Las Vegas has been under great criticism for years due to the fact that it continues to expand even in the times of depression. As we see, the casino and hotel companies want to increase their profits by making more casinos, and more rooms for the guests. At some point Las Vegas will have more rooms than visitors. This has been the rumor for many years, but now may be looking more like a reality.

Two reports recently released are stating that the rooms being created will now outweigh the number of visitors by 2010. The reports come from debt analysts at Deutsche Bank and CreditSights. “The challenge for the casinos will be to maintain hotel occupancy even as new supply is brought on over the next 14 months,” CreditSights said in its report.

The number of rooms being created is going to flood the casino market with supply while not boosting demand. The newly created CityCenter is expected to be completed by December and add more rooms to the situation. Fontainebleau is now dealing with bankruptcy issues and therefore is not moving forward on their project that was planning on adding more casinos and yet another 3,815 rooms. “The old rubric that ‘supply creates its own demand’ is clearly not relevant in today’s environment,” CreditSights said.

Many Las Vegas Casinos and hotels have lowered their room rates in order to improve their occupancy rates, hoping that once they get the gamblers there, they will spend their fair share of money on restaurants and casino gambling. Condos being built in the area are struggling to fill their occupancy since the downturn economy as some companies are offering discounts on move in prices.

McCarran International Airport has released information stating that the numbers concerning travelers have been remarkably low. The number of passengers who travelled in May was 3.5 million which is down 11.5 percent from the previous year. The airlines and casino companies will have to continue to work with online specials in order to return Las Vegas to the booming and bustling town it has always been known.

Tags: casino, gambling, online