if we use common sense and proceed as a unified community. Just as the nation is banding together to eliminate terrorism, we can show our resolve at home by keeping Las Vegas strong.