by Ray Smith, Exhibit City News
SPECIAL EVENTS
The cost of hosting Super Bowl LVIII and the Formula One Grand Prix is pushing the Las Vegas Convention and Visitors Authority budget to $463.3 million for fiscal 2024, Chief Financial Officer Ed Finger told board members at the tourism agency’s May 9 public meeting.
LVCVA has allocated $63.3 million for special events, compared with $20 million in fiscal 2023. That includes $39 million for the Super Bowl and $6.5 million for the Grand Prix, the CFO notes.
Total revenue sources for the general fund are projected at $540.7 million, a 1.7 percent increase from 2023 projections. The proposed budget shows a beginning fund balance of $98.2 million, dropping to $77.3 million, for a fiscal deficit of nearly $21 million.
FISCALLY DISCIPLINED
The tentative budget, filed April 17 with the State Department of Taxation, was drafted by key LVCVA executives in collaboration with local economists, business leaders, and governments. A public hearing is scheduled for May 31 to adopt the final 2024 budget. The fiscal year runs from July 1 through June 30.
“We’re presenting a budget to you that is fiscally disciplined,” Finger says at the meeting. No action was required.
Roughly 80 percent of the general fund comes from room tax and gaming fees, projected at $351.4 million for 2024. Revenue from the Las Vegas Convention Center, including facility use and ancillary fees, totals$58.6 million. The monorail adds $23.5 million.
The budget allocates $141 million for marketing, sales, and advertising, and $61 million for debt service.
GOOD POSITION
Chief Executive Officer Steve Hill feels good about budget projections, but he knows there’s always uncertainty. “We’re in as good of a financial position as this organization has ever been,” he says.
The $600 million renovation of the North and South halls is on budget, Hill assures the board, though it was originally budgeted for $432 million. LVCVA also agreed to sell 10 acres of land for $125 million.
(Pictured on left: CEO Steve Hill talking to Board Chairman Jim Gibson, and a glimpse of Mayor Goodman)
FORMULA ONE RACE
A portion of the board meeting focused on planning and marketing for the Las Vegas Grand Prix, to be held Nov. 16-18 on a 3.8–mile course around the Strip, Harmon Avenue, Koval Lane, and Sands Avenue.
Representatives from the marketing department laid out various “viewing zones,” with dedicated walking paths to each zone. They include the Paddock zone, East and West Harmon zones, North and South Koval zones, T-Mobile Arena, and Bellagio hotel.
The Super Bowl and Grand Prix are “marquee events” for a marketing platform that will place Las Vegas in the world spotlight, says Kate Wik, chief marketing officer for the convention authority. The Formula One announcement earned 2.8 billion media impressions, and the F1 Fanfest launch party earned 5.2 billion media impressions, she reports.
Board member Cedric Crear mentioned that it’s going to be a “hard decision” as to who gets VIP tickets.
During the public comment period, Ed Uehling chastised the board for spending $6.5 million on the Grand Prix. “It’s a total lie when you say you’re bringing the Formula One race here for the community. It’s for the 14 (board) members here,” he rages.
Destination Marketing Organization
Las Vegas Convention and Visitors Authority (LVCVA) is the destination marketing organization that promotes and attracts tourism, conventions, meetings and special events to Las Vegas and throughout Southern Nevada. It is also the destination and marketing organization for Las Vegas and Southern Nevada, and its mission centers on attracting visitors by promoting the destination as the world’s most desirable location for leisure and business travel.
The LVCVA owns and operates the Las Vegas Convention Center, the Las Vegas Convention Center Loop designed by The Boring Company, and owns the Las Vegas Monorail, an elevated 3.9-mile system with seven stops throughout the resort corridor.
