Las Vegas Speaks: The Industry Strikes Back, Part II
March 24, 2009
Like the heavyweight boxers so often showcased there, Las Vegas, America's leading international meetings destination, isn't going down without a fight. From mayor Oscar B. Goodman to Lenny Izzo, a GM at GES Exposition Services, the "heavyweights" are counterpunching the remarks that have done surprising harm to the meetings industry.
Oscar B. Goodman Mayor, City of Las Vegas Chairman of the Board, Las Vegas Convention and Visitors Authority
Las Vegas hosts 22,000 meetings and 6 million business travelers annually for an economic impact of $8.5 billion. These individuals represent Fortune 500 companies and major conventions and trade shows such as the International Consumer Electronics Show, International Builders Show, and National Association of Broadcasters. The meetings and conventions industry directly employs more than 46,000 Southern Nevadans, more than 75,000 indirectly.
The assumption that all meetings, events, and incentive travel are wasteful is wrong. Now, more than ever, we need businesses to travel and hold meetings and events. As we move forward, I would caution all federally elected officials to use temperance in their comments. Failure to heed these principles will damage an entire industry, and select cities, causing people to lose their jobs and homes.
Excerpted from mayor Goodman's letter to president Obama, Feb. 10, 2009
Rossi Ralenkotter President and CEO Las Vegas Convention and Visitors Authority
Las Vegas has worked hard to become the leading destination for meetings, conventions, and trade shows, and the meetings industry is a critical element in our portfolio. Our resorts have invested a great deal in facilities, service, and amenities to ensure that companies bringing meetings here have the best possible experience. Groups find they get more done when they come to Las Vegas because they can do their serious business during the day and experience the amenities and attractions of the destination in the evening.
Sheldon Adelson CEO Las Vegas Sands Corp.
I'm going to conduct a survey, and I'm going to provide a prize for people who will submit the name of the worst city in the country to go to, where people can enjoy it the least. Because that's the alternative. The alternative is you go to a place where you enjoy, or you go to a place you don't enjoy.
Excerpted from the Reuters Travel and Leisure Summit, held in New York, March 2, 2009
Keith Smith President and CEO Boyd Gaming Corp.
The concept that Las Vegas is solely a leisure destination is outdated. Few cities can match the sheer amount of meeting space and hotel rooms that we offer convention planners, particularly at our high-value price point. Las Vegas also offers numerous direct flights to cities across the country, so travel here is relatively inexpensive and convenient for business travelers. Companies save money by coming to Las Vegas, and they can participate in far larger conferences here. Meeting planners do not choose Las Vegas for leisure; they choose Las Vegas because it makes good business sense.
Steve Wynn CEO Wynn Resorts Ltd.
President Obama, in what amounted to a slip of the tongue—I imagine just a conversational nuance—said that he doesn't think that people who have received benefits from the government should be going on junkets to expensive places or Las Vegas. He used Las Vegas as a metaphor for wasteful spending, in effect, which stigmatized the convention business that could come to Las Vegas.
"I'm sure the President didn't mean to stigmatize the convention and meetings business of Las Vegas when it was conducted by companies that weren't on the government dole. But the effect that it had . . . One particular convention we had was $5 billion worth of business, [and it] was as far away from needing help from Uncle Sam as you can get, but the chairman of that company decided that he wanted to avoid any appearance of profligacy, so he canceled . . . and paid a $3.3 million forfeiture.
Now, we're not happy with the $3.3 million; we'd rather have had the people and the $5 billion. But, it was a direct result of the comment made by the administration, by the President.
There [seems to be] a pound of flesh mentality in the new administration that I hope is misleading as we go forward. But it's caused us some trouble here, and we have hundreds of thousands of employees in this industry—more than the automobile industry—and I hope that Uncle Sam recognizes that, and that the rhetoric that is used is more considerate in the future, because it has been demonstrated to us that it can have unintended consequences.
The meetings and conventions segment is a critical one for Las Vegas. While perhaps better known as a destination for fun and leisure activities, serious and legitimate business is conducted in Las Vegas every day. In fact, the most successful meetings are held here due to higher-than-average attendance, competitive hotel and air travel rates, and incomparable services tailored to support business travelers.
Richard C. Harper, CMP VP of Sales and Marketing, Mandalay Bay
I am amazed at the lack of understanding in our country about the value of face-to-face meetings.
