As a resident of Las Vegas and having survived the bubble bursting here, I was taken aback by a recent headline I initially saw on the Drudge Report. Israel Joffe with MYFOXNY wrote, “The next Detroit? Atlantic City and Las Vegas facing catastrophic collapse.”
Other then pure ignorance or written as a smear campaign against Las Vegas, how can he throw Las Vegas into the same classification as Detroit or even Atlantic City?
The author seems to be focusing primarily on gambling. He is reporting, because legalized gambling is becoming available all over the country, that people will not have to travel to Las Vegas or Atlantic City any more. Mr. Joffe states, “…it seems the niche that Las Vegas and Atlantic City once offered as a gambling and entertainment hub is heading toward the dustbin of history”.
True, between Indian reservations, river boats, dog tracks and mega-millions, people can blow their money hoping for the big win. However, Las Vegas is a destination city. Visitors come from all over the world to visit Las Vegas. Sure you can gamble here, but we have awesome hotels, clubs and the best celebrity chef’s in the country. Seriously, how many people are booking flights from all over the world to gamble in AC?
Mr. Positive concludes with the following, “Time will tell if these two cities will end up like Detroit. However, the fact that they are losing their biggest industries to major competition, much like Detroit did, with depressed housing, casinos bankrupting/closing and businesses fleeing, makes their fate seem eerily similar.”
Really? Comparing a down economy in Las Vegas or even Atlantic City to Detroit? Detroit is not even a casino town. Detroit is collapsing. It will survive if it does not become a National Monument to the Automotive Industry.
I do marketing for the real estate industry in Las Vegas and abroad including New Jersey. I can tell you even though the real estate market in Vegas may still have a minor adjustment bubble, home values are going up. Lots are selling. Construction has kicked back up. We are still getting conventions. Non-gaming revenue is increasing. Defense contracts at Nellis and Creech AFB have increased. And lastly, Jeff Beacher is re-opening Beacher’s Madhouse on New Years Eve.
Comparing Vegas to AC or the demise of Detroit? I would not bet on that!