Convention centers spots booked for years ahead

Wednesday, Aug. 15, 2001 | 11 a.m.

Visitation up Visitor volume continues to climb for Las Vegas with 3.09 million people coming to the city in June, according to LVCVA statistics released Tuesday.

The 3.1 percent increase in volume over June 2000 brings the total to 18.1 million people for the midpoint of the year, 1.2 percent ahead of last year's pace.

June convention attendance was up 10.9 percent to 384,760. The number of passengers that used McCarran International Airport was up 3.5 percent to 3.3 million and the number of motorists who passed through the agricultural inspection station at Yermo, Calif.,increased 8.8 percent to 536,690 over the previous year.

Visitation to Laughlin was down 5.7 percent to 372,266 for the month, but volume was up 2.9 percent to 140,226 for the month in Mesquite.

The Las Vegas Convention and Visitors Authority is close to filling its new South Hall expansion with trade shows and conferences for the next five years.

Other convention centers also are filling rapidly throughout Las Vegas as associations and corporations see the city's infrastructure and entertainment amenities as a potential attendance draw for their shows.

Nancy Murphy, LVCVA director of sales, told the LVCVA board Tuesday that over the next five years Convention Center utilization already is averaging 66 percent for the 1.9 million square feet of existing floor space and the 1.3 million-square-foot addition that will host its first show in January.

Murphy explained that because of religious holidays during which no shows are expected to be conducted, and accounting for move-in and tear-down days for major shows, the industry standard for capacity is using a building 70 percent of the time.

Murphy told the board Convention Center facilities are 62 percent sold for 2002 (92 shows), 68 percent for 2003 (82), 71 percent for 2004 (89), 65 percent for 2005 (61) and 61 percent for 2006 (65). Those percentages include shows that are tentatively scheduled as well as those that are confirmed. Murphy said 85 percent of the shows that are tentative eventually are confirmed.

The 2002 shows are expected to draw more than 2.1 million conventioneers, producing an economic impact of $2.86 billion on the city. By comparison, 3.9 million conventioneers attended shows in Las Vegas in 2000, resulting in a nongaming economic impact of $4.3 billion, the LVCVA said.

Among the upcoming five years, Murphy described 2004 as a "perfect storm" year during which many of the shows that come to Las Vegas periodically will be in the city.

Many of the shows coming to Las Vegas in the next five years are either new to the city or are increasing the frequency of their visits. Murphy said the additional square footage at the center will help bring several shows to the city at one time. In one six-day period next year, the city will host eight shows.

Although it appears the Convention Center could fill even more space, the LVCVA is running out of room on its grounds. Rob Powers, a spokesman for the LVCVA, said negotiations have occurred with nearby landowners for years to acquire more property. Earlier this year the LVCVA acquired the World Trade Center hotel for $14.1 million and on Tuesday, the board gave permission to tear it down to make way for more parking.

LVCVA President Manny Cortez said the problem the agency has with negotiating for land is prospective sellers boost their asking prices, believing the LVCVA to have deep pockets.

"It's amazing that when they find out we're looking that they discover oil under the property," Cortez quipped.

Chuck Bowling, senior vice president of sales and marketing for MGM MIRAGE, said the MGM Grand Conference Center, which specializes in hosting smaller meetings than the trade shows that use the Convention Center, said the center is experiencing a similar boom in the years ahead.

"Our booking window is a little smaller, but we're looking very, very strong in '02 and '03," Bowling said.

Bowling said the LVCVA has done a good job of attracting new customers and that translates into more business for his property and other hotels that have convention facilities like the Venetian's Sands Expo Center and the soon-to-open Mandalay Bay Convention Center.

Danielle Babilino, vice president of hotel sales at Mandalay Bay, said the convention center, which will open next summer, is booking shows at a good pace.

"The prime dates are filling in quickly," Babilino said. "We've only been selling since May, but based on the exceptional response, we figure to be close to capacity."