Is Vegas recession-proof?

Thursday, April 10, 2008 | 2:07 a.m.

During the current economic slump, at least 20,000 jobs in residential construction have dried up, causing a wave of Hispanic workers to leave Las Vegas.

That might bring joy to people who rail against illegal immigrants, but they should consider that the workers’ departure will hurt the local economy, which is already slowing.

As reported in Sunday’s Las Vegas Sun by Timothy Pratt, it is believed that 60 percent to 80 percent of the residential construction workers in the Las Vegas Valley are illegal immigrants. As they leave, so does their money.

Keith Schwer, director of the UNLV Center for Business and Economic Research, said, “If you take out spending in the economy, you’re going to take out more than initial spending ... (and) in general, one job lost takes another with it.”

Apartment complexes, restaurants, bars, grocery stores and other businesses that rely to a degree on Hispanic construction workers are already seeing a marked decrease in business.

But that is only one sign of a larger problem. The nation’s economic slump could be magnified in Southern Nevada. Tourism, and the growth associated with it, has been the foundation of the Las Vegas economy. Growth has significantly slowed with the collapse of the once-hot housing market, and tourism is showing signs of slowing because of the economic woes coupled with soaring gasoline and jet fuel prices.

As Liz Benston noted in Monday’s Las Vegas Sun, analysts are questioning whether Southern Nevada’s economy can hold on to its reputation as “recession-proof.”

Las Vegas is no longer the top destination for users of Internet travel giant Travelocity.com and Funjet Vacations, a charter and tour company.

The state’s largest industry is responding to these troubling signs. Strip hotels are lowering prices and offering special deals, and the Las Vegas Convention and Visitors Authority has launched a new advertising campaign.

We hope that is enough to boost flat tourism numbers. These stories show how, despite our economy’s reputation as being indestructible, there might be a very rough ride ahead.