Editorial: Gas prices and the economy

Saturday, Oct. 8, 2005 | 9:36 a.m.

Anytime gasoline prices spike upward, Las Vegans wonder if our tourist-based economy will get hurt. The concern is that potential visitors -- particularly those who drive here from Southern California -- might be tempted to stay home.

So it got our attention when Las Vegas-based MRC Group Research Institute released a poll it conducted of Southern Californians about what effect escalating gasoline prices might have on their vacation plans. According to the survey done last month, 48 percent of the respondents said higher gasoline prices would deter them from vacationing in Las Vegas.

But the reality, so far, isn't matching what Southern Californians told the pollster. As the Las Vegas Sun reported this week, local tourism officials note that the actual number of tourists increased substantially during a time when prices were up sharply.

Specifically, from January to August -- when gasoline prices increased 40 percent -- traffic on Interstate 15 at the California-Nevada border went up from an average of 31,972 vehicles a day to 45,767. Granted, not all of the travelers passing the checkpoint have Las Vegas as their destination, but it serves as a fairly reliable barometer. Overall, visitor volume in Las Vegas continues to rise, another sign that gasoline price increases aren't being felt here.

The strength of tourism here is even more notable when one considers that energy costs overall, including natural gas and electricity, are going up at the same time consumer confidence in the economy is going down. Those factors are some of the reasons retailers worry they could be in for a rough time this holiday season, as consumers rein in their spending.

While consumer spending habits can change dramatically, and even affect Las Vegas, we're fortunate so far that our economy is holding up well.