tourism:
Good stop, bad stop
Vegas’ parallel pitches — Corporate-friendly! Hedonism capital! — are at the center of Obama-Goodman storm
Chris Morris
Published Thursday, Feb. 12, 2009 | 2 a.m.
Updated Thursday, Feb. 12, 2009 | 1:25 p.m.
OK, Nevada, we see you winking.
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- Hear Mayor Oscar Goodman's press conference Wednesday on a letter he sent to President Obama
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Obama in Elkhart, Ind.
Yes, President Barack Obama took a swipe at Las Vegas this week as an inappropriate place for corporate execs to meet, especially if their companies receive federal bailout money. And yes, Nevada squealed in protest, demanding an apology, offering up a defense of the city from the floor of the U.S. Senate no less.
By Wednesday afternoon, the issue was raging nationwide.
Is it wrong to go meet in Las Vegas? Too much fun? Sin City?
Yup. Wink.
Sens. Harry Reid, former head of the Nevada Gaming Commission, and John Ensign, the son of a casino executive, said Wednesday they want the world to know Las Vegas is the world’s premier destination spot and one of the most affordable cities in the country. A real steal, they noted in separate speeches, at $119 a night.
Rep. Shelley Berkley, a onetime keno runner, nearly broke into song, delivering her own version of the Marines hymn: “From the neon lights of Las Vegas to the Chicago skyline, from the white sands of Hawaii to the Kansas heartland, tourism means jobs.”
The Las Vegas Convention and Visitors Authority spends millions of dollars each year pushing a hedonistic message, hoping to lure tourists, a breed the state needs now more than ever. The mayor flits around the country with showgirls on his arms, sipping martinis, trying to stir up business.
Now the president is talking about it. So are a lot of people.
You can’t buy that kind of publicity.
Does Nevada deserve a retraction?
Or should Obama repeat the line a few more times?
Wink wink.
Obama’s remark came while he answered questions Monday at a town-hall meeting in Elkhart, Ind., as he mustered public support for economic stimulus legislation. Directing his comments toward companies receiving taxpayer money, Obama said, “You can’t get corporate jets, you can’t go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer’s dime.”
By Wednesday, Las Vegas Mayor Oscar Goodman — sans showgirls — was in front of the cameras, “hotter than fish grease,” about Obama’s remarks. In fact, he had demanded an apology and written the president a letter.
He sounded serious.
The tough economy has everyone in Las Vegas worried, explained Billy Vassiliadis, chief executive of advertising powerhouse R&R Partners, the firm that produced Las Vegas’ “What happens here, stays here” slogan.
The number of tourists fell 4.4 percent last year and descent was rapid in December, which saw a nearly 11 percent dip compared with 2007. Ten of the past 12 months had declines. Convention attendance was down too, falling 5 percent. Tourism analysts expect those trends to continue.
“Nerves are a bit frayed, sensitivity is a bit high,” Vassiliadis said.
On the other hand, he said, “I think the fact that the president picked out Las Vegas as a great place to go have fun is a good thing for us.”
Oh big wink.
Yet for all the great publicity, Las Vegas does have a concern. It stems from the fine line the city tries to walk with its image.
For tourists, Las Vegas wants to be a pure pleasure capital. For conventioneers, it wants to be a slick place for a moderately priced convention, with plenty of fun on the side. It’s precisely that “fun on the side” that drives up attendance at conventions. Vegas calls that “lift.”
The problem arises with a third group of visitors: corporations that choose Las Vegas for company meetings and pretend not to care about the lift.
That’s precisely the issue that nailed Goldman Sachs Group Inc. last week. The company drew heat continuing with its plan to hold a three-day conference in Las Vegas after accepting $10 billion in federal bailout funds. Goldman Sachs moved the conference to San Francisco.
Last week, Wells Fargo & Co., which received $25 billion in taxpayer money, canceled a planned employee recognition conference here.
The fear in Las Vegas is that the city will get a reputation as a frivolous destination for companies — and not just those getting federal bailout money. What board of directors wants shareholders upset because the company chose, say, Las Vegas instead of Des Moines for its annual meeting?
That’s what Goodman is driving at. Asked about Las Vegas’ Sin City image, Goodman, in what must have been a first, demurred. The former mob lawyer and occasional proponent of legalized prostitution boasted of the city’s business and conference facilities.
