Las Vegas Convention and Visitors Authority Asks $10.6 Million Increase in Next Year’s Budget at 10:39 AM

The Las Vegas Convention and Visitors Authority (LVCVA) has so much funds it is asking its Board for authorization to spend $10.6 million more next year than its current year’s budget of $265.8 million budget.

The LVCVA board of directors’ audit committee on Tuesday has recommended that LVCVA’s $265.8 million budget be increased to $276.4 million, with the $5 million extra going to advertising and the other additional $5 million being transferred to the organization’s capital expense budget. The LVCVA also will spend $275,000 more for marketing, $220,000 more for general government expenses and $150,000 more for operations. The $5 million that would be shifted to the capital projects fund budget would bump that amount to $75.4 million, most of which is unspent money from the previous year that is being rolled over to 2013. The audit committee’s budget recommendation will go to the full board in November for approval.

According to Rana Lacer, the LVCVA’s vice president of finance, room tax revenue is stable and that the Las Vegas tourism industry is now in its third year of recovery. Room tax is the LVCVA’s primary source of revenue, and it is driven by room inventory, average daily room rates and occupancy rates. A key factor in Las Vegas’ success is that among top tourism destinations, it continues to have the highest occupancy rate in the nation as of June 30. Las Vegas’ occupancy rate at midyear was 84.9 percent, topping Oahu (Honolulu, 84 percent), New York (80 percent), Miami (79.2 percent) and San Francisco (77.8 percent). Room tax together with gaming fees revenue increased from $180.5 million in the 2011 fiscal year to $202.6 million this year.