 "Las Vegas: Betting on re-invention")
Las Vegas is the stuff dreams – and nightmares – are made of. Smack bang in the middle of nowhere, this strip of glittering lights and starry eyes has transformed itself from the gambling of the world to a family-friendly entertainment destination driven by business models and quarterly earnings.
From gourmet restaurants like Emeril’s to the Cirque du Soleil to concerts to even the finals of the college football league, Vegas’s transformation has been complete. Today, it is one of the most sought-after tourist destinations in the world. Its romance has been burnished along the way by movies like Rainman, Ocean’s Eleven series, Hangover, and even if somewhat on the seamier side, 21. In fact, Vegas has gone in the past decade from a 65:35 ratio of gaming to non-gaming revenue to the other end where non-gaming activities now account for 65% of revenue.
Over the past few years, though, Vegas has been facing a serious challenge both at home – there are now 38 places in the US where gambling is legalised – as well as at the other end of the world: Macau, which has over the past decade overtaken Vegas in revenues and houses storied Vegas brands like the Venetian, Wynn, and Las Vegas Sands. The Asian casino island has rapidly become one of the top global centres for gaming, given the rising spending power of the Chinese middle class, as well as the growing number of Asian millionaires and more who no longer have to fly halfway around the world for that rush of sitting down at a felt-top table and hearing the clack of counters.
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But Vegas is fighting back. With the slowdown in the Chinese economy, it is once again looking to reclaim its position as the town where the lights never dim and no one is ever turned away. It was the place where everyone was welcome, even if you didn’t play. That philosophy, which was a change from the earlier one that targeted gamers, took Vegas to the heights of its popularity.
Some casinos, however, are now positioning themselves as being more discerning. John Unwin, CEO of the Cosmopolitan Resort, one of the grandest casinos on the Strip which opened in 2011, says they have made a conscious decision to be more discrete, even running ads stating that they weren’t for just about everyone.
According to Unwin, the Vegas boom that started almost 20 years ago with the Mirage, and with Steve Wynn’s eponymous hotel-casinos is now ending and giving way to a new era.
And while Unwin acknowledges Macau’s phenomenal success, the key factor, he says, is that Macau “is not Vegas”. He also points out that the average age of the Vegas visitor has dropped in the past 10 years from 50m to 44, accompanied by a change in profile to a more educated, professional and moneyed clientele. In fact, Vegas is going so far as to change the age-old model of drawing visitors and keep them in, plied with free food and drinks and all the games you can play. As this Forbes article points out, Vegas casinos are now actually opening up outdoor spaces that combine shows, shopping, dining and a throbbing nightlife.
And of course, at the end of it all, there is always the mystique of what happens in Vegas, stays in Vegas!
Fun Facts about Las Vegas
- Over 39 million people visit Las Vegas each year.
- Of the 20 biggest hotels in the US, 17 are in Las Vegas.
- American tycoon Howard Hughes, on whose life the film The Aviator was made, stayed at the Desert Inn for so long that he was asked to leave. Instead, he bought the hotel so he could stay longer.
- Vegas sees about 100,000 weddings annually. It is not known how many are annulled once the hangover wears off!
- About 60,000 pounds of shrimp are consumed daily in Vegas, more than the rest of America. Remember, this is a city in the middle of a desert!
(With inputs from Bloomberg video)