By Cy Ryan (contact)

Sun, Jan 4, 2009 (2 a.m.)

The state Tourism Commission didn’t like Gov. Jim Gibbons’ selection for director and now it’s criticizing his proposal to merge the tourism agency with one that promotes economic development.

“It will destroy an entity that has been successful for our economy,” says former Lt. Gov. Lorraine Hunt-Bono, a Tourism Commission member. “It’s not wise to make a structural change to solve a problem.”

Gibbons is considering merging the two agencies to save money and increase efficiency. They had been created as a single agency but separated in 1983.

Commissioners said they worried that if their tourism agency were combined with the state’s economic development agency, they would lose access to their slice of the state’s hotel-motel room tax in addition to facing the consequences of a shrinking general fund.

Steve Woodbury, chief deputy tourism director, told the commission its budget, which was cut by $3 million last year, may be slashed by another $7 million because of the state’s financial crisis. The additional cut would reduce the agency’s budget to $10 million, half what it had been.

The $7 million cut would force layoffs of about a third of the tourism office staff and dramatically reduce the agency’s participation in travel industry shows and other promotional events and advertising, Woodbury said. He said it would not only hurt efforts to promote state parks and museums, but also force the reduction or elimination of about 100 promotional programs.

Hunt-Bono said she was concerned the budget cuts would force the agency to close its office in China, which was launched with a $294,000 annual budget appropriation by the 2007 Legislature.

With casinos closing in Reno, Sparks and rural Nevada, “now is not the time to back off tourism,” said Commissioner Bruce Dewing of Lovelock.

Lt. Gov. Brian Krolicki, chairman of the commission, said “I don’t see tremendous savings” in combining the two agencies.

The agency has reduced costs, turning to the Internet instead of television commercials to promote the region, said Jolyn Laney, deputy director of marketing and advertising.

Skiing in Northern Nevada and golf in Southern Nevada are being stressed in the Internet campaign, she said, and a promotion of Hoover Dam on the Internet has shown good results.

The commission will talk about the merger issue at its next meeting, in January, when it has the proposals of Gov. Gibbons to be outlined to the Legislature.

At last week’s meeting, the commission also refused to consider Kirk Montero, the friend of a close adviser of Gibbons, as the agency’s new director. The governor had named Montero as head of tourism without going through the procedure required by law of allowing the commission to nominate three people and selecting an appointee from the list.