State tourism commission seeking budget increase

Friday, Sept. 10, 2004 | 11:23 a.m.

The Nevada Commission on Tourism will submit $16.2 million and $16.6 million budgets for the next two fiscal years for the Nevada Legislature's consideration next year.

The two plans were recommended for approval by commissioners Thursday in their quarterly meeting. The 2006 fiscal year request includes $8.8 million budgeted for advertising and marketing for the state's attractions while the 2007 request seeks $9.2 million for that category.

In the 2004 fiscal year, the commission had a budget of $12.1 million while the current period, fiscal year 2005, the budget is $13 million.

Marketing and advertising represents the largest expenditure in the budget. But commissioners also were told advertising produces one of the biggest returns on investment for the state.

"We've learned that every dollar spent produces $486 in return from tourists who visit our state," said Lt. Gov. Lorraine Hunt, the commission's chairwoman.

While Nevada ranks in the bottom half of the states in domestic advertising budget by state, it's also in the top 10 in domestic and international tourist spending.

In the 2003-04 fiscal year, Nevada ranked 32nd among 44 states that reported their advertising budgets to the Travel Industry of America. For that time frame, Nevada spent $1.5 million in domestic advertising.

That doesn't count advertising campaigns by local and regional organizations, like the Las Vegas Convention and Visitors Authority. Rossi Ralenkotter, president and chief executive of the LVCVA, said the organization spent $62 million on advertising during that time frame. The top state spender was Texas, paying out $13.3 million.

Meanwhile, Nevada finished sixth in total domestic and international travel spending -- no doubt assisted by the LVCVA campaigns and those of their Northern Nevada counterparts. Tourist spending in Nevada in 2002 was estimated at $20.2 million. California led the nation with $68.2 million and the national average was $10.5 million.

The Nevada Tourism Office's fiscal 2003 budget of $11.3 million was the 19th highest in the nation, but executive director Bruce Bommarito said regional rivals Oregon and Arizona plan $4.5 million increases to their respective budgets.

Much of Nevada's advertising and marketing plan is centered around the office's new "Nevada. Wide Open." campaign designed by DRGM Advertising and in opening the first state tourism office in China.

Bommarito also said the commission staff wants place all the state's new printed collateral material onto an Internet site and translate the existing site into several languages.

The commission is banking on the China office paying future dividends with a population of 300 million people with the means to travel overseas and 50 million people who are considered millionaires.

The Nevada tourism office in Beijing presently has the only Chinese license to accommodate outbound U.S. passengers. With that licensing in place, Nevada officials have turned to recruiting Chinese air carriers interested in operating nonstop flights between China and Las Vegas.