Expect continued economic growth on "modest levels"
The most challenging period for Las Vegas and its largest industry, gaming and hospitality, appears to be in the rearview mirror, according to a report released Thursday.
In its report, the Newmark Grubb Knight Frank Global Gaming Group expect total revenue generated by properties on the Strip to increase between 1.5 percent and 5.3 percent in 2013, assuming a negligible increase in the supply of hotel rooms.
“Improvements in U.S. household net worth, an important leading indicator for Strip revenue performance, should provide baseline support for 2013,” said Brent Pirosch, director of Gaming Consulting for NGKF’s Global Gaming Group.
Pirosch noted that softness in the U.S. housing market, along with “a fragile recovery and ongoing economic uncertainty in the U.S. and abroad will keep 2013 revenue growth on the Las Vegas Strip at modest levels.”
In a 70-page report, the analysts said the Strip was in a good spot in 2012, with revenue growth at the upper end of their forecast.