To lure more visitors, LV told to lose cheap image

Gary Thompson

Thursday, April 16, 1998 | 11:20 a.m.

Las Vegas will need to attract 6 million more visitors annually by the year 2000 to maintain current hotel occupancy rates, a Senate Commerce Committee panel heard today.

That translates to at least 2.8 million airline passengers, or 7,700 passengers per day, said Gerard Carusi, Global Aviation senior vice president.

In order to increase visitation levels, Las Vegas must change its marketing tactics, said MGM Grand Inc. Chairman Terry Lanni.

"We've sent out a message that Las Vegas is cheap," Lanni said. "That made sense when casinos cost $10 million apiece."

But Lanni said the billion collar-plus cost of some new Strip resorts will require a different marketing emphasis to attract higher-end customers.

"We need a paradigm shift in communicating what the value of Las Vegas really is," Lanni said.

Lanni and Carusi were two of 16 speakers who appeared before the Senate hearing in Las Vegas to discuss ways to attract increased air service to Southern Nevada.

Airline executives presented divergent views of demand for travel here.

Representatives of some major carriers indicated demand is insufficient for them to make money flying into Las Vegas, while others indicated they are flying at historically high capacity levels into this market.

C.A. Howlett, vice president of America West Airlines, said the carrier flies 11,000 seats per day into this market, "and one third of them are empty."

"If demand is generated, America West will be there to serve it," Howlett said of America West -- the second-largest carrier of passengers to McCarran International Airport.

Dave Ridley, Southwest Airlines vice president, said Southwest will grow in Las Vegas.

Ridley promised the carrier, which currently has 140 flights per day in and out of Las Vegas, will add new flights -- "probably to new, longer-haul markets."

The hearing, chaired by Sen. Richard Bryan, D-Nev., heard from several hotel executives concerned about filling the 22,000 new rooms under construction today.

That represents an investment of $7 billion, more than the cost of all existing resorts built to date in Las Vegas, said Circus Circus Enterprises President Glenn Schaeffer.

Several speakers suggested hotels may need to provide financial incentives to air carriers to ensure service is increased to the market.

Bryan and the rest of the congressional delegation are interested in protecting gaming, Nevada's No. 1 industry, by ensuring highway, air and rail service and infrastructure are adequate.

"The purpose of this hearing today is a keener understanding of the respective interests and needs of our business community and the airlines," Bryan said.