LVCVA proposes higher budget for advertising

Monday, May 10, 2004 | 10:46 a.m.

The Las Vegas Convention and Visitors Authority has budgeted $97.6 million in fiscal year 2005 to market the city, maintaining its position as the nation's largest convention and tourism agency.

The marketing total, released in a tentative budget last week, is up 6 percent from last year. Figures include salaries and wages, employee benefits and supplies and services for several departments including advertising, convention services, Internet marketing, sales, public relations, sponsorships and tourism.

Part of the increase can be attributed to the convention services department, which is new to the marketing budget this year. Last year it was part of the agency's facilities administration department, which was included in the operations division rather than the marketing division.

The budget, which will take effect for the fiscal year beginning July 1, will be considered at a special meeting May 20. The agency must submit the budget to the state Legislature but only the agency's board of directors -- consisting of seven elected members and six private-sector officials, will vote on it. Board members include officials who sit on the Clark County Commission as well as other local government officials.

The largest chunk of the marketing budget will go to the advertising department, which has proposed a budget of $66.7 million, up 3 percent from a year ago. The total includes increases in a few areas including international advertising, trade advertising for tourism and convention customers, Internet promotions and the addition of $1 million in expenditures associated with the Las Vegas Centennial celebration.

The agency expects to receive $147.9 million in room taxes -- a 3 percent increase over last year -- to help fund the budget. That consists of $146 million in room taxes and $1.9 million in gaming taxes. The room taxes are up 4 percent from a year ago and gaming taxes are down 4 percent.

The vast majority of the convention and visitors authority's funding comes from room taxes generated on the Strip.

The agency expects to receive $132.2 million in Clark County room taxes this coming fiscal year, up 4 percent from a year ago. Gaming taxes generated in Clark County total $1.5 million, down 5 percent.

Total revenue, including financing sources and rental fees, is $190.4 million, up 6 percent this fiscal year. Total expenditures are $196.7 million, a 4 percent increase.

Executive level salaries, benefits and support services are $2.9 million, down 3 percent. Board of directors salaries and support costs are $217,400, up 27 percent.