New Las Vegas visitor volume numbers in

The Las Vegas Convention and Visitors Authority projects visitor volume to increase by more than 11 percent over the next two years.

Rossi Ralenkotter, vice president of marketing for the LVCVA, told the agency's board of directors on Tuesday that 32.3 million visitors would come to Las Vegas this year with 34 million expected in 2000. That compares with 30.6 million recorded in 1998.

A strong fourth quarter in visitor volume boosted 1998's total over the 30 million mark. With 2.4 million visitors in December -- 6.7 percent more than in December 1997 -- Las Vegas' visitor count was 0.5 percent more than the 30.5 million in 1997.

But Ralenkotter said the fourth quarter upturn is what's significant. In the last three months of the year, visitation was up 4.4 percent. He attributed the increase to excitement over the opening of the Bellagio hotel-casino, the start-up of nonstop air service between Tokyo and Las Vegas on Japan Airlines and a repositioning of the agency's advertising strategy.

Although visitor volume is expected to increase in the next two years, occupancy levels are expected to be down, primarily because room inventory is expected to increase by 15 percent over the next two years.

Occupancy rates, which fell from 86.4 percent in 1997 to 85.8 percent in 1998, are expected to fall to 82 percent in 1999, Ralenkotter told the board. In 2000, the rate is expected to recover to 83 percent. He noted that those are still the best occupancy rates in the nation by about 15 percentage points.

According to LVCVA statistics, hotel occupancy rates were 90.3 percent for the year while motels were at 67.3 percent. Weekend occupancy was 92.1 percent compared with 83 percent for midweek.

Ralenkotter said the weaker midweek numbers were the result of subpar convention visitation for the year. But LVCVA officials downplayed the 6.2 percent drop in convention attendance, from 3.5 million in 1997 to 3.3 million in 1998. The reason: Many of the cyclical conventions that return every few years weren't conducted in Las Vegas in 1998.

For example, the ConExpo-Con/Ag construction equipment show scheduled next month is expected to draw 130,000 people. That show is on a cycle of appearing in Las Vegas every three years. Other big conventions that didn't have shows in 1998 usually can be counted on for another 140,000 people.

Other Las Vegas visitor trends identified in Ralenkotter's summary of visitor statistics for the year:

Las Vegas is drawing a more affluent visitor. Ralenkotter said the percentage of visitors with a household income of $80,000 or more has increased from 12 percent in 1995 to 23 percent in the 1998 fiscal year.

Independent travelers, those not a part of a tour group or convention, are spending more for their rooms. The average per-night expenditure increased from $54.47 in fiscal year 1995 to $65.51 in 1998, a 20.3 percent increase.

Visitors are spending more on dining and shopping. In 1995, the average visitor spent $100.11 per trip expenditure for food and drink. In 1998, that amount had increased by 40.7 percent to $140.80. The average shopping trip expenditure increased 20.1 percent from $66.18 to $79.88 in the same time frame.

The nongaming budget of visitors has increased. Ralenkotter said the average budget was $465 in 1995 and $599 in 1998, a 28.8 percent increase.

The gaming budget of visitors has declined. The average gambling budget decreased 8.3 percent, from $511.60 in 1995 to $469.29 in 1998.

The average number of visits per year per person has declined. In 1995, the average Las Vegas visitor came to the city 2.4 times a year. In 1998, it had fallen to 1.9 visits. Ralenkotter attributed the decline to the proliferation of gaming in other jurisdictions.

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