Foreign travelers still make trek to LV thanks to strong dollar

Bob Shemeligian

Tuesday, July 29, 1997 | 11:22 a.m.

Business is booming in the foreign travel market to Las Vegas despite a strong U.S. dollar, which makes it more expensive to come here.

In 1995, 3.8 million visitors, or about 13 percent of the nearly 30 million visitors to Las Vegas, were from foreign countries. In 1996, this number increased to 5.4 million foreign travelers, accounting for 18 percent of the total.

"We're anticipating the percentage of foreign visitors will be 21 percent this year," said Jane Wilson of the Las Vegas Convention and Visitors Authority, who added that the average expenditure on nongaming entertainment is over $500.

While the strong dollar has hurt travel from some far-away markets, such as New Zealand, it hasn't affected the Canadian and Asian travel market, which accounts for the bulk of visitors to the United States.

"Honestly, I do believe that they will come here, even though it costs more money," said Karin Wilson of Prestige Travel.

"I don't think the strong dollar has any effect on Asian travel," said Lee Tsou, supervisor with Oasis Airlines. "Foreign travelers want to see Las Vegas, Disneyland and the Golden Gate Bridge."

Airline officials noted that while the American dollar is very strong, the Japanese and Canadian economies also are stronger today than they have been in recent years.

"The yen is actually doing better now," said Kanna Kawamura, a local Realtor and member of the Japanese-American Club. "It's trading between 110 and 120 to a dollar. Years ago, it was trading for as low as 360 yen to the dollar.

Kawamura said a stronger dollar does not keep Japanese tourists away from Las Vegas.

"They come here for recreation, to play golf, and for investments," Kawamura said.

Irene Jackson, spokeswoman for Japan Air Lines, concurs with Kawumura.

"Our flights are completely full, both to the United States and back to Japan," Jackson said. "Business is booming."

Dick Griffith, spokesman for Air Canada, said the 1995 Open Skies agreement between the United States and Canada, which removed restrictions on direct flights from Canada to U.S. cities -- including Las Vegas -- has done wonders for the travel market between the two nations.

"We've seen a tremendous increase in air service to U.S. cities and Las Vegas is one of the more popular destinations," Griffith said.

A significant portion of money spent by foreign visitors once they get here occurs in high-end shopping malls, according to Christopher Tompkins, director of marketing for the Fashion Show Mall.

"The international tourists are terrific," Tompkins said. "Especially the Asian market -- they love the Fashion Show."

Tompkins estimates that 25-30 percent of tourist dollars spent at the Fashion Show are from foreign visitors.

"They especially love the department stores," Tompkins said. "For many international visitors, they have only individual shops in their countries. But over here, they enjoy one-stop shopping."

Canadian citizens are the Silver State's most populous visitors, spending more than $1.35 million annually, according to the U.S. Department of Commerce.

Germany ranks a distant second, accounting for $274,000, and Japan is third, accounting for $235,000.

Nevada ranks sixth among all states in the number of foreign visitors, according to the Department of Commerce.

Industry experts suggest two reasons why more people are coming to Las Vegas despite the strong U.S. dollar.

First, many tourists will pay any price to visit Las Vegas.

Secondly, local tour group operators advertise mid-week specials to lure those who are not so enthusiastic.

"They offer incentives such as mid-week packages at lower prices," said Keith Schwer, director of the Center for Business and Economic Research at UNLV. "This makes it very attractive for foreign visitors."

Alana Harder of New Zealand Travel Experience, said the strong U.S. dollar has hurt travel to the United States from New Zealand, but some Aucklanders use a little bit of Yankee ingenuity to get around the higher costs.

"They look for any way to save," Harder said. "Often, they will fly round trip to England, which is cheaper, and then stop off (at Los Angeles or Las Vegas) on the way."