CASINO REVENUE OCT. 2008 OFF 23% FROM OCT. 2007 !!!
The BIG news here on Absecon Island is the very scary decline of the Casino Industry. The Press reported this week that OCT. 2008 saw a more then 20% decline in profits for the Industry from just one yr. ago and a yr. ago profits had already decline more then 10% from Oct. 2006. To say the least the bloom is off the rose. Of course this decline reflects the larger decline in economic activity nationwide and even world-wide since Sect. Paulson’s dire announcement back in mid Sept. of this yr. In short, the house of cardsonce called Int’l finance finally collapsed and it appears has taken with it significant portions of the world’s economy along with it. Gambling/tourism is not a basic Industry and therefore is feeling the effects more then some other sectors. When people cut back on spending this is one of the first areas of their budgets they cut out. Unlike the events of 9/11/ 2001 when an external shock ( the terrorists attacks) caused a rapid decline in the markets as the effects of this event became evident, this shock is a long time coming, is internal too the system and is much more serious.[…]
The Economic LandscapeWith X-mas shopping season right up ahead everyone will be looking @ retail figures for this seasons “black Friday.” If as many are expecting, these numbers are significantly lower then the last few yrs., it’s possible weak X-Mas spending will drive the economy even deeper into recession. As it stands right now many large retailers are either already closing up and declaring Chpt. 11 or are closing significant numbers of their stores trying to survive. How the Casino industry locally will survive this time will be interesting. My guess is since these places are being largely run these days by accountants and finance guys we can expect massive lay-offs, maybe even the failure and closing of the more marginal houses ( like Resorts/Hilton). Let’s pray none of them fold as it would further devastate an already weakened local economy. Unfortunately, for our area, for the most part we’ve put all our economic eggs so to speak in the Casino basket and if it falters most everyone will suffer.
The salient point of his analysis is that Atlantic City has a one dimensional economy. For that matter, South Jersey is a two-dimensional economy, i.e. casino gaming and FAA Tech Center. Economic prosperity will again thrive – regardless of the national or international picture – if Atlantic City can insulate itself from regional, national, and international economic downturns. We here have a solution, which will add another dimension to our local economy.
You can be sure to note that we are going out on a limb with this request. We want there to be an oil and/or natural gas rig off Atlantic City’s coast. The rig would offer quality employment for area residents. Cultivating our natural resources will make gas and oil even cheaper. It would be possible to enter a collaborative agreement with the company that gets the contract to offer training to area workers.
Ideas like a natural gas and/or oil rig off Atlantic City’s coast are the type of ideas that flourished in Atlantic City. We consistently are the first in many areas. We should be the first to drill off of New Jersey’s coast.
(Photo credit – http://www.energyforumucsb.com/images/oil%20rig.jpg)