LAS VEGAS CONVENTION OUTLOOK

What do we really know and understand? The strip is still closed, and most convention groups have cancelled through August and even into Q4. The question is not when it will open but what it will look like once it’s open. We all understand that the foundation for these mega hotels is convention business; and if we can’t fill 20%-35% of their inventory with convention business, will there be enough demand in the leisure and casino segments to fill our mega resorts to get back to 80%-90% occupancy? The reality of the situation is that Vegas will experience a major transformation going forward.  

How will Vegas Conventions reopen? In my opinion, the same way it closed. Starting with 10 people max, 100 people, 250 people, 500+people. How will Las Vegas residents feel about all the incoming travel from all parts of the world? Do we need to check everybody as they enter our Hotels? We all agree that things will be better once we have a vaccine, however that’s about 12-18 months away, and thousands of jobs will be lost in that time frame. We will need to develop a new convention standard and understand how to provide a safe and productive environment for all guests and employees. The old days are gone, and the sooner we understand that, the quicker we can develop change and rebound. The one thing we know and agree is that Vegas always bounces back!  

As I call and speak with our Vegas customers (CEO’s, CMO’s, Third Parties, Meeting Planners) they all have the same response…We just don’t know and are basically frozen on planning large future events. How do we plan our closing reception for 2,000 people in a tight-spaced night club or in a ballroom? What are the precautions and measures Hotels can realistically take? These are all great questions and questions we can solve together. We will develop major reform and change the way we do face to face meetings and events. Las Vegas is one of the only places in the World that can have 10,000 people for a gala dinner with a 3-hours’ notice then transform into a General Session in the morning. We can figure out how to conduct a safe a productive meeting post Covid-19.  

Nevada’s Governor Steve Sisolak is facing some tough decisions since Las Vegas’ economy is largely dependent on tourism/convention business. We have major Hotels here in Las Vegas that each have 3,000-5,000 sleeping rooms, restaurants, bars, clubs, arenas, lounges, sports books and thousands of employees that all depend on Convention Business. We are grateful to have a great Convention Bureau that in my opinion will need to lead the way. The LVCVA is continuing to expand and build the foundation for the Las Vegas Community. The city will change and adapt in 2020 and start strong in 2021 with the largest annual event, the Consumer Electronic Show, which will provide the needed boost for all the Hotels.  

If you need thought starters or ideas on how to begin this transformation of our convention and meeting world, please feel free to contact me.  

Stay Safe and always Vegas Strong!  

Tony Yousfi, CMP/Hospitality Professional