Monday, April 5, 2004 | 11:04 a.m.
CARSON CITY -- Limiting the number of limousines in Clark County, similar to the system used for taxicabs, will help that industry and consumers, a study issued today says.
The report from the Center for Business and Economic Research at UNLV said setting up an allocation system for limousines will have some weaknesses but even if it is flawed, it "seems to offer a better solution than the current arrangement and would help level the playing field between taxicabs and limousines."
There are more than 1,700 taxicabs in Clark County and about 1,000 limousines, sedans, vans and buses.
The study was presented today to a legislative subcommittee studying the allocation of limousines.
The study was ordered by the 2003 Legislature, which heard complaints that limousine drivers made payoffs to doormen at hotels to get fares and were guilty of other unscrupulous practices such as overcharging consumers.
The study found the limousine industry expanded by 9.1 percent since 2000, during a time when there was declining tourism. "Not surprisingly, revenue declined, following closely the decline in passenger activity at McCarran Airport," said Keith Schwer, head of the business center.
It said during this period one limousine carrier and three charter bus operations voluntarily canceled operation.
But during this period the taxicab industry, with an allocation system, showed a modest decline in passengers but with an increase in revenues.
In an unregulated market, the study said there are a "lack of sufficient penalties for carriers who shortchange customers.
"A visitor would not always know if a turn out of the airport into a tunnel was made to lengthen the trip and add to a rider's cost or not," said the report. "Buyer beware does not give the visitor adequate protection."
The study said there is a friction between one industry that is regulated like the taxicabs and one that is not such as the limousines.
"At a minimum, the close substitutes between taxicabs and limousines makes a strong case that what is done for one is likely to be the best for the other," said the report.
"Limousines, not operating with an allocation arrangement, fared poorly (as an industry) in comparison with taxicabs, which are operated with an allocation scheme," said the report.
The cab industry is regulated by the Nevada Taxicab Authority. The limousines are under the jurisdiction of the state Transportation Authority.
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