Las Vegas and its gaming companies should send a thank you note to Macau.
That note should thank Macau for the billions of dollars in gaming revenues that kept them out of bankruptcy during the recession.
But, now Macau’s gaming revenues are declining. And other Asian markets are approving legislation that would allow for the expansion of gaming, and in some cases the introduction of casinos.
So, what impact will Asia have on Las Vegas? And how has Macau and even gaming in Singapore benefited Wynn Resorts, Las Vegas Sands and other companies doing business overseas?
Jonathan Galaviz, a partner with Global Market Advisors in Las Vegas, told KNPR's State of Nevada that without gaming in Macau the situation in Nevada during the Great Recession would have been even worse.
However, Galaviz said the gaming revenue from Asia helped to keep casinos out of bankruptcy.
Now, Galaviz said many gaming companies from Asia are looking to Las Vegas as a model.
"We've been able to successfully develop what we call here 'the integrated resort' model," he said, "This idea that tourism and visits to Las Vegas is something more than just casino gaming."
He said many countries in Asia are looking at Las Vegas and trying to create that same experience at resorts in their cities, because the city has proven that tourism can be a strong economic engine.
And for Las Vegas gaming companies, Galaviz said the opposite is true. They're looking for ways to expand globally to further develop Asia. They are also looking to capture the coveted tourist from mainland China.
"There is a global competition that is occurring right now as we speak for Chinese tourists," he explained, "Now, Chinese tourists from mainland China have a choice to go to Australia, they have a choice to go Singapore, they have a choice to go to the United States."
He believes Las Vegas should be actively courting those tourists and making direct appeals to get them to choose our city as place to vacation.
Beyond just bringing tourists here, Galaviz said expansion into markets in Asia will help the Las Vegas economy.
"The expansion of the casino gaming industry globally impacts us, here in Southern Nevada, in a positive way," he said.
Galaviz estimates that one out of 10 corporate jobs in the gaming industry exist because of activities in the Asian markets.
He pointed to the new resort being built by Genting Group, which is a conglomerate from Malaysia, as an example of the impact.
"Even here in Southern Nevada our biggest economic input that is going to be on the Las Vegas Strip is coming from an Asian company now,"
Galaviz will discuss the complicated, but profitable relationship between Las Vegas and Asian gaming markets on Dec. 14 at the Center for Business and Economic Research's 2016 Economic Outlook Conference.
The CBER is part of the Lee Business School at UNLV.
Jonathan Galaviz, partner and chief economist with Global Market Advisors LLC