Tag Archives: business meetings

Study Says Business Travel to Las Vegas Stimulates the Economy

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.

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Las Vegas Leaders Irate Over President Barack Obama’s Remarks

It’s difficult to find anyone in Nevada, politician or otherwise, who is not ticked off – boiling mad- over President Barack Obama’s economic stimulus legislation comments on Monday while he attended a town-hall meeting in Elkhart, Indiana.  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 taxpayers’ dime.”travel

Since then Las Vegas Mayor Oscar Goodman has appeared in front of every camera and microphone he can muster, nerves frazzled and hotter than fish grease about the President Obama’s comments, demanding an immediate retraction and apology.  He followed his demand in a letter. 

In our Nevada economy that has been particularly hard hit by the recession, the enflaming remarks by could prove disastrous, many Nevada leaders say.   The number of Las Vegas tourists fell 4.4 percent last year and the descent continued in December, which saw a 14.2 percent dip compared with 2007. 

Rossi Ralenkotter, president and chief executive officer for the Las Vegas Convention and Visitors Authority, appeared alongside Goodman, saying later he couldn’t put a price tag on repairing damage from Obama’s remarks. 

MGM Mirage spokesman Gordon Absher followed suit, saying Obama’s comments had “wildfire potential.” 

Most business leaders agree that extravagant, ostentatious frivolous spending is one thing, but it’s the “Las Vegas fun factor” under control that can precisely be the economic stimulus ticket to drive up the attendance at Las Vegas conventions and serve as a win-win lift for our sagging national and local economies. 

But are out-of-town business conventioneers really listening? 

Goldman Sachs Group Inc. continued to draw heat and withdrew its plan to hold a three-day conference in Las Vegas after accepting $10 billion in federal bailout funds. 

Similarly, last week Wells Fargo & Co., which received $25 billion in taxpayer money, cancelled a planned employee recognition conference in Las Vegas. 

The fear is that Las Vegas is unjustly getting a growing reputation as a frivolous destination for companies- and not just those getting federal bailout money.  To which Goodman responded, “What we’re famous for has nothing to do with the fact that you can have a serious meeting in Las Vegas.” 

Only time will tell what will be the ultimate economic tourism impact of Obama’s remarks- time Las Vegas has very little of.   It could be that Obama’s comment might tilt the economic pendulum more in favor of Las Vegas tourism, actually bringing in more tourists as Las Vegas continues to work damage control on its reputation as a place for serious business.

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