“What we’re famous for has nothing to do with the fact that you can have a serious meeting in Las Vegas,” he said.
Rossi Ralenkotter, president and chief executive of the Las Vegas Convention and Visitors Authority, appeared alongside Goodman. Afterward he said he couldn’t put a price tag on repairing the damage from Obama’s remark. “We’ve been dealing with the perception that the consumer, all they heard was, ‘Don’t go to Las Vegas.’”
MGM Mirage spokesman Gordon Absher said Obama’s comments had “wildfire potential.”
“Right or wrong doesn’t matter in this case,” Absher said. “It’s the perception that serious business can’t come to Las Vegas. It’s not only deadly wrong but deadly dangerous for what we do here.”
Given the economy and recent media criticism of the financial companies’ Las Vegas trips, Vassiliadis said the tourism industry and the state’s elected leaders were right to respond.
“If this were three years ago, we would probably be laughing it off,” he said. “But now we’re reacting to any opportunity, small or large, and responding to any challenge, small or large. There’s not a large margin for error.”
Vassiliadis acknowledged the city’s predicament: a dual message. Obama’s comment might tilt the image more toward the Sin City side of things, luring in more tourists even as it chips away at Las Vegas’ reputation as a place for serious business.
Deep down, Obama knows Las Vegas is more than glitz, said Vassiliadis, who advised the president’s Nevada campaign. He visited the state 20 times and often marveled at the shared prosperity of casino operators and casino workers.
Plus, he’s stayed in the Caesars Palace towers.
He said he enjoyed the view.
Wink wink.
Editor's note: This story has been corrected. An earlier version said visitor traffic had fallen 14.2 percent last December compared to 2007.
Sun reporters Sam Skolnik and Megan McCloskey contributed to this story.
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Wait a minute...
Let me try to understand this...
One headline states we have decided to forgo legalizing prostitution in Las Vegas..
Our slogan is what happens here stays here..
We have a Mayor who advertises Vodka and has his pictures taken with showgirls..
We have the worst in the nation record for just about anything to do with caring for our citizens and it is about to become even worse..
we are the gambling capital of the nation
We have a Gov. who could easily take the Scarecrow role in the Wizrd of Oz pre-Oz visit..
Worst mortgage default rate in the nation
One of the highest unemployment rates..
and half of our problems started long before this recession..
and we are insulted because the President implies
we are the hedonist capital of the world?
hahahahahaha thanks for the belly laugh..
The President used bad judgement. Jobs are needed all over the place including Las Vegas.
We are still part of the US here, and things are not good--we need a boost, not another hit.
Obama might want to reconsider his choice of words in the future. Goodman had to speak out.
I love it, Harry Reid was defending Obama for his comment about Las Vegas. Thanks Harry, screw Nevada again.
Las Vegas gains a lot of revenue from the people who visit whether on vocation or if it is from conventions.
So all the greed mongers are insulted.All that money flowing so freely and know the faucet has been shut off.Go invent some other catchy phrase to attract losers
Given the depressing economy more people want to come to Las Vegas than ever.
Cnev, the mayor drinks gin, not vodka. Get your facts straight before opening your mouth.
Ed, we're not "greed mongers," we're a tourist destination that President Obama called out by name (hypocrite!). Stop wasting your time posting on a Vegas newspaper website.
Vegas is the top PREDATOR city in the WORLD and nothing else. It contributes NOTHING to society and exists only as a supply source for hedonism.
No matter how many mega-billion gambling houses they build now, Vegas is on an unstoppable and steep decline.
Will the last one out please turn off the lights??
The companies getting bailout money should be required by President Obama to hold all of their business meetings in Las Vegas, the city which is the most economical and the most conducive to holding efficient business meetings and conventions, with 130,000 hotel rooms and thousands of restaurants within a few miles of dozens of huge convention facilities and hundreds of meeting rooms. With reduced room rates because of the economy, and because Las Vegas hotels can afford to have lower room rates because of casino revenues, Las Vegas is a bargain, and Las Vegas is the only city where all corporations should be allowed to plan their meetings and conventions.
