Quote:
Originally Posted by FairHamilton
Yes, I am aware of that. I was merely countering your agrument that 2008 was an exception year. Thank-you for now agreeing 2008 was not an exception, but a continuation of 2007's declilne.
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At risk of belabouring a point, I certainly do not agree with your coclusion here. Overall, 2007 was a good year for Caesars Windsor The final quarter of the calendar year was impacted negatively by an unusually strong Canadian dollar, but their fiscal 2006-07 finished well in the black. It is the fiscal 2007-08 which posted the first loss of the casino's history. You see, November 2007 is part of the fiscal year that you originally commented on, so there is no multi-year trend happening at all.
Furthermore, the hardships facing the casino for their fiscal 2008-09 are of a completely different nature to the issue of late 2007. It is no longer a strong Canadian dollar that is the business challenge at hand. Rather the challenge is a lack of consumer confidence brought on by the global recession, compunded by a primary demographic most heavily impacted by the recession (visitors employed in the auto sector).
The decline in tourism is not going to be a multi-year phenomena for the casino seeing that the impact of this global recession on American tourists visiting Canada will likely ease towards the end of 2009. And the impact on the casino will be countered by domestic visits, which traditionally increase during economic slowdowns. Which is why the casino business, while not immune to the impact of a recession, is generally considered recession-proof.
Did I mention that Caesar's contributes $6 million in taxes to the City of Windsor each year? A university satellite campus, while a noble thought, would contribute about six million less than that amount. And this is really my point. I am not saying that no other option besides a Casino should be considered for this site, but adding more institutional facilities to the downtown core causes a drag on tax revenue that this city cannot afford. Investments downtown need to be revenue generators. Otherwise the increasing tax burden will added to the tax burden of residents.