tourism infrastructure
play

Tourism Infrastructure Committee September 2015 Agenda MGM - PowerPoint PPT Presentation

Presentation to the Southern Nevada Tourism Infrastructure Committee September 2015 Agenda MGM Resorts Entertainment Overview Festivals Existing Arenas New Venues Future Growth, Impact and Infrastructure Needs Q&A 2


  1. Presentation to the Southern Nevada Tourism Infrastructure Committee September 2015

  2. Agenda • MGM Resorts Entertainment Overview • Festivals • Existing Arenas • New Venues • Future Growth, Impact and Infrastructure Needs • Q&A 2

  3. MGM Resorts Entertainment Overview 3

  4. Venue Map 4

  5. Arena Overview 5

  6. Festival and Theater Overview LAS VEGAS VILLAGE THE PARK THEATER LAS VEGAS FESTIVAL GROUNDS 6

  7. Visitation and Economic Impact $1,476 81% $1,034 71% Gambled During Trip Total Spend During Trip Total Visitors Saw a Show Las Vegas visitation has proven that as our entertainment breadth and depth has increased, from the first casino showrooms to the Thomas & Mack Center to festival venues, people who see a show are more likely to gamble and spend more during their stay. Source: 2013 LVCVA Visitor Profile data 7

  8. Festivals 8

  9. Village festivals see promise 3,500 per day 25,000 per day (3 day event) (3 day event) 7,500 per day 11,000 (2 day event) 20,000 40,000 Source: MGM Resorts International 2014 9

  10. Wine Amplified 10

  11. Route 91 11

  12. Route 91 12

  13. Case Study: Route 91 • 2014: 12,000 ticket sold • 2015: 25,000 tickets sold (projected) • Growth of 108% • 80% of attendees from out of town • 35% of attendees from Los Angeles Source: MGM Resorts International 2014 13

  14. Rock in Rio 14

  15. Rock in Rio 15

  16. Case Study: Rock in Rio • 172,000 Tickets scanned over 4 event days • 74,675 Out-of-town attendees • 91,650 Unique attendees (estimated) • 92% Traveled to Las Vegas specifically for Rock in Rio • 23% First trip to Las Vegas • 19% of attendees were from foreign countries • 74% Stayed in strip corridor • Total economic impact: $107,886,000 (estimated) Source: R&R Research 2015 16

  17. Existing Arenas 17

  18. GGA and MBEC events have been consistent over time Total Public Event Days 46 45 43 40 41 50 38 38 40 30 28 27 30 20 10 0 2011 2012 2013 2014 2015e Grand Garden Arena Mandalay Bay Events Center 2014 Attendance 543,127 182,907 • Attendance at these venues is largely driven by out of town visitors Source: MGM Resorts International 18

  19. Pros and Cons of Existing Arenas PROS CONS • Flexible staging setups • Not perceived as neutral sites • Attached to an • Limited or no premium integrated resort seating • On the Las Vegas strip • Not NBA/NHL ready • Intimate venues • Aging facilities 19

  20. New Venues 20

  21. Las Vegas Arena Summary • Over 100 events annually including award shows, concerts, sports, boxing, UFC and conventions • Pro-basketball and hockey ready END OF STAGE HOCKEY 17,500 16,000-17,500 CONCERT BOXING/ UFC/ CENTER 18,750 19,500-20,000+ BASKETBALL STAGE CONCERT 21 21

  22. Las Vegas Arena is a neutral site • JV has a long-term ground lease for the 14-acre site • No gaming company sponsorships • Equal access for those who buy premium products in the facility • Work closely with LVCVA and LVE to procure events for Las Vegas that drive overall visitation to the city • Work closely with hotels and resorts to create value for promoters and enhance the guest experience 22

  23. Features of Las Vegas Arena • Highly-flexible design, can handle any indoor event • Extensive Premium and VIP seating • Location to the LV Strip 23

  24. Event Level Bunker Suites 24

  25. Club Lounges and Suites 25

  26. Outdoor Spaces and Tower Clubs 26

  27. Unique Activation Opportunities • Outdoor stages for Plaza concerts • HD exterior video wall • Largest marshaling yard in the U.S. • 2-acre event plaza 27

  28. Impact of the Las Vegas Arena • Creating temporary and permanent jobs ─ Over 1,500 direct construction jobs for two years generating over $502 million in direct and indirect wages ─ Over 647 direct arena jobs and 1,035 total jobs (direct and indirect) increasing personal incomes by $34.7 million • Increasing economic impact ─ Over $600 million of recurring annual economic impact ─ Over $43 million 1 of annual public revenue impact (taxes) ─ Over 1,258,000 million visitors annually and an incremental increase of 313,879 visitors Source: Applied Analysis Report for MGM Resorts International, 2013 1 Adjusted and estimated for the increase in LET from 5% to 9% 28

  29. The Park Theater • Flexible venue with up to 5,300 seats and a general admission capacity of 6,400 • Host award shows, concerts, UFC/MMA, boxing and corporate events • VIP/Premium seating options 29

  30. New Venue Overview 30

  31. Future Growth and Infrastructure Needs 31

  32. Future growth through events • Events help drive increased visitors/business • Venues on strip generate higher returns for acts/producers/promoters • New venues create event opportunities that don’t currently exist • Focus on developmental events that can grow in capacity to larger arenas 32

  33. Event and Attendance Forecast • Grow major concerts across three arena venues by approximately 50% • Grow number of sporting events by 60% 2015* Future* Public Attendees Public Attendees Event Days Event Days N/A N/A 100 1,258,000 LVA 45 562,500 34 425,000 GGA 30 195,000 27 175,500 MBEC 16 190,000 38 300,000 Festivals 91 947,500 199 2,158,500 Total Source: MGM Resorts International Note: Public Event Days do not include convention usage *All figures are estimates. 33

  34. Partnership is key to cultivating and growing future events • LVCVA/LVE partnership ─ Expand current events ─ Develop new events ─ Acquire events from other markets • Neutral Sites ─ Welcome resort community at venues ─ Partner with resort community for event development ─ Use events to increase visitation 34

  35. More funding is needed for events Others invest in multiple ways: • Texas Events Trust Fund 1 ─ Invested over $59 million through August 2015 ─ Fund contributes $6.25 for every $1 from local municipalities • Orlando’s Tourist Development Tax 2 ─ Over $350 million invested during the past two years ─ 100% of the bed tax is spent on tourism “Two -thirds of our current bed taxes flow to uses other than building and promoting our tourist economy” -Robert Lang, Las Vegas Sun 2 Sources: 1 https://texaswideopenforbusiness.com/services/event-trust-funds 2 Las Vegas Taxes on Tourism while Orlando invests , Las Vegas Sun, September 6, 2015 35

  36. Infrastructure improvements are needed to keep pace with the growth • Increase utilization of Las Vegas Blvd. for public transportation and pedestrian traffic • Significant improvements and expansion to the I-15 corridor • Development of the I-11 Project to attract other Southwestern markets 36

  37. Conclusion • Agree with SN Economic Baseline • Leader in the entertainment industry • Committed to growing visitation through venues and events • Support further targeted investments to enhance our community’s ability to host events 37

  38. Q&A 38

Recommend


More recommend