Las Vegas economic analyst Jeremy Aguero warned that Sin City's economic recovery could take between 18 and 36 months to revert to 2019 growth activity levels, reported Las Vegas Review-Journal.
Aguero said Vegas has a long way to go before a vibrant recovery is seen, dashing hopes for a V-shaped recovery in the back half of 2020. He recently spoke at the Las Vegas Perspective, an online presentation focusing on the economic impacts of the gaming industry due to the virus-induced recession, hosted by the Las Vegas Global Economic Alliance.
"Our economy is in recession," Aguero said, warning that the velocity of job loss today was much greater than the economic crash a decade ago. He said the Great Recession left 96,000 people out of a job within 2.5 years, this time around, 280,000 people lost their jobs in less than two months.
He reflects on the past recessions that have hit Southern Nevada. "We will find our way out," he says. He illustrates the importance of the stimulus packages. pic.twitter.com/6PeGllbA2R— LVGEA (@LVGEA) July 28, 2020
He said airlines serving Las Vegas would struggle for years. The latest data from Las Vegas' McCarran International Airport shows 11.7 million passengers passed through the airport in 1H20, compared to 25.2 million in 1H19.
Casinos in Vegas reopened June 4 under strict social distancing measures, reduced occupancy levels, and mask-wearing.
Last week, multiple Vegas casinos notified staff of furloughs and possible layoffs were ahead.
Here's what MGM Resorts International told their employees:
"As you were previously informed, MGM Employees who are not recalled on or before August 31, 2020, will be separated from the company on that date and it now looks like that will, unfortunately, include the majority of employees working in our division," the letter, signed by the president of the division George Kliavkoff, said.
The business environment is worsening as Tropicana Las Vegas is now for sale.
Washington believes continued rescue packages worth trillions of dollars will save the economy, though it might not be enough to save Vegas.
But, Robinhood daytraders panic bought casino stocks:
The great Vegas bust is underway.