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An Analysis of the Agglomeration Effects in Las Vegas

In: Business and Management

Submitted By xhellzx
Words 4025
Pages 17
ECON 230:
Urban Economics (G2)

Term Paper: Business Location Decisions & Patterns:
An Analysis of the Agglomeration Effects in Las Vegas

Table of Contents Introduction 3 Motivation 3 Background and History 3 Las Vegas Strip Today 6 Location Quotient of Las Vegas 7 Development Phases of Las Vegas 8 The First Wave of Development 9 Supply-side Factors 9 Demand-side Factors 10 The Second Wave of Development 11 Demand-side Factors 11 Supply-side Factors 13 Summary of Development Phases 14 Comparing Macau with Las Vegas 15 Lessons Learnt For Singapore 17 Conclusion 18 Bibliography 19

Over the years, Las Vegas has developed itself into a city housing mega-resorts and massive entertainment providers. More specifically, Las Vegas Strip, which is a 6.8 kilometer long highway leading from Los Angeles into Las Vegas, has seen a conglomeration effect with many large hotels, casinos and resort properties congregating there. Nineteen of the world’s twenty-five largest hotel by room count are on the Strip, with a total of over 67,000 rooms.
In this paper, we are interested in studying the agglomeration trends of the mega-resorts in Las Vegas, understanding the reason and benefits of concentration. Next, we attempt to analyze difference between Las Vegas and Macau, the 2 gaming giants of the world. Lastly, we will extend these lessons learnt to two upcoming integrated resorts in Singapore.
Background and History
A mega-resort (or known as an integrated resort locally) is a casino based vacation resort which normally houses its own hotels and other facilities. The first mega-resort appeared on the Strip in 1980s. However, prior to the appearance of mega-resorts, there were large casinos, hotels and other facilities residing along the strip. In total, there were evidently two construction booms along the…...

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