Comdex fallout may be muted

Kevin Rademacher

Thursday, June 24, 2004 | 10:53 a.m.

If Las Vegas resorts are worried about the loss of Comdex, they are managing a good poker face.

Executives with several casino operators indicated that the loss of Comdex, which had seen declining attendance over the past few years, will have little or no effect on their business.

"It would have much more significance if it was the old Comdex," said Alan Feldman, a spokesman for MGM MIRAGE. "Clearly Comdex had been declining in recent years."

In 2003 Comdex drew only about 40,000 attendees. In 2000 the show drew more than 200,000 attendees before economic declines and changes in the dynamics of the technology industry took their toll.

Observers also pointed out that, while shows such as Comdex have seen a decline, other technology events in Las Vegas, such as the Consumer Electronics Show, have grown.

"While one convention or gathering over time declines, another convention or gathering over time is on the rise," said Ira David Sternberg, a spokesman for the Las Vegas Hilton.

Colony Capital this month completed its purchase of the Hilton from Caesars Entertainment. In outlining its plans for the new hotel, Colony said the company would focus on increasing its already strong convention business. Sternberg said the loss of Comdex would not play out as a negative in those plans. The fact that attendance has been declining had already put Hilton officials in motion working to fill more of that Comdex space with new guests and events.

"Sure it has an effect," Sternberg said. "But we could see the numbers declining in recent years."

Casino executives, many of whom did not want to comment on the record, also emphasized that Comdex attendees were not big spenders, particularly in casinos. Most said that outside of filling rooms and buying some food, much of the economic impact brought to town by Comdex went to local topless clubs.

Delores Eliades, general manager of the Olympic Garden and co-owner of Sapphire gentlemen's clubs, said that like the hotels the clubs also had seen the benefit of Comdex weakening.

"Last year really wasn't that great," she said. "In the end it was not a bad week because of other events in town."

She said other Las Vegas conventions, such as the MAGIC apparel show and the Consumer Electronics Show, have proven more successful for her clubs than Comdex. She also said any negative effect from the loss of Comdex this year will probably be minimized because of the success Las Vegas has had in attracting other events.

"Las Vegas is very resourceful," Eliades said. "We tend to spring back from things like this very quickly ... The (Las Vegas Convention and Visitors Authority) has done a very good job of promoting the city."

Her resort counterparts agreed, pointing out that the November dates that Comdex had occupied are a busy time for Las Vegas regardless of Comdex.

"Given the demand for the Las Vegas Convention Center facilities, entertainment, rooms, I don't think it's going to be any kind of disaster," said Robert Stewart, a spokesman for Caesars Entertainment.

Michael Hughes, research director for Tradeshow Week, agreed.

"This is an anomaly," Hughes said. "For Las Vegas hotels this is a blip on the radar. The city continues to win new shows. For Las Vegas and its venues, it's an opportunity to sell those prime dates."