Legislature told of threat from Indian gambling, energy woes

John Wilkerson

Saturday, Feb. 10, 2001 | 10:12 a.m.

CARSON CITY - Tourism-dependent Nevada faces its toughest economic fight yet due to Indian gambling in California and the West's energy crisis, lawmakers were told Friday.

To improve the odds in that fight, the head of the state Commission on Tourism said the budget for promoting Nevada should be increased 11 percent to $24.6 million.

"In this industry, we believe that you have to spend money to make money," Nancy Dunn, the commission's interim executive director, told the Senate Finance Committee.

"It has never before been more important for Nevada to expand its tourism base and become less dependent on visitors whose primary reason for visiting Nevada is gambling," Dunn said.

Half of Reno's gambling tourists comes from California, and some industry analysts predict the expansion of Indian gambling there could result in a 22 percent decrease in Reno's revenue growth by 2004.

Likewise, Lake Tahoe and Laughlin are predicted to lose about 15 percent of their revenue growth. Las Vegas is not expected to be hurt, Dunn said.

Officials also fear the energy crisis will depress tourism because consumers will have fewer dollars to spend on vacations.

Senate Finance Chairman Bill Raggio, R-Reno, said he recognizes that it's important to increase advertising -but added he's concerned that the commission uses only one advertising agency.

"You may need some fresh approaches," Raggio said. "You want to make sure you get the most bang for your buck, so we will be monitoring it."

Dunn said the focus of the commission's marketing is to attract young, affluent tourists to outdoor activities such as skiing, golfing and camping. The average age of Reno visitors was 54 in 1999.

The commission also is pushing a $634,000 whitewater park on the Truckee River in Reno's downtown casino area. A feasibility study for that project is due in June.

Historical and cultural tourism also is getting new attention. Chris Chrystal, the commission's media relations manager, said hundreds of ghost towns and old mining towns and sites around the state are getting increased interest from tourists.

Last January, the commission started a sweepstakes that is offering six new luxury recreational vehicles over three years to attract RV tourists to Nevada. That campaign will cost $800,000 over the next two years.

And the commission hopes to get $1 million to extend the V&T Railroad to Carson City, which the commission estimates would generate $11.7 million in tourism dollars annually.

"Nevada is not hard sell," Dunn said. "We are blessed with a state that has a lot to offer its visitors."