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Retirees, with nest eggs crushed, can’t muster Strip rebound
Fireworks explode over the Aria hotel-casino during the official opening Wednesday, Dec. 16, 2009.
Monday, July 19, 2010 | 2 a.m.
BABY BOOMERS GO BUST
Strip gaming renenue is down, and analysts say Baby Boomers and retirees, hit hard by the recession, are partly to blame. Gamblers over age 50 are casinos’ largest customer group, but their money is tied up in homes that have lost equity. Their financial insecurity has quelled their gambling.Sun Coverage
Strip gaming revenue is struggling to recover despite several indications that the nation’s economic picture has improved somewhat from a year ago.
Revenue fell 6.4 percent in May compared with a year ago and was down 1.3 percent for the 12 months ending May 31 compared with the year-earlier period, the Gaming Control Board reported this month.
Those figures include gaming revenue from CityCenter’s Aria, which opened in December. Without Aria, which boosted overall revenue on the Strip, the rest of the resort corridor fared worse, according to recent estimates from gaming analysts at CB Richard Ellis.
Using an apples to apples comparison, Strip gaming revenue plummeted 14 percent in May compared with a year ago and is down 3.2 percent year to date compared with the same period last year among properties open a year ago, analysts Jacob Oberman and Brent Pirosch say.
The explanation for these sluggish figures lies with Baby Boomers and retirees — the casino industry’s chief customers, they say.
Most gamblers are over 50 because they have more money to spend than younger generations and more time, either because of retirement or because children are no longer living at home.
Casinos face a worsening trend among the customers who helped finance the industry’s biggest growth years: Many older people don’t have enough cash for retirement.
The improving job picture hasn’t helped retirees, while stock gains over the past year have not had as significant an effect on casino spending as home prices, the analysts say. Nor have many retirees, their money tied up in homes that have lost equity in the recession, saved enough for retirement, they say.
During the boom years, many Americans used their homes like ATMs, withdrawing equity to spend on luxury goods and trips. Much of this ready cash has dried up in the recession, and declining home prices have made consumers feel less financially secure and more tight with their cash, analysts say.
“Recent retirees have had to reset their consumption expectations (if they have been able to retire at all), and as such their gambling spending habits could be negatively impacted for years to come,” the CB Richard Ellis report says.
Without a major increase in home prices — the single factor accounting for a large chunk of retiree wealth — a significant rebound in gaming revenue isn’t in the cards, it concludes.
CB Richard Ellis isn’t the first to note some headwinds to an industry recovery. In a June report, Deutsche Bank bond analyst Andrew Zarnett said the recovery will take longer than expected, in part because of nationwide job weakness, job and benefit cuts by cash-strapped state governments and higher federal taxes on various money sources such as income, capital gains and dividends coming on line next year.
The CB Richard Ellis report, focusing on the Baby Boomer “sweet spot” for casinos, cites a 2010 Del Webb survey of Boomers showing that 50-year-olds today have less money saved than in 1996, yet will need more for retirement. The study found that 41 percent of 50-year-olds said they will never be financially prepared for retirement compared with 15 percent who said they would never be prepared for retirement in 1996.
Similarly, the Employee Benefit Research Institute Retirement Confidence Survey this year found 46 percent of workers were “not confident” or “not too confident” they would have enough money in retirement. That compares with 44 percent who lacked confidence in 2009 and 31 percent in 2006.
“Although a partial explanation for this is that people are retiring at an older age, it is clear that many Baby Boomers have to save more of what they are earning to make up for their recent losses in retirement savings,” the CB Richard Ellis analysts say.
If this trend isn’t good for the Strip, the news is worse for smaller casino markets across the country that depend on more frequent visits from older customers, the gaming analysts say. The Strip, which is increasingly attracting younger customers with nongambling activities, is expected to outperform smaller casino markets such as Laughlin and South Florida that depend more on retirees.
On the Strip, casino game revenue is down this year with the exception of baccarat, which has done well because of an influx of Asian high rollers.
Excluding Aria, Strip slot revenue is down 7.2 percent this year compared with the same period last year, CB Richard Ellis says. Table games, excluding baccarat and minibaccarat, fell 10.2 percent by that measure.
Revenue for baccarat and minibaccarat, however, is up 22.5 percent this year compared with the same period a year ago.
That’s despite a 50.8 percent drop in baccarat revenue in May when Strip baccarat players were especially lucky. Including Aria, baccarat revenue was down 37.2 percent in May from a year ago, the Control Board said.
