The numbers say it all: Las Vegas is hot,
hot, hot. But will its record-breaking visitor arrivals continue to
grow at a rate sufficient to fill an ever-increasing number of
hotel rooms and maintain or exceed current occupancy levels? If so,
how?
Travel Weeklys
Las Vegas editor, Amy Baratta, recently discussed the state of
tourism in one of the countrys original tourism boomtowns with
Rossi Ralenkotter, president and CEO of the Las Vegas Convention
and Visitors Authority (LVCVA); Alan Feldman, vice president of
public relations for MGM Mirage; and Ken Pomerantz, vice president
of marketing and sales for MLT Vacations, which has been selling
Las Vegas since 1969 and offering charter flights to the city since
1971. Here is what they said:
Travel
Weekly:The LVCVA announced an ambitious five-year
growth plan that includes aggressive visitor-volume benchmarks,
including a target of 43 million visitors by 2009 to maintain
current occupancy levels. What is it going to take to achieve this
goal?
Rossi
Ralenkotter: Las Vegas will have 150,144 hotel-motel rooms
and an additional 10,150 condo-hotel timeshare [units] by the end
of 2009. We looked at what we needed to do to position Las Vegas
[and determined] we needed to enhance our current facilities -- the
convention center -- and enhance the customer experience by adding
about 175,000 square feet of meetings space throughout the facility
and around 150,000 square feet of exhibit space.
[We are also
planning] a building connector to the monorail so you can go
seamlessly from the monorail into the building. And we wanted to
tie all of the facilities together with a grand concourse that will
connect the three halls.
We also want to
increase our reach in domestic markets and continue our national ad
campaign both on cable and national television.
We want to be
more aggressive with tour operators and retail agents because they
are, in essence, Las Vegas salespeople. We will be doing some
programs with them about whats being added to Las Vegas as well as
some more cooperative programs with tour operators.
Internationally,
for the first time, we will be planning campaigns that go directly
to the consumer while at the same time increasing our exposure in
other markets. In our traditional southern California markets, we
plan to do some more aggressive types of campaigns as well as
increase our aggressiveness with diversity markets and ethnic
markets.
Alan Feldman:
Continued innovation, first and foremost. This is not a market that
is growing simply because its here but because of the enormous
amount of capital investment and creative energy thats behind it.
[Those two things] create the fuel for extraordinary growth. One
without the other isnt going to do it.
Simply having the
ability to do things may not generate new visitors. And with
markets of every shape and size, you may have the creativity, but
you dont have the money to create the vision. Thats the reason for
[the citys] growth in the last 15 years, and maybe you could argue
the last 40 years.
We cant stop now.
We continually have to create new attractions and amenities.
Complacency will bring us to a dead standstill.
Ken
Pomerantz: They are actually on their way with a
record-breaking year in 2004 and all the new properties that [have
or] are coming on line. With the events and shows they bring into
town, I absolutely think they can do it. They do a great job -- the
whole city does -- of refreshing the product and developing new
products for customers. There are more things to do there than
ever.
As they continue
to expand things like shopping, the city is becoming a world-class
shopping destination, and they put a tremendous amount of effort
into dining and restaurants.
Theyre also
bringing in more Broadway shows, concerts and special events. [The
attraction] is not just gaming anymore. Absolutely, theyre going to
be on track with their core customers, but theyll also be
attracting more customers with the new stuff theyre
doing.
TW:What needs to be done to at least
keep the status quo in the face of increased competition from
cruise lines and tribal gaming?
Feldman: First and foremost, we must
continue on the path weve been on and then take it to the next
level. We went from gaming-centric to Vegas-centric. We must
continue to evolve with that model.
Pomerantz: I dont know that they need to
do anything differently. They just need to keep doing what theyre
doing. Gaming has been on the decline [as an activity in Las Vegas]
not because people arent gambling but because theyre going to shows
and concerts, playing golf, shopping. There is a tremendous
increase in the amount of things to do in Las Vegas other than go
to a casino.
TW:Hotel-condo resorts are a major
trend in Las Vegas now. How do you see this new trend affecting the
traditional hotel market?
Ralenkotter: Some of our [hotel] operators
are getting into the market themselves. People who travel now are
looking for a timeshare experience. The maturity level of the
destination reflects that. Having this timeshare component adds
another option to the marketplace. It increases our visibility to
people who are timeshare customers.
Feldman: I actually think these [two
markets] are complementary. [You have] folks who want to come to
Las Vegas for two or three days and thats it. Others want to have a
more lasting relationship with the city. What most of us didnt
realize is that that would be on the Strip.
This is the model
city of the new century. Las Vegas in its own way has an entirely
new definition ... [with] many attributes of Chicago or New York.
The [traditional] hotel industry is not in any way damaged [by this
new trend]. I think it merely serves to enhance the hotel
market.
Pomerantz: There are a lot of different
market segments in Las Vegas. I dont see [the condo-hotel trend]
eating into the [traditional hotel market]. It might even attract
those people who migrate to Palm Springs (Calif.) and Scottsdale
(Ariz.), where those kinds of products already exist.
TW:Every time you turn around, it
seems, you see something having to do with Las Vegas, whether its
the TV series of the same name or a reality show featuring Wayne
Newton. Is there a point where it all becomes too much, when Las
Vegas become overexposed?
Feldman: No. Its all about creativity and
quality. In years past, New York has led the way and Los Angeles
has taken a big role; we take those [cities] for granted. I do
think its going to become everyday life in America where Vegas is
just a part of this culture.
Pomerantz: I dont think people are tired
of [Las Vegas] because it delivers on its promise. I dont think
[Las Vegas] 15 minutes [of fame] are up. Theres substance to what
it is offering.
Ralenkotter: This is the place to see and
be seen. Our ad campaign What happens in Vegas stays in Vegas
resonated with people, and the product itself has expanded, so
there are many reasons to be in Las Vegas. It means so many
different things to different people. As long as Las Vegas fulfills
the brands promise -- whether people expect a great vacation or an
escape -- well continue to be hot.
To contact
reporter Amy Baratta, send e-mail to [email protected].