When I was delivering newspapers 35 years ago, the newspaper company had a party every year for delivery carriers and gave them free pizza and soda pop. The carriers who sold the most newspaper subscriptions were awarded prizes. The top prize was a trip to Disneyland. As a result the newspaper increased their circulation and were able to charge more for advertising. When I was an outside sales rep selling plumbing supplies to wholesalers 25 years ago, the owner of the small manufacturer rep firm that employed me, required me to take customers out to lunch every day, and we payed for lunches for engineers that did specs. That was how we made our products known to buyers, and that was the lifeblood of the company. If taxpayer money is being used to get these companies on their feet, we better hope that these companies are doing the kinds of things that attract customers and reward productive employees, or all of these companies will fail and the taxpayer money is gone. Is this still a capatalist country, or are we in Communist Cuba?
Good post....VegasTaxidDriver.
First, there were two major news stories about companies changing their plans going to Las Vegas. The other company changed it from Las Vegas from San Fran to avoid the negative PR.
Second, national companies have offices spread out throughout the nation. They have a need to hold meetings/conferences in a central location.
Third, why did Obama have to used the words "Las Vegas"? He could have made his point without pointing to our city as a bad destination for business conferences.
Obama did not help us. He hurt us.
You guys who are commenting on this story miss the boat entirely! Its people like you who are at fault because you voted for a person who will say anything without thinking! ( probably his lack of experience is to blame ). That's nothing compared to what he will say in the next 8 years or more ( yes, I said 8 years or more). The people have spoken ( sic ). Way to go America!
CNEV,
Great response! And it is so true. Everyone who is defending the Mayor, you need to stop and recognize the fact that the image Vegas has is no longer appropriate in todays society/economy. Its had its day, now it needs to change. Drop the old slogan, clean up the strip, go back to what works. Clean streets, more security and drop the anything goes atmosphere. Tell Hollywood to go home!!!!!!
NEW LVCVA AD SECRET REVEALED: "What happens in your business meeting stays in your business meeting"
Oscar Goodman is a believer in trickle down economics. Seriously. He believes the corporate CEO's should get the bailout money and come to Vegas. Once in Vegas the CEO's use their stimulus package on a call girl.
Las Vegas needs to change it's image from "What happens in Vegas stays in Vegas" now that companies are being bailed out on the taxpayers dime. Times have changed radically in the last year so it is now time for Las Vegas to do what it does best..... Reinvent it's image.
When you lose your job will you think the statement was wrong. The ad base and subscriptions of this newspaper are down and going down farther every month. How many employees at the Sun will lose their jobs because "the ONE " decided to use this city for a political prop.
neiman1; familiar with the phrase
Mountain out of a molehill?
TEXENV..THE TOP PREDATOR CITY IN THE WORLD?
LIKE I SAID B4 LAS VEGAS HAS
PROSTITUTION
GAMBLING
DRUGS
YOU THINK THAT NO OTHER CITY HAS THESE THINGS???
LOL EVERY MAJOR CITY AND SMALL TOWN HAS THESE THINGS
AND HAS CONTRIBUTED NOTHING TO SOCIETY?
LOL WHAT HAVE OTHER CITY CONTRIBUTED??
PEOPLE LIKE YOU ARE MORONS WITH NO KNOWLEDGE OF THE WORLD AROUND YOU. YOU LIVE YOUR LIFE IN A LIE YOUR ENTIRE THINKING IS BASED ON BS.
WHAT DOES OKLAHONA CITY, OR KANSAS OFFER THE WORLD?
NOTHING
VEGAS IS JUST SMART WE TAX ALL THE ACTIVITES THAT ARE GOING ON EVERYWHERE ELSE AND IF YOU THINK THEY ARENT THAN YOU ARE JUST PLAIN DUMB
PEOPLE LIKE YOU ARE A DYING BREED
AND BY PEOPLE LIKE YOU I MEAN PEOPLE WHO LIVE IN A FANTASY WORLD A WORLD BASED ON OLD FALSE IDEALS
las vegas needs to "reinvent" itself again...
It shouldn't be this who cares attitude com eand cheat on your wife
They should change this to a city with class
back to the rat pack days where people dress up when they sit at a slot machine and not sit in there pajamas like they do at home in the trailer park
Las Vegas is a world class city with the best ammenitties anywhere
Nevada has many things to do outside of vegas also its not just casinos
Inconclusion Las Vegas should try and get back to the era of class
and we should be marketing the other things to do here in Nevada and Vegas should also make a push for a sports team (and no gambling has nothing to do with why we dont have a team here its the casinos being greedy not wanting people to do anything other than gamble bc ALOT more MONEY IS BET WITH ILLEGAL BOOKIES IN A WEEK THAN THE SPORTSBOOKS TAKE IN IN A YEAR.)
