[quote=flu]Coronita my friend I think you on to something. This look very bad for Vegas. Is there way we can short vegas real estate? So happy not invested there. Much happiness[/quote]
I don’t think you need to short anything. thingd will shake out by themselves . Asian tourists love going to Vegas. I suspect that signficantly went down when Coronavirus caused Asia to panic. They are staying home, they can’t leave or don’t want to. That was already bad enough. Now that the US is freaking out about this virus, people are staying indoors and avoiding crowded places. Furthermore, some states are banning large venue events. Casinos are a breeding ground for a highly contagious virus. it’s indoors, close quarters, higher population density.Think about it. People say this virus can last on surfaces for a long time. What goes on in casino? People touching poker chips, cards, dice, money, strippers. ok maybe the last one is a stretch. Just about every condition to spread a virus. This puts casinos in a damned if you do damned if you don’t no win situation. Shutdown the casinos, your business tanks. Keep the casinos open , risk spreading a high contagious virus. I suspect the gaming industry will try a half ass solution first. Dont shutdown the entire casino, but close certain venues to try to convince tourists they got it under control. Maybe cancel some shows or some events, but keep the casinos open. It won’t work. it’s the same problem that a cruise ship has. Maybe worse because lots of human contact with items that can transfer virus, unless they start spraying every poker chips with lysol. This is a triple whammy. In a national crisis, that already affects tourism, in this specific international crisis, the international tourists are out, and on top of that, you have a national lockdown strongly encouraging social distancing which is virtually impossible for a casino.
And a geographical location that depends on a majority of this sort of business, it’s a train wreck that will happen. Look no further that what’s happening in Macau right now.
Also, in the short short term , you can’t bet on sports venues that get cancelled, lol.
The gaming industry out of all tourist industries is royally fvcked, right up there with the cruise industry. Especially when this sort of event happens not because of a normal economic boom bust cycle that businesses might have planning for. This was one of those random global disasters that no one was preparing for , especially the gaming industry.. Just wait when the gaming industry and cruise industry signficantly contracts and all those extra workers are no longer needed. Cant pay rent, can’t pay mortgage, can’t find job. They will move where the jobs are.
SD has a certain level of tourism too, but at the same time there was diversification into high tech , biotech, and already defense/military industry here, and now a lot on healthcare.
