Tourism, parks, gaming would suffer under Gibbons’ plan

By Richard N. Velotta

Friday, Jan. 30, 2009 | 2 a.m.

Most of the focus of Gov. Jim Gibbons’ proposed budget for the next biennium has been on the potentially damaging effects it would have on high-profile departments such as education, social services and correctional facilities.

But other departments would suffer similarly devastating effects.

For tourism, most of the attention has been on the governor’s proposal to merge the Tourism Commission with the Economic Development Commission and the carnival atmosphere that has prevailed in Gibbons’ attempt to select a tourism director.

Other sections of the budget plan could dramatically change the state’s ability to attract visitors and, thus, generate tax revenue that could solve some of the other problems. It could also damage what many consider to be the best gaming regulatory system in the world.

The program description of the Tourism Commission says its mission is “to generate tourism revenue” for Nevada. “It accomplishes this by developing and implementing an aggressive and competitive marketing campaign to promote the state ... and increase the number of domestic and international tourists to the state.”

With the cuts envisioned by Gibbons through a merger with the Economic Development Commission, the tourism budget would be trimmed by 58 percent. Still, Lt. Gov. Brian Krolicki, who heads both commissions, said the savings would be less than $500,000 a year.

Staff would be cut from 28 people to 18. A tourism director would not be hired. That means Economic Development Director Mike Skaggs, who was hired last spring, likely would be in charge. Although observers say he has been a quick study on economic development, he admits he doesn’t have the background to oversee a tourism marketing plan.

What else would be cut? A proposed $200,000 in rural tourism development grants would be zeroed out. So would funding plans for the Nevada Ballet Theatre, the Neon Museum, the Nevada Museum of Art, the Las Vegas Performing Arts Center, a Las Vegas Wash trail system and the Atomic Testing Museum.

Instead of directly funding tourism projects, the state’s lodging tax would be reclassified as a general fund revenue source. Gibbons said he would abide by the wishes of the people who voted in favor of an advisory question in November to increase the room tax.

As noted previously, an increase would have little effect on the average Joe tourist who probably won’t flinch at paying an extra $3 a night on a $100 room. But such an increase could severely damage the state’s successful convention industry. When a group such as the National Association of Broadcasters or the Consumer Electronics Association negotiates for large blocks of hotel rooms for their trade shows, they may think twice about paying tens of thousands of dollars more in Las Vegas when they could just as easily go to Orlando, Fla., or Chicago.

The governor’s proposed 6 percent pay cut to what would be left of the Tourism Commission would save nearly $120,000.

The state’s visitor guide is also at risk. Guides are sent to people considering Nevada as a vacation destination and are presented as collateral material to those attending tourism trade shows. The proposed budget would eliminate funding for the company paid to distribute the guide. And, if the guide is eliminated, another revenue source is gone, since concessionaires pay for advertisements in the guide. Tourism officials say once an advertiser finds another place to spend those ad dollars, they’re very hard to get back.

The Tourism Commission’s Nevada magazine, one of the vehicles used to tell the state’s story worldwide, wouldn’t be eliminated — but it would be severely cut. The equivalent of 2.78 staff positions would be eliminated, including a full-time editor, two part-time marketing and promotional specialists and a part-time ad sales representative.

Although it’s not part of the Tourism Commission, the state’s parks, which many view as a tourism outlet, would take big hits in the Gibbons’ budget.

Because Nevada is so vast, the state’s parks are administered through four offices. Under the proposed budget, two would be eliminated, and there would be a north and south administrative office.

Many of the state parks would be closed during the winter or have hours cut back. Locally, the Old Mormon Fort Historic Park would operate five days a week. A ranger position approved by the 2007 Legislature for Valley of Fire — the state’s most visited park — would be eliminated.

Many of the state Gaming Control Board budget cuts involve personnel.

Chairman Dennis Neilander was still reviewing details, but he’s already said publicly that without more personnel the audit cycle would expand, meaning there would be more time between audits of the state’s casinos.

Neilander also is concerned the 6 percent pay cut could chase some of the department’s investigators to private industry.

Who wants this job?

If the Tourism Commission completes its task of recommending a new director, it will have an interesting decision about the three finalists, whose names would be forwarded to the governor.

Should it go with a leader with broad national and international tourism experience from out of state? Or should it go with someone from Nevada who knows the state and some of the recent history of financial woes?

The six front-runners have great backgrounds. It’s also amazing that such high-quality prospects would consider a position that seems so tentative.

One has worked as a tourism director for a state with woeful financial trouble and convinced state leaders that investing in tourism was a way to generate revenue. He also helped develop the successful “I Love NY” campaign.

Another developed a fantastic international tourism council marketing plan with several nations. The candidate and his colleagues flew to New York to celebrate closing the deal — on Sept. 10, 2001. By the next day, the project was gone.

Another candidate has worked for major Nevada resorts and for properties in rural Nevada.

One of them speaks four languages and knows what it’s like to work in an economically challenged environment having labored for United Airlines for 28 years.

All of them have a common thread that should come in handy if they take the job — they all want to take on a challenge.

Commissioners hope to interview the front-runners next month, but may defer forwarding the names to Gibbons until it’s known whether the commission would be merged with the Economic Development Commission, as proposed by the governor.

Commission bows to flight schedule

For several years, the Nevada Gaming Commission has met the third Thursday of each month at 9:30 a.m. with the site alternating between Las Vegas and Carson City.

Now, for the foreseeable future, the five-member board will meet at 10 a.m.

Why? Because commissioners, staff members, applicants and their attorneys who have to commute to Carson City from Las Vegas can’t get there on time if they fly out in the morning.

One of the flights Southwest Airlines eliminated in its Las Vegas-Reno schedule was the earliest departure, which got passengers into Reno-Tahoe International Airport a little after 7 a.m. That gave people plenty of time to secure transportation and make the 45-minute drive to the state Gaming Control Board’s Carson City office.

But now, the earliest flight doesn’t arrive until 7:50 a.m., cutting things a little close for those trying to get to the meeting with time to spare.

It doesn’t work that way for those traveling from Reno to Las Vegas because the commute between McCarran International Airport and the Sawyer State Office Building isn’t that long. But to alleviate confusion, commissioners decided to have a consistent start time of 10 a.m.

The Gaming Control Board, which meets at 9 a.m., normally on the first Wednesday and Thursday of the month, doesn’t have the same problem because board members usually arrive a day earlier for preparation meetings. Because board members usually have more business to conduct than the commission, they can schedule Las Vegas applicants late in their meetings in Carson City and Northern Nevada applicants late in their meetings in Las Vegas.

Flying with flowers

Southwest Airlines, which ratcheted up its Rapid Rewards frequent-flier program by offering points toward free travel with restaurant transactions in recent months, is now adding Teleflora to its partnership fold.

The airline, the busiest at McCarran, will offer a half credit for any floral order from $34.95 to $99.99 and a full credit for any order of more than $100.

Customers should check the airline’s Rapid Rewards Web site for details.

Richard N. Velotta covers tourism for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at 259-4061 or at [email protected].