The Las Vegas' economy has always depended on its own capacity to adapt to the people’s different interests, budgets and conditions. In the past, most of the Las Vegas industry placed its confidence in one single factor: tourism. No matter what happens with the stock market and with the real state business, the Las Vegas economy always survived thanks to the millions of dollars invested by visitors and tourists willing to travel and spend money in SinCity.  However, the situation seems to be changing and with the recent increase in the cost of gas, food and airline tickets, pushing the Las Vegas economic engine closer to the edge and creating a situation that might change the conditions for most of the businesses.

After the September 11^th attack, Las Vegas gambling revenues dropped by 1%, however, the economy recovered very quickly and only a few months after the attack, the machinery was once again running smoothly. So far this year, Las Vegas has suffered a  4% decline in the same numbers, four times the profit reduction suffered after 9/11. The  due to a combination of increasing gas prices, a deep crisis in the housing market and the reduction in flights as airlines try to cut back their services and reduce costs.

"The tourist economy of Las Vegas can't just rely on its own or nearby surrounding areas. People really have to come in from outside." said Sam Chandan, chief economist of real estate research firm Reis.

Retail shops and restaurants are two of the most affected sectors in the economic slowdown, but now, the Las Vegas hotels and casinos are facing the same situation. Many of these hotels have borrowed millions of dollars to cover future expansion plans and to stay alive during low season, however, some hotels and casinos are already showing signs of  deep financial problems.  

Tropicana Entertainment is probably the most affected company in Las Vegas; the firm failed to pay more than $2.7 billion in debts and has filed for bankruptcy protection.  The filing would be one of the largest bankruptcies so far this year and underscore a decline in the fortunes of casinos as the gambling boom of the past few years fades in the face of an economic slowdown. Also, one of the biggest corporations in Vegas, Harrah’s, which own eight casinos on the Strip, including CaesarsPalace showed a fourth-quarter loss recently.