Las Vegas tourism agency expecting $200 million loss from pandemic

By Bryan Horwath

Tuesday, April 14, 2020 | 1:58 p.m.

The Las Vegas Convention and Visitors Authority is bracing to lose up to $200 million in room tax revenue in its upcoming fiscal 2021 budget.

Room tax money dried up after Gov. Steve Sisolak ordered casinos statewide closed until at least May 1 to curb the spread of the coronavirus.

The LVCVA’s share of the room tax revenue is expected to drop from $300 million to about $100 million to $120 million for the fiscal year that starts July 1, said the authority’s CEO, Steve Hill.

At Hill’s request, the board approved delaying the presentation of the 2021 budget until next month.

“Fiscal year 2021 was set to be an exceptionally strong year,” Hill said. “In February, we were excited about the direction the year was headed in. We were set to set records in a number of different ways. “

Now, he said, “Fiscal year 2021 is going to be a difficult year.”

The authority receives just over a third of Las Vegas’ total room tax revenue. The other two-thirds support schools and infrastructure projects.

Another significant source of income for the authority is hosting conventions, meetings and trade shows at the Las Vegas Convention Center and other locations.

Because of event cancellations and postponements — with no guarantee they will be rebooked — the LVCVA is likely to lose out on about $60 million during the upcoming fiscal year, Hill said.

“We expect the meetings that will happen will be somewhat smaller than they have been in the past,” he said. “We might get some additional clarity on that in the next few weeks, but I don’t think we’ll get significant insight because it’s based on health and safety,” Hill said.

The LVCVA is already taking steps to cut expenses, and the board today approved a $79 million cut to the fiscal 2020 budget.

The authority has also cut executive pay, implemented a hiring freeze and furloughed 375 on-call trade show workers.

Hill expressed optimism, however, that Las Vegas, which welcomed more than 42 million visitors last year, will eventually bounce back.

“The desire to come to Las Vegas has not changed, it’s just that people can’t come right now,” Hill said. “There’s still no place like Las Vegas. “

“We’re excited about the future of Las Vegas and building the next era of Las Vegas, but we’re going to need to go through a period of time where there’s a recovery and rejuvenation effort. That’s not just here, that’s around the country and across the globe,” Hill said.