So true MAGSNY. If it could only go back to the Rat Pack days and the era of class...... I was very disappointed in the last few years with Las Vegas's "What happens in Vegas" ads and image. It does basically say to come here or have your convention here, cheat on your spouse and it's cool.
Thank god there are other people that feel the way my husband and I do. We moved here for several reasons, but I can honestly say, I've been very disappointed with the direction this city has been heading in. We are not prudes by any means, however, it makes us both sick to see the crap we see on the strip nowadays. There is absolutely NO class anywhere anymore. When you spend hundreds of dollars to see a show and drinks afterward, and have to endure the filthy language, disgusting PDA, and frankly, rude treatment by the casino staff, we will not go down there unless we absolutely have to. The customer service is lousy, and they do not monitor their customers behavior. And what ever happened to dress codes? Stripper clothing is now acceptable? Give me a break..... Las Vegas better go back to the days of class, or this is only the beginning of the end!
LETS BE HONEST THERE IS NO WAY THE PRESIDENT IS APOLOGIZING TO ANYONE LET ALONE VEGAS . HEY IT IS WHAT IT IS BE PROUD TO BE SIN CITY THAT'S WHY PEOPLE VISIT VEGAS BECAUSE WE CAN'T GET THAT KIND OF FUN IN OUR HOMETOWN. ENOUGH WITH THE GREAT CHEF'S AND ENTERTAINMENT IF PEOPLE WANT GOOD FOOD AND TOP NOTCH ENTERTAINMENT THEY'LL GO TO LA OR NEW YORK (BETTE MIDLER AND GEORGE WALLACE ARE HARDLY TOP NOTCH ENTERTAINMENT) IM IN MY EARLY 30'S AND THE TARGET AUDIENCE IS AGES 20-40 GUYS THAT WANNA DRINK GAMBLE GO TO STRIP CLUBS AND !!!!BLOW THERE MONEY!!! WE DON'T MIND DROPPIN THE CASH JUST DON'T MAKE YOURSELF OUT TO BE THE GREATEST PLACE ON EARTH THE GAMBLING IS WHAT BRINGS US ALONG WITH THE BOOZ AND THE LADIES (DON'T BITE THE HAND THAT FEEDS YOU) AS FAR AS THE GUY WHO SAID PEOPLE CANT WAIT TO MOVE TO VEGAS THAT'S TRUE I'D LOVE TO MOVE TO VEGAS THE PROBLEM IS THERE ARE NO JOBS OUT THERE RIGHT NOW AND WHEN THE ECONOMY COMES AROUND MOST JOBS ARE TOURIST RELATED I HOPE THINGS TURN AROUND AND I'M A RESIDENT SOON BECAUSE I LOVE TO DRINK , BET ON SPORTS AND GET LAPDANCES SO KEEP ON DOIN WHAT YOUR DOIN VEGAS AND WE'LL KEEP VISITING
BABA BOOEY TO ALL
Some of you are missing the message. These corporate execs should not go anywhere on the taxpayer's dime. Not the Bahamas, Hawaii, or Las Vegas. If they want to go anywhere let them use the money from their salaries or golden parachutes. They want to have expensive retreats or conferences and at the same time they are laying off workers.
Not with my taxes!!!!
KALIHLVALLEYBOY:
These conferences and meetings are going to happen. So it's just a question of who gets the money they'll spend. And it's not just executives that come. Wells Fargo was going to bring 5,000-8,000 people and Goldman Sachs was bringing 3,000. Vegas can use the money they would spend on rooms, taxis/limos, restuarants, shows, shopping malls, gaming, etc.
I like that Sachs can go spend their money in San Francisco, but not Vegas... Thanks President Hussein Obama
Well Unions, what have you got to say about the Messiah NoBama now? You work your butts of for him and he throws you under the bus. Nice work. I hope you're happy now. Maybe if you transfer to Illinois there will be jobs for you there. We'll miss you though...
Didget, so explain please how anyone coming here on YOUR dime benefits you? If you're the one footing the bill I don't see where you come out anything ahead. Think about it.