The booming baccarat business lifts the income statements of select high-end casinos that cater to high rollers. It isn’t an indicator that the masses are gambling like they used to, however.
There’s a silver lining for casinos, the CB Richard Ellis report concludes. Younger people, who had less to lose when the real estate and stock market collapsed, are less concerned about retirement.
When the employment picture improves, they are likely to return to their normal spending habits more quickly than Baby Boomers and retirees.
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So reality starts to set in. The last few years of boom were really people spending money they didn't really have. From home equity lines of credit that spent like credit cards the American people spent their savings. Like the politicians in Washington DC they spent more than they made.
Now people can only spend what they have and no one likes the results. The new economy is a tough reality but will be with us for a generation. We found out who the real culprits of the economic collapse really was and it was us. Not a pretty reality and not as soothing as blaming others, but the sooner we recognize it the better.
We need to get our own financial houses in order and fix Washington's at the same time. No more free spending of money we don't have as individuals and the same for us collectively from Washington.
One good step for the household to get back on track would be retrieving the troops from Iraq. this war costs too much money and too many lives, but there are no results visible. Somebody will have to pay for this war. Don't ask who this may be.
Amen to both comments. We need to wise up and knuckle down. We've had it too easy for too long. The fun is over and our work has just begun.
looking at todays news, there is evidence of a dramatic slowdown add this to increasing taxes and cuts, there are tough times ahead, even bank profits are poor, any profits made have been down to stimulus which still needs to be paid for with taxes.
" Casinos face a worsening trend among the customers who helped finance the industry's biggest growth years."
Yes and if the greedy corporate idiots continue their formula of fleecing through high pricing on everything and tight slots, no value offered, lousy comps, they will get just what they deserve.. BK Baby!!
As a recent retiree (10 months ago) who was self-employed my whole career, so no company pension, I do find that having to live off my savings makes me even more frugal. I still want to visit Las Vegas twice a year (compared with 4 times a year when I was still working), but I want good value, which is why my wife and I stay and gamble in Downtown Las Vegas, which I believe to be the best destination value in North America.
You can't make an "apples to apples" comparison and exclude Aria revenue in the figures. My wife and I visited Las Vegas in February and we spent some of our time gambling in the Aria instead of the other casinos. That is what the Aria is doing- hurting other casinos. It's not bringing in additional money.
But this is what YOU voted for.
1. Let's keep Barney Frank U.S. House of Representatives everything is great in the housing market Mr. President Bush.
2.Same here Sen. Christopher Dodd.sweetheart deal
3.Same here too Mr. President Fannie Mae, Freddie Mac are Solid,Sen. Charles Schumer.
As they say buyer beware ". Change while we got Change to Bankruptcy Thank you Obama. In my book you do not desire (President)
In light of less baby boomers, MGM tightens the machines and changes the rules of Blackjack to better the houses odds, increase in drink charges, salon charges. Their slogan should be, EVERYTHING IS MORE EXPENSIVE AT CITY CENTER.
ConcernedNative nailed it.
The statistics show that the Strip casinos must change. They're not paying attention to the demographics of the U.S. But they go from 3:2 to 6:5 blackjack and screw the slot machines so tight they almost bleed. And besides that, they try to change every available space into hoity toity high end nightclubs that no one can afford to go to.
I have noticed the casinos along the Strip all want to go back to those booming years between 2001-2006. Before the bubble burst.
But reality don't settle in. Those days are gone, baby, gone.
To sit there and keep proclaiming it's going to happen again is not good enough.
But they choose to continue to follow the continuing routine of the Las Vegas Convention Visitors Authority (LVCVA) when they sit around and come up with dumb phrases to attract tourists that don't work, all so they can justify their six figure yearly incomes.
If you ask me, the only area that is doing well, even in these bad economic times, is downtown Fremont Street. Because they keep trying new things to attract business. Casinos on the Strip probably should pay attention to what they're doing.
What a shocker, first they dilute the housing market by over building, then they dilute the gaming/hotel industry by overbuilding hotels and casinos.
Now they are wondering why they have no money.
It's time to start playing those oldies but goodies tunes. The baby boomers are nostalgic for better times.
Then we have MORONS like EMVANCE who wants to blame everything on the Democrats. If you had a clue you would know that these problems began way before the Obama. EMVANCE quit getting drunk on the kool-aid and try to understand the basics!
