Venetian hotel builder blasts city tourism officials

Tuesday, March 24, 1998 | 11:37 a.m.

Adelson, who is building the 6,000-suite Venetian hotel across from The Mirage, told a gambling industry convention that the Las Vegas Convention and Visitors Authority should have been more effective in its advertising and marketing efforts.

"Their marketing thinking cries out for an overhaul," Adelson said. "If I had a marketing department in a private company that spent $30 million to $40 million a year I'd better see an increase of more than inflation or population growth or I'd soon see my marketing department out the door."

Adelson, speaking to the International Gaming Business Exposition, criticized the authority for using room taxes to sponsor "such useless events as lacrosse tournaments, putting contests and volleyball meets."

"The next you know, they'll be sponsoring tiddly-wink contests," Adelson said.

Adelson, who tore down the Sands to begin construction of the Venetian, cited tourism reports that showed visitor volume up by less than 3 percent each of the last three years.

He noted that the city is adding nearly 20,000 new hotel rooms on the Strip over the next few years, and said tourism officials should be doing much better in luring new visitors here.

"Since the Convention Authority spending is subsidized by the room tax, and that amount of money flowing to the Convention Authority has increased dramatically over the past three years, then how come, with more money, they aren't doing a better job in bringing in more visitors?" he asked.

Adelson said Las Vegas has too long relied on simply building hotels and casinos to attract visitors. But he said $1.99 buffets and themed casino lounges are no longer enough to sustain new growth.

Adelson cited Circus as an example of the old Las Vegas mentality, saying the company is failing in its efforts to move from a budget niche into the mid-market.

On the other hand, Adelson said the Mirage's new Bellagio resort is a good example of something being built that will attract a new and higher class market to the city.

"They're truly adding value to the Las Vegas Strip and the attractiveness of the city as a destination resort," he said.

Adelson spent much of the speech talking about his new resort, which he said is on budget and on time.

Adelson said the first phase of the resort will contain 3,036 suites, with the smallest being twice as large as an average Las Vegas hotel room at 700 square feet.

He said the hotel, which will cater to convention and business travelers, is generating heavy bookings and will include restaurants and shopping that will be among the city's best.

Adelson also defended his plans to open the hotel non-union, saying employees will receive day care, food and fitness benefits that far surpass anything offered in current union contracts.