Genting has announced that they will be launching a one million-dollar mega-resort, located on the site of the old Stardust in Las Vegas. Although the gambling industry took a huge hit during the financial crisis of 2008, they have been slowly crawling back to fiscal viability throughout Las Vegas. Now, with the company announcing the new mega-resort, and he has been up for other developments located on the strip. The old Stardust, located in northern Las Vegas, shut down after years of financial issues.
The company announced that it is planning on spending anywhere between $2 billion and $7 billion, in order to build a 3500 hotel room resort, that will have an Asian theme. The land had previously been sought after by Boyd gaming, who were planning on launching their Echelon product on the same ground.
There are many analyst that have worried as to whether or not southern Nevada has recovered enough from the 2008 financial collapse to warrant such a big investment on the strip. The new mega-resort could cannibalize the high-end market, and shut down some of the smaller casinos located in the general area. However, it is seen is a good thing by most of the northern strip, which has not fully recovered from the 2008 financial collapse.
However, most analysts oh state that the mega-resort would be a big boost for the economic landscape not only in Las Vegas, but in Nevada as a whole. It is estimated that Asian, and Asian-American visitors make up anywhere between two and 3% of the total tourist traffic in Las Vegas from 2007 through 2011. This gives them a good target market to go after with the new Asian themed mega-resort, while still making it appealing to the broader market. Will be interesting to see what kind of revenue the mega-resort is able to generate during its first few years of operation, as construction will still be ongoing one adores her first open.
The company is still taking on estimates from various developers, for a wide range of different projects within the mega-resort. It is expected that the company will be hiring several firms that have worked on other casinos for renovations in the past, and delivered high-powered results. Presentation is everything Las Vegas, and the choice of developer is a very important consideration for every company.
There has been much debate about what to do with the land that the Stardust used to stand on. With no chance of the Stardust returning, multiple companies put in bids for the land, and ownership of land has been passed around on several occasions. However, since 2008, no one has been willing to pull the trigger on developing the large, costly piece of land. However, Genting a step to the plate, agreeing to invest as much is $7 billion if everything goes to plan. It remains to be seen whether the new mega-resort be the economic boost that Las Vegas has been hoping for, or whether it will turn into another failed project on the Las Vegas strip.