Thank you Sun, this is a very interesting aspect of the current and future problems facing Las Vegas, and our country as a whole. Many, many retirees have really had a change of lifestyle and I am afraid that it will not improve for quite sometime. I will also say that I have a hard time believing that the young crowd really has enough money to drive any kind of sustainable recovery.
My brother and sister-in-law just arrived in Vegas and they are definitely the kind of people that will not spend alot of money playing in the casinos. They will be like alot of people visiting right now because they just don't have the bankroll.
I sure like what Phil Ruffin is doin' at the TI. Of course he was fortunate to have realized an amazing cash windfall a few years back when he sold the Frontier for, I believe close to $1 billion. Then he buys the TI for $750 million, right after MGM/Mirage had put $100 million or so into the refurbishing rooms. Now, he seems to making some moves aimed at scaling things away from the "high-brow" food joints back to pizza, hot-dogs, etc. that are affordable for all.
Not sure, but the whole Gilley's thing up front seems to be along the same "return to affordability" thing as well. Still too many geriatric "old-people" wandering the place for my tastes, but at least he's got customers and they appear to be spendin' $$$ as well.
I think we've seen that last of the "billion dollar boxes" that gaming came wrapped in. I have faith that these folks will re-invent themselves yet again to return to profitability, but with a society lacking in excess cash...it's not gonna be easy.
Revenues may be down, but let's not kid ourselves here. The casinos are all still making money hand over fists. It's not like these casinos are losing money or are in any danger of going under. Certainly not the big boys. Are they making what they were the early part of this decade? No, but every business has down years and can't just keep on expanding profits year after year after year. Disney has been making money for decades but they have had periods where profits were less than other years. It happens. It's called reality. The people hurting are the small businesses and consumers who don't have as much money as they used to to spend. However, the casinos are still making healthy profits and simply are not going to lower their costs until they get a tax break instead of tax increases from this stupid government of ours in D.C. that is anti-business. I've been to vegas 2 times in the last 5 weeks for a total of 16 days. I saw a ton of shows and guess what? They were all sold out. KA, the Beatles, Terry Fator, Mystere, Carrot Top, among others. If the casinos were struggling so much than they wouldn't be selling out these shows nightly because tickets ain't cheap. I also went to Aria and the place was humming. So were all the major casinos on friday and saturday.
My wife and I WERE going to the casinos every weekend [both sat. and sun.] but we finally realized that the casinos have reduced their payout to the point that there is very little chance of going home ahead and we lose our stake in an hour or so when we USED to be able to play for several hour on the same money,
We purchased a 'WII' and now go to the casino of choice once a wknd., eat and play a much smaller stake then go home and play WII for the cost of the elect.used.
I, like many others, really get tired of all of the political rhetoric that comes in on many stories on this site. I am a conservative but I realize that the policies of both parties and the out of control lifestyle of many people in this country got us into this mess. I disagree with both parties on many things but we the people must make the changes that will get our country back to where it once was. I have made mistakes in my own life and it is my responsibility to correct them and learn from them. Unfortunately, our government and many people won't make those necessary changes and will just believe that things will go back to "normal". I personally don't believe that will occur.
Most people who gamble know the odds are against them in the long run. Think about it -- if your expecation is to lose your money on most casino games, how does a casino get in anyone in their right mind to gamble?
The formula is pretty simple to get people to come into the joint and gamble: Give people free drinks, cheap rooms, cheap food, free/low priced entertainment, offer low house edge games, have reasonable minimums, comp fairly based on their play. The result is that people feel good even though they are getting screwed in the long run by house.
Now, I ask you, is this formula being followed by any of the big Strip properties? No. And the casinos wonder why the numbers are down, why people are not gambling/spending as much. Duh.
$22.50 plus toke for two martinis at the Mandalay Bay sports book bar. That's the sports book bar, not some quiet intimate lounge tucked away somehere. That pretty much sums it all up.
