Las Vegas is spending nearly $2 million on Formula 1 Grand Prix tickets in an attempt to showcase the city as a high-stakes destination and attract airlines to add more routes to the city. The Las Vegas Convention and Visitors Authority plans to spend $1.7 million on tickets for suites priced at $11,000 each. The race is scheduled to take place from November 21 to 23, and among the recipients of the tickets will be airlines that the agency hopes to woo to bring more business to Las Vegas.
The CEO and president of the Las Vegas Convention and Visitors Authority, Steve Hill, stated that the purchase of Formula 1 tickets is to allow clients to experience the race and see what Vegas can offer around the event. The agency views this as an opportunity to provide clients with a familiarization tour of Vegas, showcasing the city’s potential as a destination. The hope is that by inviting airlines to witness a big week in Las Vegas, they will be encouraged to consider adding more routes to the city.
The purchase of Formula 1 tickets by the Las Vegas Convention and Visitors Authority has attracted some publicity, with local news outlets covering the story. Concerns have been raised about whether the tickets will be used by employees of the agency. Hill clarified that only a small percentage of the tickets will be used by agency employees, with the majority being intended for clients and potential partners. The agency, funded by various sources including room taxes and sponsorships, has the largest budget of any destination marketing organization in the U.S.
Despite the high expenditure on tickets, there are concerns about soft demand for the Formula 1 race in Las Vegas. Hotel booking trends indicate a lower demand for the race compared to the previous year, where there were many advanced pre-bookings. Hill explained that last year, the demand for tickets was driven by curiosity and excitement around the first race in Las Vegas, attracting not only Formula 1 fans but a wide range of people interested in the event. Replicating that demand in subsequent years has proven to be challenging.
In conclusion, Las Vegas is making a substantial investment in Formula 1 tickets to promote the city as a premier destination and attract airlines to increase routes to the city. The purchase of tickets by the Las Vegas Convention and Visitors Authority has attracted attention and raised questions about the use of tickets by agency employees. However, the agency views this as an opportunity to showcase Vegas and provide clients with a unique experience around the race. Despite concerns about soft demand for the race, the agency remains confident that the investment will pay off in promoting the city and driving business growth.
