ZZZ - GMG - VEGAS INC 2011-2014

January 7, 2013

VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more

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VEGAS INC business community predicts slow, steady growth NEVADA'S FUTURE, From page 1 Gov. Brian Sandoval More people back to work: I think that's my No. 1 priority in economic development. We will continue to be a businessfriendly state that allows businesses here to grow as well as attracts new ones. We've been, I think, successful at that. Improving the delivery of education also is important. It bothers me just as much as anybody else with regard to our graduation Sandoval rates. . And, obviously, the provision of medical services and taking care of the vulnerable would be one, as well. I don't think businesses are hesitant to come here. I've talked to 40-plus new businesses, and they are absolutely ecstatic about their decision to come to Nevada. If you look at the amount of businesses that want to come to Nevada, they've doubled or tripled. P Moss, owner of the Double Down Saloon and Frankie's Tiki Room I think (business) pretty much stabilized in 2012, and many things are going in the right direction. Housing hasn't, exactly, but I think it will in 2013. It starts in Las Vegas with tourism, meaning people will have more money to spend, and the trickledown helps all workers. My businesses cater to tourists and locals. But you want to start with a solid base of locals. If you don't have Moss that, you can try other things and it's just not going to work that well. I'm going to keep on doing what I'm doing and make what I'm doing stronger. I think it's going to get better from a business standpoint and a livelihood standpoint for everyone. Jim Murren, CEO, MGM Resorts International I think Las Vegas, as a community, will be better in 2013. The improvement will be discernible. People are moving here from California and other high-tax states. We're seeing some job growth and better traffic at our local properties. We're also doing much better at our Strip properties. 16 20130107_VI01_F.indd 16 Our goal should be to continue to drive international business here. The new Terminal 3 at McCarran International Airport is one of our great investments, and it continues to bring in more international flights. We need to take advantage of that. We can work with the State Department to make it easier to get visas so people can come here. Foreign visitors want to come here. They want to stay longer. We enjoy having them. The challenge is working through the logistics. I feel like we have to be vigilant about keeping ourselves relevant. There are so many entertainment options, so many things to do. It's tough to get people's attention. But we have to stay ahead of the curve. We can no longer only rely on call centers and reservation clerks. There's a new generation that gets its information and interacts through social media, and we have to improve how we do that. We're seeing a convergence of the gaming industry with the gamers. They want to play our games. We have to understand how to get their social gaming experiences online to translate into brick-and-mortar casino experiences. If we can resonate with them, we can win their hearts, their minds and their wallets. Li Hsun Sun, owner Crepe Shack & Waffles, a Henderson dessert shop It's hard to say whether things will be better a year from now. Housing is an inflated market because the banks are holding a lot of properties, but a lot of small businesses are starting up. Landlords are finally giving a break to small businesses and getting people in there. As far as whether they succeed, that's another question. An organic pizza shop next to Crepe Shack – Pizza Fusion – lasted just six months. A lot of commercial real estate will get filled next year, but there will be a lot of turnover, too. A lot of my customers are local students. Parents give their kids money to go after school to get desserts and food. This year, I saw a little slowdown in that. A year from now, I think it will be about the same or a little bit better. Costs went up this year. A bag of flour went from $12 to $18. During the summer, strawberries cost $8 to $10 for an 8-pound case. Right now, they're about $30 a case. Tourists have to keep visiting to keep the economy going. Most residents work on the Strip, and those workers are my customers. It's a big circle: Tourists come in, the people in the hotel make their money and then they spend money here. Robert Lang, director of Brookings Mountain West The economy and state budget are finally stabilizing, and it's time to turn our attention to infrastructure and getting it built. The Legislature should approve a special tax district for a football stadium and events center at UNLV. Most stadiums are a raw deal for local taxpayers, but this would fill a gap in our tourism economy because we don't have a facility like it. We need to continue planning and securing money for Interstate 11, the freeway from Las Vegas to Phoenix. (Editor's note: Lang is a lang consultant on the project.) Also, the Obama administration should come through with the loan for highspeed rail to Victorville, Calif., which should cut down on traffic on Interstate 15. With the expansion of Medicaid, lots of federal money will flow into Southern Nevada to give people basic medical care. To do it, we'll need to develop our health care infrastructure by attracting badly needed doctors and nurses. After years of dismantling and cutting, it's time to start building. Brad Beal, president and CEO of One Nevada Credit Union We think Nevada will be somewhat better off a year from now. We're not expecting a huge rebound, but from everything we see, it appears the economic recovery will continue its slow and irregular pace. Gaming, visitor traffic, real estate values, taxable sales — they all seem to be gradually improving. We're still seeing tentativeness among members for borrowing and making large purchases, but it seems to be easing. We're seeing more activity with auto purchases. A lot of people would like to buy a home but are struggling to because of the lack of inventory. I think our membership, at its core, has very sound credit. Beal Delinquencies for auto loans, some second mortgages, credit cards and other consumer loans are almost down to prerecession levels. Even in our residential mortgage portfolio, delinquency levels are almost down to that level. A major challenge next year will be the housing market. There are foreclosures that, under other circumstances, might have been concluded by now, but they remain open. The biggest obstacle to economic recovery is the unemployment rate. We're still hovering around 12 percent. We need to somehow create jobs and get people back to work. Ron Lutz, operator of the Butcher Block Just from the customers, the way they talk, the way they tell me things are going on the Strip, I believe it will be better next year. I believe prices of beef are going to go up a little bit next year, from what I've heard. Obviously, I'm going to have to raise my prices. I'm opening another store — that will be a major challenge. We're hoping by springtime to be open. I plan on hiring a couple of people for that. One of the major challenges for the city is tourism. We've got to keep that on the plus. That's one of our major incomes for the city. It brings jobs and everything else. Don't go crazy on the room rates. Sometimes, it seems they go a little high and that keeps people from coming as much. I think if they keep the room rates down and the entertainment coming and the shows at a reasonable rate for people to be able to come and enjoy, they'll be able to keep the economy going here. Shows, entertainment, boxing, concerts — all that stuff draws a lot of crowds and a lot of business. Jay Barrett, newly elected chairman of the Las Vegas Metro Chamber of Commerce I'm very optimistic that by this time next year, unemployment will be down, visitation will be up, and business and the economy will be greatly improved. The key, I think, is doing everything we can to work together and staying on message. It's important that local governments and the education community be partners in the diversification of the economy. That's one of the things that has to happen for the economy to recover. We have to continue to get the message out that Las Vegas is a very attractive place, not only to live but to do business. There's been a lack of massive construction projects in Southern Nevada, but that's starting to change. Look at what's happening in the center of the Strip. Caesars is working on the Linq project. The Bill's property is being redone. These are small examples, but we're talking about | 7 JANUARY 2013 | 1/3/13 2:09:39 PM

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