I guess it’s a sign I’m getting older…or maybe just a sign I’m getting old. But when my husband and I make our weekly visit to our local Native American casinos, which are almost all now housed in large, elaborate resorts, I find myself missing the good old days when we first moved to Southern California. The days of small, friendly casinos housed in tents, with non-wagerling games and give-aways to lure us in, and hot seat give-aways every day to keep us there. And every few months, something really big like a car or cash that you felt like you actually had a chance to win.
Bigger is not always better. But the people who manage our local casinos don’t seem to understand that. Our Los Angeles and San Diego newspapers reported this week that Pechanga and Pala are expanding again. Why do they need to do this — and who is going to pay for this I wonder.
Even if you don’t live in Southern California, you’ve probably heard of Pechanga. Pechanga is the casino that was ranked number one in casino/resorts by US Today this year. Pechanga, is the casino whose lands 500 Nations claims are larger than the properties of any of the Las Vegas behemoths, Pechanga is the casino whose reservation lands are not located far away on some lonely deserted mountain road but are at the edge of Temecula/ Murrieta, towns of over 200,000 residents who can even take a RTA bus to the door. Pechanga is the casino that is already part of a popular tourist destination, Temecula, a city of that attracts visitors to Old Town and Wine Country each year. Why does Pechanga need to expand?
Tribal Chairman Mark Macarro says they want to meet the needs of people who want recreation, not just gambling. He says the demand for hotel rooms at the resort has been surging and they recently celebrated 365 straight days of 100 percent occupancy. The expansion project, which is expected to be completed near the end of 2017, will include a 568-room hotel wing, a two story spa and salon, a fitness center, two restaurants, and 67,000 square feet of indoor and outdoor event space. And what will this cost us? An estimated $285 million.
When one resort expands, the others have to follow suit to remain competitive. So another popular casino on State Rd 76, just off Highway 15, handy for gamblers from Riverside and Northern San Diego counties and cities along the corridor from Escondido to Oceanside, Pala, has an expansion plan of its own for this winter.
The casino recently announced that construction is underway on a new 10-acre recreational vehicle resort. They expect the project to be completed in May 2016. The $5.6 million project will even have 24 hour shuttle service to the casino floor and its restaurants for campers’ convenience. Configured with 100 full-service (electric, water, and sewer hookups) site, plans are to accommodate RVs with trailers ranging from 55 to 70 feet. Six luxury spots and 17 premium pull-through spots will be included.
Amenities will include the resort clubhouse, complete with heated swimming pool and two spas, a laundromat, and flat screen televisions. Free wi-fi and and cable TV will be available. A separate building will house the showers and restrooms. A fenced dog park is included.
Pala’s CEO Bill Bembenek was quoted as saying the RV market is growing. The average age of an RV owner is 49 and he has above average household income. One in twelve households that owns a vehicle owns an RV. More importantly, though he doesn’t address this, their chief competitor Pechanga already has 168 spaces in its RV facility. It seems the real purpose of the RV facility is to expand its customer base and compete with the neighboring casinos. Currently Pauma, Harrah’s Resort Southern Califormia, and Valley View do not have RV facilities. How much do you want to bet that they will be following suit in the next few years.
Bottom line: The casinos will derive some income from renting these RV sites and hotel rooms - but how many years do you think it will take to recoup Pala’s $5.6 million and Pechanga’s $285 million expansion expense? Tribal income from gaming is down. Gamblers already feel the machines have been tightened and are not paying like they used to. These new visitors staying at the new hotel and new RV site will contribute to restaurant revenues and hotel and RV fees, and they will play some money through the machines. Will it be enough cover almost $300 million in expenses? What do you think?
No comments:
Post a Comment