UNLV forecasts modest Nevada economic recovery through 2014

The Southern Nevada economy is about halfway through its third year of modest economic recovery, a trend that will continue this year and next despite possible setbacks in real estate and tourism, according to a report Thursday from the University of Nevada, Las Vegas.

The 2013 Midyear Economic Outlook by UNLV’s Center for Business & Economic Research found the region’s 2.7 percent job growth last year was driven by improvement in tourism, gaming, construction and real estate.

Stephen Brown, director of the CBER at the Lee School of Business, said job gains posted last year ranked Nevada fourth in the nation. But those numbers were forecast to dip slightly, to 2.5 percent in 2013, before jumping to 3 percent in 2014, he said.

Nevada’s unemployment rate stands at 9.5 percent, with Las Vegas at 9.8 percent. That rate in Nevada is expected to decline to 8.4 percent this year, before dropping to 6.9 percent in 2014.

“We are seeing improvement, but Nevada remains the state with the highest rate of unemployment in the nation,” Brown told some 150 attendees of the Midyear Economic Outlook, a twice-yearly forecasting event held at UNLV’s Stan Fulton Building.

Robert Lang, director of UNLV’s Lincy Institute and a nonresident senior fellow with the Brookings Institution, and UNLV President Neal Smatresk also spoke Thursday.

Smatresk reminded attendees of UNLV’s $1.5 billion annual economic impact. He said that number includes about $900 million in direct impact such as payroll and spending by students; $100 million in grants and contracts; and more than $300 million generated by the Thomas & Mack Center.

He said UNLV does all of it with a $124 million annual state investment. To be a top-tier university, the $550 million total budget for this year would have to double.

“This is important,” Smatresk said. “You’ve got to invest if you expect to get a return on that investment.”

Brown pegged the region’s recovery to improved economic conditions nation­wide. “Economic growth shows sign of traction,” Brown said. “What we need is the financial sector to gain confidence in the economy. Up until this year, we really haven’t seen the financial sector stepping up.”

The report predicted U.S. growth at 3.3 percent in 2013. Brown said risks to the national recovery include fiscal austerity and budget problems in Washington; weak international growth; and rising oil prices and other commodity prices.

Brown also forecast visitor volume and gross gaming revenue in Clark County to continue to modestly improve through 2014.

Visitor volume last year reached 42.7 million and is expected to jump to 43.1 million this year and 43.7 million in 2014. Gross gaming revenue countywide last year was $9.3 billion, with economists expecting $9.7 billion in 2013 and $9.8 billion in 2014.

“Clark County is not yet back to where it was in 2007,” Brown said. “A concentration of those revenues will be from the Strip. We expect that trend to continue. Las Vegas will do better than the rest of Clark County and the state.”

Southern Nevada hotel occupancy increased by 320 rooms, to 150,481, last year.

Another 451 rooms are expected to be added this year, and 1,600 more in 2014 with the opening of SLS Las Vegas.

The residential real estate market is expected to produce little new supply as buildable lots are scarce and housing prices remain well below replacement costs of a new home. Housing affordability in Southern Nevada remains high at 86 percent, compared with 15 percent during the boom.

Brown cautioned that the region’s economy still lacks diversity and is dependent on gaming and whatever construction it can get.

Contact reporter Chris Sieroty at csieroty@reviewjournal
.com or 702-477-3893. Follow @sierotyfeatures on Twitter.

Holiday parades help bring shoppers to Downtown Summerlin
Sports Town USA floor manager Angela Gardonio talks about how the work that goes into the Downtown Summerlin holiday parades and how they benefit her and other businesses there.
Final vote on CG Technology
Final commission vote on the $2 million settlement for CG Technology.
Happie Home Startup Establishing Headquarters In Las Vegas
Digital companion startup company Happie Home is establishing its headquarters in Las Vegas after receiving tax abatements from the Governor's Office of Economic Development on Nov. 15. (Bailey Schulz/Las Vegas Review-Journal)
A Facebook-branded space inside of Macy’s at the Fashion Show shopping center
A Facebook-branded space inside of Macy’s at the Fashion Show shopping center will showcase 13 small businesses in November and December and seven in January. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
T-Mobile uses ticketing data to plan for event
T-Mobile Executive Director of Arena Operations explains how ticket sales data and demographics help plan staffing, vendors, parking and operations for an event.
Costco opens its doors in southwest Henderson
Costco has opened its fifth Las Vegas-area location near the intersection of St. Rose Parkway and Amigo Street. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas strip mall and office park
The Krausz Cos. and WG Group bought a strip mall and an office park in Las Vegas for nearly $80 million total. They acquired a portion of Tropicana Beltway Center in the southwest valley for $59 million. They also acquired the Westbay office complex in the Las Vegas Medical District. The buyers are former owners of The Gramercy, a once-mothballed mixed-use project in the Las Vegas suburbs. They sold The Gramercy in phases for more than $100 million.
Mario Barth talks about the growth of the tattoo industry
Celebrity tattoo artist and business owner Mario Barth talks about the growth of the tattoo industry at The World of Tattoo industry trade show at Planet Hollywood in Las Vegas
$7.5M Las Vegas pot dispensary opens near Las Vegas Strip
Planet 13, which bills itself as one of the largest dispensaries in the world, opened to the public Thursday. It has entertainment including an interactive floor and floating orbs. (K.M. Cannon/Las Vegas Review-Journal)
Caesars CEO to step down next year
Caesars Entertainment Corp. CEO Mark Frissora will leave the casino company in February. Frissora has been CEO since July 2015. He was named CEO right after Caesars' operating company filed for Chapter 11 bankruptcy protection Caesars Entertainment emerged from bankruptcy protection in October 2017 Before Caesars, Frissora spent seven years as chairman and CEO of Naples, Fla.,-based Hertz He led the consolidation of the rental-car industry through Hertz‘s acquisition of the Dollar Thrifty Automotive Group.
Planet 13 in Las Vegas adds twist to marijuana dispensary look
Planet 13, which bills itself as one of the largest dispensaries in the world, opened to the public Thursday. The dispensary is located near the intersection of Desert Inn Road and Sammy Davis Jr. Drive, near Trump International, in Las Vegas. Planet 13 has plans in the future for a coffee shop, a tasting room for marijuana-infused beer and wine, a lounge for consuming marijuana on site if that is legalized and space for food.
Caesars Entertainment opening 2 resorts in Dubai
Cove Beach will open on Meraas’ Bluewaters Island in Dubai in November and Caesars Palace Bluewaters Dubai and The Residences at Caesars Palace Bluewaters Dubai will open in December. (Caesars Entertainment)
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
News Headlines
Local Spotlight
Add Event
Home Front Page Footer Listing
You May Like

You May Like