LVCVA chief: Vegas’ success relies on exploiting its brand

Thursday, Jan. 27, 2005 | 11:07 a.m.

The top executive of the Las Vegas Convention and Visitors Authority today outlined how the city will attract 43 million visitors by 2009, a 15 percent increase over the record 37.4 million people who visited last year.

Rossi Ralenkotter, president and chief executive of the LVCVA, told an audience at Preview Las Vegas that a considerably more conservative estimate of 38.2 million tourists -- a 2.1 percent increase -- is expected to arrive this year.

"We are the hottest destination going, anywhere in the world," Ralenkotter said. "It's all about adult freedom and having a good time."

Ralenkotter kicked off a parade of speakers at Preview, an annual half-day networking event sponsored by the Las Vegas Chamber of Commerce and the Nevada Development Authority.

The crowd at UNLV's Cox Pavillion also was scheduled to hear presentations from Keith Schwer, director of the university's Center for Business and Economic Research; John Nelson, president of the American Medical Association; military expert and Fox News correspondent Oliver North; and Richard Lee, vice president and public relations director of First American Title Co. of Nevada.

Ralenkotter's speech mirrored his Vision Plan presentation before the LVCVA board of directors earlier this month. He said the key to hitting the 43 million-tourist goal in five years is to exploit the brand name of Las Vegas. The LVCVA and other tourism organizations will increase their domestic reach with advertising in more markets, the further development of international markets and to leverage special events, including the city's 100th anniversary celebration.

The LVCVA already has announced plans to advertise in seven new markets -- Seattle, Denver, Atlanta, Miami, Philadelphia, Boston and Detroit. The ad campaign will include a new batch of "Vegas stories" television spots featuring the tagline "What happens here, stays here." Ralenkotter showed two of the newest TV ads and the crowd responded warmly.

Ralenkotter said the LVCVA also would step up its market development in Germany, France, Italy, Australia, Korea, China and portions of South America and capitalize on special events. The LVCVA hopes to secure a second NASCAR race at the Las Vegas Motor Speedway and sign a new long-term contract to keep the National Finals Rodeo in Las Vegas.

Although a high-profile nonpartisan public policy researcher believes the industry is in decline and that cities should be wary of expanding convention centers to attract tourists, Ralenkotter defended the LVCVA's plan to invest $400 million to improve the Las Vegas Convention Center.

The Washington-based Brookings Institution also said a recovery or turnaround is unlikely to yield much increased business for any given community, contrary to repeated industry projections.

Ralenkotter said by 2009, one in five visitors would be business travelers and 15 percent of all Las Vegas visitors would be conventioneers. He said Las Vegas needs to maintain its lead as the top trade show host city. In 2003, the city had 38 of the nation's top 200 shows -- the 10th straight year that the city had the largest share in the nation.

Ralenkotter said the refurbishment of the convention center would include technology enhancements, building multipurpose general session space, improving access and circulation, developing an indoor connector between the monorail station and the convention center and building a new substation for Metro to serve the resort corridor.

Ralenkotter concluded that the bid to bring 43 million visitors into the city within five years would be challenging because of the competition is intensifying. He said other resort destinations are getting more competitive, gaming is expanding rapidly in tribal venues and the cruise ship industry has been growing at an 8.4 percent clip annually since 1980.

"To maintain our current occupancy rates will require 200,000 additional annual visitors for every 1,000 new rooms added," Ralenkotter said.

He noted that tribal gaming is allowed in 29 states and that more than half the people who have gone on cruises have done so since 2001.

"There are 120,000 cabins on U.S.-based ships," Ralenkotter said. "That's more rooms than in any other destination except Las Vegas."

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