Chinese Tourists, Investors Try Their Luck with Vegas, Las Vegas Investment Destination

Chinese Tourists, Investors Try Their Luck with Vegas

*Residential and mixed-use project on the North Strip*

Las Vegas was perhaps hardest hit by the global economic recession and US housing market collapse. As the nation's fastest growing metropolis and a top tourist destination, Vegas' housing and tourism industries suffered major blows.

Although tourism declined 4.4% and 3% in 2008 and 2009 respectively, Vegas' luck now seems to be changing--thanks to a rebounding American economy and a surge in tourists from mainland China who have long targeted Vegas as a "must see" destination. The Chinese are not just the fastest growing segment of tourists, they're also the biggest spenders. In fact, the U.S. Department of Commerce estimates that Chinese visitors spend, on average, $6,000 per trip--far more than tourists from any other country. In hopes of reviving Vegas' tourism industry, the Las Vegas Convention & Visitors Authority (LVCVA) has allocated significant resources for marketing campaigns in China's largest cities.

Their efforts are paying off. Tourism was up over 2.8% and gaming revenues on the Strip jumped 5% in the first 10 months of 2010 compared to a year earlier. An estimated 200,000 Chinese came in 2009, and that figure is expected to rise by double digit percentage points each year for the next decade. In such time, over 100 million Chinese will travel annually overseas, according to the U.N. World Tourism Organization. Anywhere from 5 million to as many as 15 million of them will likely visit Vegas -- in spite of increased competition from the new Asian gaming meccas of Macau and Singapore.

*Some units at Trump Tower Las Vegas are available for under $200 K*

Chinese tourists interested in more than just the sights and sounds of the Strip, are scheduling foreclosed home tours. With the nation's highest rate of homes under foreclosure, and with thousands currently available for under $100,000, there's been a surge in interest from Chinese investors. Private jet tours have even been added for investors with deeper pockets.

However, they aren't only enticed by cheap foreclosures. Vegas' entire housing market is the most undervalued in America. According to a 2010 report compiled by IHS Global Insight and PNC Financial Services, homes in the metro area are fetching 41% less than their fair market value.

*Residential construction underway to the Strip*

The recent 2010 Census revealed that the area's population grew over 38% during the past decade, making it the fastest growing large metro area in the US--and the Chinese population has more than doubled since that time. This trend does not seem to be subsiding as Univ. of Nevada demographers expect the area to grow rather briskly over the next decade.

Could this be a great time to take a look at Vegas' undervalued property market?

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