At a time when companies are scaling back travel and attended costs, a new study shows it pays to invest in travel. It’s not only a win for those businesses, but a win for Las Vegas, which banks on those travel dollars.
Las Vegas is not only the entertainment capital of the world, but it has long been the top destination for conventions, meetings, and trade shows which brings in an estimated $8 billion annually. That is until now.
“When economy took a dip and there was some bashing of meetings by some federal officials, it really hurt Las Vegas,” said Cathy Tull with the Las Vegas Convention and Visitors Association.
Las Vegas saw a 26-percent drop in convention travelers this year compared to last. But there’s hope things will soon turn around, thanks to a new study.
Adam Sacks of Oxford Economics, a global research firm, has established a clear link between business travel and business growth. “For every dollar a company spends on business travel, incrementally that drives $12.50 in revenue and almost $4 in profits,” he said.
The study simply states that business travel will stimulate the American economy. The study also points out that for the average U.S. business that does not travel in the first year sees a 17-percent drop in profits.
And that’s not a chance business owners like Mike Weeks gamble on. “When you specialize like I do in personal injury attorneys and you are looking for the premiere firms, you have to go where they go,” he said. Weeks owns an advertising company and is in Las Vegas for a four-day convention to network and stimulate business– which is what the LVCVA says corporations should keep doing in this economy.