As always, check out my LV blog.
http://jimmyhoofa-lv.blogspot.com/
For one of the few times in year, I agree with almost all the comments (with the exception of the jab against Obama and other politicians). What is happening transcends political affiliations--it is generational and will take concerted effort by everyone to correct. Even though this article refers to LV gaming, we also have major problems in national unemployment, housing, homeless, helpless, medical insurance issues...etc. The list is endless and will take time to resolve. I am a snowbird and live near Laughlin and have seen firsthand what the economy has done to the gaming industry here. The snowbird friends I've made over the years have not come for the past 2 years...and those that do show are not staying as long. Neither are they gaming as much nor paying for entertainment, dining and other incidentals. Thankfully I have seen the best years (I am almost 70) because I don't think I'll see them again in my lifetime. Like Woodman says, "I personally don't believe that will occur..." Thank you all for your insight and response--for once, they were truly introspective in my opinion...and almost devoid of vindictive polictical namecalling.
emvance You are so wrong. This all began with Phil Gramm who along with Richard Lugar wrote the Commodity Furtures Modernization Act of 2000, followed by the great deregulator John McCain. Yes there are some Democrats that had a hand in the fall of Americas economy which includes banking,Wall Street,and housing thus the loss of jobs as well as manufacturing jobs shipped over seas. Remeber deregulation is a Republican cause that has come back to haunt America.
It was Bush who promised Americans that THE ECONOMY was in good shape weeks before the bottom fell out, thanks in part ot his lying war and in the end Obama inherited a 1.3 trillion dollar debt.I might remind you the bailout of banking was Bush's idea and McCain could not get off of the campain trail fast enough to vote for it himself. The problems America has is a result of eight years of Bush and Republicans failed policies.Now the liars are coming forth to blame Obama who inherited this mess.Your rant is senseless and immature.You need to do some real research and quit listening to Fox,Rush and right wing extremest radio.
neiman1 For the first time I do agree with your post.
"they try to change every available space into hoity toity high end nightclubs that no one can afford to go to"
This is beyond laughable. Have you ever been into one of these nightclubs? Have you ever witnessed the lines snaking outside? I'm not a fan of them, but these places are packed so tightly every weekend that it takes 15 minutes just to leave.
The legend of the "bargain Las Vegas" that appealed to "everyone" has taken on a life of its own, especially in these comments. "Bargain Las Vegas" where everything was cheap (or free) existed, but not as long nor as impressively as some believe. I'd rather see a smaller Las Vegas, appealing to a more discerning crowd, with a population about half of what we currently have. I think the city would be a much better place to live, a more unique destination for travelers with money, and more successful overall.
The only things keeping a lot of people from leaving LV is the weather and no state income taxes.
To neiman1..... I couldn't have said it any better.I fall into both categories a Babyboomer and a retiree.Lets face facts a return of only 1.5% on my money..isn't cause me to jump into any major investments at this time.I'm more conservative,you have to be, I have no choice in the matter if I intend to live debt free.At this stage of my life I have no intention of raking up bills without paying for them.Playing in the casinos is still in the cards(pun).Vacations,of course.A new home? sure.I'm just going a bit slower and alot more careful.These are NEW times for all of us.Is it a eye opener for some? I sure hope so.I have no doubt we'll all survive this,not this year or not,but we will.
The gaming industry would do well to broaden its target market.
Western Canada has not gone through the same economic melt down as the US. There are several fundamental reasons, but there is a large mature population, with money. There is NO Las Vegas advertising north of the boarder.
Promote Las Vegas to the area, especially now since there has been no summer there yet. Advertise all the fun and great weather. Positive steps will help, let's not get bogged down in self pity.
Martin9, I agree completely. I have said before that many people just believe that we will return to "normal". What built this mess wasn't "normal" and people better wake up and realize that those times are gone.
As one can see, by the numbers, MGM Center City has helped our local gaming revenue. The main problem to date are jobs and the falling housing prices.
Well the first three comments were right!
Is this not what Obama said when he said you should not go to Vegas and spend the kids college money and that we need to end the war in Iraq so we can quit spending money that we don't have, and third more work ahead.
If I am wrong please advise.
Baby Boomers and retirees are not the only ones out there who are watching their wallets. Those who are early-mid career are too as many who have less seniority often get laid-off as someone I know was about to before someone else in the same department of his company resigned. The problems working against The Strip is The Strip in addition to the more expensive airline fees. The Strip got too comfortable and started tearing down viable casinos to create trendy, club-oriented properties. Tropicana's got it right by renovating their existing casino floor and adjacent rooms, not tear down a building only to build one in it's place. I am in my 30s but have never been interested in the clubs or high-end restaurants. I go off Strip and play the pennies, eat at the inexpensive but high quality buffets, and get appreciative cocktail waitresses. The experience at the new Aria is 5 cent minimum slots, more dance clubs, and a meandering walk to and from it from Las Vegas Blvd. I stayed mid-Strip once and the cheapest thing I could find was Subway at O'Shea's or the McDonald's by Harrah's. And no way am I paying $35 for the Buffets of Buffets or even $3 for a 20oz Coke. Also, flights are more costly, so makes the journey from the Midwest very rare. If it was more accessible, I would take advantage of my better comps off the Strip or Downtown.
