Luxury Resort
Las Vegas local market, which is dominated by gaming giants like Station Casinos and the Boyd Gaming Corp, will see a new entrant in 2008. The $750 million Southern Highland Casino Resort will be built on 100 acres at Interstate 15 and St. Rose Parkway.
The groundbreaking of the project will take place in 2006 but designing of the project will take most the year. Many feel the amount to be spent is exorbitant, because in the past the $276 million spent by Swiss casino on the resort in Summerlin went bankrupt within few months. But keeping in mind that the future growth of valley lies along the Interstate-15 southward towards California the amount is not huge.
The Las Vegas valley projects a 6% to 9%growth by the year 2008 when Highland Casino will be opened, so the resort can exploit the growth rate to its advantage. In addition to the drive in traffic from California other upcoming retail projects in the area will also be an asset to the casino resort.
Gaming industry In Las Vegas
The Las Vegas gaming industry is reaching new heights and the major six companies in this field are getting their extra share due their marketing efforts.
Wynn Las Vegas was opened on April 28th. This $2.7 billion project is considered as one of the factors responsible for the record growth. The well-attended 2005 World Market Center event also increased the number of visitors and a considerable amount of revenue also came from adding new hotel rooms.
The local casinos also enjoyed their march forward because of growth in all the sectors like population, employment, income and stable home pricing. Increased personal income and real estate value increased the number of customers in the casinos. The sustainability of this performance depends how well the industry copes with the increase in gasoline price by not letting the number of flights to Las Vegas to reduce, thus not reducing the influx of tourist. Increasing room rates and $150 per ticket for every entertainment production is likely to have effect on the tourist.
Las Vega Small Time-share market set to grow
Las Vegas market despite showing tremendous growth and having more than 37 million visitors every year has a negligible time-share market.
The 27-acre time-share resort is coming up on Las Vegas Boulevard. It is first of the four phases of the Tahiti Village owned by the Consolidated Resorts. The company was founded by Arthur Spector and Michael Kaplan in the year 1980 in Hawaii and was the first to obtain timeshare registration. Their first venture in Las Vegas was the club De Soleil Resort on Tropicana Avenue between Jones and Decatur boulevards.
The Tahiti village will increase the Consolidated Resorts time-share account by 1000 units. The designs of these 1000 units are such that every 2-bedroom unit can be separated into two single bedroom units. There is a lot of growth in the time-share market and all the major companies who have realized this are moving towards Las Vegas to grab the opportunity.
More Workers, More Homes
Growth rate in Las Vegas
Job market in Las Vegas is way ahead of the other cities of U.S like the Los Angeles and New York. Service industry and the casinos are the most popular job providers in Las Vegas. For every hotel built in Las Vegas three jobs are created. In spite of more than 6000 residents moving into Las Vegas every month, the unemployment rate is only 4%. Las Vegas, known as the land of opportunity, has seen tremendous growth rate in the recent years but does not have the work force equivalent to it.
Real estate, construction and service industry form the major part of the cities job providers. The city has seen the decrease in unemployment rate from 4.6% in June 2004 to 4.1% this June. Most of the cities of U.S saw a maximum of 5.6% growth rate but Las Vegas enjoyed huge 7.7% increase with nearly 62,700 new jobs added in the past one year.
All this means more demand for homes as more workers move into Las Vegas to fill the shortage of workers in the city
