MGM Resorts shares plan to bring back conventions amid pandemic

MGM Resorts International has a new plan to bring back meetings and conventions, two midweek revenue drivers that have been at a standstill during the pandemic.

The casino operator’s Convene With Confidence plan is meant to reintroduce these events to the company’s U.S. properties safely using tools like rapid, on-site COVID-19 testing.

“Convene With Confidence represents the culmination of everything we’ve learned, cutting-edge technology and months of consultation with experts,” MGM Resorts CEO and President Bill Hornbuckle said in a Tuesday statement.

If MGM’s convention plan is a success, it could be a major step in Las Vegas’ hotel and convention industries’ recovery.

A ‘meaningful part’ of Vegas visitation

Las Vegas had a heavy focus on convention growth in recent years, with several companies set to expand or renovate more than 2 million square feet of meeting space in 2020, according to a January report from the Las Vegas Convention and Visitors Authority.

MGM alone saw its convention business more than double over the last 10 years, according to Atif Rafiq, MGM’s president of commercial and growth.

Operators’ focus on the industry made sense, given conventions’ lucrative nature. The LVCVA found convention attendance hit a record 6.6 million in 2019, with the average attendee spending 18 percent more than leisure visitors per trip. Total spending by convention attendees directly supported 43,500 jobs last year and had a $6.6 billion economic output.

But that revenue driver bottomed out in recent months, thanks to the coronavirus pandemic. Between April and July, the LVCVA reported zero conventions in Las Vegas.

The drop in midweek events damaged many resorts’ bottom lines. Midweek occupancy in Las Vegas went from 83.8 percent in January to 36.9 percent in July, according to the LVCVA.

“We’re not under any illusion that we’ll be back to normal business volumes as it relates to convention and meeting spaces any time soon. But we’re eager to get going, to stimulate that,” Rafiq said. “It’s a very meaningful part of Las Vegas visitation.”

How it works

MGM’s new convention plan aims to implement health and safety into every step of the convention and meeting process.

The company will offer virtual, hybrid and in-person events. Those that include in-person meetings will have the option to use rapid testing and touchless kiosks to screen guests before they enter an MGM venue. The same technology was used in the NHL’s Stanley Cup playoffs.

“MGM Resorts and others are trying to really look at each resort experience or each service we provide and find a way forward,” Rafiq said. “This is another indication of Las Vegas trying to lead.”

Conventions and meetings that use this service will ask guests to download biometric identity company CLEAR’s mobile app to set up an account before the event. Attendees will be asked to verify their identity through the app with a selfie and answer a series of health questions before entering the venue.

Once at the event, a representative from health care service company Impact Health will provide a rapid COVID-19 test that delivers results on the CLEAR app within 20 minutes.

After the nasal swab test, convention attendees can use a kiosk to receive a temperature check and scan a QR code to share their health insights, which include answers to a real-time health questionnaire and the COVID-19-related test results. Guests are then either granted access to the event or led to further testing and a referral for consultation with local health authorities.

Additionally, MGM said all conventions and meetings will have virtual site inspections, and events, meals and break times will be preplanned to allow for physical distancing.

Attendees will have the ability to preregister digitally. Facilities and floor plans will also be updated as needed to allow for physical distancing.

Rafiq said internal pilot testing already is in place, and the company is having discussions with customers who are interested in piloting the plan within the next few weeks.

MGM’s convention strategy could help open doors for more amenities down the road, including entertainment options.

Entertainment is “a very different business,” Rafiq said. “(But) this could potentially be part of that kind of offering.”

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