The Economic Value Of A Covered Stadium For Las Vegas, The Hospitality Industry, Nevada, & UNLV Dr. Mark S. Rosentraub Bruce and Joan Bickner Endowed Professor of Sport Management University of Michigan
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Dr. Mark S. Rosentraub Bruce and Joan Bickner Endowed Professor of Sport Management University of Michigan.
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Slide 1
Dr. Mark S. Rosentraub Bruce and Joan Bickner Endowed Professor
of Sport Management University of Michigan
Slide 2
How Many Times Have You Heard Statements Like These? The Las
Vegas metropolitan area (Las Vegas MSA) is one of the three major
urban centers in the United States that is not home to a modern or
covered stadium. The absence of a covered stadium in Las Vegas
region is even more surprising when one considers the vital role of
special events in advancing Southern Nevadas internationally
dominant hospitality and tourism industry. Las Vegas has the
infrastructure required to host the two largest conventions held
each year in the United States simultaneously but lacks a
world-class stadium. Such a venue will bring new events to Las
Vegas and create real (or new) economic development. If a covered
stadium is built, resorts in the Las Vegas region and the local
economy will benefit from hundreds of millions of dollars in new
revenues. The events in this stadium could not be held at any of
the facilities that currently exist in Las Vegas.
Slide 3
Why Can You Believe This Assessment? Seven Separate
Methodological Safeguards The only events included are those that
bring new visitors to the region All substitution effects were
eliminated by excluding spending by local residents No value was
included for the transfer of events from existing venues to the
stadium No event that could currently be held at any existing or
planned venue was included
Slide 4
Why Believe This Assessment? The benefits reported reflect
spending only by new visitors No indirect or induced benefits were
included since the regions resorts are unlikely to receive any
additional benefits from the secondary effects produced by visitors
spending. Those benefits, however, do reverberate throughout the
regional economy to other businesses and households The count of
attendees at new events at the stadium was reduced by estimating
the number of people who would still have visited Las Vegas even if
the new event was not held
Slide 5
Other Safeguards - 1 All Spending Data From LVCVA Surveys, Guy
Hobbs, John Restrepo Anticipated Number of Events Vetted With
Hospitality Officials From Las Vegas A Methodology Vetted By Other
Academicians and A Career In Publishing Scientific Studies of the
Economic Value of Facilities and Industries A Track Record Of
Post-Hoc Comparisons Of Validity of Projections
Slide 6
Other Safeguards - 2 Separation Of Sectors Of The Economy To
Better Isolate Effects For The Tourist Economy Aggressive Estimate
Of Spending On UNLVs Campus To Carefully Project Effects Of
Spending By New Visitors At The Resorts and In Las Vegas No
Inclusion of Benefits From Construction Despite Clear Gains For
Labor and Construction Firms If These Safeguards Removed, Estimates
Of Benefits Increases By Almost 100 Percent
Slide 7
UNLV Benefits & UNLV and Las Vegas Region Needs A Great
Residential University The Value of Football For The On-Campus
Experience Unifying All Parts Of Its Programs On One Campus
Gown-Town Relationships: UNLV Is The Pacesetter Thomas & Mack:
A Validated Model A Commonality of Interests: UNLV, the Hospitality
Sector, and Nevada -- In Short, No Losers At All
Slide 8
Why A Partnership With UNLV? Thirty years ago the Thomas &
Mack Center was built, and today it hosts numerous entertainment
events vital for the regions economy. A covered stadium will serve
the community, UNLV, and the hospitality sector. The stadium will
produce new regional economic development and tax revenues. These
benefits underscore the need for second partnership between UNLV,
Nevada, Clark County, and Southern Nevadas hospitality sector.
Slide 9
What Thomas & Mack Means For The Resort Industry and Las
Vegas
Slide 10
Building On Success No other university in the United States
has ever established as successful a partnership with its regional
hospitality industry and its state than has UNLV. UNLV has
established a unique and extraordinary relationship with the region
that creates numerous jobs and business opportunities for residents
and the regions resorts. The Thomas & Mack Center has generated
new tax revenues for the State of Nevada, local governments
throughout Southern Nevada, and to McCarran International
Airport
Slide 11
What Would A Stadium Mean In Terms Of Direct Economic Benefits?
