Preliminary Draft Document
For Discussion Purposes OnlyPreliminary Draft Document | For Discussion Purposes Only

EXECUTIVE SUMMARY
Applied Analysis was retained by the Las Vegas Convention and Visitors Authority (the “LVCVA”) to review and analyze the economic impacts
associated with its various operations and Southern Nevada’s tourism industry. This brief outlines the economic impacts associated with the region’s
tourism industry, its convention travel segment and convention travel specifically served by the Las Vegas Convention Center (the “LVCC”). It is worth
noting the analysis included below reflects the historical performance of Southern Nevada’s tourism industry in 2019 and does account for the industry’s
performance expectations in 2020, which will be materially impacted by the COVID-19 health crisis and related response.
 In 2019, visitation to Southern Nevada rose to 42.5 million people,
the second-highest annual total behind the 42.9 million visitors in
2016. The 1.0 percent visitation increase in 2019 reversed two
years of annual declines. Overall visitation surpassed 42 million for
the fifth consecutive year, continuing the tourism industry’s
significant economic impacts throughout the Southern Nevada
community.

$63.6 billion in total output, supported roughly 376,800 jobs andgenerated $17.1 billion in wages and salaries throughout theregion.
 Convention attendance growth contributed to the positive overall
visitation trend, rising 2.3 percent to a record of 6.6 million in 2019.
On average, convention visitors spend 18 percent more thanleisure visitors per trip, a value premium that generates greater
economic impact per visitor. In total, spending by visitors attending
conventions directly supported 43,500 jobs, $2.0 billion in wages
and economic output of $6.6 billion. When including indirect andinduced impacts, the totals increase to 67,600 jobs, $3.1 billion inwages and $11.4 billion of total economic output.

 Overall spending sourced to Southern Nevada visitors reached$36.9 billion, directly supporting 242,500 employees in the tourism
sector as well as $11.0 billion in wages and salaries. Jobs directly
supported by visitors represented 23.8 percent of total employment
in Southern Nevada and 26.5 percent of all private employment(i.e., excluding government employment). Wages and salaries
directly supported by visitor spending accounted for similar shares,
making up 21.5 percent of all wages earned and 24.5 percent of allprivate wages in the region.

 The LVCC hosted 54 conventions and other events in 2019 withtotal attendance of 1.3 million, roughly 19.4 percent of the overall
convention segment. Visitors to the LVCC directly supported 8,400
jobs, $382.7 million in wages and overall economic output of $1.3
billion. When including indirect and induced impacts, the total
impact of LVCC convention attendees grows to 13,100 jobs,$593.7 million in wages and regional economic output of $2.2
billion.

 The ripple effects of direct visitor spending create additional jobs,
wages and output in the economy. When including the indirect (i.e.,
supplier) and induced (i.e., employee spending) impacts of visitor
spending in 2019, Southern Nevada’s tourism industry contributed

1Preliminary Draft Document | For Discussion Purposes Only

LAS VEGAS VISITOR VOLUME
In 2019, visitation to Southern Nevada rose to 42.5 million people, the second-highest annual total behind the 42.9 million visitors in 2016. The 1.0
percent visitation increase in 2019 reversed two years of annual declines. Convention attendance growth contributed to the positive overall visitation
trend, with annual attendance rising 2.3 percent to a record of 6.6 million in 2019. Overall visitation surpassed 42 million for the fifth consecutive year,
continuing the tourism industry’s significant economic impacts throughout the Southern Nevada community. On average, visitors to Southern Nevadain 2019 spent $867 per trip, directly and indirectly supporting hundreds of thousands of jobs and billions of dollars in wages and salaries. With several
high-profile tourism-related projects scheduled to open in 2020 and beyond, including Allegiant Stadium, Resorts World Las Vegas, MSG Sphere andthe Las Vegas Convention Center expansion, Southern Nevada’s tourism industry infrastructure adds additional capacity.

