Adverse effect of Katrina on Las Vegas

Before Hurricane Katrina disrupted the production of oil in the Gulf coast, the visitor volume in Las Vegas was 3.68 million which is a 5.8% increase from last year, at McCarran International airport the passenger count increased to nearly 4 million, an increase of nearly 7.4%, gaming revenue had increased to $797.2 million and taxable sales grew by 14.1% to $2.82 billion.

But the continued increase in cost of construction will have its impact on the economy because the first priority will be to rebuild the city of New Orleans rather than the high-rises in Las Vegas.

Every $10 increase in barrel of crude oil cause serious disruptions in the economy. The already skyrocketing prices of steel and concrete is expected to increase even further after hurricane Katrina. This will have its impact on the real estate developments in Las Vegas.

Construction industry that saw a steady improvement since 2004 will face varied effects in the coming months that is expected to continue till 2006. The loss of power to the cement plants in the Katrina affected areas has created a shortage of cement in many states and districts and the urgent need to rebuild buildings, roads and other infrastructure in that area has worsened the cement shortage crisis.