Las Vegas is the world?s iconic gaming and entertainment destination, famous as the desert oasis for gambling and first-class entertainment. Some of the largest trade shows, meetings, conferences, and conventions are held in the area and attract millions of visitors each year. Major developments in the Las Vegas market in recent years, including the opening of CityCenter in late 2009, the opening of Cosmopolitan in late 2010, and the completion of the Caesar?s Palace?s Octavius Tower in 2012, have contributed to the improvement in Las Vegas? overall performance. Facility regeneration and deeper penetration of international markets is critical for Las Vegas to maintain its continued status as a gaming mecca. Las Vegas is expected to continue its position as a dominant domestic and international gaming destination; however, to maintain its competitive edge it must increasingly offer unique entertainment options. Caesars Entertainment?s Linq project, the Cosmopolitan?s 3,000-seat auditorium, the Las Vegas Convention and Visitors Authority?s revamped convention center, Genting?s Resorts World Las Vegas development, SBE/Stockbridge?s SLS Las Vegas project, and MGM Resorts International’s 20,000-seat arena are all part of the evolution of the city and will help to redefine Las Vegas’ future competitive landscape.
The growth of gaming options both nationally and worldwide, including the emergence of Macau and Singapore as worldwide gaming market leaders and the legalization of online gaming in the U.S., is changing the gaming marketplace. The visitation habits of U.S. gaming patrons changed during the recent recession as the proliferation of local and regional casinos offered closer destinations for many gamers. This trend has likely constrained Las Vegas? recovery. However, the market?s recovery has benefitted from the growth in baccarat revenue in recent years, which is an off-shoot of operators leveraging Asian marketing opportunities. Furthermore, legislation allowing Nevada licensees to engage in online gaming may also become an opportunity for land-based facilities to target patrons who desire to experience the ?real? thing in the future.
CONCLUSION
Many analysts have said Las Vegas is an oversaturated hotel market with more than 150,000 rooms. Adding SLS Las Vegas and Resorts World Las Vegas would give Las Vegas almost 155,000 rooms. The new supply won?t come on line immediately, which will allow some absorption of existing supply. Additionally, both projects are being designed and positioned as fresh concepts and brands in the Las Vegas market. However, cannibalization of existing demand is possible upon the opening of these two properties given the level of demand that will be needed to accommodate the new supply and the proliferation of gaming options worldwide.
Las Vegas is expected to continue to be a dominant domestic and international gaming destination; however, to maintain its competitive edge it must increasingly offer unique entertainment options. It is essential that the city maintain its unique image as a gaming mecca and increase its entertainment diversity. Regeneration is necessary for Las Vegas to maintain its continued status as an eminent gaming destination. In addition to Genting?s Resorts World Las Vegas and SBE/Stockbridge?s SLS Las Vegas, Caesars Entertainment?s Linq project, the Cosmopolitan?s 3,000-seat auditorium, the Las Vegas Convention and Visitors Authority?s revamped Convention Center, and MGM Resorts International’s 20,000-seat arena will be a part of the evolution of the city and will help to redefine Las Vegas’ future competitive landscape.
Source: Shannon S. Okada (2013). Las Vegas Casino and Hotel Market Outlook 2013, HVS?http://www.hvs.com/article/6315/las-vegas-casino-and-hotel-market-outlook-2013/?campaign=email published Apr 23, 2013. Viewed Apr 30, 2013,