No destination registers numbers like Las Vegas. Fun figures from 2014 include 11,336 Fountains of Bellagio shows, 7,982,550 pillows fluffed at MGM Grand and some 15,000 miles of lighted neon tubing on the Strip and Fremont Street.
Attracting a record 41.1 million visitors in 2014—up from 29 million in 1995 and 37.4 million in 2005—the destination is a statistical sensation on the group front, too.
Last year, Las Vegas hosted 22,103 meetings and conventions, generating $7.4 billion in total economic output and extending the city’s remarkable run as America’s top trade show and convention destination to 21 straight years.
While shy of 2007’s record 6.2 million delegates, last year’s 5.2 million attendees were the most hosted by the city since 2008 and a 1.2 percent increase over 2013. Now offering just over 150,000 hotel rooms, citywide occupancy hit 86.8 percent last year, 2.4 percentage points over 2013 and 22 points above the national average.
With emerging trends including mega-music festivals and a possible NHL franchise, and a heightened emphasis on health and wellness initiatives, Las Vegas is surging ahead with the next phase of its perpetual evolution.
To borrow from two major 2014 Vegas trade shows—World of Concrete, celebrating its 40th anniversary, and the construction industry’s co-located CONEXPO-CON/AGG and IFPE shows, which set new exhibit and education records with nearly 130,000 attendees—Las Vegas is building on a solid foundation for the future.
Staying Ahead
As the Las Vegas Review-Journal recently noted of the city’s perennial dominance of the convention and trade show industry, “Las Vegas knows it has a target on its back as No. 1.” Based on a strong start to 2015—January saw an 18.4 percent lift in meetings and shows, with accompanying 8 percent boost in attendance over a year earlier—and a convention-filled 2015 calendar, the city has the legs to stay in front.
“Building relationships is everything in the business world, and you can’t always do that in front of a screen,” says Chis Meyer, the Las Vegas Convention and Visitors Authority’s (LVCVA) vice president of global business sales. “The recession taught everyone the value of face-to face meetings, and we will continue to spread that message and market Las Vegas as the premiere destination for group business.”
While ranking among the world’s most fabulous adult (and increasingly, Millennial) playgrounds, Vegas is all business when it comes to its thriving meetings, conventions and incentives market.
“More than a destination, Las Vegas is an ever-changing experience,” Meyer says. “Loaded with choices for venues, space, accommodations, amenities, teambuilding activities and networking options, that experience is second to none. Uniquely accommodating all types of tastes, expectations and budgets, we are constantly adding, changing and evolving so even if a group has been here multiple times, there is always something fresh and new to experience.”
Reflecting on 2014’s record-breaking visitation and six-year high for meetings, conventions and trade shows, Meyer’s outlook is bullish.
“We are looking forward to another strong year of growth in 2015,” he says. “So far this year, group business is up and we are confident that trend will continue.”
As steps progress toward the $2.3 billion Global Business District project, the city’s two leading casino-resort operators are also powering forward.
The Bottom Line
Adapting the LVCVA’s tagline, Caesars Entertainment also “means business.” Michael Massari, senior vice president of the company’s meetings group, cites the fundamental value of meetings in the commercial world.
“Just a decade ago, we saw an era where senior leaders booked many meetings without truly understanding how those meetings improved their business,” Massari says, calling 2014 “a fantastic year” for meetings and events. “This mind shift has changed for the better, where attendees are now carefully agreed on and key takeaways are decided upon. Company leaders understand that without face-to-face meetings, their companies would have poor communication and no growth.”
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In a recent company video, Massari cited findings from Oxford Economics that every dollar invested in business travel produces $9.50 in new revenue and $2.90 in profit.
“Meetings continue to play a pivotal role in highly sought-after Las Vegas, which offers unrivaled value and has enough business to keep everyone involved in the industry busy year-round,” he says. “2015 is going great, with demand up and bookings strong, and 2016 promises to be a good year as well.”
Caesars recently completed major renovations at The LINQ Hotel and Casino, including rebranding the property, meeting space and remodeling the guest rooms. At the entrance of The LINQ, the Vortex offers 20,000 square feet of outdoor meeting space.
Investing in blockbuster projects including the new Las Vegas Arena and permanent festival grounds for large-scale music events, MGM Resorts International is also experiencing runaway results while putting a distinct stamp on the city’s future.
“2014 was a record group year for our company, with 2015 shaping up equally strong,” says Mike Dominguez, senior vice president of MGM Resorts International. “We are witnessing a strong return of corporate meetings, which is such a healthy indicator for the overall economy. Another positive sign is that groups are consistently outperforming their expected room blocks.”
For MGM, all bets are to win.
“We have invested in growing our capacity at Mandalay Bay, which complements the new Delano Las Vegas, the recently renovated Four Seasons and upcoming renovation of Mandalay Bay’s main tower,” Dominguez says. “Opening in the spring of 2016, our new arena is part of our strategic position to remain the entertainment company in the world. Plus, adding the new Park leading up to the arena allows us to activate and program outdoor space, as the trend of customer experience in Vegas is much more pedestrian today.”
Specifics of these investments include the $66 million expansion and renovation of the Mandalay Bay Convention Center, which will boost the venue’s total space to 2 million-plus total square feet. With an additional 350,000 square feet of exhibit space available this August, the entire project is slated for completion by January 2016.
Designed for LEED Gold Certification, the multipurpose Las Vegas Arena is a $375 million joint venture between MGM and AEG. The architecturally striking 20,000-seat venue will include a two-acre outdoor plaza for pre-event functions and special events, and ties into The Park, an eight-acre outdoor dining, retail and entertainment district connecting MGM’s New York-New York and Monte Carlo resorts.
In November 2014, Cvent crowned MGM’s ARIA Resort & Casino as the top meeting resort in North America, naming four other MGM properties—Bellagio, MGM Grand, Mandalay Bay and The Mirage—to the top 10.
“As leaders in this industry, part of our role is to develop the most dynamic, effective meeting environments so our meeting professionals can accomplish their goals,” says Dominguez on the honors. “We are able to achieve this for every size group, from large conventions to small board meetings. It is exciting to see Vegas dominate the list as Vegas really does ‘Mean Business!’”
Other developments reinforcing that theme include the continuing revival of the north end of the Strip with projects such as the new $4 billion Resorts World Las Vegas. Scheduled to break ground last month and targeting first phase completion by early 2017, the mega-resort will reportedly feature 3,000 hotel rooms, a 4,000-seat theater and attractions including a Great Wall of China replica.
Nearby, the 60-year old Riviera Hotel & Casino closed last month. Plans call for the LVCVA to raze the 26-acre site in preparation for more convention space as part of the $2.3 billion Las Vegas Global Business District. Westgate Las Vegas Resort & Casino, meanwhile, is currently undergoing a property-wide $100 million renovation starting with 300 timeshare units, the International Bar and 1,200 signature rooms.
In May 2015, Tropicana Las Vegas a DoubleTree by Hilton was acquired by Penn National Gaming for $360 million. The new owners have announced a two-phase plan to further enhance the property, including database and technology integration, and possible room, F&B, casino and other infrastructure upgrades and additions.