Exhibit 2
Las Vegas Convention Attendance (in Millions)Exhibit 1
Las Vegas Visitor Volume (in Millions)
45

8

42.5M

6.6M

7
40

6
5

35

4
30

3
2

25

1

0

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LAS VEGAS VISITOR SPENDING
The tourism industry in Southern Nevada remains the most significant driver of economic activity in the region, with direct visitor spending in 2019
estimated at $36.9 billion after conservatively adjusting survey-based data for known control totals (e.g., actual gaming revenue, lodging expenditures
based on room tax totals).1 While Southern Nevada resorts continue to evolve and diversify their guest amenities and attractions, gaming remained
the largest share of visitor spending in 2019, accounting for 22.9 percent of the $36.9 billion in aggregate spending. Visitor spending on shopping andhotel rooms made up the next two largest spending categories for visitors at 18.7 percent and 15.7 percent, respectively. Rounding out the top five
most significant spending categories were food and beverage, with 11.9 percent of visitor spending, and local transportation at 10.7 percent of visitor
expenditures.
Exhibit 3
Las Vegas Visitor Spending (in Billions)$40$36.9 B

$35
$30
$25
$20
$15
$10
$5
$0
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1 Adjusted total spending per visitor (overall) is estimated at $867 including gaming budgets for 2019.

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Preliminary Draft Document | For Discussion Purposes OnlyEMPLOYMENT IMPACTS

Exhibit 4
Direct Tourism Employment as a Share of Total Employment

Southern Nevada’s tourism workforce is comprised of employees at theregion’s numerous resorts, hotels and casinos as well as the workers
in bars, restaurants, nightclubs, retail outlets, sightseeing tour
companies, taxicab operators and all other tourism-related businesses
that cater to visitors.
Hotels and casinos are one of the largest employers in Southern
Nevada, directly employing 164,100 workers in 2019. That total
represented 16.1 percent of the region’s total employment and 17.9
percent of all private employment.2 An additional 78,300 employees
working in other tourism-related businesses are estimated to be directly
supported by visitor spending. Combined, the Southern Nevada
tourism industry directly employs an estimated 242,500 workers, or
23.8 percent of the region’s total workforce and 26.5 percent of private
sector employment.

Direct Tourism Employment: 242,500 (Approx. 1 in 4)
Total Southern Nevada Employment: 1.02 million

Exhibit 5
Direct Tourism Employment as a Share of Private Employment

The impacts of visitor spending on employment flow beyond the tourism
industry. Indirect, or secondary, impacts are often referred to as ripple
effects that support additional jobs beyond workers directly employedin the tourism industry. Businesses in the tourism industry contract with
suppliers and other businesses, which in turn have their own
employees. Furthermore, tourism industry employees spend theirearnings throughout the community, supporting other jobs in what are
known as induced impacts. All told, the employment impacts of visitor
spending total nearly 376,800 jobs when indirect and induced impacts
are combined with direct employment.

Tourism Industry
26.5%

Other
73.5%

2 Source: Nevada Department of Employment, Training and Rehabilitation, last 12 months (quarterly

average).

4

Preliminary Draft Document | For Discussion Purposes Only

Exhibit 6
Direct Tourism Wages and Salaries as a
Share of Total Wages and Salaries

WAGE IMPACTS
Southern Nevada tourism workers earned wages and salaries of $11.0
billion in 2019, accounting for 21.5 percent of all wages earned in Southern
Nevada during the year and 24.5 percent of all earnings among private
industry workers. The wages and salaries earned by tourism industry
workers is roughly equal to the total earnings by employees in Clark
County’s manufacturing, professional services and information industries,
combined.3
When visitors spend at hotels, restaurants and other locations in Southern
Nevada, the impact of each dollar ripples through the economy. These
additional indirect and induced impacts multiply the overall wage impacts ofdirect visitor spending, generating additional wages for workers across
many sectors of the economy.