No University in the United States has a stronger record of
partnerships with the hospitality industry Whats Next? Heres What A
Stadium Would Likely Mean For The Hospitality Sector and Las
Vegas
Slide 12
Spending for 15 Events Lodging $84.1 million Food $100.2
million Retail $52.0 million Gaming $97.2 million Local Transit
$25.8 million Sightseeing $4.1 million Consumption at Stadium
($66.1 million) Impact For Resorts, LV $327.1 million in direct
revenue
Slide 13
Tax Revenues Generated - 15 Events State of Nevada Sales Tax
$13 million Clark County Sales Tax $2.4 million Live Entertainment
Tax $4.3 million Hotel Tax $10.1 million Nevada Gaming Fund $6.6
million Car Rental Tax $0.4 million LVCVA Share of Hotel Tax $4.2
million
Slide 14
An Optimistic View -- 20 Events Increment For Hospitality
Sector - $436.1 million New Taxes Produced - $48.7 million
Slide 15
Replacement or Crowding Out Effects First large wave of studies
focused on the impact of the Los Angeles Olympics on that regions
hospitality sector Conclusion - More Events Do Not Necessarily Mean
More Revenue As Crowding Out Effects Do Occur Can That Happen Here
With A New Stadium? Yes What Do We Do?
Slide 16
Crowding Effects and Management Las Vegas Has A Management Team
In-Place LVCVA LVE UNLV This Board A Track Record Of Coordinated
Success The Need For A Covered Stadium Programming To Match The
Industrys Needs
Slide 17
What Events? When? Pac 12 Football Conference Championship -
December NFL Exhibition - August New College Bowl Game --
December/January Neutral Site College Football Game International
Soccer Festival (Summer) Electronic Music Festival (Summer) Country
Music Festival (ACM Weekend)
Slide 18
What Events? When? 2 UFC International Fight Week (Summer) Tour
Concert [2] (Summer) Winter Kick Soccer Festival Rock Music
Festival (Summer) X Games (Summer) NFL Pro Bowl (January) MWC
Football Championship Game (December) NFR Closing Event
(December)
Slide 19
What Events? When? -3 Wrestlemania Political Conventions NCAA
Basketball Championships (Final Four) Comic-Con Boxing MLS All Star
Game Corporate Events NBA All Star Game
Slide 20
The Competition - Emerging Challenges Orlando New $100 million
Sport & Entertainment District linked to the Amway Center
Enhancements To Citrus Bowl (in excess of $100 million) Citys Goal
-- Integrated Entertainment District From the Citrus Bowl to Dr.
Phillips Center for the Performing Arts and Incorporating The Amway
Center More Integrated and Larger Version Of Denvers Downtown
Extensive Partnership With Disneys Assets New MLS Stadium
Slide 21
The Competition - Atlanta
Slide 22
Slide 23
Slide 24
The Competition - Arlington Extraordinary Facility Challenged
With Limited Supply of Nearby Hotels Challenged By Lack Of
Integrated Development Partnerships With Fort Worth & Dallas
Maximum Exposure and Attendance Flexibility
Slide 25
Conclusions 1 Some Important Events That Can Add Economic
Development For Southern Nevada & The Hospitality Sector Cannot
Be Hosted Despite The Extraordinary Mix of Hotels &
Entertainment In Las Vegas Las Vegas Is One Of A Limited Number Of
Metropolitan Regions Without A State Of The Art Stadium A Covered
Stadium Has The Potential To Host 15 Export Based Events Each
Year
Slide 26
Conclusions - 2 New Stadium & Events Can Add $393 Million
To Regional Economy New Stadium & 15 Events Can Add More Than
$320 Million In Revenue For Las Vegas The Public Sector Can Expect
$32.5 Million In New Tax Revenues The New Project Can Succeed
Because Of The Extraordinary Track Record Of Achievement Between
UNLV & The Hospitality Sector
Slide 27
Conclusions - 3 Success Will Require Coordination Between Event
Planning & Resorts UNLV, LVE, & LVCVA Wrote The Book On
That Coordination Success Means Solving The Crowding Out Problem
But That Can Be Done, And That Coordination Means This Project And
Its Benefits Can Be Secured Of That I Have No Doubt And Together
The Transformation Of UNLV Get Also Be Advanced To Provide The
Region With The Residential Campus It Needs & Deserves