By Ray Smith, Exhibit City News
Aiming to lessen sticker shock in the future, Ed Finger laid out roughly $12 million in maintenance and equipment costs for the Las Vegas Convention and Visitors Authority (LVCVA) to keep the Las Vegas Monorail operating for the next 10 years.
The LVCVA chief strategy officer briefly detailed the history of the monorail at the board of directors regular meeting in February, dating to when the tourism agency purchased the mass transit system out of bankruptcy during the COVID pandemic for $24 million. It cost $650 million to build in 2004, he noted.
Western Management Group, the former operator, was hired to run the system.
The monorail generated $2.2 million in revenue in 2021, its first year of operation after the pandemic, offset by $1.7 million in expenses. Revenue jumped to $20.1 million in 2022, $25.1 million in 2023 and $31.2 million in 2024. Annual earnings grew from $500,000 to $11.2 million over that period.
Finger listed a few goals that will enhance the experience for nearly 6 million passengers that ride the monorail each year. It’ll cost about $2 million to go cashless with ticketing equipment, $6 million to $8 million to replace the monorail control system, and $2.7 million to improve the power distribution system and overhaul HVAC.
Bonds for those improvements would be paid by 2028, Finger informs the board, and the monorail will be “cash neutral” or slightly positive under current operating conditions.
This comes at a sketchy time for Las Vegas. Steve Hill, chief executive officer of the LVCVA, expressed a “little more concern” about economic headwinds as the tourism agency enters its fiscal 2025 budget.
Room tax revenue, LVCVA’s primary funding source, took a slight dip in the fourth quarter, and visitor volume was relatively flat.
“We’ve seen some weakness over the past few months,” Hill concedes. “We’re looking at ways to overcome the obstacles that come our way.”
The convention authority partners with major tradeshows such as CES, CON/AGG and NAB to sell tickets for the monorail, and north Strip development continues to drive ridership, Hill says. The monorail transports an average of 67,000 passengers during citywide tradeshows, according to LVCVA. Strip employees were offered free parking at the Las Vegas Convention Center and $1 monorail rides during the Las Vegas Formula One Grand Prix.
The 4-mile track runs above ground on the east side of the Strip, from the MGM Grand hotel to Sahara Avenue, a block away from the Sahara hotel and Festival Grounds, with six stations along the way, including the convention center.
The fully electric, zero emissions monorail eliminates more than 27 tons of emissions annually, and about 462 tons since opening. In addition, the system eliminates 2.1 million vehicle miles from Las Vegas roadways each year.
