The industry will recover as traveling rates and higher disposable incomes encourage spending.
Los Angeles, CA (PRWEB) December 01, 2013
The Casino Hotels industry is slowly recovering after an unlucky financial performance during the recession. The industry is highly dependent on consumers traveling to destination casinos to spend big on dining out, gambling and accommodation. In 2009, revenue declined 8.4% as the economy tanked and consumers tightened their belts. The industry began to turn around in 2010 as consumer confidence improved and travel rates picked up. According to IBISWorld Industry Andy Brennan, "In light of these mixed conditions, the industry's performance over the five years to 2013 has been relatively lackluster, with revenue expected to grow at an average annual rate of 1.4%." This slow increase includes expected growth of 5.2% in 2013 to bring annual revenue to $50.5 billion.
The Hotel Casino industry's performance is driven by a number of factors, including the state of the economy and trends in travel. In 2009, the decline of the domestic economy and the increasing unemployment rate forced people to become more selective when spending disposable income. As people cut spending across the board, they were less likely to spend money on nonessential activities, especially gambling. Declining domestic travel and international arrivals into the United States also became a challenge to the industry, as both fell more than 5.0% in 2009. As the economy began making its recovery in 2010, consumer spending increased and people began visiting casinos more often. Moreover, international arrivals and domestic trips by US residents have increased steadily since 2010. Casino visits are expected to increase in 2013 in line with consumer spending, which is forecast to grow 1.7%.
Following a flat performance over the past five years, revenue is forecast to increase in the five years to 2018. "The continued rise in travel rates and consumer spending will drive industry revenue growth, though domestic casinos will have to contend with increasing international competition," says Brennan. In 2007, Macau, China surpassed Las Vegas as the world's largest casino gambling region. Furthermore, competition for premium or high-stakes players from international sources will intensify, and some casinos may actually withdraw from chasing this market in the short term as costs and the provision of incentives needed to attract this market increase significantly.
For more information, visit IBISWorld’s Casino Hotels in the US industry report page.
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IBISWorld industry Report Key Topics
The Casino Hotels industry comprises establishments that primarily provide short-term lodging in hotel facilities with a casino on the premises. The casino on the premises includes table-wagering games and may include other gambling activities, such as slot machines and sports betting. These establishments generally offer a range of services and amenities, such as food and beverage services, entertainment, valet parking, swimming pools and conference and convention facilities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.