Study has tourism officials beaming

Research conducted by Oxford Economics on behalf of the Washington D.C.-based association established a link between business travel and business growth. For every dollar invested in business travel, businesses experienced an average of $12.50 in increased revenue and $3.80 in new profits, according to the study.

“Business travel is economic stimulus,” Travel Association Chief Executive Officer Roger Dow said. “In order to grow, businesses have to invest.”

The study said business travel is responsible for $246 billion in spending and 2.3 million jobs. Some $100 billion of the spending and 1 million jobs are linked to meetings.

Those figures are gospel to Las Vegas Convention and Visitors Authority CEO Rossi Ralenkotter. Southern Nevada has suffered during the recession. Lost convention and meeting business led to 16 months of reduced gaming and nongaming revenues.

“We needed a benchmark study because this has been one issue that has unified the meetings industry,” Ralenkotter said. “It defined the value and importance of business travel, something we already knew in Las Vegas.”

Through July, convention and meeting attendance is down 26 percent from a year ago. There have been almost 3,000 fewer meetings held in Las Vegas so far this year, compared with 2008.

“We’re booking more meetings in the third and fourth quarter of 2010,” Ralenkotter said. “That business is coming back.”

The study measured the return on investment for companies that spend money on business travel. Oxford viewed 14 business sectors over a 13-year period and surveyed executives.

Many pinned reduced Las Vegas business travel on comments made by President Barack Obama at a Indiana town hall meeting in February. He said companies receiving bailout money shouldn’t travel to Las Vegas or the Super Bowl at taxpayers’ expense.

Others blamed Las Vegas Mayor Oscar Goodman and Gov. Jim Gibbons for riling the matter when they demanded Obama apologize.

Dow said the negative rhetoric and a down economy meant business spending came under greater scrutiny.

Martin Asher, a professor at the University of Pennsylvania’s Wharton School of Business, reviewed the study. Businesses cutting back on travel saved in the short term but sacrificed long-term profits.

“Increased business travel in this economy can actually increase sales and reduce the financial decline company might otherwise suffer,” Asher said.

Howard Stutz’s Inside Gaming column appears Sundays. E-mail him at hstutz@reviewjournal.com or call 702-477-3871. He blogs at lvrj.com/blogs/stutz.