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The Honolulu Advertiser
Posted on: Monday, May 5, 2008

RENO TOURISM
Reno unsure of what summer will bring

By Ray Hagar
Reno Gazette-Journal

Hawaii news photo - The Honolulu Advertiser

The Reno area plays host to the National Championship Air Races every year. Attendance at events such as that holds the key to a lucrative tourism season.

ADVERTISER LIBRARY PHOTO | September 2003

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"In our case, with the notion of people staying closer to home, we can use that to our advantage. It fits well in marketing to our traditional markets in the Bay Area and Sacramento area who are drive-in visitors within a few hours of their home. We will continue to mine that territory."

Ellie Oppenheim | President and CEO, Reno-Sparks Convention & Visitors Authority

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RENO, Nev. — As the season in Reno and Lake Tahoe slowly changes toward summer, it signals the beginning of what traditionally is the most lucrative tourism period for the area. Yet Ellie Oppenheim anticipates a big change in the economic climate, too, which could bring ill winds to the northern Nevada resort industry.

"Every destination is nervous about the outlook and concerned about what the tourism numbers are going to look like through 2008," said Oppenheim, president and CEO of the Reno-Sparks Convention & Visitors Authority.

Many surveys show drops in discretionary and leisure spending because of the economic downturn, Oppenheim said. That, coupled with rising gas prices, makes the upcoming season full of uncertainty.

About 5.1 million visitors came to the Reno-Tahoe area in 2007, and Oppenheim said she would be pleased to match that number this year because of negative economic trends.

"You have to look at the whole picture now," Oppenheim said. "People are worried about the mortgage crisis, the credit cost and the fuel crunch. The distillation I can give you from reviewing many articles about travel is now twofold:

"One, people still feel entitled to a vacation," Oppenheim said. "They don't want to sacrifice that despite the weak economy. Two, people are spending cautiously. The pulse that I pick up is that many people are looking for shorter trips, closer to home and in many ways less expensive to what they might have committed to in a strong economy."

Yet Oppenheim sees more than black clouds.

"In our case, with the notion of people staying closer to home, we can use that to our advantage," Oppenheim said. "It fits well in marketing to our traditional markets in the Bay Area and Sacramento area who are drive-in visitors within a few hours of their home. We will continue to mine that territory."

Reno-Tahoe's special events season, which includes such attractions as Hot August Nights, the Nugget Rib Cook-off and the National Championship Air Races, opens with the fifth annual Reno River Festival this weekend. The event is expected to attract about 40,000 visitors, organizers said.

Attendance at these events holds the key to a lucrative season, Oppenheim said. They are well-suited to attract travelers who want a vacation but plan on shorter trips.

"These are the perfect events that can be used as an anchor for a getaway weekend for many visitors," Oppenheim said.

The area doesn't strictly rely on visitors from Northern California. A 2007 Convention & Visitors Authority survey shows that Reno-Tahoe's appeal is broadening. More tourists are flying into Reno-Tahoe from Los Angeles and Canada, according to the survey and data from the Reno-Tahoe International Airport.

"Travelers who came here by air overall increased from 32 percent to 38 percent in 2007," Oppenheim said.

That increase factors out to about 306,000 people and was helped by added nonstop service from Los Angeles and San Diego plus the emergence of ExpressJet as a new carrier at the Reno-Tahoe airport, she said.

"Southern California visitors visiting this area increased by 3 percent (153,000) and more of them flew in than had ever flown in before," Oppenheim said.

A key to reaching a broader market is the Regional Marketing Committee, said Krys Bart, president and CEO of the Reno-Tahoe International Airport Authority.

Instead of each resort property marketing individually, the regional marketing committee, made up of visitor and tourism entities from Reno, Lake Tahoe and Carson City, pools financing for marketing and advertising, Bart said.

"Before the regional marketing committee was formed, the local properties were marketing and they were focusing their resources on the Bay Area or the Northwest and they were not focusing on other areas," Bart said. "Look at the ski industry for example, they have a vote on the marketing committee and they have a much better market in Southern California than they do in the Northwest.

"They also have a better market in Texas. Texas is a huge ski market. So the regional marketing committee identified where the visitors were coming from and focused on that. And the growth we are seeing in Southern California is one of those positive results."

The success in expanding Reno's market does not necessarily mean the 5.1 million visitors who came to the region in 2007 will grow in 2008, Oppenheim said.

For every new tourist that comes in from Texas, Los Angeles or Canada, Reno-Tahoe may lose one to tribal gambling properties in California, Oregon and Washington.

It's why the authority promotes regional outdoor opportunities, not just gambling.

"There is a lot of competition out there for gaming business," Oppenheim said, noting that 48 of the 50 states have some sort of legalized gambling.

"It is very significant that only 5 percent who came (in 2007) said they came with the intention of gaming but 85 percent reported that they gamed while they were here. So we see that as saying, if we bring them, they will game.

"The advantage we have is that you can come here and do a lot of things, including gaming," Oppenheim said. "That is the way we can differentiate ourselves. If you come here solely to game, you can go to an awful lot of places. But you can also ski, golf, enjoy the night life and entertainment."