The Economic Value Of A Covered Stadium For Las Vegas, The Hospitality Industry, Nevada, & UNLV: Why Believe Another Consulting Report?

The Economic Value Of A Covered Stadium For Las Vegas, The Hospitality Industry, Nevada, & UNLV

Dr. Mark S. RosentraubBruce and Joan Bickner Endowed Professor of Sport ManagementUniversity of MichiganHow 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.

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

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

Other Safeguards - 1All Spending Data From LVCVA Surveys, Guy Hobbs, John RestrepoAnticipated Number of Events Vetted With Hospitality Officials From Las VegasA Methodology Vetted By Other Academicians and A Career In Publishing Scientific Studies of the Economic Value of Facilities and IndustriesA Track Record Of Post-Hoc Comparisons Of Validity of Projections

Other Safeguards - 2Separation Of Sectors Of The Economy To Better Isolate Effects For The Tourist EconomyAggressive Estimate Of Spending On UNLVs Campus To Carefully Project Effects Of Spending By New Visitors At The Resorts and In Las VegasNo Inclusion of Benefits From Construction Despite Clear Gains For Labor and Construction FirmsIf These Safeguards Removed, Estimates Of Benefits Increases By Almost 100 PercentUNLV Benefits &UNLV and Las VegasRegion Needs A Great Residential UniversityThe Value of Football For The On-Campus ExperienceUnifying All Parts Of Its Programs On One CampusGown-Town Relationships: UNLV Is The PacesetterThomas & Mack: A Validated ModelA Commonality of Interests: UNLV, the Hospitality Sector, and Nevada -- In Short, No Losers At AllWhy 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.What Thomas & Mack Means For The Resort Industry and Las VegasBuilding On SuccessNo 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 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 VegasSpending for 15 EventsLodging $84.1 millionFood $100.2 millionRetail $52.0 millionGaming $97.2 millionLocal Transit $25.8 millionSightseeing $4.1 millionConsumption at Stadium ($66.1 million)Impact For Resorts, LV $327.1 million in direct revenue

Tax Revenues Generated - 15 EventsState of Nevada Sales Tax $13 millionClark County Sales Tax $2.4 millionLive Entertainment Tax $4.3 millionHotel Tax $10.1 millionNevada Gaming Fund $6.6 millionCar Rental Tax $0.4 millionLVCVA Share of Hotel Tax $4.2 millionAn Optimistic View -- 20 EventsIncrement For Hospitality Sector - $436.1 million

New Taxes Produced - $48.7 million

Replacement or Crowding Out EffectsFirst large wave of studies focused on the impact of the Los Angeles Olympics on that regions hospitality sectorConclusion - More Events Do Not Necessarily Mean More Revenue As Crowding Out Effects Do OccurCan That Happen Here With A New Stadium?YesWhat Do We Do?

Crowding Effects and ManagementLas Vegas Has A Management Team In-PlaceLVCVALVEUNLVThis BoardA Track Record Of Coordinated SuccessThe Need For A Covered StadiumProgramming To Match The Industrys NeedsWhat Events? When?Pac 12 Football Conference Championship - DecemberNFL Exhibition - AugustNew College Bowl Game -- December/JanuaryNeutral Site College Football GameInternational Soccer Festival (Summer)Electronic Music Festival (Summer)Country Music Festival (ACM Weekend)

What Events? When? 2UFC International Fight Week (Summer)Tour Concert [2] (Summer)Winter Kick Soccer FestivalRock Music Festival (Summer)X Games (Summer)NFL Pro Bowl (January)MWC Football Championship Game (December)NFR Closing Event (December)

What Events? When? -3WrestlemaniaPolitical ConventionsNCAA Basketball Championships (Final Four)Comic-ConBoxingMLS All Star GameCorporate EventsNBA All Star GameThe Competition - Emerging ChallengesOrlandoNew $100 million Sport & Entertainment District linked to the Amway CenterEnhancements 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 CenterMore Integrated and Larger Version Of Denvers Downtown Extensive Partnership With Disneys Assets New MLS StadiumThe Competition - Atlanta

The Competition - Atlanta

The Competition - Atlanta

The Competition - ArlingtonExtraordinary FacilityChallenged With Limited Supply of Nearby HotelsChallenged By Lack Of Integrated DevelopmentPartnerships With Fort Worth & DallasMaximum Exposure and Attendance Flexibility

Conclusions 1Some 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 VegasLas Vegas Is One Of A Limited Number Of Metropolitan Regions Without A State Of The Art StadiumA Covered Stadium Has The Potential To Host 15 Export Based Events Each Year

Conclusions - 2New Stadium & Events Can Add $393 Million To Regional EconomyNew Stadium & 15 Events Can Add More Than $320 Million In Revenue For Las VegasThe Public Sector Can Expect $32.5 Million In New Tax RevenuesThe New Project Can Succeed Because Of The Extraordinary Track Record Of Achievement Between UNLV & The Hospitality SectorConclusions - 3Success Will Require Coordination Between Event Planning & ResortsUNLV, LVE, & LVCVA Wrote The Book On That CoordinationSuccess Means Solving The Crowding Out ProblemBut That Can Be Done, And That Coordination Means This Project And Its Benefits Can Be SecuredOf That I Have No DoubtAnd Together The Transformation Of UNLV Get Also Be Advanced To Provide The Region With The Residential Campus It Needs & Deserves