Tourism Infrastructure Committee September 2015 Agenda MGM - - PowerPoint PPT Presentation

▶
tourism infrastructure
SMART_READER_LITE
LIVE PREVIEW

Tourism Infrastructure Committee September 2015 Agenda MGM - - PowerPoint PPT Presentation

Mar 14, 2024 42 likes •428 views

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

slide-1
SLIDE 1

Presentation to the Southern Nevada Tourism Infrastructure Committee

September 2015

slide-2
SLIDE 2

Agenda

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

2

slide-3
SLIDE 3

MGM Resorts Entertainment Overview

3

slide-4
SLIDE 4

Venue Map

4

slide-5
SLIDE 5

Arena Overview

5

slide-6
SLIDE 6

Festival and Theater Overview

6

THE PARK THEATER LAS VEGAS FESTIVAL GROUNDS LAS VEGAS VILLAGE

slide-7
SLIDE 7

Visitation and Economic Impact

Gambled During Trip 71% 81%

7

Total Spend During Trip $1,034 $1,476 Total Visitors Saw a Show

Source: 2013 LVCVA Visitor Profile data

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.

slide-8
SLIDE 8

Festivals

8

slide-9
SLIDE 9

Village festivals see promise

3,500 per day (3 day event) 11,000 20,000 25,000 per day (3 day event) 7,500 per day (2 day event) 40,000

9 Source: MGM Resorts International 2014

slide-10
SLIDE 10

Wine Amplified

10

slide-11
SLIDE 11

Route 91

11

slide-12
SLIDE 12

Route 91

12

slide-13
SLIDE 13

Case Study: Route 91

  • 2014: 12,000 ticket sold
  • 2015: 25,000 tickets sold

(projected)

  • Growth of 108%
  • 80% of attendees from
  • ut of town
  • 35% of attendees from

Los Angeles

Source: MGM Resorts International 2014 13

slide-14
SLIDE 14

Rock in Rio

14

slide-15
SLIDE 15

Rock in Rio

15

slide-16
SLIDE 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

slide-17
SLIDE 17

Existing Arenas

17

slide-18
SLIDE 18

10 20 30 40 50 2011 2012 2013 2014 2015e 40 38 46 43 45 38 28 41 27 30 Grand Garden Arena Mandalay Bay Events Center

Total Public Event Days

GGA and MBEC events have been consistent over time

Source: MGM Resorts International 18

  • Attendance at these venues is largely driven by out of town visitors

2014 Attendance 543,127 182,907

slide-19
SLIDE 19

Pros and Cons of Existing Arenas

PROS

  • Flexible staging setups
  • Attached to an

integrated resort

  • On the Las Vegas strip
  • Intimate venues

CONS

  • Not perceived as

neutral sites

  • Limited or no premium

seating

  • Not NBA/NHL ready
  • Aging facilities

19

slide-20
SLIDE 20

New Venues

20

slide-21
SLIDE 21

Las Vegas Arena Summary

  • Over 100 events

annually including award shows, concerts, sports, boxing, UFC and conventions

  • Pro-basketball and

hockey ready

21 21

HOCKEY 17,500 END OF STAGE CONCERT 16,000-17,500 BASKETBALL 18,750

BOXING/ UFC/ CENTER STAGE CONCERT

19,500-20,000+

slide-22
SLIDE 22

Las Vegas Arena is a neutral site

22

  • 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

slide-23
SLIDE 23

Features of Las Vegas Arena

23

  • Highly-flexible design,

can handle any indoor event

  • Extensive Premium and

VIP seating

  • Location to the LV Strip
slide-24
SLIDE 24

Event Level Bunker Suites

24

slide-25
SLIDE 25

Club Lounges and Suites

25

slide-26
SLIDE 26

Outdoor Spaces and Tower Clubs

26

slide-27
SLIDE 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

slide-28
SLIDE 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 million1 of annual public revenue impact (taxes) ─ Over 1,258,000 million visitors annually and an incremental increase of 313,879 visitors

28 Source: Applied Analysis Report for MGM Resorts International, 2013

1 Adjusted and estimated for the increase in LET from 5% to 9%

slide-29
SLIDE 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
  • ptions

29

slide-30
SLIDE 30

New Venue Overview

30

slide-31
SLIDE 31

Future Growth and Infrastructure Needs

31

slide-32
SLIDE 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

slide-33
SLIDE 33

Event and Attendance Forecast

33

  • Grow major concerts across three arena venues by

approximately 50%

  • Grow number of sporting events by 60%

2015*

Public Event Days Attendees N/A N/A 45 562,500 30 195,000 16 190,000 91 947,500

Future*

Public Event Days Attendees 100 1,258,000 34 425,000 27 175,500 38 300,000 199 2,158,500 LVA GGA MBEC Festivals Total

Source: MGM Resorts International Note: Public Event Days do not include convention usage *All figures are estimates.

slide-34
SLIDE 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

slide-35
SLIDE 35

More funding is needed for events

Others invest in multiple ways:

  • Texas Events Trust Fund1

─ Invested over $59 million through August 2015 ─ Fund contributes $6.25 for every $1 from local municipalities

  • Orlando’s Tourist Development Tax2

─ Over $350 million invested during the past two years ─ 100% of the bed tax is spent on tourism

35 Sources: 1https://texaswideopenforbusiness.com/services/event-trust-funds

2Las Vegas Taxes on Tourism while Orlando invests, Las Vegas Sun, September 6, 2015

“Two-thirds of our current bed taxes flow to uses other than building and promoting our tourist economy”

  • Robert Lang, Las Vegas Sun2
slide-36
SLIDE 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

slide-37
SLIDE 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
  • ur community’s ability to host events

37

slide-38
SLIDE 38

Q&A

38