Total Southern Nevada
Wages: $51.1 Billion

Exhibit 7
Direct Wage Impacts of Visitor Spending(in Billions)

Billions

In 2019, indirect wages supported by tourism businesses paying suppliers,
vendors and other service providers were estimated at $2.8 billion. Induced
impacts are generated as tourism industry employees spend their $11.0
billion in wages throughout the community, supporting additional wage
payments. These induced impacts were estimated at $3.2 billion. When the
direct, indirect and induced impacts are combined, they total $17.1 billion
in wages and salaries throughout Southern Nevada that were supported byvisitor spending.

Direct Tourism Wages:$11.0 Billion$11.0 B

$12
$10
$8

$6
$4
$2
$0
'10

3 Source: Nevada Department of Employment, Training and Rehabilitation.

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The direct economic output associated with Southern Nevada’s tourism
industry is equal to $36.9 billion of visitor spending in 2019. That total
accounted for nearly a third (30.1 percent) of the region’s gross economic
output of $122.4 billion.4 Though these are not perfectly aligned concepts,
the fact that Southern Nevada’s tourism industry directly generated such asignificant portion of the region’s gross product demonstrates the industry’s
importance in Southern Nevada.
As with the employment and wage impacts of visitor spending, the overall
economic output related to visitor-related economic activity grows
significantly after the indirect and induced ripple effects are considered. In
2019, indirect economic impacts were an estimated $11.4 billion andinduced economic impacts added another $15.4 billion. When combinedwith the direct spending impacts, the overall impact of visitor spending on
the Southern Nevada economy grows to $63.6 billion, equating to 52.0
percent of the region’s total gross product.

Billions

ECONOMIC OUTPUT

Exhibit 8
Historical Total Economic Impacts of Tourism Spending(in Billions)$70$63.6 B
$60
$50
$40
$30
$20
$10
$0
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Exhibit 9
Visitor Spending as a Share of Total Gross Product

Visitor Spending
Impacts
30.1%
Total Southern
Nevada GDP:
$122.4 B
Other
69.9%

4 U.S. Bureau of Economic Analysis, 2018 GDP by Metropolitan Area (latest available).

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Preliminary Draft Document | For Discussion Purposes Only

TOTAL ECONOMIC IMPACTS OF THE SOUTHERN NEVADA TOURISM INDUSTRY
As demonstrated by the previous pages, the direct impacts of Southern Nevada’s tourism industry and the spending of the 42.5 million visitors are
significant, accounting for roughly 24 percent of employment, 22 percent of wages earned and 30 percent of total output in the regional economy.
Those impacts are magnified when the ripple effects of that direct spending generate additional economic activity. Suppliers of goods and services tobusinesses in the tourism industry providing food, cleaning supplies, uniforms and other inputs stimulate economic activity and create jobs. Many ofthese suppliers are based in Southern Nevada, keeping those dollars in the region and stimulating job growth in other sectors of the economy.
Additionally, as tourism industry employees spend their wages at local businesses throughout the community, such as grocery stores, movie theaters,
doctor’s offices and retailers, they spur additional commerce in the local economy known as induced impacts.
Once these indirect and induced impacts of the tourism industry are combined with the direct impacts, the industry accounts for an estimated $63.6
billion in aggregate economic output (52.0 percent of the region’s gross product), supporting 376,800 jobs (37.0 percent of regional employment) while
generating $17.1 billion in local wage and salary payments (33.4 percent of total wages and salaries in the region). The details of these impacts areillustrated below.
Exhibit 10
Economic Impacts of the Southern Nevada Tourism Industry Related to Visitor Spending, 20195

Total Employees

Direct Impacts of Visitor
Spending (Casinos, Hotels,
Restaurants, Shopping, etc.)
Direct Impacts
242,453

Suppliers and Vendors
Supported byVisitor Spending
Indirect Impacts
57,513

Total Wage & Salary Payments
Wages Per Employee$ 10,996,083,533$45,353$

2,843,889,714$49,448

Total Economic Output
Output Per Employee$ 36,852,323,035$151,997$ 11,379,864,887$197,866

5 Calculations are based on IMPLAN, an input-output econometric model. Refer to the Methodology section of this analysis for further detail.

