Las Vegas Tourism Industry Forecasts 39 Million Visitors By the End of the Year

Las Vegas Tourism Industry Forecasts 39 Million Visitors By the End of the Year
By Theresa Norton Masek

The Las Vegas tourism industry continues to show signs of a steady recovery, with officials forecasting 39 million visitors to the destination in 2011, only the second time in history they will reach that mark.

The Las Vegas Convention and Visitors Authority (LVCVA) said that, through the third quarter of 2011, Las Vegas has experienced 19 consecutive months of growth in visitor volume and the average daily room rate. Occupancy at Las Vegas properties has increased more than 4 points to 85.2 percent, more than 20 points ahead of the national average.

Today, the tourism industry directly employs 263,300 residents of Southern Nevada. Since November 2009, during a time when leading economic indicators were largely bearish on the Las Vegas economy, 15,800 jobs have been generated by the industry, boosting sector employment by 6.4 percent.

Room tax revenue is up 16.3 percent and the average daily room rate is up 10.7 percent through the third quarter compared to the same period last year. Convention attendance increased 9.9 percent.

Due to the strength of the tourism economy, the LVCVA developed a three-year business plan that outlines aggressive strategies to further expand the Las Vegas tourism market. Introduced Nov. 17, the plan promotes growth by targeting key market segments, specifically international and business travel.

The Destination Innovation and Leadership Plan includes a commitment to double sales, public relations and marketing efforts overseas, targeting Brazil and China for their strong emerging economies and the growing spending power of their middle classes. International travelers, who typically stay longer and spend more than domestic travelers, represent the largest potential growth market for Las Vegas. International travelers make up 18 percent of overall visitation in Las Vegas. The goal is to increase the market share to 30 percent over the next decade.

The LVCVA has committed $5 million in aesthetic and functional enhancements to the Las Vegas Convention Center. These immediate, short-term renovations will complement the development of the improvement plan for the entire campus and area surrounding and leading to the convention center. The plan will be introduced in the first quarter of 2012.

Other elements of the three-year strategy include launching comprehensive travel research in the major international markets of Canada, Mexico, the U.K., and the emerging market of Brazil; increasing airline lift by hosting prominent industry events such as Interline 2012 and Routes 2013; launching consumer advertising campaigns in additional international markets; and leveraging tourism industry leadership positions to influence travel policy.