Wynn Resorts Talks of Las Vegas’ Uncertain Future
October 28, 2009 by Igor
Filed under All Casino news, Las Vegas news
Despite the many efforts that Las Vegas is doing, it seems that it will take a long time for the City of Lights to recover from the losses that the recession has dealt the once thought of recession-proof city.
Now, Wynn Resorts is saying that Las Vegas is facing a very uncertain future.
Doom, Gloom
Steve Wynn, the Chief Executive of Wynn Resorts, is seeing a very uncertain future, indeed, for the City of Lights, particularly since many of its visitors are now cutting back on their spending habits and opting to save money instead, rather than having a glamorous time in the city.
Las Vegas is now riddled with half-finished buildings as well as hotel projects that cannot push through because of lack of funds. As a matter of fact, Wynn Resorts has also suffered tremendously from the effects of the recession. It reports a net income reduction of $34.2 million from a high of $51.2 million, almost 33% of its usual, because of the higher hotel and tax adjustments. The fact that the luxury domestic traveler market remains on the negative side and that companies are also canceling their reservations in their Las Vegas properties is not helping the matter any. In fact, two companies have already withdrawn from holding their major events at the Wynn Resorts.
Other big casino operators have also reported revenue losses. Harrah’s Entertainment, considered as a major player in the gambling industry, has given a report that they lost $1.62 billions in revenues. Their revenue has also fallen by about 14%. If before they had a revenue of $2.65 billion, now they are only showing a revenue of $2.28 billion.
Go East
Right now, Wynn Resorts is investing in Asia to increase its revenues, rather than spend their money in the country, especially since the value of dollar has fallen. Wynn Resorts is going to expand its business arms in Macau as the company aims to develop new casinos along Macau’s Cotai Strip, and this is also what other casinos are doing, investing their money in Asia, leaving Las Vegas dry.
The gambling industry is seeing Asia as their bright spot during this troubled financial times. There might be some ups and downs, but the expectations are high that the revenues taken from their gambling on the Asian gambling market is going to go well for them. Despite the fact that casinos have experienced a lower revenue during the early part of the year, revenues were up by August and September, coinciding with the time that the government of China has reduced its travel restrictions.