7

Spending by Employees
Directly Supported byVisitor Spending
Induced Impacts
76,873$

Total Economic Impacts
Generated byVisitor Spending
Total Impacts
376,839

3,219,765,208$41,884$ 17,059,738,455$45,271$ 15,405,266,656$200,399$ 63,637,454,578$168,872

Preliminary Draft Document | For Discussion Purposes Only

TOTAL ECONOMIC IMPACTS OF THE CONVENTION AND MEETING SEGMENT
The conventions and meetings segment is an important contributor to the impact of Southern Nevada’s tourism industry. In 2019, convention
attendance climbed 2.3 percent to a record of 6.6 million, which helped increase overall visitation and raise the industry’s total economic impact.
Beyond attracting additional visitors, the convention segment provides positive impacts in the industry by boosting visitation during weekdays, keeping
room occupancy rates high when leisure visitors are less likely to be in town. Survey data also indicates that convention visitors spend more per visit
than the average leisure visitor. In 2019, the convention visitor spent $994 per trip, nearly 20 percent higher than the $843 spent by the average leisurevisitor.
Because of their higher average spending profile, convention visitors generate higher per-capita economic impacts on Southern Nevada than leisurevisitors. In 2019, convention visitor spending directly supported an estimated 43,500 jobs, $2.0 billion in wages and $6.6 billion in direct economic
impact. When the indirect and induced impacts of convention visitor spending are included, the convention sector is estimated to support 67,600 jobs,$3.1 billion in wages and $11.4 billion in overall economic output in Southern Nevada. While convention visitors represented 15.6 percent of total
visitation in 2019, their spending accounted for 17.9 percent of all visitor economic impacts, illustrating their importance to the tourism industry as awhole.

Exhibit 11
Economic Impact of Southern Nevada Convention and Meeting Segment, 20196

Total Employees

Direct Impacts ofConvention & Meeting
Segment
Direct Impacts
43,503

Convention
Suppliers& Vendors
Indirect Impacts
10,319Total Wage & Salary Payments$ 1,972,985,196$

510,268,250

Total Economic Output$ 6,612,271,321$ 2,041,845,616

6 Calculations are based on IMPLAN, an input-output econometric model. Refer to the Methodology section of this analysis for further detail.

8

Spending by
Convention & Meeting
Industry Employees
Induced Impacts
13,793$

577,710,152$ 2,764,108,054

Total Economic Impacts
Generated by Convention &Meeting Segment
Total Impacts
67,615$3,060,963,599$ 11,418,224,992

Preliminary Draft Document | For Discussion Purposes Only

ECONOMIC IMPACT OF EVENTS HELD AT THE LV CONVENTION CENTER
The Las Vegas Convention Center (“LVCC”) plays an important role in theregion’s convention and meeting segment, hosting 54 events in 2019 witha combined attendance of 1.3 million.7 Attendance at LVCC conventions
increased 1.9 percent in 2019 while accounting for 3.0 percent of all visitor
trips and one in five convention and meeting trips to the region.
Like the convention segment overall, the economic impacts of spending by
LVCC convention attendees generated notable figures, with total (i.e.,
direct, indirect and induced) impacts of LVCC visitors reaching 13,100 jobs,$593.7 million in wages and salaries, and $2.2 billion in economic output.
The economic potential related to LVCC increases in the coming years after
completion of the LVCC’s overall expanded footprint. The expansion,scheduled for completion at the end of 2020, will add 600,000 square feetof exhibit space and 150,000 of meeting space. The additional space willallow existing conventions to expand and accommodate additional visitors
as well increased capacity for hosting additional events. The project will
provide an estimated 14,000 construction person-years of employment(defined as one person employed full-time for one year) throughout its
development life cycle. The project is also expected to require thousandsof permanent employees upon completion.