These are the results of 8 years of Bushonomics!
Is neiman1 on medication now? This is the first thing he has ever written that is spot on without blaming the Democrats. We really do need to look at ourselves as the cause of the economic meltdown in this country. The nation's economy was a big Ponzi scheme. As long as new capital was coming into the economy, albeit through borrowed capital, it worked. When the new capital dried up so did the economy. Simply our economy was all a house of cards. Remember when Tiger bumped the table and the house of cards collapsed?
At the end of 2007 the average 401k acount balance was $114,337, by the end of 2008 the account balance was $86,513.
The average loss for a 401k account balance in 2008 was 24,3%.
Those in the age group 50-60's have been the hardest hit because in the remaining years before retirement their 401k's cannot make up the losses.
Many people lost everything in their 401k's because of their portfolio was not structured properly.
The best pension plans are the "defined benefits" pension plan, but they are becoming a thing of the past.
Because of the 75% Depression, many employers are no longer contributing their portion of the 401k.
at present, the best plan is Social Security, which has performed better than the stock market on the last 10 year average.
I don't care what anyone says-but the old time outfit could make money in a casino in good economic times & bad-including todays environment. The rooms & the food & the cigarettes & the liquor are ALL loss leaders for the casino. Bottom Line. Get the bodies into the Casino & everything else will take care of itself. Stop with the 6/5 blackjack. Any Casino offering 6/5 blackjack is assuming that gamblers are idiots & most are NOT.
vegas no longer has the priority it use to have. as a baby boomer my life experiences taught me things i wouldnt have thought about when i was in my 30s or 40s, hence, why am i throwing money away? let the wannabes, the yuppies and thugs enjoy themselves; i surely dont miss it!
Even if aging baby boomers are financially secure they are choosing to help their families then to spend gambling. They are helping their children and aging parents who have also been hit hard by the economy.
As someone who fits the age (55) group in the article, I agree, we have cut down on Vegas spedning. I just came home from visiting friends in Vegas and did not even step foot in a casino for the past three days. Though we did spend money in the malls and at restaurants. Gambling is something we can do without when we need to tighten our belts. On previous visits it was not uncommon for us to gamble, but those days are behind us for awhile.
Adding to my post at noon:
An increase of just 1.8% in the FICA/ Social Security tax would make SS sound until well after the year 2100.
I think one problem Las Vegas has starts at the airport. Ever since the airport stopped allowing people to smoke while they wait for their flight has had a negative effect. Who goes to Vegas concerned about their health. We go to Vegas to have a good time and indulge. Las Vegas has changed for us baby boomers. Bring back the old Vegas and we will come to get away from it all.
Jerry's Nugget in North Vegas used to have a cool promotion on Fridays and Saturdays. That was double pay on all Royals , quarter machines and higher. I really loved that promo although I was never the lucky one to get a royal flush pay-out on top. Now they also cancelled that and instead offer 5x and 6x points on these 2 days of the week. It's still ok, but not quite the same. If you do the math, however, you will find out that 6x points is actually even better than double-pay on a royal flush that happens once every 40,000+ hands or so.
Look, I am mentioning this because Jerry's Nugget is definetely off the blocks but still attracks lots of players and is alive more than ever before. ON the Strip, there just aren't such promotions. And that's why gambling on the Strip is no fun anymore. Only poker in the evening with drunk conventioners without clue might be something. Everything else ain't worth it.
From Switzerland
I will be in Las Vegas next week for three nights and I can assure you that personally I will not be stepping up to a green felt table or putting twenties in a bill receptor.
We will enjoy the Spa and some good food, but in this economy and the way I have been affected income wise, there's no way to justify giving money away to a casino.
I once asked a question to group of business owners including construction executives at a conference in eastern Pa: who on earth are buying all these homes you are building and where are they getting the cash? This was in 2005. Nobody was willing to step to the microphone to answer the question because they all knew they were creating a situation that if the industry's bubble broke then the economy would crap out, and it did. We have many family and friends who left really nice houses to move to what they thought were nicer homes to keep up with the Jones, now many of these people are in apartments. You see everyone got caught up in the spree that occurred really between 1999 and 2006, without giving any thought to what they wee getting into or if there was a life changing event. If anyone would turn back time to the years between 1955 to 1980, people stayed put in their homes and only moved if they had too and not because they needed a bigger home than their friends. You look at areas of the country that hasnt been affected by the housing crash and you would see people who are pleased with how they live and the way they live. Then take the areas of the country that were affected the most by the housing bubble (Vegas, South Florida, all of Florida, California, Arizona etc) what do you see, people who wanted something they could not afford or wantd to live the life they did not have the income for, especially in Vegas and Florida.
