British diplomat seeks closer ties to Nevada business

David Strow

Wednesday, Nov. 14, 2001 | 10:34 a.m.

On his first visit to the Las Vegas Valley, Britain's top diplomat to the region said Tuesday he hoped to extend business ties between Southern Nevada and the United Kingdom.

British Consul-General Peter Hunt, who took over the U.K.'s consulate in Los Angeles on Oct. 25, was scheduled to meet with Nevada Development Authority President Somer Hollingsworth and Nevada Lt. Gov. Lorraine Hunt during his first Las Vegas trip to discuss investment opportunities. He said the first trip would be far from the last, noting that the rapidly growing Southern Nevada economy could create lucrative investment opportunities.

"I hope, on subsequent visits, to get alongside companies in developing industries to talk about opportunities (for investment) going both ways," Hunt said. "I'm trying to be the eyes and ears of British industry in this area."

Though state officials do not have numbers on the extent of British investment in the Las Vegas Valley or Nevada, they do know it hasn't been extensive. Hollingsworth expressed hope that Hunt could help change that.

"If you get someone to open the door (to businesses), it makes your job (of recruitment) easier," Hollingsworth said. "One reason we never spent money on trade missions is we couldn't set up meetings ahead of time. Maybe he can open some doors for us with companies interested in doing business here. I'm pretty excited about him."

Alan Di Stefano, director of global trade and investment for the Nevada Commission on Economic Development, said most foreign investment in Southern Nevada has come from the Pacific Rim, rather than Europe. Nevada's proximity to the Pacific Rim is the biggest reason, he said; most European companies tend to locate on the East Coast, he said.

Budget considerations have kept the office from focusing efforts on international recruitment on specific countries, with the exception of Canada, Di Stefano said.

"We develop the leads as they come, and we'll take the leads from anywhere," Di Stefano said. "The budget only goes so far, and because Canada is our biggest export partner, it's the easiest to recruit from."

"We'd absolutely love to" see more British investments, Di Stefano said. "We speak the same language, so it's easy for them to come here."

Hunt was enthusiastic about deepening ties in the United States, describing the relationship between the United States and Britain as a "family relationship."

"You are our No. 1 trading partner," Hunt said. "What I'll be looking for is to continue that process and deepen it."

The U.K. is Nevada's fourth-largest export market, trailing only Canada, Mexico and Japan, according to the Commission on Economic Development. Nevada companies recorded $72.88 million in exports to Britain in 2000, a 21.9 percent increase over 1999.

One of the most prominent opportunities for new business ties between Britain and Las Vegas lies in the gaming industry. Britain is now moving toward liberalization of its gaming laws, a move many believe will open the door for Las Vegas casino operators to become players in a new U.K. casino market.

On subsequent trips, "I want to get to some of the major players (in the casino industry) to see what their plans are (in the U.K.)," Hunt said. "We would definitely be interested in helping them."

But he emphasized his interest isn't confined solely to bringing Las Vegas dollars to the U.K., but in also bringing British pounds to the Las Vegas Valley.

"It is a two-way street," Hunt said.

The largest investment by a British company in the Las Vegas gaming industry, London Clubs International's 40 percent stake in the Aladdin, did not pay off. After its partner failed to meet repeated capital calls by the cash-strapped property, LCI was forced to investment tens of millions more dollars than expected. Those investments, combined with the Aladdin's heavy losses and its recent bankruptcy, have placed LCI in a very precarious financial position, and the company is now widely considered a takeover target.

But Hunt was optimistic LCI's bad experience would not deter British companies in the future.

"We are people who understand the risks of foreign investments," Hunt said. "I don't think this individual experience will deter others from foreign investments."

Las Vegas is also particularly reliant on British tourists. The U.K. was Las Vegas' third-largest source of international visitors in 2000; the 306,000 Britons that visited Las Vegas that year represented 7.6 percent of the city's total international visitors. Visitation from the U.K. rose 58 percent from 1995 to 2000.

British travel to the United States did fall off following Sept. 11, but is starting to come back, Hunt said. On his flight over from the U.K. to the East Coast, Hunt said his plane was 70 percent full; Virgin Atlantic's three weekly direct flights to Las Vegas are often running at 100 percent capacity, he said.

The British people, Hunt noted, have lived under the threat of terrorism for decades. Though trans-Atlantic travel may remain low over the holidays, Hunt was confident the British "holidays" -- June through September -- would bring a resurgence of British visitors to Las Vegas.

"I suspect confidence is coming back," Hunt said. "People do look at the U.S. as a place to come on a vacation. They like coming here."