Las Vegas has Economic Woes

Las Vegas has Economic Woes with Rest of Country

In many ways, the city of Las Vegas is not really a belle weather as many people think. A lot of people like to look at Las Vegas and decide based on what is going on within the city how things are going in the rest of the country, but that is really backwards in terms of the actual logic. It would be more accurate to say that the United States of America as a whole is a belle weather for Las Vegas and this is primarily because the city of Las Vegas derives its main income flows from the rest of the USA.
Think about it from a logical standpoint. When people come to the city of Las Vegas, they are hoping to kick back and relax. Some people do this by gambling while others do it through other methods, but the main reason that people come to Las Vegas is to take a vacation and forget their cares and worries for awhile. Because of this Las Vegas has long been a city dominated by income from tourism venues and tourism income by definition depends on tourists to be sustainable. When tourists do not come, people that are in the tourism industry suffer. It is for this reason that it is way more accurate to think of Las Vegas’ economic well being as being a function of the economic state of the rest of the country.

Unless you’ve been under a rock for the last month, you know that things are not going well for the US economy as a whole. The government is going to be bailing out companies left and right with trillions of dollars worth of money and of course the American dollar has gone downhill as a result of that kind of inflation. However, many people in Middle America and elsewhere around the country have been hit hard as well, with layoffs and salary decreases coming left and right as a result of the massive economic woes the country is currently facing. For this reason, many people can not afford to travel this year and the trips to Las Vegas that normally came about during the summer months are no longer happening and that in turn is negatively affecting the economy of Sin City.

A good example of this would be Westgate Resorts, a company that is responsible for booking time shares for such famous casinos as Planet Hollywood Casino in Las Vegas. The current economic times have gotten so bad for them that they have had to lay off at least 200 of their workers. The main reason for this is that resort companies like Westgate depend on constant expansion to survive and keep their employees in work and when this does not happen (or is delayed in the case of many current resort projects in Las Vegas), bad things start to happen. While there have thankfully been no company collapses in Las Vegas, it is something that could still conceivably happen in the near future.

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