There is plenty of blame to go around politically but most of the blame needs to pointed to the homeowners and general public.
p
I have to say, it is a pleasure to see a majority of responses to such a controversial issue be respectful, insightful and diverse. Like many of you I agree, the folks we need to look to for solutions and blame are the ones we see in the mirror every day. Nevadans have to work to bring a more diverse economy to our communities, counties, cities and the state, and once that is accomplished, we really won't be as focused on or dependent upon what retired Baby Boomers can or cannot spend here. We need to bring more businesses to our cities without developing outward. We need to redevelop on top of the current infrastructure in place, replacing old and crumbling with new and energy efficient. We need to provide tax incentives for new clean industry to base themselves here within our cities limits and in doing so revive neighborhoods and districts, attract more well-educated people and in doing so get more bang for our tax bucks by providing incentives for business and industry to help us make money, instead of us giving them money for developers who are already stretching the limits of our boundaries and resources. Doesn't matter if you are a Democrat or Republican, Tea Party or Green Party. What matters in Nevada is not just jobs, but the diversity of the industries, and the rebuilding and resurrection of areas we already are paying to have services run to. We live in an exciting place. A destination. We have great weather. Instead of turning our backs on what is old, it is time to rebuild it or replace it with what works, and will work in the future. We specialize in futures wagering. I think we have what it takes, but to do so we need to live our own lives in the manner in which we expect others to be conducting our business. The only population that can be led to ruin, is one that chooses to be ignorant and places immediate gratification over building a future that matters and that has substance. We can do this.
pele, words of wisdom are refreshing to hear.
Well said,Ruark. I used to come every year since '94. Have not been back since '06. They only seam to cater to the rich and could not give a crap about anyone else. LV was built on the middle-class.
"This is the destruction that the Democrats have caused in less than 2 years."
Yes. Right. That's it. The Democrats. 2 years.
ruined everything.
"Your feeling sleepy. Verrry Sleepy... that's it; count back from 100...99, 98, 97.. good.
Now. NOTHING HAPPENED BEFORE JANUARY 26, 2008. Got it?"
WHERE DO YOU PEOPLE COME FROM???
Is it the same planet Sharron Angle is from???
Like, a 3rd Rock From The Sun kind of thing?
How neat!
I'm a conservative and that's still hilarious!
Excellent comments Golfcal...I just don't know if I have enough faith in us to quit bickering about everything and stay focused on the larger prize. I hope you're right!
So many comments from so many people who want Las Vegas to belong to THEM and be THEIRS ... Please. Come if you like it, stay away if you don't ... I don't care. Las Vegas will survive.
RPJ, Vegas is built on a guy like me going there because I like it. And for the few days I spend there a year, maybe 10 at the most, Las Vegas makes me very comfortable for those 10 days or so and tells me that the town belongs to me and it is mine, and that my friend, is how they survive. But if you don't care...........
As usual RPJ is just plain WRONG, never has anything constructive to say but to belittle others comments. Las Vegas belongs to EVERYBODY, and no one wants any part of it right now because the corporate greedy executives have bilked it and continue to fleece the tourists and have succeeded in driving away the middle classes participation in it's business model/
Vidi, you are right about the 401s, but even worse were the IRAs. You might have been playing by the rules, but Washington was passing bills deregulating financial institutions and at the same time giving those retirement away; because those folks lost 50-70% and they are never going to get it back. I often wonder what percent of retirees were dependent on their IRAs for retirement, but you can bet they've cut their spending.
ATV,
um, i think the people ALREADY SPOKE, the bush era was killing most americans. thats why we had a change. hopefully this congress, or the next, can undo some of the damage bush has done.
I'm your prototypical tourist to Vegas. Double Nickels in age and I lived in Hawaii for 35 years and the wife and I love to come to Vegas - about 4 times a year, for about 25+ years.
Started at Boyd's California, moved to the Luxor about 10 years ago. After a couple of years, I was up to Limos, all food, Spa Suites and any show I wanted to see with Limo to the show (man did we enjoy Bette Middler and Paul McCartney and BlueMan Group even Carrot Top was good fun). Two year's ago, I was coming with 10-20k per trip. Winner a few times, loser a lot, but it was FUN!
