Monday, March 31, 2008

Trouble on the Strip

The credit crisis has struck again. This week's victim is the Crown Las Vegas project, which was supposed to be the tallest building in the Western Hemisphere, but will no longer be built. Judging by the building design (vibrator anyone?), architecture fans will not be too sad, but what does it mean for John Q. Tourist? As the economy continues to soften, expect American's leisure travel to decline by the end of the year. Unlike the boutiques of Manhattan, Las Vegas is a bit too far for the average Londoner or other European to get away to for the weekend. Asian gamblers now have numerous options in Macao. Result? The desert resorts will surely suffer from a lack of visitors, share values will drop and a developer looking to get a chunk of land on the strip for cheap will pounce on a site like this and try and capitalize during the next boom. Scary times ahead for the hospitality industry. Scary times indeed.