Click to edit Master title style

Visitor Services and Tourism

Economic Cluster Meeting

Facilitated by

Doug Svensson, Trish Kelly, Kathie Studwell and Michael Ward

April 22, 2010 Embassy Suites, South Lake

Tahoe

Lake Tahoe Basin Prosperity Plan

Click to edit Master title styleMeeting Agenda

Introductions Overview of Lake Tahoe Basin

Prosperity Plan Review of Economic Clusters, Process,

Schedule Recap of Environmental Scan – Issues,

Opportunities, Barriers Validation of Cluster components Discussion and Identification of

Priorities for Action Plan Development

Click to edit Master title styleProject Background

Regional collaboration to develop a Basin-wide economic prosperity strategy

Address high rates of unemployment & seasonal employment, income disparities, workforce skills gaps, brain drain, environmental challenges, aging built environment, infrastructure gaps

Goal – develop an action plan for a more resilient economy that enhances environmental quality, improves standard of living, grows local businesses and supports entrepreneurs

Click to edit Master title styleSteering Committee Members

Carson City, Nevada City of South Lake Tahoe, California Douglas County Nevada El Dorado County, California Lake Tahoe Community College Lake Tahoe School Lake Tahoe South Shore Chamber of Commerce North Lake Tahoe Chamber of Commerce Placer County, California Tahoe Regional Planning Agency Washoe County, Nevada Western Nevada Development District

Click to edit Master title styleWhat is an Economic Cluster?

Leading Industries

(core of the cluster)

Support Industries

(suppliers of components, raw materials, support services)

Economic Foundations

Technology Human Resources

Capital Regulatory & Tax Climate

Adv. Physical Infrastructure

Quality of Life

Click to edit Master title styleWhat is an Economic Cluster?

We are here

Click to edit Master title styleLake Tahoe Resident Population

46,88751,086

62,894

55,232 53,347

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1987 1995 2000 2005 2008

Lake Tahoe Resident Population (1987-2008)

Click to edit Master title styleLake Tahoe School Enrollment

9,644 9,331 8,972 8,767 8,461

7,755 7,534 6,985 6,882

0

2,000

4,000

6,000

8,000

10,000

12,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Tahoe Region School Enrollment

Click to edit Master title styleLake Tahoe Basin Employment2000-2007, Basin and Larger Region

20,000

40,000

60,000

80,000

100,000

120,000

100,000

200,000

300,000

400,000

500,000

600,00019

96

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Six-County Private Non-FarmPayroll Jobs

(<= Left axis) Six-County Region

Lake Tahoe Basin (Right axis =>)

Comparable Data – Non-Farm Payroll JobsLong-Term Trend, using 2000-2007 change

Counted at place of work (though workers may live elsewhere)Region may be gaining, but Tahoe Basin is losing jobs

Region: +24%

Tahoe: -6%

Click to edit Master title styleSouth Lake Tahoe Gaming Revenues 1990-2009

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

South Lake Tahoe Real Gaming Revenues 1990-2009 (2009 dollars)

Click to edit Master title styleKey General Themes

Declining population affects workforce, markets for goods and services, sense of community

Lack of affordable housing is a drain on young talent and barrier to business growth; middle class families are priced out; high percentage of home owners are non-resident

Demographic change, increasing skills gaps Traffic congestion a serious problem Aging existing development contributes to

environmental degradation

Click to edit Master title style Tourism Trends

Tahoe Basin is losing jobs compared to the broader region

Gaming revenues are down in both South and North Shore as is employment

Hotel occupancy rates have declined and at all-time low for Casino Corridor

Sales tax revenue has declined Transient Occupancy Tax revenue has declined Traffic volumes have declined although

commuter traffic has increased Workers commute long distances due to high

housing costs

Click to edit Master title styleTourism Trends and Themes

The most popular visitor activities are alpine skiing, gaming, sightseeing, fine dining, snowboarding and shopping

Tourism generated $1.2 billion in direct spending in South Lake Tahoe (in 2006); almost 27% of jobs were in the leisure and hospitality sector

Visitor spending in North Lake Tahoe generates over 60% of earnings and 2/3rds of all employment

