As S.F. lags, Las Vegas tourism roars back, with help from weed and the Raiders – San Francisco Chronicle

LAS VEGAS In the center of the sprawling Las Vegas Convention Center tens of thousands of people many in suits, others in T-shirts and jeans strode past each other next to a five-foot ice sculpture of a marijuana leaf. It was a human tidal wave, and the biggest mass of people many had seen in almost two years, as excited attendees chatted, browsed and networked.

Smokers, scientists and business people were all there to see the latest gear for marijuana cultivation, extraction and testing, along with dozens of different products like cannabis-infused chocolate, tea and body lotion.

As the business of pot has boomed to an estimated $92 billion in U.S. sales, so has the MJBizCon cannabis conference, the largest convention held in Las Vegas during the pandemic to date, with 27,000 attendees from Oct. 19 to 22 more than 85% of 2019s 31,523 attendees and over 1,200 exhibitors. If not for the pandemic, it would have set a new attendance record, said MJBiz CEO Chris Walsh.

Its also a major boost as the city stumbles back from economic devastation.

The entire pandemic has been the worst crisis its seen, worse than 1980s fires at the MGM Grand and Hilton, worse than previous recessions and the 9/11 terrorist attacks, said David Schwartz, a gaming historian and University of Nevada, Las Vegas professor.

At MJBizCon, people were ready to socialize. In terms of exhibitors and attendance, this is the first show that truly feels back to normal, besides the fact that people are wearing masks. It feels like any other show any other year, said Danica Tormohlen, editor at large at Society of Independent Show Organizers, a convention industry group. The exhibitors and attendees that Ive interviewed here are thrilled to be back, face to face, developing relationships.

Las Vegas Raiders fans pose ahead of the game between the Baltimore Ravens and the Raiders at Allegiant Stadium on Sept. 13 in Las Vegas.

The same day that the weed conference ended, the Electric Daisy Carnival electronic music festival returned after more than two years. The revelry has previously drawn 150,000 people, and hotel room rates soared over the weekend. The usually 30-minute drive from the Strip to the Las Vegas Motor Speedway, where the concert is held, took 90 minutes or more, according to local Uber drivers. Though, the events delay from May to October meant scorching summer weather was replaced by cool fall air.

Casino floors and buffets were flooded with tourists and business travelers. The scent of cigarettes permeated rooms (smoking is legal indoors). Las Vegas, which had been dead about a year, was roaring back with its busiest week since the pandemic started. People lined up for sold out Cirque du Soleil shows, slot machines whirled nonstop and crowds crammed onto the pedestrian bridges connecting the mega-hotels and casinos. Lady Gaga, Gwen Stefani and DJ Tisto were all in town for performances.

Las Vegas and San Francisco are vastly different cities, but each has been a consistent draw for conventions and tourists. As the pandemic elongates and evolves, the differences in the two popular western destinations couldnt be more evident.

Las Vegass tourism recovery has outpaced San Franciscos sluggish comeback, and some Bay Area events have moved to Sin City. Vaccines are mandated at Moscone Center and in restaurants and gyms, limiting the size of crowds. Though Nevada mandates indoor masks, superseding local orders, many conference attendees and gamblers had them drooped under their chins or wore nothing at all, with little enforcement. Nevada conventions have the option of requiring vaccinations for all attendees, who can then remove their masks. MJBizCon did not have a vaccine mandate.

The laxer rules have meant fuller hotels and bigger crowds compared to San Francisco. Las Vegas September hotel occupancy was 73%, compared to less than 47% last September and 88.3% occupancy in September 2019. San Francisco hotel occupancy was only 40% this past September.

Producer Scott Storch plays keyboard at a booth for Whiff, his vape company, during MJBizCon at the Las Vegas Convention Center on Oct. 21

Tourism recovery is critical for both cities, and health restrictions in San Francisco mean smaller events. Marquee conventions like Salesforces Dreamforce shrunk dramatically from 171,000 people to around 1,000 in-person attendees in September (with many more virtually attending), and the event mostly shunned the inside of Moscone Center in favor of outdoor gatherings. Hospitality is the biggest industry in San Francisco, and 65,000 jobs were lost last year.

For all its progress, there are still challenges in Las Vegas. Visitor volume was 2.9 million people in September, down 2.1% from the prior month, up 72.2% from September 2020, but still 15.5% less than 2019, according to the Las Vegas Convention and Visitors Authority, the regions tourism bureau.

We knew August and September numbers were going to be a bit weaker. We were dealing with the delta variant, said Jeremy Aguero, a principal analyst with Applied Analysis, a Las Vegas research firm.

Its tremendous based on where we are a year ago, said Aguero, who expects the year to end stronger than it began.

But Vegas service industries are still feeling widespread pain. At Las Vegass Culinary Union Local 226, 35% or 21,000 of its 60,000 members are still out of work, with some restaurants and buffets still closed or with reduced hours. But in San Francisco, around 70% of Unite Here Local 2s more than 14,000 hotel and culinary workers are still unemployed. Workers rallied in both Las Vegas and San Francisco on Thursday calling for workers to be part of the recovery.

Alegria Ledda (right) takes a photo of her and Maryjane Bair (left) as they document their attendance at the California Dental Association convention at Moscone South in San Francisco this past September.

Vegas is very successful right now. Thats what we want, said Geoconda Argello-Kline, Secretary-Treasurer for the Culinary Union. We want to be good partners with the gaming industry.

Ted Egan, San Franciscos chief economist, is hopeful tourism will improve as cases remain low in the Bay Area, which is lagging other cities in the West Coast as well.

