The Las Vegas Convention and Visitors Authority today made sure it could afford to tell even more prospective visitors that what happens here, stays here.
In a unanimous vote, the board approved a budget augmentation of $52 million for the 2005 fiscal year. The windfall was the result of increased room tax revenue and more visitors and higher room rates as well as conservative spending and budgeting by the LVCVA staff earlier in the year.
"It's nice to have the extra revenue, but it's also nice to have a plan for spending it," said LVCVA board member Don Snyder, president of Boyd Gaming Corp., at this morning's meeting.
The board's audit committee recommended last month that the quasi-public organization that markets the Las Vegas destination add $18.9 million to its general fund and $33.1 million in its capital funds budget. The 2005 general fund budget originally was $198 million and is being increased to $217 million; the capital funds budget is increasing from $8.8 million to $41.9 million. Most of the increase in the capital budget was attributed to unused funds from the previous year.
LVCVA President Rossi Ralenkotter said the largest chunk of the new funds would be used for advertising -- $9.4 million. That brings the total advertising budget to $76.1 million.
Ralenkotter said the LVCVA would have the challenge of helping fill 8,000 new hotel rooms in Las Vegas next year. In addition, the agency has opened a new office in Mexico City and is working to generate additional visitation in conjunction with the Las Vegas Centennial celebration next year.
In addition, the LVCVA hopes to boost cooperative advertising overseas and on the Internet. British air carrier BMI recently inaugurated nonstop air service between Manchester, England, and Las Vegas.
Other big-ticket expenditures planned with the additional funds include $288,000 for an Interstate 15 corridor consultant, $200,000 for additional insurance coverage, $100,000 for a welcome sign on Boulder Highway, $400,000 to help cover expenses for the 2005 Arena Football League championship game and several stadium upgrades and baseball field improvements at Cashman Field totaling more than $100,000.
In other business in today's meeting, the LVCVA board approved spending $300,000 for Big League Weekend in 2005.
Major League Baseball's Chicago Cubs, a perennial fan favorite, will play games against the Seattle Mariners at Cashman Field April 1-2. The LVCVA Marketing Division said the games would be broadcast on radio and television to Chicago and Seattle, giving Las Vegas exposure in those markets.
The LVCVA and Mandalay Sports, owner of the Las Vegas 51s, are co-sponsors of the event and will share the net profit of the two games.
This year's Big League Weekend games were rained out.
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