The population within a 4 hour drive is expected to grow 28% over next 14 years

Click to edit Master title styleTourism Context

Gaming industry recognizes need for diversification and to “reinvent” itself, taking advantage of the unique amenities of the Lake Tahoe setting – to be an amenity rather than a driver

Reno is planning a major “rebrand” of the region – Reno Tahoe USA in 2010

Tahoe Douglas Visitors Authority plans new campaign and strategic plan

Click to edit Master title styleKey Overall Themes

Build on the foundation of sustainability Create more mobility options (biking,

walking, transit, other) Focus on job quality (living wage jobs with

career pathways) Continued investment in infrastructure is

needed, including technology (broadband) Develop a cohesive regional strategy Diversify, redevelop, revitalize – both the

economy and the built environment – the private sector is innovating; shift in role for TRPA

Click to edit Master title styleCluster Process

Identify key clusters and components Convene participants, validate cluster

components Identify key issues, opportunities and barriers Identity key priorities Develop an action plan with key initiatives

and strategies, led by champions Engage cluster partners including

businesses, non-profits, government and support organizations

Click to edit Master title styleCluster Evaluation Criteria

Size of contribution to economic base

Future job creation prospects Ability to help diversify the economy Ability to enhance environmental

quality Short term organizational capability Long term sustainability Unique to the assets of Tahoe

Click to edit Master title styleTrends in Major Industries

-9-61 -23

-190

-11

-152

-38

-1,226

-1,400

-1,200

-1,000

-800

-600

-400

-200

0

Estab Emp Estab Emp Estab Emp Estab Emp

Nat. Resources/ Utilities Mfg./ Wholesale/ Trucking Information Arts/ Rec./Lodging/ Food

Declining Industries

Click to edit Master title styleEconomic Cluster Analysis

Click to edit Master title stylePreliminary Cluster Groupings

Visitor Services and Tourism Tourism Hospitality Entertainment/Cultural Resources and

Amenities Recreation Historic Preservation Transportation (tours, moving visitors in

and out, etc.)Recreational/Outdoor Apparel and

Equipment Research and Testing

Click to edit Master title styleDraft Cluster Findings

Visitor Services is the largest cluster but it is declining and needs to restructure to thrive.

Outdoor apparel and equipment product development do not appear to produce lots of jobs currently.

Health care is also a large cluster. This sector offers opportunities to help re-brand the region as a wellness center and build on recreation amenities.

Click to edit Master title styleIssues

• Fragmentation in marketing• Blighted communities• Need for improved access to public lands • Need to rebrand/reinvent the region• Gaming industry needs to reinvent itself• Coordination across the region for synergies

Click to edit Master title styleOpportunities

Several lodging, resort and casino establishments have major redevelopment plans

Leverage Arts and culture Create new venues Become more of a destination with more

diverse amenities Focus on environmentally sustainable infill

and redevelopment Connect recreation with wellness and healthy

lifestyles Improve access to public lands

Click to edit Master title styleRegional Opportunities

Connect with food and wine products in West Slope and Nevada Grown – culinary tourism and visitor experiences

Specific local targets for Douglas County include outdoor lifestyle manufacturers (surf boards, go-peds, etc.) – look at dual applications for manufacturing and tourism – in the areas of boating, kayaking, climbing, skiing, etc.

Collaborate with tribal leaders

Click to edit Master title styleNext Steps

Form cluster work groups and prepare draft action plans – first meeting April 21st to identify priority issues and opportunities; second meeting May 22nd to develop draft action plans

Prepare draft prosperity plan summer 2010 for review and input by agencies, the community and partners

Launch implementation plan in fall 2010

Click to edit Master title styleContact Information

Doug Svensson, ADE Presidentdsvensson@adeusa.com

Trish Kelly, ADE Principaltkelly@adeusa.com

Kathie Studwell, ADE Senior Associate,kstudwell@adeusa.com

Michael Ward, Project Manager mklward@pacbell.net

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BUILDING THE KNOWLEDGE AND RESOURCES CLIENTS NEED TO REALIZE THEIR ECONOMIC AND

BUSINESS POTENTIAL

Lake Tahoe Basin Prosperity Plan