Were still in an economy where the whole economy hinges on virus path, he said. Im more worried about offices than I am about tourism because of remote work.

I dont see any reason why people will never go to conventions, he said.

With fully vaccinated international travelers allowed to enter the U.S. on Nov. 8, theres hope that all cities will see an upswing in tourism this winter, but also fears of a new surge.

MJBizCon CEO and founder Chris Walsh poses for a portrait on the convention floor during MJBizCon in Las Vegas.

The rebound in Vegas comes at some direct expense to the Bay Area. Prior to the pandemic, Oracle announced its OpenWorld conference would depart San Francisco for Las Vegas, though it has yet to happen, and the Fancy Food Show recently made the same move. The biggest consumer electronics show in the world isnt in Silicon Valley, its CES in Las Vegas, long the citys biggest show and returning in January.

And then theres the gleaming, black, $1.9 billion Allegiant Arena, built near the south edge of the Strip and home to the once-Oakland Raiders, which opened its season there in September. (Vaccinations are required for fans who are 12 or older.) Its a reminder of how Vegas outmuscled the Bay Area with $750 million in subsidies paid with a 0.88% hotel room tax increase, after Oakland refused to give any breaks to keep the team. Raider Nation signs are installed at the nearby Luxor and Mandalay Bay hotels.

Aguero, who is the newly appointed Las Vegas Raiders chief operations and analytics officer, sees no animosity between Nevada and California.

Attendees congregate outside the Las Vegas Convention Center during MJBizCon in Las Vegas.

Businesses and people are moving out of California, he said. Theyre welcome and thats been a critical part of our prosperity.

There may be more departures coming. The Oakland As are considering an exit to Las Vegas as the team struggles to get a waterfront ballpark deal in Oakland.

Brian Yost, chief operating officer of the Las Vegas Convention and Visitors Authority, which owns the convention center, touts the areas 150,000 hotel rooms within a 15-minute drive McCarran Airport. Some rooms can be booked for under $60 in advance, a value proposition, especially compared to San Francisco and New York.

Las Vegass average daily hotel rate was $155.80 in September, higher than September 2019s $137.11, but cheaper than San Franciscos average daily rate of $185 this month.

Before the pandemic, San Franciscos Moscone Center underwent a $551 million expansion. Thats dwarfed by Las Vegass $980 million West Hall expansion, which brought the convention center to 4.6 million square feet, larger than Moscone.

Another 45 Las Vegas conventions are scheduled for 2022.

Ian Kobe, creative director and head of product development at HBI International, demonstrates ConeXpress, a machine that emulates a human packing a cone, at the HBI International booth during MJBizCon at the Las Vegas Convention Center.

It was very quiet and somewhat sad here for many months, Yost said. Its coming back very nicely.

Theres another California import: Elon Musks Boring Company has drilled underground tunnels across 1.7 miles under the Convention Center with three stops, with transportation provided by Musks other company, Tesla, which recently moved its headquarters from Palo Alto to Austin. The underground route cuts a 45-minute walk down to a two-minute drive.

Boring Company won approval on Oct. 20 from Clark County to build tunnels under the Strip, spanning 15 miles and 51 stops, in hopes of relieving rising congestion, though further permits are required.

But Yost didnt see any particular rivalry with San Francisco, nor does Egan, San Franciscos chief economist.

Conventions relocate to Vegas for various reasons, including outgrowing previous spaces, requiring different dates, or desire for a different environment, Yost said.

Having a Las Vegas convention is a way to benefit from nearby California attendees without paying California prices.

Were very close to California. Its our biggest contingent, people from California that are at the show, said Walsh, the CEO of MJBiz. California is extremely important to the cannabis industry now. However, there are still lots of problems. There are lots of issues with the regulations and how theyre being administered in the cannabis industry.

MJBiz is also holding the Emerald Conference in February in San Diego, a cannabis science event that it acquired last year. The event has been held in San Diego, which is a biotech hub, for years. For now, San Francisco and New York are too expensive for MJBiz to consider shows, given venue and hotel prices, Walsh said.

California conference attendees included three members of Anresco Labs, a family-owned San Francisco testing company in the Bayview, which had its first booth at MJBizCon this year.

MJBizCon senior vice president of events and sales Jess Tyler makes her way around the convention during MJBizCon in Las Vegas.

Anresco Labs initially tested food and expanded into cannabis and hemp testing about six years ago, said Zach Eisenberg, its vice president, whose grandfather founded the company in 1943. Its doubled its staff from about 35 to 80 employees, with growth mostly in the cannabis division.

Eisenberg felt safe at MJBizCon and planned to attend another Las Vegas conference the following week.

Ive been pretty good about wearing my mask and Im ... vaccinated, so I feel comfortable with it. I wouldnt feel comfortable sending my father, whos 76, Eisenberg said. The cannabis industry is a relationship-based industry, and not being able to attend events, not getting to see your customers, understanding the products theyre working on it definitely limited us.

Ive been surprised that weve actually had some really good conversations and met some people here, though it remains to be seen if itll lead to new business, he said.

Although Las Vegas recovery is still nascent and many coronavirus uncertainties remain, MJBizCon is ready to come back to Vegas, with its next show booked for Nov. 15 to 18, 2022.

Roland Li is a San Francisco Chronicle staff writer. Email: roland.li@sfchronicle.com Twitter: @rolandlisf

Read the original post:

As S.F. lags, Las Vegas tourism roars back, with help from weed and the Raiders - San Francisco Chronicle