Nevada tourism could feel pinch of Asian economic woes

Monday, Jan. 5, 1998 | 8 a.m.

As Asian currencies continue to decline in value compared to the dollar, travel to the United States is becoming more expensive for Asians.

"Less Asians will come to use casinos," said Bob Barone, president and chief executive officer of Reno-based Comstock Bank. "In terms of their currencies, plane rides will be more expensive, hotels will be more expensive, even though our prices stay the same."

David Attaway, senior vice president and general manager of Caesars Tahoe, agreed casinos would not be immune from Asia's troubles.

"Whenever this type of economic situation happens, everyone that has a business interest there needs to monitor them," Attaway told the Reno Gazette-Journal. "They do have an impact obviously."

But he said he hasn't seen a decrease in Asian tourists yet and it's too early to tell exactly what kind of an impact the Asian crisis would have on Nevada casinos.

Caesars has several offices in East Asia to help lure Asian tourists to its resorts in the United States, including Lake Tahoe and Las Vegas.

The extent of the effect on Nevada tourism will depend on how long the crisis lasts, said Phil Bryan, president and chief executive officer of Boomtown, Inc.

"It's got to go another three or four months before we really should be concerned," he said. "In the short run, we may see some fallout in the high rollers. We may see a little dent in the amount of money they're willing to risk."

However, Michael Houghton, vice president of marketing for the Reno-Sparks Convention & Visitors Authority, said he's not so sure the economic troubles will have much of an impact on northern Nevada tourism.

"It is not something I will be losing sleep over tonight," he said. "We're not overly dependent on one international group. Most of our Asian visitors come from San Francisco or Vancouver."

Even though northern Nevada isn't a big player in the Asian market yet, it's important to monitor the situation there, Bryan said.

"The Asian market is a good example of how we are competing in the world market," he said. "We have to watch and do everything we can to maintain it."