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Report: Brighter Future for Strip in 2012 | Business

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Report: Brighter Future for Strip in 2012
Report: Brighter Future for Strip in 2012

A new report released Tuesday has some positive news for the Las Vegas Strip.

The report says Strip properties will see higher gaming revenue, more conventions and stronger occupancy levels in 2012. CBRE Global Gaming Group, which specializes in financial services for the gaming industry, put together the analysis of the resort corridor’s future. The group says after seven years of tough times change is coming.

“We are going to show some signs of recovery,” said executive vice-president with CBRE Global Gaming Group John Knott.

The report predicts gaming revenue will increase between 1.8 and 4.8 percent next year. It may not sound like a lot but will be felt by companies that have struggled through lean years. 

“The good news about a slight increase is that costs have been trimmed, so there's no fattening in any of the gaming companies budget at this point,” Knott said.

A jump in gaming revenue on the Strip also makes a difference to other areas of the Las Vegas valley including downtown. Tony Santo is with Santo Gaming, which owns the newly renovated Plaza Hotel and Casino downtown. He says economic improvement depends on Strip hotels.

“For Las Vegas, the recovery starts on the strip. We need the strip to start doing well and that will trickle down to downtown, state line, Laughlin,” Santo said. 

He also says that while a 1 percent jump in gaming sounds small, an increase of any size is good news.

“After what we have seen in the last few years, we are happy with the 1 percent increase. That is a prediction. It is possible it could be up more,” Santo added. 

CBRE Global Gaming Group has been accurate with its predictions for Las Vegas. Last year, the group said convention demand would be enough to offset the new supply of hotel rooms from the Cosmopolitan. That prediction turned out to be true. 

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