7 Source: Las Vegas Convention and Visitors Authority; includes conventions and tradeshows.

Exhibit 12
Las Vegas Convention Center Impacts, 20198
Statistic
Total LVCC Conventions
LVCC Convention Attendees
Employment Impact:
DirectIndirectInducedTotal Employment

Value
54
1,289,709

8,438
2,002
2,675
13,115

Wages and Salaries Impact:
DirectIndirectInducedTotal Wages and Salaries$382,694,916$98,975,434$112,056,967$593,727,317

Economic Output:
DirectIndirectInducedTotal Economic Output$1,282,565,435$396,051,596$536,147,002$2,214,764,034

8 Data includes conventions and tradeshows. Baseline data is per the Las Vegas Convention and

Visitors Authority. Calculations are based on IMPLAN, an input-output econometric model. Refer tothe Methodology section of this analysis for further detail.

9Preliminary Draft Document | For Discussion Purposes Only

METHODOLOGY
General and industry-specific employment and wage data reported on aquarterly basis were obtained from the Nevada Department of
Employment, Training and Rehabilitation. Baseline travel volume, visitor
spending data and room tax collections were obtained from the Las Vegas
Convention and Visitors Authority, the Nevada Gaming Control Board,
Clark County School District and the Nevada Commission on Tourism.
Gross domestic product estimates were obtained from the Bureau of
Economic Analysis.

analysis has been expanded beyond market-based transaction
accounting to include non-market financial market flows by using a social
accounting matrix framework. The model is designed to describe thetransfer of money between industries and institutions (e.g., households)
and contains both market-based and non-market financial flows, such as
inter-institutional transfers. IMPLAN uses regional purchase coefficients
generated by complex econometric equations that predict local purchases
based on a region’s characteristics. In this case, the region is Clark
County, Nevada. Output from the model includes descriptive measures ofthe economy including total industry output, employment and value-added
contributions for over 500 industries.

Beginning in the 2019 fiscal year, the Gaming Control Board implemented
new accounting procedures for departmental revenue reporting asfollows: with regards to Financial Accounting Standards Board (“FASB”)
accounting standards codification 606, revenue from contracts withcustomers, all non-restricted licensees (public and nonpublicorganizations as defined by FASB) were required to follow the new
accounting standard when preparing standard financial statements. While
the analysis contained herein is reflective of the latest economic activity,
there may be modest variances from prior year editions of this report as aresult of third-party reporting changes.

ANALYSIS LIMITATIONSThis analysis used the best available data to analyze the economic
impacts of Southern Nevada’s tourism industry. It relies heavily on datareported by third-party data providers; and, although we have no reason
to doubt the accuracy of these data, they have not been subjected to any
auditing or review procedures by AA. Input-output models, as is the casewith all economics-based models, are not without their limitations. The
static model used in this analysis, IMPLAN, for example, assumes that
capital and labor are used in fixed proportions. This means that for every
job lost or created, a fixed change in investment, income and employment
will result. In reality, developers, operators, consumers and governments
deal with a changing economy in very complex ways, constantly altering
their mix of capital, labor and levels of investment.

To identify the interrelationships in a regional economy, the IMPLAN(Impact Analysis for Planning) software, databases and methodology
were used when estimating the economic impacts generated by theSouthern Nevada resort and tourism industry. IMPLAN is one of three
generally accepted applications used to model industry interrelationships
within an economy. The model attempts to demonstrate mathematically
how the outputs of one industry become the inputs of other industries.

Finally, it is important to note that this is a preliminary undertaking that will
be supplemented by on-going and future analyses. This report is notintended to be comprehensive and may not be appropriate for all
purposes.

IMPLAN employs a regional social accounting system that is used togenerate a set of balanced accounts and multipliers. The social
accounting system is an extension of input-output analysis. Input-output
10