Busy summer an economic boon

Anyone who has driven by a packed casino parking lot in August knows how busy the peak of special events season is in Northern Nevada.

Crowded casino parking lots may be a pain for locals looking for convenient parking spots to enjoy their comped rewards buffets, but they are a boon for the regional economy – and what a boon it’s been.

Reno Tahoe’s transient lodging and room tax revenue hit an all-time high this past August, the Reno-Sparks Convention and Visitors Authority announced. In fact, four of the top-five revenue producing months in Northern Nevada occurred over the past 15 months, a clear signal that tourism is alive and well in the Truckee Meadows despite high inflation and steep prices for fuel, food and entertainment.

Reno Tahoe Convention and Visitors Authority President and Chief Executive Officer Mike Larragueta said the increase in visitation to Washoe County is the result of multiple entities all working toward a common goal.

“There are just so many positive things happening in our region, and it’s resonating in visitation,” Larragueta said. “It’s a combination of multiple entities’ efforts to put Reno Tahoe on the map. It’s the complete effort of so many organizations to drive our visitation numbers up.”

Mike Larragueta

Taxable room revenue in August was a record $55.8 million, the RSCVA reports. Additional banner months include:

• September 2023, $54,934,713

• July 2021, $53,830,709

• August 2023, $53,576,718

• June 2023, $53,454,177

It’s the same story at Reno-Tahoe International Airport, which recorded its busiest summer in nearly two decades in 2024. RNO realized a 10 percent year-over-year increase in passenger traffic for the summer months – June had a 12 percent year-over-year increase, followed by August at 9 percent and July at 8 percent, the Reno-Tahoe Airport Authority reported.

Reno-Tahoe International Airport is on pace to handle 4.8 million passengers in 2024, up from 4.6 million passengers in 2023, said Tina Iftiger, chief air service development officer for the Reno-Tahoe Airport Authority.

“Our region’s thriving tourism market and the rise in business travel has played a significant role in the 10 percent increase in passengers we saw this past summer, which are also key drivers in our projected yearly total of 4.8 million passengers," Iftiger said. “These numbers reflect not only the growing interest in Northern Nevada as a premier travel destination but also the lift it provides to our regional economy. As more visitors come to explore the unique experiences our area offers, and more diverse businesses enter our market, we’re seeing healthy gains that promise continued momentum for the future.”

Tourism will always be a cornerstone of the regional economy. Increases in taxable room revenue are important to the RSCVA, Larragueta noted, because it leads to a direct increase in the organization’s operating budget. The RSCVA keeps 6.625 percent of taxable room revenue to fund operations, sales and marketing, promotions, and upgrades to facilities when its coffers are full.

“We are 100 percent funded by room tax,” Larragueta said. “Occupancy and ADR (average daily rate) determine our budget every year.

Tina Iftiger

“We went into this fiscal year with about a 5 percent deficit because there’s a lot going on — fear of recession, a presidential election, and war in the Middle East — that contributed to us making that decision,” Larragueta added. “But when we are healthy, we are obligated to put 10 percent of our budget back into facilities each year, and let’s face it, some of our facilities need some love.”

Reno-Sparks Convention and Visitors Authority owns and operates the 600,000-square-foot Reno-Sparks Convention Center, and it manages the Reno Events Center and National Bowling Stadium, which are owned by the City of Reno, as well as the Reno-Sparks Livestock Events Center, which is owned by the state but the bonds on the facility reside with the county, Larragueta said.

The RSCVA dissected August room tax revenue to see why the month outperformed. Room nights booked by free independent travelers (FIT in industry terms) through third-party booking sites such as Expedia, Kayak, Priceline and the like was up 19.5 percent from year-earlier numbers, Larragueta said.

That increase is important for hotel-casinos, he added, because it allows them to book a high volume of rooms in a short timeframe.

“The booking window for that (FIT) segment is relatively short, say two weeks and less,” Larragueta said. “The hotels are forecasting 30 to 60 days in advance, and potentially looking at a dip in occupancy, so they turn the faucet on.

“They do additional marketing, and they get a little more aggressive with their rate structure and pricing,” Larragueta added. “You can move a lot of rooms in a short period of time when you turn on the Expedia faucet.”

Comp rooms were another area that saw significant year-over-year growth in August at 18.6 percent. Combined, the two sectors accounted for nearly 40 percent of the increase in visitation to Reno Tahoe for the month.

Convention business is yet another important leg of the tourism stool. Larragueta said that in fiscal year 2024 group leads – opportunities for the RSCVA to bid on new conventions – surpassed the total from 2019, which is the benchmark year for regional convention business due to its strong numbers.

“We are getting high demand, and the room nights from those leads are also up significantly,” Larragueta said. “Hotels are being extremely aggressive, and we will see the results of that in 2026 and ’27.

“Convention business is so important because it creates a foundation, and it also creates compression,” he added. “Once you have a bed base on the books, it provides an opportunity to increase the cost of the (remaining) rooms and market to a better demographic, someone who has more discretionary income to spend. It’s a puzzle that works really well when you have that (convention) base established.”

Christopher Abraham

Christopher Abraham, chief marketing officer for the 2,000-room Grand Sierra Resort, said occupancy at the region’s largest casino-hotel has held fairly steady year over year, while convention business has begun returning in strength to the GSR.

“We are starting to see that group business come back,” Abraham said. “The booking period is 16 to 24 months for that business. Once we got through COVID it was a little slow, but having that business come back really bodes well for the entire region.”

Strong occupancy during special events season — and especially during midweek conventions — lifts the tide for all resort properties, Abraham added.

“Midweek is more of a challenge to fill with leisure travelers and gamers, so having that group base in midweek is really key for the entire market,” he said. “Having that business coming back is extremely important to the market and occupancy levels in general.

“Reno Tahoe is a great market for conventions,” Abraham added. “It’s easy to get to in the non-winter months, and we see that segment continuing its steady growth over the next few years.”

It’s common to see Grand Sierra Resort’s expansive parking areas completely full during Hot August Nights and for decompression following the exodus from Black Rock City after Burning Man wraps up, as well as during concerts – the property will host close to 100 shows this year in the Grand Theater, Abraham said.

Alt metal band Godsmack recently played to a sold-out crowd of 2,700, and many concert goers booked rooms for the night, Abraham said.

“Those shows build occupancy,” he said. “People want to stay with us and come over the mountain to see the show and stay the weekend. We are building occupancy on all fronts: organic events like our Beer & Chili Festival, entertainment, group business and leisure travel.”