When the Connecticut Governor’s Conference on Tourism was held this past April, both Foxwoods and Mohegan Sun were among its list of platinum sponsors. Serving as joint headliners signified that both casinos realize that, just as they are coming together to ward off competition from a new casino in Springfield, there are some things — like helping the state attract convention business — that are worth uniting around. And with good reason.
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When the Connecticut Governor's Conference on Tourism was held this past April, both Foxwoods and Mohegan Sun were among its list of platinum sponsors. Serving as joint headliners signified that both casinos realize that, just as they are coming together to ward off competition from a new casino in Springfield, there are some things — like helping the state attract convention business — that are worth uniting around. And with good reason.
In fiscal year 2015-2016, more than $61.6 million was spent in Connecticut by convention, meeting and sporting event attendees, generating over $4.7 million in tax revenue for the state, while supporting more than 22,000 jobs in the hospitality industry, according to statistics compiled for the Connecticut Convention and Sports Bureau, which focuses on attracting state, regional, national and international conferences to the state.
As two of the state's largest convention destinations, Foxwoods and Mohegan Sun — which have both seen the bottom-line benefit of their convention business — are investing heavily in expansion and new attractions to, in part, draw new group business like trade shows, conferences and conventions.
For Mohegan Sun, convention business — which represents less than 20 percent of the casino's total revenue — has consistently averaged nearly 450 group bookings each of the last five years, according to Gary Baker, director of convention sales and service for the Uncasville-based casino. “They can range from small groups of 10 to 12 to groups as large as 1,200 to 1,400,” Baker said, noting that a three-day auto auction held at the casino in June attracted more than 90,000 visitors.
While conventions help generate revenue from room nights, particularly during slower mid-week periods, they also provide ancillary revenue drivers as well, says Bobby Soper, president and CEO of Mohegan Sun. “Convention attendees help generate gaming revenue, eat in our restaurants, shop in our stores and take in our shows,” Soper said.
And Mohegan Sun is continuing to invest in its properties to meet consumer and convention demand. This fall, the casino will open its new 400-room, $130 million Earth Tower and start work on a $50 million renovation to its existing Sky Tower, including a multi-million-dollar revamp to its current 22,000-square-foot spa and the creation of a new spa. Additionally, new restaurants — including Tom's Urban, which will feature a travel inspired menu and 40 craft beers — are slated to open in late summer and early fall.
The amenities expansion has been an important part of both casinos' growing appeal to convention planners, said H. Scott Phelps, president of the Connecticut Convention and Sports Bureau. “[Foxwoods and Mohegan Sun] have been wise to broaden their casinos beyond gaming to include new entertainment selections, first-class golf courses and varied retail shops,” he said, noting both casinos — and Connecticut in general — draw a lion's share of convention business from neighboring New York, New Jersey, Massachusetts and Rhode Island. “There are more than 23.5 million people that live within two hours of Connecticut's capital,” Phelps said. “That's a major selling point [of Connecticut] for conventions, trade shows and sporting events.”
And convention business has been trending upwards in recent years at Foxwoods, according to Fexlix Rappaport, president and CEO of the Mashantucket-based casino. “After the Great Recession, lots of companies cut back on travel and conventions, but that part of our business is healthy again,” he said, “because there's nothing like face-to-face business.”
Rappaport estimates that conventions account for about 10 percent of the more than 723,000 room nights his casino filled last year. He also notes that unlike personal visitors, his convention attendees typically stay longer. “On average, a convention guest stays about three days,” Rappaport said. That's double the 1.5-day average stay of weekend visitors.
But Rappaport sees the potential benefits of both audiences to his casino's success. “I hope that someone who visits [our casino] with their family thinks about the value of hosting a business event or convention here,” he said. “And I hope that people who visit here on business, choose to bring their family back for a personal visit.”
Foxwoods, like Mohegan Sun, is also investing in upgrades and new attractions — including a new 366-foot-high, mile-long zip line and a handful of eateries from high-profile television personalities, including Food Network's Guy Fieri, “Iron Chef” host Cat Cora and Richard Rawlings of “Fast n' Loud” fame on Discovery Channel. “We're living in an era where people gravitate toward culinary personalities,” Rappaport said.
But it's not just the restaurant selection being upgraded; the casino's 2,200 rooms have been too. “We've renovated every room and kept up with technology as well,” Rappaport said. “We have to in order to stay competitive.”
And that's a big step in keeping Connecticut's convention industry competitive too. Both casinos are betting on it.
