LVCVA, expecting drop in room tax revenue, approves budget for 2026
The Las Vegas Convention and Visitors Authority board of directors on Tuesday unanimously approved its $460 million budget for fiscal year 2026 that anticipates a 5 percent decline in room tax revenue and marketing and advertising expenditures of $168 million.
The destination marketing organization that also manages the Las Vegas Convention Center budgeted conservatively in light of concerns that visitation to Southern Nevada won’t be as robust as the current fiscal year.
The new fiscal year begins July 1.
No one spoke out in a public hearing the board conducted before final passage, and the meeting lasted about eight minutes.
The LVCVA plans to roll out a new marketing plan in the next fiscal year, and President and CEO Steve Hill said most of the advertising would be focused on attracting domestic travelers to the destination.
Although the LVCVA is anticipating getting $346 million in room tax and gaming fees, Hill said there are no plans to dip into the organization’s contingency accounts. The boost in advertising and marketing expenditures is occurring as the organization scales back on payments for a long-term convention center renovation that is underway.
Hill said there’s always concern about potential declines in visitation, but LVCVA officials are not panicking.
“Any time our visitation faces headwinds or decreases in any way, that’s a concern for us,” Hill said after the vote.
“I don’t want to overstate that concern. I mean, what the city has been through in a number of cases from Great Recessions to pandemics have been tremendous concerns. This is not at that scale, but we don’t want to shrink our visitation so we’re going to do everything we can to help mitigate those effects and get back to growing.”
Special events
A $32 million special events budget includes $6.5 million dedicated to November’s Formula One Las Vegas Grand Prix, $4 million for the naming rights on Las Vegas Ballpark where the Athletics’ AAA team, the Aviators, play and $3 million each for the National Finals Rodeo and the College Football Championship game occurring in 2027.
Much of the LVCVA’s capital budget is dedicated to completing its $600 million renovation that continues to change the look of the front entrance of the Las Vegas Convention Center. The three-year project, which includes work on the North, Central and South halls as well as an indoor corridor connecting all of the venues, is expected to be completed by the end of this year.
The LVCVA board has received monthly updates on the project, shutting down individual halls as work progresses through the length of the building. In recent weeks, a design feature — called a “snow cone” by developers — is taking shape above a lobby that connects the North and Central halls. It’s similar to the design feature extending from the center’s West Hall that ties the four convention halls together over Paradise Road.
New and refreshed meeting rooms and restrooms and technology and display upgrades are a part of the overhaul that is expected to secure Las Vegas’ place as one of North America’s top convention destinations. LVCVA planners scheduled work on the project that avoided any disruption of convention scheduling.
The next fiscal year is expected to be one of the best for convention visitation with the calendar including the March 3-7 appearance of the ConExpo-Con/Ag construction equipment trade show that is held every three years in Las Vegas. Some of the other traditional big trade shows — CES, National Association of Broadcasters, MAGIC Marketplace and the Specialty Equipment Market Association automobile aftermarket show, are on next year’s calendar as well.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.
