Friday, September 02, 2005

Las Vegas Bubble, Tourism & Gas Prices

Las Vegas has been a major bubble city. The city is highly dependent on tourism. Now, with gas prices rapidly rising the Las Vegas Sun had this article:

Fuel prices in Nevada neared $3 a gallon for unleaded regular and were closer to $4 a gallon in many other parts of the country on Thursday, and AAA Nevada said this state's average prices could quickly increase.

"There is concern in the industry how the consumers are going to react whenever you have these kinds of price increases," said Bill Bible, executive director of the Nevada Resort Association which represents most major hotel-casinos.

Will Las Vegas see a major bubble bursting as the tourism industry falters due to rising gas prices? Or will some sort of perverse American logic appear that says 'I am so stretched thin financially that I might as well gamble'?

3 comments:

  1. This comment has been removed by a blog administrator.

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  2. Sounds like buying there and commuting to LA is no longer an option :)

    Cole @ BigHousingBubble

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  3. I was here in Florida in the 1970s, when the gas crisis hit. Tourism to Central Florida (Walt Disney World and the other resorts had taken hold by then) dried up overnight. You could get a great room anywhere for $25-30 a night, a decent room for $17-18. Vacancy rates were 80%+ at many places.

    Whether the dynamics of tourism to LV are similar enough for the same effect to happen, I don't know. It certainly is possible given enough stimulus. The breather is that gas prices soon should be retreating sufficiently to head off a tourism bust. But if there were any more disasters like this one, watch out.

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