World Tourism Blog

On a sunny October morning, a stiff breeze blows through a busy construction site on the Las Vegas Strip. Gathering strength, it whips past spools of wire and pallets of lumber, picks up a payload of grit and spins itself into a mini-tornado that rises into the sky.

And then just as quickly, the wind dies, the air clears and the sky is filled, not with dust and dirt, but with the gleaming glass towers of CityCenter, the biggest thing to hit this town since the slot machine. Part destination resort, part urban enclave, the 67-acre complex is a city within a city, an architectural tour de force and an $8.5-billion gamble on the economy, consumer confidence and the appeal of Vegas itself.

The dust devil may have lasted only a minute, but the winds of change that CityCenter represents will blow through Las Vegas for years to come.

Set to open its multi-billion-dollar doors in December, CityCenter is more than just another casino resort. It’s also the largest privately funded construction project in the U.S., a much-touted honorific that, in hindsight, strikes some as more burden than blessing. Conceived before the recession — and almost bankrupted by it — CityCenter is making its debut in a very different world.

The idea was born in 2004 when executives at MGM Mirage, CityCenter’s developer, began exploring ways to utilize what was then a 55-acre parcel (later expanded to 67 acres) between its Monte Carlo and Bellagio resorts. The task was headed up by then-president and current CEO James Murren. Hard money training

The travel industry is working to redefine itself as a key player in the American economy by showing how it helps companies improve profits, serves as a source of tax revenue and provides jobs.

Geoff Freeman, U.S. Travel Association senior vice president, said factors that include the recession, a spurt of public anger over extravagant business travel and politicians who lashed out at the travel industry resulted in $2 billion worth of events and meetings being canceled when the rancor was at its peak early this year.

If over the years the industry had done a better job of articulating why it is a vital economic force, the damage likely would not have been so great, Freeman said Tuesday at a national marketing forum organized by the association.

“We had left ourselves exposed, terribly exposed. We were the folks that were an easy target,” Freeman said.

Steve Moore, president and CEO of the Greater Phoenix Convention and Visitors Bureau, said hospitality groups focus too much on hotel and meal taxes, when they should tout their economic impact, including sales taxes and property taxes they bring communities.

The convention business can do more to paint a picture of the people who work in the industry and note that travelers don’t drain city services, Moore said.

Citing research by Oxford Economics, a consulting firm that collaborates with Oxford University’s business college, Freeman said that for every dollar companies spend on business travel, they get an average of $12.50 in revenue and $3.80 in profit.

Christine Duffy, president and CEO of Maritz Travel Co., a corporate meeting organizer, said meetings are a tool for keeping “employees engaged and motivated.” Hard money training

Business travel  often the target for cutbacks by companies seeking to reduce expenses actually boosts profits and could help the U.S. economy come back from the recession, a report found on Tuesday.

Research released by the global research firm Oxford Economics estimated that for every dollar invested in business travel, companies can expect an average $12.50 in increased revenue and $3.80 in new profits.

“Cutting back on business travel can in the short run have some benefits but, even over a 12 month period, (have) significant negative effects on corporate performance,” said Adam Sacks, managing director of Oxford Economics. “As companies perform, so does the U.S. economy.

“When companies reduce their travel budgets there are negative consequences that we can now quantify, in terms of lost revenue and profit growth and in terms of giving competitors a distinct advantage.”

The study was commissioned in part by the U.S. Travel Association, which represents the American travel industry.

Roger Dow, president of the association, said the report quantified how businesses can benefit from travel and from face-to-face meetings.

The analysis said executives and business travelers estimated 28 percent of current business would be lost without in-person meetings. They said about 40 percent of prospective customers are converted to new customers with an in-person meeting compared to 16 percent without one.

“In this economy especially, business travel has come under greater scrutiny than before,” Dow told reporters.

“It’s very important that business travel be seen as a solution. This industry could lead the economy out of the recession if people begin traveling and doing business.”

The industry group said in the first six months of 2009, business travel spending is down 12.5 percent and business travel volume is down more than 6 percent.

Sacks said a 10 percent increase in business travel across the board could potentially boost U.S. gross domestic product between 1.5 percent to 2.8 percent.

The report was based on a combination of two separate surveys of corporate executives and business travelers and an econometric analysis of the effects of business travel on corporate performance. It covered 14 economic sectors over a span of 13 years. Hard money training