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— The casino industry has seen revenue drop for more than a year, even before the global credit crunch put casino operators and many of their customers in a financial bind.
To compensate, Wynn Resorts Ltd. has slashed rates on hotel rooms and meals to keep gamblers coming in.
The worry now among analysts and many executives across the hospitality industry is that it may take a while even after the economy recovers for tourists to feel comfortable paying higher rates again.
CEO Steve Wynn said during a conference call Thursday after his company reported on its second-quarter earnings that holding onto his employees was his priority as he looks toward the recession's end.
QUESTION: Can you talk about the potential for further cost reductions?
ANSWER: "Let's suppose that we can jam another $15 million to $20 million out. ... At this point I don't care about that last money if it means interfering with the employees and their lives, because that's our franchise. That's our future. ... I am not going to take the knife to the last buck when it comes to payroll. ... I think it has to be said: There comes a point in these companies in hard times when you make a decision — is it the money or is it the people? Speaking for Wynn Resorts, and you can hear me loud and clear: It's the people, not the damn money. Next question."
