Recession hurts leisure & hospitality sector

1/22/2009:

While residents fight tooth and nail to save Hoboken from economic ruin, our city is handing out pay raises and iron-clad contracts.

Here’s an interesting read from NorthJersey.com, which reported that even “recession-proof” gaming industries like Atlantic City are feeling the heat. Why is the burden being offloaded on our taxpayers?

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Everyone is hurting

To gauge the depth of New Jersey’s economic woes, start in Atlantic City, with craps dealer Dennis Duri.

The 22-year-old was among 400 workers laid off in November by the Borgata Hotel Casino & Spa, where he had worked for 2 1/2 years, earning about $700 a week.

“It was really cold,” he said of his termination, speaking at the Atlantic-Cape May County employment office in Pleasantville last week. “They called you at home and you go in. They basically blamed it on the economy. And they asked for your badge and told you to be on your way.”

His dismissal reflects not only the tough times facing the casino industry but those of the state’s leisure and hospitality sector, too, as the economy sours.

Long considered to be recession-proof, Atlantic City casinos posted the industry’s largest-ever monthly decline in gaming revenue in December, and its second consecutive year-over-year revenue drop after 26 straight years of growth. The casinos ended 2008 with 2,200 fewer employees — or 5 percent — than the year before.

See the rest here.

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4 Comments on "Recession hurts leisure & hospitality sector"

Skywalker
Member

AC’s vision of being “Vegas East” and attracting more stay-over gamblers is a pipe dream. Most of the casinos outside of the Borgata are old and tired, and there’s little money out there to upgrade them. Plus the town still has a rep of being seedy and borderline dangerous.

ryanlembeck
Member
ryanlembeck

here’s an idea: how about the casinos charge less for their rooms. paying $400 to stay at the borgata on a saturday night, and they’re wondering why the casino is empty? it’s just foolish. i called them up to find out if they’d cut me any deal in march since i wanted to book three rooms for a bachelor party. they said they couldn’t do anything. so i booked elsewhere. but nevertheless, that attitude is one that doesn’t want your business.

elainetyger
Member
elainetyger

Maybe Dennis’s boss wrote the “letter to employees.”

homeworld
Member

The casinos need a bailout!

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