Nev. tourism meeting canceled due to budget crisis

RENO, Nev. - An annual conference focusing on Nevada's tourism industry — the lifeline of the state's visitor-driven economy — has been canceled abruptly because of the financial crisis.

"It's a huge deal and it was an extremely difficult decision to make," Lt. Gov. Brian Krolicki said Wednesday.

"This conference was going to lose money and essentially by canceling, we are losing less money than if we went forward."

As lieutenant governor, Krolicki is head of the Nevada Commission on Tourism, which hosts the conference. This year's event, which had been scheduled for Dec. 8-9, would have marked the 25th annual conference that is held alternately in southern and northern Nevada.

State lawmakers are scheduled to convene in special session Monday in Carson City to consider ways to stop the hemorrhaging of a $331 million budget shortfall in the current fiscal year that ends June 30.

Though conference topics were timely — including the state of Nevada's casino industry and reductions in air service — Krolicki said he could not justify the expense.

"We'll be looking to make dramatic cuts," Krolicki said. "In light of that fact, I could not in good conscience go forward" with the conference.

Figures show casino revenues — an industry once thought to be recession proof — have fallen for nine straight months.

Similarly, sales tax reports show restaurant and bar sales — viewed as good indicators of Nevada's tourism industry — dropped 19.6 percent in September, the most recent statistics available.

Chris Chrystal, spokeswoman for the state tourism agency, said it had budgeted about $235,000 for the conference, $150,000 of which was paid to the Peppermill Resort.

"The biggest expense is always the hotel where you're having it," Chrystal said, adding it's unknown if that money will be recouped.

"We don't know what the Peppermill is going to decide to do to us."

Chrystal said $34,000 in sponsor payments, as well as other registration fees, will be returned within 30 days.

Former Nevada U.S. Sen. Richard Bryan, who as governor formed the first tourism conference a quarter century ago, said he supports the decision to cancel this year's event.

"It's certainly an indication that these are no ordinary times," Bryan said.

Sparks Mayor Geno Martini agreed.

"It is a sobering thought. But with the things the way they are, I think it is probably the right call," Martini said.

Bryan, however, said he hoped the economic crisis wouldn't cripple long-term efforts to promote tourism, which are currently funded through a portion of room tax collections.

"I do think it would be shortsighted" to eliminate the program, he said. "We certainly, in my view, need that."

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