What happened was the Las Vegas experience kind of sucks now... I still get dozens of free room offers, tix to most any concerts & fights, but all the other percs are GONE, and therefore, so is my budget. Oh, and we'll never go to the Luxor again. They blew us off after I complained the the new Blackjack GoGo Dancers and DJ music was so loud, you couldn't concentrate on the game, but big tits were in that month, so we moved to other hotels.
Last month, we just did Bellagio, Paris and Aria... and ate all of 2 meals over 8 days in those hotels. Used my 10 free buffets that Station keeps sending us and gave them about $500.00 over the trip for the experience. I have no problem with $50 buffets at Green Valley and Red Rock. I like those hotels more and more.
Oh, and I don't see your economy (as far as quantity of tourists) that bad. We did Nascar in February and the strip was packed, and 8 days last month, and even Monday night was busy at the Aria.
Hawaii's tourist economy, which is as much of the overal economy for us and it is for you, Vegas souls, is also in the total dumper, too, So you're not alone in this.
Pres. BO killed Hawaii with his famous "anti-Vegas" speech.. and he's out to do much more damage before it stops.
As for me and the wife, I'll keep coming...but with less to give you as you're giving me less...
jshawaii
To :9ballguy: I resent being called a "aging Babyboomer"(grin) but NO I am NOT helping my family.I am enjoying "my" life and letting the winds carry me wherever they take me.If that means into a casino...fine.As for me,there are no aging parents,but clearly if I had I probably wouldn't be typing these words.Kids will go through your "estate" in a blink of a eye once you're gone...so enjoy it yourself...they can have what is left.
First, our casino's are not rolling in the money. Staffing has been downsized so far if we get a rash of calloffs there won't be any employees on the floor. The only reason we're surviving is because of extreme cost control and some good financial foresight. Check the statistics, many of us are down significant numbers year-on-year and last year was considered to be the worst of it.
I agree that the LV Strip is completely overbuilt and I don't know what some of these businesses are thinking buy continuing to build. My parents who are in their late 50's keep telling me when they visit how the corporations have just ruined Vegas, it was much better prior to.
Agreed, Nitro.
As a society, we pay ourselves more than what we are worth in a global market place.
The fact of the matter is that other people do the same work cheaper (not necessarily better). There is less government regulation and fewer government programs.
Somebody has to pay the bills unless the government continues to "charge it". As the credit card industry has taught us...
1) If you can't pay it today, how you going to pay it tomorrow?
2) Every credit card has a limit. Sooner or later your creditor will not extend you any more credit. Then what?
3) At some point, if you decide to pay it off, you have to suck it up and live frugally on a no frills budget until you pay the debt. It ain't easy.
How hard is that to understand? Why aren't the same principles are applied to our National Debt?
The reason is simple, our leaders both Democrat and Republicans but not all of either, lack the stones to say no.
Financially speaking, we are sailing on the Titanic. Enjoy the cruise...
This is only pat of the story - as baby boomers age they tend to drive less. Many years past Californians could only gamble at horse racing or they had to drive all the way to Nevada to do gambling.
Now, its really hard to get in and out of the mega casinos and as baby boomers age - yeah - they tend to hate getting in and out of casinos (the long walks, the escalators, etc.) more than the young.
1) Many no longer have to gamble in Nevada - there are a lot (and I mean a lot) of Indian Gaming Cainos with all the perks, restaurants, night life just a couple miles from home. You will find them packed on many nights - so much so that one holiday week-end in a major resort - every single slot machine was busy.
The drive is shoter - and with President Obama's wish to raise the gasoline prices at every change he gets - many will gamble but forego the long and boring trip to Nevada Casinos. As such, a large number of people no longer make the trip....and are happier for it.
2) Baby Boomers while liking to do a lot - hate the long terrible walks in and out of the casinos. When they took away the smaller casinos and made mega resorts, many just say - its too hard. As such, that is why a lot of baby boomers forego the Strip for Old Las Vegas. The casinos are easier to get in and out of.
3) Baby boomers also tend to look for bargains for food - with so many casinos thinking dropping $100 - $200 per meal is the way to go, baby boomers just stay home and go to their neighborhood restaurants.
