2023 Las Vegas Outlook: Major Venue Openings and F1 Grand Prix Expected to Drive Growth
January 27, 2023
After closing 2022 with positive gains in visitor numbers year over year, the Las Vegas business community is poised for continued growth in 2023 with the addition of thousands of new hotel rooms, the opening of the new one-of-kind MSG Sphere and its first Formula 1 Grand Prix.
“2023 is going to be a spectacular year in Las Vegas,” said Steve Hill, CEO and president, Las Vegas Convention and Visitors Authority (LVCVA), at the Las Vegas Chamber of Commerce Preview 2023 event on Mon., Jan. 23, in the West Hall at the Las Vegas Convention Center (LVCC).
Big Picture
Hill highlighted several developments that will take shape in 2023, including the Q4 debut of Fountainebleau Las Vegas, which be located across the street from the LVCC and offer 3,700 hotel rooms and 550,000 square feet of meeting and convention space.
Meanwhile, the Formula 1 Grand Prix will take place in November, the MSG Sphere entertainment venue is projected to open in the second half of 2023, and several other developments are on the horizon, according to Hill.
The Vegas Loop will continue to grow in 2023, while Universal Studios is partnering with Area 15 to open a year-round horror park, and country music star Blake Shelton and Gaylord plan to unveil Ole Red, a live music venue, restaurant and bar on the corner of Flamingo and Las Vegas Boulevard, before the Formula 1 race.
Driving Growth
When the Formula 1 Grand Prix rolls into Las Vegas Nov. 16-18, 100,000-plus visitors are projected to spend $966 million over the course of three days. Less than two months later, Las Vegas will host Super Bowl LVIII on Feb. 11, 2024, with 65,000-plus attendees at Allegiant Stadium.
“They will be the two biggest events in Las Vegas in my lifetime,” Hill said. “Las Vegas is a category 1 (city). It’s going to be a spectacle this world has never seen.”
Las Vegas is now home to eight professional sports teams, including the NFL Raiders, NHL Knights and WBA Aces.
Formula for Success
Taking place at night against the backdrop of the Las Vegas Strip, Formula 1 will feature a 3.8-mile track that will weave past world-famous landmarks as drivers reach speeds of up to 212 mph.
“Las Vegas will be the Monaco of North America,” said Stephano Domenicali, president and CEO, Formula 1. “We expect 100,000 fans per day over the course of three days and 400,000 room nights in Las Vegas.”
The race will include 50 laps with three high-speed straights, 17 high-velocity corners and two to three DRS (drag reduction system) zones in Las Vegas. Lap time is expected to be 1 minute, 24 seconds.
Home in North America
Located on 39 acres just off the Strip at the corner of Harmon Avenue and Koval Lane, construction is well underway on the four-story, 300,000-sq.-ft. paddock, garages and event space that will serve as home to Formula 1 in North America.
“The high-end luxury facility will be LEED certified and will be available for other events beginning in 2024,” said Renee Wilm, CEO, Las Vegas Grand Prix. “We purchased the land for $240 million, and we are investing $240 million in the paddock buildings.”
First Look at Next-Gen Venue
Construction is nearing completion at the $1.8 billion MSG Sphere at the Venetian, a next-level entertainment experience designed to introduce an entirely new medium that will unlock shared experiences that people never dreamed possible, according to Lucas Watson, president, MSG Sphere.
“The sphere will offer an immersive experience that will build human connection and transport guests to new worlds,” Watson said. “We are working with marquee artists, creators and events to bring this to life. Our goal is to be one the busiest venues in the world.”
Owned and operated by Madison Square Garden, MSG Sphere plans to be open 365 days a year and host two to three events per day. Watson envisions four to six musicians with residencies of 10 to 12 shows. Rumors about a U2 residency were not officially confirmed.
The venue will feature 17,500 seats, an exosphere with 580,000 sq. ft. of programmable lighting, advanced acoustics and an infrasound haptic system enabling guests to feel the sound.
MSG Sphere will be available for corporate events and product launches, as well as for advertising.
Back Story
The latest development streak in Las Vegas comes on the heels of significant growth over the past decade.
“In Clark County, the population has increased with 330,314 new residents in the last 10 years,” said Jeremy Aguero, principal, Applied Analysis.
In 2022, the average daily room rate was $165, an increase of $57 since 2012, while airport passengers at Harry Reid International Airport reached 52.1 million, increasing 25.1% over the last 10 years, according to Aguero.
For more key stats on growth in Las Vegas, go here to download the full presentation by Applied Analysis.
Main photo: Renee Wilm, CEO, Las Vegas Grand Prix and Stephano Domenicali, president and CEO, Formula 1
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Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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