Feature Stories - January 2006

From Bucking Broncos to Classic Mustangs

Special Events Round Up Big Money

by Jessica Groach-Santina

A recent study indicated that the meetings, conventions, exhibitions and incentive travel industry generated over $122 billion in U.S. direct spending for 2004. The "2004 Economic Impact Study," produced by the Convention Industry Council, found that the industry supports 1.7 million jobs, over 36 percent of hotel industry revenue and 17 percent of the airline industry’s revenue.

Special events aren’t just about weekend entertainment; they’re crucial to the economy. Here is a summary of what special events around the state really mean to our communities.

Southern Nevada: Cowboys and Cars

Las Vegas Events, the event production arm of the Las Vegas Convention and Visitors Authority, estimates that in fiscal year 2005, special events generated a non-gaming economic impact of $237.2 million. Las Vegas Events has brought over 200 events and more than $750 million to Southern Nevada.

"We don’t compete with the [hotel/casino] properties," explained Pat Christenson, president of Las Vegas Events. "We create events those properties wouldn’t book, in hopes of raising occupancy levels during slower periods. The National Finals Rodeo is probably the best example because it runs 10 days during the slowest period of the year."

The NFR, an early December event, is one of the biggest in the state. Its 2004 non-gaming economic impact was more than $39 million. Over 20 years, the NFR’s economic impact has surpassed $540 million. Most recently, Las Vegas Events sponsored Vegoose, a Halloween weekend festival featuring an eclectic collection of indie and rock bands. More than 72,000 tickets were sold.

NASCAR has increased the four-year-old Las Vegas Motor Speedway’s economic impact by 17 percent, to $167 million in 2005. "More than 300,000 people come through the gates during NASCAR’s Nextel Cup Series and Busch Series," said Chris Powell, executive vice president and general manager of the Las Vegas Motor Speedway.

"We’re very proud of the role the Speedway plays in the community," said Powell. "It positively affects everything: taxis, buses, charters, restaurants, the vendors on the Strip, and obviously gaming feels an impact."

With the NBA Summer Tour, SuperCross, drag racing, slow-pitch softball, team roping, golf tournaments and Arena Bowl, one might think Las Vegas is trying to become a sports destination. Pat Christenson, however, explained it’s all about who comes to watch. "We’re looking mainly at adult-oriented events," explained Christenson. "We want visitors to spend money in a hotel, to shop, to dine, to gamble…the idea is to bring in a fan whose visit will result in the maximum return to the properties." Another component is TV exposure, and these events all provide that.

In summer 2006, Henderson Events Plaza will open. Its first event will be the annual ArtFest of Henderson, followed by Henderson’s Terrible 400 Desert Race, the Nevada Silverman Full Distance Triathlon and the Henderson Super Run Car Show, which altogether brought in $7.4 million in 2004.

"In its first year of operation, the Plaza will generate over $20 million in non-gaming economic impact for the City of Henderson," said Andrea Primo, director of sales and marketing for the Henderson Convention and Visitors Bureau. "Our approach considers the number of out-of-market visitors the event will bring, as well as the appeal of the event for the community."

Northern Nevada: Spare Ribs and Shakespeare

As Reno begins to embrace its natural surroundings, it becomes "America’s Adventure Place." Hot August Nights is a nationally recognized annual celebration of classic cars and music of the 1950s and ’60s. Executive Director Don Schmid said roughly 530,000 people attend the six-day event and many of them are repeat customers. "We estimate an economic impact of over $200 million for the entire event," said Schmid. Other events include the National Championship Air Races, the Reno Rodeo, which brings in 120,000 fans and $34.5 million, and the John Ascuaga’s Nugget Best in the West Rib Cook-Off, resulting in a total of $207.5 million for the local area.

Artown, Reno’s annual arts and culture festival, saw 195,000 visitors in 2005, but only 15 percent of ticket sales were due to tourists. Executive Director Beth Macmillan said that the almost $12.5 million in economic impact isn’t all that’s special about this event.

"It was built for the local community, to celebrate our own environment. But I think 23,000 visitors from out of town is a pretty significant number of people coming into the community to experience the arts, especially considering that 10 years ago, no one was."

