Holidaymakers looking for a bargain break could hit the jackpot by booking trips to down-on-its-luck Las Vegas this summer, as Sin City struggles with plummeting visitor numbers.

The Nevada resort always boasted it was “recession-proof” and claims it has only seen a drop in profits once since 1970: a 1% fall in the aftermath of the September 11 attacks. But in the first third of this year, they’ve already fallen by 4% – the Wynn Las Vegas resort has reported a 20% drop – and there are fears that worse is to come.

Last week, the Tropicana resort and casino filed for bankruptcy, and MGM Mirage, which owns the Bellagio, Mirage and eight other resorts on the Strip, laid off hundreds of workers. The US mortgage crisis has also forced the suspension of dozens of construction projects, including the £3 billion Plaza hotel and the £1.5 billion Cosmopolitan resort and casino, situated next door to the Bellagio.

Rising petrol prices have curbed drive-in visitors, and the collapse of three airlines serving the city has hit domestic fly-ins.

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Lost Wages is now open to negotiation. The Bellagio quoted a rate of £203 per night for a week in June, but cut the price to £106 when The Sunday Times, posing as a potential guest, started a little light haggling.

The MGM Grand website offered three nights in a Grand Tower room for £184, but in one short call that dropped to £150, and the Treasure Island hotel cut £15 off its published nightly rate without even being asked.

Free-falling room rates now allow travellers to make substantial savings over published package prices: a week in July for two, staying at the MGM Grand, costs £2,353 if booked through the Virgin Holidays website. Book flights with Virgin Atlantic and accommodation direct with the hotel and the price for the same week drops by more than £500 to £1,845. A week in the Bellagio in June costs £2,356 for two when booked through the British Airways website. Book BA flights through Ebookers (www. ebookers.com) and the hotel direct and it costs £1,895 – saving £461.

The Las Vegas Convention and Visitors Authority (LVCVA) – which recently sent showgirls on the road to drum up business – denies Sin City is in crisis, but Angus Bond, of Virgin Holidays, says the city is having to try harder to lure foreign visitors: “As Vegas spreads into the desert, they need more bodies to fill the rooms. And that means the resorts are going to have to be more flexible with their rates.”

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