The Las Vegas Convention and Visitors Authority has been doing such a good job of driving convention and tourism business to Southern Nevada that the governor is hoping to cut into the taxes that fund the organization to settle a shortfall in highway construction projects.

Governor Jim Gibbons announced a plan to raise $2.5 billion for highway construction projects by redirecting money away from the LVCVA and the state’s general fund. The proposal would cost the LVCVA $424 million over the next eight years.

The LVCVA board of directors responded to Gibbons’ proposal with a 12-0 vote against it. The Nevada Resort Association is also opposed.

“We are resolutely opposed to raising or reallocating room taxes to pay for transportation improvements in Clark County as proposed by the governor today,” the organization’s president and Casino Connection columnist Bill Bible, said.

Gibbons said the LVCVA would still see a modest increase in yearly revenue under his plan, before noting the organization’s success has added to the traffic woes in the city.

“Some people cannot even get from their hotel to the airport in a timely manner,” Gibbons said. “Sooner or later, folks will stop coming.”

Las Vegas Mayor Oscar Goodman, who chairs the convention authority board, said the move could end up costing the LVCVA $20 billion in business through 2024.

“While this might leave Chicago, New York and Orlando celebrating the opportunity to gain our business, it would be to the valley’s overall detriment,” he said. “The adage of, ‘If it ain’t broke, don’t fix it,’ has never been more true.”

The convention authority recently announced plans for an $890 million project to increase the usable space in the Las Vegas Convention Center. The project would increase floor space to 3.8 million square feet, while increasing meeting space by 37 percent, restaurant space by 78 percent and food-service space by 67 percent. It also involves renovating the facility’s interior and exterior.

The LVCVA planned to finance the project with $833 million in debt—secured by future room tax revenue growth—and $68 million in cash. If Gibbons’ plan is approved, the LVCVA would be unable to secure its debt, and the project would have to be canceled, according to Vince Alberta, a convention authority spokesman.

By Greg Jones

Greg Jones is managing editor of Casino Connection Nevada, as well as associate editor of Global Gaming Business magazine.

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