Is it the right time to spend frivolously? Of course not . . . but what is frivolous?
Clearly, holding a meeting to deliver a message from senior executives to their employees about the future of their organization is important. Getting face time with current and potential customers is important. Buying and selling face-to-face is important. Rewarding those who brought your organization revenues beyond expectations is important. Educating members about the latest and greatest in your respective fields is important.
Rebuilding our economy is important. Keeping people employed is important. Keeping people in their homes is important. Protecting state services such as emergency services and education is important. Yes?
So, then tell me how a few sound bites from a few government officials have now caused this blatant attack on our industry and our livelihoods. Tell me the American people can see through all of this and realize that corporations need to conduct meetings in order to run their businesses.
Here is my challenge:
Tourism Industry: Defend the right to hold meetings and shout it from the rooftops.
Government Officials: Take a moment to learn about the value of the tourism industry and how many voters we employ. Stand up and be a leader and defend the right to hold meetings. What you are saying today is making it worse. I hope and trust you get that.
Corporate America: Stand up and defend your right to hold a meeting wherever you want. Don't cave in to misguided and uneducated pressure. You're better than that. And if you choose to do that in my town, you'll have the best damn meeting you've ever had at a ridiculously affordable price.
Michael A. Massari VP, Las Vegas Meetings by Harrah's Entertainment
The public debate over meetings and corporate business travel continues on with no sign of cooling. While the popular focus is on banks and TARP-funded businesses conducting events deemed "junkets," little consideration has been given to distinguishing a boondoggle from a legitimate business meeting. The fallout from this lack of clarification—the "AIG Effect," as it's been dubbed—has rippled across the meetings industry and specific destinations that have been targeted. Companies from a range of industries have canceled meetings, incentives, and other programs in an effort to steer clear of potential public recrimination. I submit that not all these cancellations are beneficial to the country's economic recovery.
Forward-thinking companies clearly believe that meetings are valuable for business in good times and bad. The vast majority of company meetings have legitimate business objectives and produce a return on investment. Brainstorming sessions, sales meetings, training and development seminars, strategy meetings, product launches, professional conferences, and client events bring people together to generate sales, strengthen competitive advantages, drive greater profits, and position a company for long-term value and growth. Even the much-maligned incentive trip has a legitimate business purpose: motivating and rewarding top performers for exceeding established profit or revenue goals and generating incremental profits beyond a company's investment in the program.
As the war of words continues over what is and isn't appropriate in these challenging times, we must acknowledge that, now more than ever, meetings are critical to keeping businesses viable and bolstering our ailing economy. And those are aspirations we all can agree on.
Tom Clearwater VP of Sales and Catering Hard Rock Hotel & Casino
Las Vegas is one of the most economical and accessible cities in the country for hosting meetings, whether corporate, association, or incentive. This industry allows companies to gather and share ideas, build strategies, and support employee growth in a convenient and cost-effective way. The meetings industry also leads to jobs for thousands of Nevada residents and brings taxable revenue to the city.
At Hard Rock Hotel & Casino Las Vegas, we have an expansion opening this year that will nearly triple the number of guest rooms and suites. In addition, we are adding 12 times the amount of meeting space. In basic economic terms, this expansion means jobs—almost 1,500 new jobs. It is imperative companies continue to come to Las Vegas to meet—not only for their own success and growth, but for those we are employing and for the economic stability of one of the country's most recognized and famed cities.
Robert Maricich President and CEO World Market Center Las Vegas
The companies that survive this economic downturn will be the ones that actively and consistently pursue new business opportunities, wherever they arise. Our Winter Las Vegas Market saw tens of thousands of home furnishings professionals come together to do business in an efficient, productive setting. There's no question those who attended Las Vegas Market are better positioned for future success than their competitors who stayed home. There's also no doubt our attendees were able to take advantage of tremendous values at the city's many world-class restaurants, hotels, shops, and shows when the workday ended.
Lenny Izzo Senior VP and GM of Las Vegas Operations GES Exposition Services
Las Vegas offers a popular and financially competitive location for meetings, exhibitions, and events. With convenient and affordable travel in and out, an abundance of meeting space capacity, and a wealth of restaurant and entertainment options, executives understand that Las Vegas is a fantastic destination to get their business done.
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