Los Angeles Convention Center Generates Record-breaking $781 Million in Economic Impact for City of L.A.
September 28, 2017
If the Los Angeles Convention Center’s recent fiscal report is any indication, the Downtown L.A. facility most certainly is not a loss-leader, but rather an integral economic impact generator for the City of Los Angeles.
The LACC recently reported generating a record-breaking $781 million of economic impact for the City in fiscal year 2016/2017, with $478 million attributed to convention attendee direct spending.
An additional $26.4 million was generated in tax revenues to the City, with $18.2 million in hotel transient-occupancy tax contributions to the City’s general fund – an increase of more than $90 million in total economic impact during the previous fiscal year.
“As a centerpiece of Downtown L.A., the Los Angeles Convention Center has proven to be an integral economic impact driver for the City,” said Doane Liu, executive director of the Los Angeles Department of Convention and Tourism Development.
He continued, “LACC events support L.A.’s economy through the direct and indirect spending by event and convention attendees on travel, lodging, meals, transportation and entertainment, saving local taxpayer dollars and contributing funds for essential city services.”
The facility also set a record in the number of events it hosted, including a rise in citywide conventions that resulted in an increased occupancy rate of 74 percent (according to industry standard, a convention center is considered fully occupied at 70 percent).
During fiscal year 2016/2017, the LACC hosted 2.2 million visitors across 215 events, including consumer shows, industry trade shows and 32 large-scale citywide conventions such as the American Society of Cataract and Refractive Surgery, American Association of Neurological Surgeons and College of Chest Physicians, which filled an estimated 526,000 hotel room nights while sustaining 12,700 local jobs.
Since assuming management of the LACC in late 2013, AEG Facilities has worked closely with the Los Angeles Tourism & Convention Board to increase event bookings every year.
Besides hosting myriad conventions, trade shows, meetings and events of all shapes and sizes each year, the LACC also works to demonstrate its commitment to environmental sustainability and social responsibility by attaining and maintaining LEED Certification through the U.S. Green Building Council.
The venue was re-certified on the Gold level in 2015, making it the largest convention center in the U.S. to receive LEED EB: O+M Gold re-certification.
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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