Hanson
Of course the other major affect of this economy is that there are fewer guestsstaying at the hotels. As stated in USA Today “Nationally, the hotel industry saw an 8.9 percent decline in income received from rental of guest rooms last year, according toPKF Consulting. This year looks even worse: the income on guest-room rentals isexpected to drop by another 9.1 percent. Back-to-back declines of that magnitude would be the worst since the Great Depression, the organization noted. "Hotels are labor-intensive, they have high expenses and have had very few productivity enhancements,"said Mandelbaum. "Hotels benefited from the boom 1990s. ... Now, the industry has lostits ability to charge (higher) prices, but it's still very expensive to operate a hotel."Occupancy rates have dropped sharply around the country and are now droppingin Las Vegas. The slow down of visitors has caused numerous issues ranging from asimple cut in hours, elimination of shifts, loss of jobs and the halting of major construction projects. Now we continue with the cycle by using the example of the employees of thehospitality industry and their role. Let’s say we have a popular lounge, in a major hotelon the Las Vegas Strip. With the low occupancy rate fewer guests are going out for drinks or spending as much money at the restaurants in the hotel. This in turn causesmanagement to start cutting hours do to the lack of business. The lack of hours affects theemployees in two ways; less money on their pay check, as well as, less cash from
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