Las Vegas: From "World Gambling Capital" to "Convention Capital"

For many Chinese people, when it comes to Las Vegas in the United States, the most striking impression is probably that it is full of gamblers and is a world-renowned gambling city. However, for Chinese professionals who organize and participate in exhibitions in Las Vegas, Las Vegas has a different, moving charm. It is a golden land for the global exhibition industry. The Las Vegas International Auto Parts and Modified Car Show, Consumer Electronics Show, International Clothing Show, Spring and Autumn Consumer Goods and Gift Shows, etc., have become globally renowned brand exhibitions. The once sinful city, after a transformation, is establishing a positive image as a convention and entertainment capital.

     This year In March, Mr. Hugh Sinnock, Vice President of Customer Experience at the Las Vegas Convention and Visitors Authority, visited the China International Exhibition Center and inspected the 24th China (Beijing) International Building Decoration and Materials Expo held at the China International Exhibition Center (new and old venues), investigating the operation and management of Chinese exhibition venues and logistics services. Due to work reasons, I accompanied the relevant personnel of the China Exhibition Group to receive Mr. Sinnock and his party, and took this opportunity to gain an in-depth understanding of the Las Vegas convention and exhibition industry.

Venues: Operational management focuses on improving efficiency

     The Las Vegas Convention and Visitors Authority was established in 1990, is an official institution established under the laws of Nevada, USA, with an independent board of directors. It is responsible for promoting Las Vegas' tourism, conventions, and major events, expanding Las Vegas' influence in the tourism and hotel industries, and managing two venues (Las Vegas Convention Center and Cashman Center) and five visitor information centers.

     According to Mr. Sinnock, the Sands Expo Center, Las Vegas Convention Center, and Mandalay Bay Convention Center in Las Vegas are among the top ten convention centers in the United States, with exhibition areas of 202,000 square meters, 180,000 square meters, and 135,000 square meters respectively. The total exhibition area in Las Vegas is approximately 900,000 square meters, ranking third in the United States, but first in economic efficiency.

     According to relevant information I have found, Las Vegas has been ranked as the world's largest trade exhibition destination for 22 consecutive years, with 44 of the top 200 exhibitions held in Las Vegas, making it a world-renowned exhibition capital. Las Vegas hosts more than 22,000 exhibitions annually, 600 large-scale exhibitions, attracting 6 million visitors (official data shows a resident population of only 600,000), generating over US$8 billion in economic revenue, providing over 46,000 direct jobs, and 29,000 indirect jobs. In 2016, the number of people attending exhibitions in Las Vegas reached 6.3 million, a 14% increase compared to 4.5 million in 2001. Exhibition and related revenue exceeded US$8.2 billion, a 13.7% increase compared to US$6 billion in 2001. According to statistics from the Las Vegas Convention and Visitors Authority, each business visitor attending exhibitions in Las Vegas spends an average of US$933 directly and US$1543 indirectly. A large number of exhibitions such as the Las Vegas Consumer Electronics Show, Spring and Autumn Clothing Fairs, and the International Beauty and Hair Show have become Las Vegas' glittering city cards.

     Sinnock believes that we should not simply pursue the size of the venue, but should improve the management level of the exhibition hall and focus on improving efficiency. In order to improve consumer experience and remain undefeated in the fierce competition of exhibitions, the Las Vegas Convention and Visitors Authority invested US$890 million to improve the facilities of the Las Vegas Convention Center in phases, including technological upgrades, the construction of multi-functional conference halls, and improvements to transportation facilities.

Transformation: Utilizing existing advantages to foster new business models

     By transitioning from a single business strategy to diversification, focusing on developing the exhibition industry and diversified cultural and entertainment industries, and continuously driving city tourism and consumption, Las Vegas has made a stunning transformation.

     The Las Vegas exhibition industry started in 1959, with the first World Flight Show held here that year. In the 1990s, Las Vegas ushered in its first wave of reforms. The famous Excalibur, New York-New York, and Venetian hotels were all built at that time, and the single gambling model was replaced by a diversified resort model integrating food, entertainment, and shopping.