Harry York, CEO of the Reno/Sparks Chamber of Commerce added that special events have a huge impact on his job. "They mean a lot to us. We see dramatic increases of walk-in traffic asking about living here."

Shakespeare at Sand Harbor, the six-week run of a Shakespeare play performed on this Lake Tahoe beach, draws about 30,000 visitors each year; 50 percent are out-of-towners. The Lake Tahoe Jazz Festival in May drew 6,000 people, and the Sand Harbor Food and Wine Festival drew about 1,000 in September.

"Once people get used to seeing Shakespeare or another event, they’ll check the calendar to see what else is going on," said Bill Hoffman, executive director of the Incline Village/Crystal Bay Visitors Bureau at Lake Tahoe. He pointed out that the jazz festival and similar events may not make much money, but are still worthwhile. "Special events must be viewed long-term. Once a destination is known for an event, that helps the entire branding process."

Candace Duncan, executive director of the Carson City Convention and Visitors Bureau pointed out that Carson City’s biggest events are historical: the Carson City Rendezvous in June, a living history event involving a mountain man encampment and Civil War reenactment; the Victorian Home Christmas Tour; and the October Ghost Walk. The majority of participants in these events are locals, not visitors. "I think the major benefit of having these events is the publicity we get from them," said Duncan. "Plus, it gives the community a sense of place and pride."

Virginia City, on the other hand, depends entirely on tourism for survival. "We’re a community of 1,000 people, and every business is tourism-based," explained Susan Sutton, executive director of the Virginia City Convention and Tourism Authority. She included Reno/Sparks and Carson City residents among the town’s visitors.

Becoming a national historic landmark saved Virginia City from becoming a ghost town. Virginia City’s camel races, outhouse races, railroad festival and Mountain Oyster Festival make up an eclectic list. Sutton estimated the average visitor spends between $150 and $200 a day, yet there are only 102 hotel rooms in town. "We get over a million visitors a year, and they come looking for the Ponderosa – which is folklore, but people love it. You sell the experience and the glitz," said Sutton.

Rural Nevada: Art and Adventure

Harry York said many Reno/Sparks retailers enjoy their biggest week before the annual Burning Man festival. "Grocery stores sell out of water, people go to drug stores and home improvement stores and stock up on supplies. In a way, Burning Man is our biggest event," said York.

Burning Man is hard to describe to someone who’s never attended. Held in the Black Rock Desert northwest of Reno, it is billed as an "art festival and temporary community based on radical self-expression and self-reliance." Burning Man is big, but not because it makes tons of money. In 2004 land, property and related expenses cost the promoters $8.5 million. Bills were paid and the event was kept in the black, but barely. Burning Man now annually attracts more than 35,000 participants. Its sponsor company, Black Rock City, LLC, donated $42,000 in proceeds from ice sales (the event’s only form of commerce) to art and community service organizations.

Elko has a niche as an adventure place as well. Approximately 200 special events take place in Elko each year, including winter’s Snowmobile Rendezvous and spring’s ATV and Motorcycle Jamborees. Fourth of July weekend marks the National Basque Festival, during which participants can actually run with the bulls.

"We expose people to the different things we offer, and when they return, they bring their families," said Ralph McMullen, executive director for the Elko Convention and Visitors Authority.

The biggest event for Elko is the Cowboy Poetry Gathering, produced by the Western Folklife Center. It attracts 80,000 people yearly and earns $5.5 million. It fills in an otherwise slow time of year for Elko tourism.

Even Ely calls special events "big business." Ed Spear, executive director of White Pine County Tourism and Recreation, said, "We do some locally-geared events, but our focus is bringing people from outside the area."

Most recently, Ely hosted the Sights, Sounds and Smells of Christmas, featuring bands, choirs, train rides, craft-making and a Festival of Trees. In mid-January, visitors can catch snow, ice sculpting and fireworks over Cave Lake during the White Pine Fire and Ice Show. Spear said the majority of visitors come from Las Vegas.

"You can judge an event’s success not just by actual participants, but by exposure," Spear said. "People start seeing the event in publications. It attracts far more people than those who actually attend."

State of Events

Special events are growing in number, size, quality and economic impact. As Nevada continues booming, its special events will continue play an important role in supporting its growth and building pride for the state’s residents, wherever they happen to be.