Not long ago, I sent an email to a friend of mine living in Las Vegas and as you might have guessed the real estate market there has definitely seen better days. Of course, just one channel surfing 10-minute excursion of your television set will demonstrate that harsh reality and speak to the most unfortunate decline in consumer confidence. In fact, Alan Greenspan stated yesterday that this current economic turbulence was the worst since WWII.
So with all that known, what could I say in an email to my friend in Las Vegas except; “Hope all is well in Las Vegas?” he responded with his worrisome acknowledgment of the local economy and the rising inflation costs, including worst of all; gasoline. So, I said;
I see tourism is doing okay due to the devalued dollar, although, I wonder if fewer folks are going to be making the drive out from California with $4.00 gasoline prices, ouch! Just filled up the RV, $633 later, boy oh boy, outrageous indeed.
The cascading or domino falling effect that was predicted due to the subprime lending housing crisis, and with high oil prices, at $110 per barrel, is taking out economic sector after economic sector. We are now showing very poor retail sales, service sector down, construction, housing, auto, restaurant, airlines, etc, etc. Things, well they are not so good, but in Las Vegas tourism has been steady, thanks to foreign visits with their currency stronger than the dollar.
Still, a good bit of Las Vegas’ tourism does come from California and with fuel prices at $4.00 per gallon that puts Las Vegas in a tough situation moving into the Spring and Summer tourist season. Something to think on.