Of course, most baby boomers who read the Las Vegas Sun live in Las Vegas. And as such, buy into the dribble about budgets, money, etc. Its been a major impact given the sharp decline of the Las Vegas Housing Market. The area has grown so large in a few years - that many retirees moved in thinking they would be rich. This is in spite of a declining population - yeah. Problem is - The housing bubble is due to speculation (gambling on the market) and also a declining population.
Places like Reno seem to have a deal of the day - I think I have 50 or so casino advertisements right now offering free rooms, food, shows, and other perks. And they just keep oin rolling in. This tends to bring in many families (especially in the summer) and also baby boomers looking for an inexpensive vacation. The casinos hope that you play - but some adjust by giving nice perks and recognize what a baby boomer retiree is willing to gamble. Minden Nevada Carson Valley Inn does a good job of catering to the senior (as well as others.).
In short, Las Vegas is way over priced - given the other entertainment and gambling options available. Its also difficult given baby boomers tend to hate hte long walk into the casino and out and the long drive from California.
@ lovestohike "In short, Las Vegas is way over priced"
Agreed, but let me put it another way... They have priced themselves out of the market. They incurred multimillion dollar debt and have to feed the monster.
Their dilemma is their requisite cash flow has a voracious appetite. They can't generate the dollars necessary to feed it. So they try and change table payouts to 6/5, slow comps to a crawl, raise food prices etc. All done out of desperation which only makes the problem that much worse.
They have killed the goose that laid the golden egg. You will never see "Old Vegas" again on the Strip. As a mater of fact, you won't ever see the "Old Strip" again on the strip.
Lovestohike you have a good point regarding how well Reno Casinos are promoting themselves as compared to the Vegas Strip. Reno does have the flavor of the old Las Vegas and how can you beat its proximity to Lake Tahoe....heaven on earth.
Interesting Steve Wynn is getting a pass in this forum. I know he's usually credited with being a savvy businessman that only speaks the gospel, but he played a significant role in setting up the current Vegas landscape (probably more than any politician or political party) when he started demolishing old Vegas to usher in the era of mega-resorts with their high-end focus.
Still the old business model. Tell me - why in this economy, the hotels STILL have the B*lls to increase rates everytime a convention comes to town. They go from $70 a night to $300, just because of the conventioneers are here? Cut them some room rate slack so they can afford to spend elsewhere..that would take care of the taxi drivers, doormen, restaurants and even the hookers..but to gouge the people on a room is OLD SCHOOL MENTALITY..times have changed boys...
If you choose to keep Reid, don't expect things to get any better!
Okay, younger people aren't as worried about retirement but sooner or later real world concerns will catch up to them, too. I can understand why the casinos are interested in chasing "high rollers" but that is such a narrow market and not enough to sustain the whole strip.
All I know is that the more I hear about pool parties hosted by Kardashians, nightclubs, resort fees and all that crap, I become even less inclined to deal with the hassle of flying there to end up in a tight casino. At the end of the day, the strip operators have themselves to blame for the mess they are in. Boomers can't spend the way they used to but at least give them something worth spending their money on when they manage to save some cash up.
That's okay, it doesn't matter about the retirees as the Strip's vision is to only embrace rich, attractive 20-somethings now anyway. Everyone else will go to Indian casinos. The business model has done a bang-up job so far. When's that Echelon opening again?
No bashing here, just a few observations.
Live within your means, gaming in Vegas is a luxury not a necessity.
Bang for the buck will work, but the suits have no idea how to do that.
If gaming is everywhere, Vegas needs to re-invent itself again.
Airfare is murdering Vegas and it is impossible to rebound locally with fewer and more expensive flights.
And now my gaming philosophy; Until they cater to me, walk the Strip, but gamble elsewhere.
Hey dek, are we talking about the same LV? Sure, some shows are selling out but look how many shows have closed--Folies Bergiere, Steve Wyrick, Scarlett Princess of Magic, Stardust Lido, etc. What makes you think the casinos are doing okay? Check out the financials for Riviera Holdings--the market cap is $4 million (share price is now about 33 cents.) That means you could BUY the Riviera casino for $4 million if you really wanted that piece of junk. Phil Ruffin's personal art collection is worth more than the Riviera.
http://resources.bnet.com/topic/riviera+...
The problem is that everyone is feeling the economy crunch right where he lives which makes it hard to jump on a three hour flight to another depressed city. The casinos better counter those rumors of super tight slots. People are finding it easy enough to talk themselves out of a vacation this year and 2011 looks much worse for all.
I didnt think I was worth squat to the casinos.I'm retired but I didnt realize they built City Center oe Encore or any of the super hotels with me in mind.