LVCVA renews agreements, vows to oppose immigration initiative

By Richard N. Velotta

Tuesday, June 8, 2010 | 1:16 p.m.

The Las Vegas Convention and Visitors Authority today renewed agreements with 12 offices that represent the city in 75 markets worldwide, placing the most emphasis on Canada, the United Kingdom and Europe.

The LVCVA board of directors unanimously approved an option to an existing two-year agreement that would cost $1.8 million in the 2011 fiscal year that begins July 1 and up to $1.9 million in the 2012 fiscal year that begins a year after that.

LVCVA marketing experts are pushing to increase international visitation from the 2009 level of 14 percent of all visitors to 20 percent in five years.

The LVCVA does that by contracting with travel marketing companies in 12 cities. Nine of the 12 companies get flat-rate administrative fees while three others are paid on a project-by-project basis.

The LVCVA is paying $250,000 each to VoX International, Toronto, to market Canada, and Hills-Balfour Synergy, London, to market in the United Kingdom.

It also has a $475,000 contract with Aviareps, Munich, Germany, to sell to the European Union; $200,000 to Ad Nova, Mexico City, for Mexico; $150,000 to Travel Link, Tokyo, for Japan; $140,000 to BrandStory, Shanghai, for China; $130,000 to Marketing Spirit, Sydney, Australia, to market Australia, New Zealand and Southeast Asia; $120,000 to Connect Worldwide, Seoul, for South Korea; and $75,000 to Aereps, Dublin, Ireland, to market in Ireland.

The board also authorized spending on a per-project basis to Interamerican, Sao Paulo, Brazil, to market to Brazil and South America; Aviareps AG, Moscow, to market Russia and Eastern Europe; and Connect Worldwide, New Delhi, to market in India.

Each of the offices has a similar scope of work and responsibilities, but the different funding levels are reflective of different rent and expense costs in those cities and adjustments for international currency values.

Representatives of the LVCVA’s international offices make sales calls and attend travel trade shows and conferences on the bureau’s behalf.

“They not only represent our brand, but they embody our brand,” said Mesquite Mayor Susan Holecheck, a board member who has met with some of the representatives when traveling abroad.

The LVCVA presses to increase international visitation because its studies show that tourists from abroad stay longer when they visit and spend more money when they come.

The $1.8 million and $1.9 million budgeted to be spent in the next two years is less than what was budgeted for 2009 and 2010. The board authorized $1.9 million in 2009 and $2 million in 2010 but cut the budget because of declining revenue from room taxes. The LVCVA cut some expenses in its Japan office and shifted the Brazil office from a set administrative amount to project-by-project payments.

The LVCVA delayed action on another big-ticket expense – its contract renewal with Las Vegas Events, the privately operated non-profit that develops special events to attract visitors to the city. Attorneys had not completed the contracts for the $6.9 million agreement and the matter will be reviewed at the board’s July 13 meeting.

The board also was told today that LVCVA President and CEO Rossi Ralenkotter plans to use the bureau’s resources to fight efforts to put an immigration reform initiative on the ballot in 2011.

The Nevada Immigration Verification Act mirrors Arizona’s controversial immigration reform legislation that was signed into law earlier this year by Arizona Gov. Jan Brewer. In Nevada, an initiative is being supported by Republican U.S. Senate candidate Chad Christensen.

Ralenkotter said Phoenix has lost more than $90 million in convention business this year as a result of boycotts and protests against the state over the controversial measure. With convention and trade show business starting to pick up in Nevada, Ralenkotter said it would be detrimental to Las Vegas for Nevadans to approve similar immigration reform.

Today’s meeting was also the last one for board member Kara Kelley, whose term ends in July. Kelley, formerly the president and CEO of the Las Vegas Chamber of Commerce, held the position as the chamber representative to the board. She is expected to be replaced next month by her successor at the chamber, Matt Crosson.