     Recently In the past five years, the exhibition industry has driven a second wave of change in Las Vegas, with the hotel industry once again taking the lead. In early 2012, the renovation project of the famous Sahara Hotel began, and the hotel was rebuilt into the SLS Las Vegas Resort Hotel. The SLS developer, with its forward-looking analysis and vision, chose to buy the "Sahara Hotel," which is only a few hundred meters away from the convention center, and redesigned and developed it. The hotel opened in 2014. Since then, new hotels represented by SLS have ushered in a new boom in business tourism in Las Vegas.

     Currently, although the number of tourists visiting Las Vegas annually reaches more than 40 million, with a total consumption of US$32 billion, only 25% of this comes from the gambling industry, approximately US$8 billion. Lawton, a senior researcher at the Nevada Gaming Control Board, pointed out that the decrease in gambling revenue is because the consumption patterns of Las Vegas tourists have changed.

     The two waves of transformation in Las Vegas' urban development model, especially the recent boom in the exhibition industry, have helped to effectively alleviate the downturn in the gambling industry. With its excellent exhibition facilities and services, Las Vegas attracts people from all walks of life around the world to participate in business activities, meetings, and exhibitions. The exhibition industry has brought 66,500 jobs, created US$2.7 billion in wages, and generated US$9.3 billion in economic benefits for the local area.

     According to statistics from the Las Vegas Convention and Visitors Authority, In 2015, the number of visitors to Las Vegas reached a new high, with a total of 42.3 million visitors, a year-on-year increase of 2.9%. More than 22,000 conferences and trade exhibitions were held, attracting a total of 5.9 million exhibition visitors, a new high in eight years, with a year-on-year increase of 13.4%, which was the primary driving force for the increase in visitor numbers. Currently, Las Vegas has more than 150,000 hotel rooms, with an average occupancy rate of 89.1% per night, exceeding any destination in North America.

     With the continuous prosperity of the convention and entertainment industry, the development of Las Vegas is exciting. The LINQ, an all-in-one accommodation, shopping, dining, and entertainment complex, and the High Roller, the world's tallest observation wheel, are world-renowned. Integrated entertainment resorts such as SLS and The Cromwell have opened, and the $350 million New Las Vegas Arena has been completed and opened. According to Scott Kreeger, president of SLS Las Vegas Resort, the hotel's casino currently covers 6192 square meters, approximately 25% of the hotel's total area. To cater to the new tourism and resort crowds brought in by the convention and exhibition industry, SLS has developed a wealth of resort experiences to attract more international tourists.

     Las Vegas's new projects under construction are also highly anticipated. The $4 billion "Resorts World Las Vegas" is the first large-scale new development project in Las Vegas in nearly 10 years. The 32,400-square-meter "The Park" entertainment area will become another dazzling entertainment landmark in Las Vegas.

Experience: Promoting Convention and Exhibition Industry Development through City Branding

     Sinnock revealed to the author that using city branding to drive the development of the convention and exhibition industry is one of the secrets to the success of Las Vegas's convention and exhibition industry. The Las Vegas Convention and Visitors Authority attaches great importance to city branding, increasing its investment in convention advertising in well-known media such as the Wall Street Journal, USA Today, and Forbes magazine, leveraging the city's brand effect to attract more people to participate in exhibitions, investing $80 million annually in city brand advertising. It has also held tourism forums, award ceremonies, and roadshows in Beijing, Wuhan, Chengdu, Nanjing, and Shanghai, China.  

     When discussing government support for the convention and exhibition industry, Sinnock introduced that all commercial accommodation businesses in Clark County, where Las Vegas is located, including hotels and motels, are required to collect a room tax from tourists (average tax rate 12%). 40% of this tax revenue goes to the Las Vegas Convention and Visitors Authority, becoming an important source of income for it to carry out venue operations and city promotion work. At the same time, the Las Vegas government allocates 8% of local taxes to subsidize exhibition hall construction and exhibition participation, effectively reducing the cost of participation for enterprises, increasing the enthusiasm of venue operators for maintenance, and helping to promote the development of the local convention and exhibition industry. This approach is worth learning from by Chinese convention and exhibition cities. 。