Mono-Mania
My anti-monorail post below drew fire from my public transportation supporting girlfriend Murphy:
Are you totally unaware that there are actual residents of Las Vegas who might appreciate having a monorail that only costs $2.50 to get to their casino job?
I think that it is quite likely the monorail will do fine.
And as far as the tourists go, I don't think they are so used to getting everything for free. Shows aren't free. Hotel rooms aren't free. Dinner isn't free.
I think your blog post is ill-advised.
So I felt it might be a good idea to research this a bit more. I used to do debate in school, and my partner in college one year during a military centered topic was clueless about military things. He always asked "What does it look like?" Somehow knowing that made him much more confident. So in his honor, it looks like this:
My gut reaction to most mass transit is that it is ill-advised and good only for soaking the taxpayers. You might blame that on my car culture Southern CA upbringing. But there is more to it than that. Urban mass transit on the whole does not pay for itself. It works well in places with a huge central population. But out here in the west we don't have huge central populations.
But rather than talk about all mass transit, lets focus on the Las Vegas system. A quick Google search turned up an independent review of the project by a group called Public Purpose. They have both a Mission Statement and a Guiding Principle:
MISSION: To facilitate the ideal of government as the servant of the people by identifying and implementing strategies to achieve public purposes at a cost that is no higher than necessary.
GUIDING PRINCIPLE: What government does for one it should do for all; What government does not do for all it should do for none.
That's so you know where they are coming from.
Their
report on the Las Vegas Monorail is much more balanced than the report by the monorail backers. You know the backers are a bit biased when their report declares:
In 2000, the nine-year visionary effort to make the Las Vegas Monorail a reality was realized.
Guiding Principle's report cites many things that work in favor of the monorail system:
- There is a large concentration of both hotel rooms and casinos.
- The Las Vegas Strip bus route carries 10,000 daily tourist riders at a $2.00 fare.
- There is a tendency on the part of tourists to visit more than one casino, which could translate into LLC Monorail demand.
- Visitors have a comparatively high discretionary amounts for spending.
I too would conceed that these factors will help the system. But the system is counting heavily on fares to cover expenses and pay off its bonds. So the accuracy of their ridership predictions are critical to the feasibility of the project. Unfortunately the predictions are incredibly unrealistic. Consider these facts:
- The experience...with high volume ridership projections has been uniformly unsuccessful. The most inaccurate ridership projections have occurred with respect to systems projected to carry more than one million annual passengers per route mile. Virtually no such projection has been close to accurate. [And they are all over-estimates]
- The system would be 23.1% more utilized than the New York City subway system, 104% more than the London Undergound, 177% more than the Washington DC Metro, 373% more than the Chicago elevated system, 474% more than the Bay Area BART system, and over 700% more than the recent built systems in St. Louis, San Diego, and Portland (considered the most successful light rail projects in the nation).
- The factors that differentiate Las Vegas from the more dense US urban cores are even more evident in the foreign urban areas. Urban areas outside the United States tend to be more densely populated and have more dominant centrally oriented travel patterns ("transit friendly" travel patterns). It would therefore be astonishing for the intensity of fixed guideway ridership in Las Vegas to exceed than that of Madrid, London or Stockholm or other cities that are dominated by early 20th century or even late 19th century cores.
I'd have to agree with the study conclusion:
The RTC model's rail ridership projections may be the most aggressive ever produced in the US transit industry and appear to be consistent with the particularly inaccurate experience with high volume system projections...This is of concern, because as little as a 17 percent reduction in ridership relative to projection to produce a net loss over the period of 2003 to 2034 (in such a case, LLC Monorail revenues would be insufficient to pay operating expenses and debt service from 2008 to 2027).
Translated- if they are off on their predictions they run a deficit and will require taxpayer revenue to bail them out. This sort of overly optomistic thinking is what gets mass transit programs built. The money that builds system with minimal ridership is money that can not but used to expand or even just maintain existing systems. If the monorail needs millions to keep running how many bus lines will be cut to keep it running? How many pot holes will go unrepaired?
The system is projecting 53,500 daily riders. 500 are projected to come from the current bus line that runs up the Strip. That number seems potentially low to me. I wouldn't question it. But that leaves 53,000 riders per day to account for. 1/3rd are to come from the existing MGM to Bally's monorail that the system will replace. That would be nearly 18,000 daily rides, 5,200 more (41 percent more) than are currently carried on the existing monorail. The current system is free. The new one will cost $2.50. Needless to say, when you start charging for something, use tends to decrease rather than increase. Let alone almost double.
Another 1/3rd are to be drawn from people that walk down the Strip today. The route planned runs down the eastern back side of the Strip hotels. This places the stations at least a quarter mile from Las Vegas Blvd. Hotels on the western side of the street (including Luxor, New York New York, Ceasars Palace, Treasure Island, The Mirage) will require long walks to access the system. Additionally if you ride the system you miss the Strip itself as the line runs behind the hotels and will give you views of parking lots. If you want to see the Strip, you will be either walking, driving, or taking the bus. If you are working at a hotel on the western side of the Strip you face a minimum of a quarter mile walk after you get off the system (as opposed to the current bus that drops you off on the street). Will 18,000 people a day who currently walk suddenly decide to pay $2.50 for the trip? One thing that is in the monorail's favor- it can be darn hot in Vegas and the option of riding in airconditioned comfort will be attractive on hot days.
Another 20% of ridership is to be drawn from cabs. These 11,000 people are about 15% of daily taxi fairs. The report doubts they will draw that many people. First, the monorail can not take you door to door as a taxi can. Second, taxis can lower prices to compete if the monorail is successful at drawing riders.
Because the system will be extremely dependent on tourist traffic the ratio of hotel rooms to riders is of interest. The current MGM to Bally's system serves 7,800 hotel rooms. The new system will directly serve 25,000 rooms. Based on the present monorail ridership the more expansive system would generate a ridership of 41,200. However, that is based on a free system. Unless you assume that everyone that rides for free will pay $2.50 the actually ridership will be below that number. Even the optimistic 0% loss scenario leaves the system short by 11,800 riders a day.
Finally it bears noting that the system projects a fare to expense ratio of 280%. That means they want to collect 2.8 dollars for every one required to operate the system. The extra 1.8 dollars go to paying off the bonds required to build the system. This ratio is incredibly high. Only one system in the US operates at 100%- the Seattle Monorail. The next closest system is the New York subway system at 68.7% with most systems in the 60%, 50%, or 40% brackets. But some are in the 30's or 20's. It is extremely unlikely that Las Vegas will the only US city ever to not only break even but make another almost 200% above and beyond what other systems have managed to do.
That is why I predict the system will be bankrupt and have to be bailed out by the tax payers or the casinos. It is a very expensive way to service a small number of people. It has other flaws in my opinion such as not going to the airport. So if you fly into Vegas you'll need a car or bus trip to get to the monorail. And it has 65% higher administrative costs because it is paying managers a huge salary. I look forward to going to Vegas after 2004 and riding in the new, clean, empty monorail.