Analysis: Federal Meetings Forsake Las Vegas for D.C.

Although its popularity with trade shows and tourists persists, Sin City has once again fallen out of favor with the federal government, according to USA Today, which last week published an analysis of federal spending data that reveals a notable absence of federal travel dollars in destinations like Las Vegas.

“Federal agencies have all but abandoned Las Vegas and other resort destinations — including Hawaii and Orlando — for government meetings and conferences, following a number of high-profile agency travel scandals and budget cutbacks,” writes USA Today reporter Gregory Korte.

According to Korte, the federal government spent $92,736 on Las Vegas hotel rooms in 2013, down from a high of nearly $2.5 million in 2010 — the year of the infamous General Services Administration (GSA) scandal, in which the agency spent $800,000 on a single Las Vegas meeting.

Nevada’s congressional delegation says Las Vegas is being unfairly stigmatized. “They’ve introduced a bill that would prohibit agencies from discriminating against a city ‘because the location is perceived to be a resort or vacation destination,’” Korte reports. “The bill also has bipartisan support from representatives from Florida and Hawaii.”

Indeed, Las Vegas isn’t alone. While it’s seen an 81 percent decline in federal contracts for hotel rooms, Honolulu and Orlando have seen declines of 88 percent and 100 percent, respectively, according to USA Today’s analysis. Meanwhile, overall federal spending on hotel rooms is down 27 percent since 2011.

Not all destinations have fared poorly, however: Washington, D.C., has seen a massive increase in federal hotel contracts, spending on which grew from $2.7 million in 2010 to $57.5 million in 2013.

“[It’s] a perception issue,” Professional Convention Management Association (PCMA) President and CEO Deborah Sexton tells Korte. “It’s an unfair perception. Assuming that the meeting has proper objectives, it doesn’t matter where it is. And some environments drive more people to attend, and if that’s part of the objective — to get the maximum amount of people there — some destinations are more popular than others.”

Government spending aside, Las Vegas is thriving, according to the Las Vegas Convention and Visitors Authority (LVCVA): Although 2013 data is not yet available, it says Las Vegas hosted more than 22,000 meetings and conventions in 2012 — the highest number since 2008.

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