Is Vegas experiencing a recession?

[djmasterweb]

I have noticed that since Labor Day, Vegas seems very slow across the board. I realize September is generally a slower month every year, but it seems much slower than even last September. I'm wondering if the higher fuel costs, and lower consumer confidence are taking its toll on a city built on expendable income.

For example, this week. Monday I passed Rum Jungle at 12:30am and the line was tiny with plenty of space inside. Tuesday, went to Green Valley Ranch and the place was just a ghost town. I heard most the clubs were brutally slow this week except the one or two very hot spots for each night of the week. At OPM we hit capacity on Saturday as usual, but our line was no where near the usual 3 hour wait. It was more like 20 minutes the whole night.

Next weekend will be nuts again due to 3-day weekend (Columbus), the huge fight at Thomas & Mack, and the low-rider show among other events.

But I'm still wondering what everyone else's experiences have been around town since Labor Day and if this September was slower than past years.

[lalate]

Originally Posted by djmasterweb

I have noticed that since Labor Day, Vegas seems very slow across the board. I realize September is generally a slower month every year, but it seems much slower than even last September. I'm wondering if the higher fuel costs, and lower consumer confidence are taking its toll on a city built on expendable income.

For example, this week. Monday I passed Rum Jungle at 12:30am and the line was tiny with plenty of space inside. Tuesday, went to Green Valley Ranch and the place was just a ghost town. I heard most the clubs were brutally slow this week except the one or two very hot spots for each night of the week. At OPM we hit capacity on Saturday as usual, but our line was no where near the usual 3 hour wait. It was more like 20 minutes the whole night.

Next weekend will be nuts again due to 3-day weekend (Columbus), the huge fight at Thomas & Mack, and the low-rider show among other events.

But I'm still wondering what everyone else's experiences have been around town since Labor Day and if this September was slower than past years.

This is a great topic and there is so much to be said about it. Yes we've been reporting on it elsewhere (off the boards). When we visited, Centrifuge was closed, Teatro was slower, and in previous weeks, Palms spots have been slow.

Here's one aspect of it.

The Las Vegas Visitors and Convention Authority (who we met recently at Tao) reported to the Las Vegas Sun earlier than month that 96.6 percent of those tourists questioned (the majority being from california) gambled during their trip. That figure is up from the previous year. It shows that gambling is still the major focus of most persons' trips to vegas, and growing, not nightlife.

What is interesting however is that most surveys were conducted pre-Katrina. Higher gas prices suggest a pre recessionary environment. Pre recessionary enviornments causes decreased spending and lower consumer confidence. But how does that translate into nightlife?

Macroeconmic factors don't necessarily translate into the nightlife industry the same as they do into other industries. Nightlife is driving by moods and desires. Vegas has had a wonderful summer and will have an even better fall with several new openings. But with Vegas drawing a large portion of their business from Los Angeles/Southern California, Vegas this fall has to compete with a series of new and recently opened venues in Los Angelesl.

For example, the week of Tao's opening, many of the same celebrities reported at Tao on Friday were at DJ Am's new venue LAX in Los Angeles within just a few days.

For every new venue in LA, they have to compete with a new venue in Vegas, and visa versa. They are neighboring markets and clubgoers who party in Vegas from Southern California are predominately those who in essence forego a night, or two, of partying at home to venture to vegas. With Los Angeles' producing several new (or recent) venues since spring like Day After, Rokbar (Tommy Lee's new spot), Mood, etc, even "soft refreshings" of existing venues in LA (Spundae @ Circus this summer), and plans for new spots in the coming months, you have an interesting period of several great new venues opening in neighboring markets. With that level of competiton, the key for any venue is getting the right clubgoer to their venue.

[vegasguy25]

Don't you think it's a bit of a stretch to say we're in a recession because we had a mellow week? I had a friend in town this weekend from LA, and he stayed at the Wynn. While Friday night over there was fairly mellow, La Bete still turned out a good crowd. Pure was also mobbed as usual. On Saturday, Wynn was wall to wall people. We hit Tao, which had a great turnout (sick venue), and Ice had a good turnout as well. You should know by now that not even Vegas is going to be ragin' every week.

[djmasterweb]

Actually the very definition of a recession is two quarters of downward economic trend. So it would be impossible to be in an actual recession at this point. With that said, my post was not based on one slow week. It has now been a slow month, or so it seems. And compared to last year, the vibe is different. Seems that only the red hot spots are hot and everyone else has been significantly off for almost a full month now.

[greenie]

I've made at least 2 trips out every October for the past 9 years, and I can say without a doubt that I'm finding better deals from the hotels this year than ever before. This is not a matter of me being any better at searching for them, as I'm including the rates and included benefits (e.g. dining credits, show tickets, 2-for-1 spa visits) that you get offered if you simply call them directly.

And for all the effect that fuel cost may have on drivers, the cost of flights to Vegas has remained at the same level it's been at for a few years... considering that flights to other parts of the country have gone up, this suggests to me that the airlines have seen a dip in Vegas bookings as well.

Recession? Nah. Just simple economics. Nothing can continue flying at an incredible height without an occasional drop.

[magua0]

higher gas prices has to be hitting the pockets of many with the extra disposable income. Its an extra $10 a week if not more for car gas, and i know people are not getting raises to make up for it...

Is it a blip or will it continue...