Report: Reno-Tahoe tourism must adapt now

Change.

It’s happening fast in Reno-Tahoe tourism, from millennials’ growing influence in the marketplace to changing preferences among visitors, according to a new industry analysis.

And the quicker the region embraces it, the better.

“Reno-Lake Tahoe Tourism Industry – Navigating Change,” is a white paper written by South Lake Tahoe-based SMG Consulting and its president, Carl Ribaudo.

From the rise of tribal casinos in California to the popularity of special events in Reno-Sparks – especially Burning Man – to new tourism submarkets like Truckee and the Carson Valley, survival is all about adapting, Ribaudo told the Reno Gazette-Journal on Friday.

“Change is tough. That’s why we came up with this white paper,” he said of the report, an unsolicited assessment of the health of the Reno-Tahoe tourism market.

“The bottom line is the need for us to be more anticipatory of change and how we as a region adjust to change,” he said. “We all need each other. The goal is not to compete with each other but with other regions.”

The report had yet to be widely circulated but will be posted on SMG Consulting’s website on Sunday.

On Friday, Chris Baum, CEO of the Reno-Sparks Convention & Visitors Authority, said Ribaudo’s findings parallel what he expects from the RSCVA’s five-year strategic plan due out this fall.

“I know Carl very well. We’re not at odds with anything Carl sees, especially in regard to millennials,” Baum said.

In his 24-page report, Ribaudo lists his top 10 trends shaping the tourism industry in the Reno-Tahoe region:

Shifting demographics and consumer behavior. “It is imperative,” Ribaudo writes, that the industry get to know, “intimately,” the millennial and Gen X markets’ 20 to 40 age group to build loyalty and brand preferences.

“(They) have a completely different perspective from Baby Boomers,” he said.

California tourism effect. He said the increased investment by California’s $117 billion industry “creates a strategic opportunity for the Reno-Lake Tahoe region to attract more international visits.”

Shared economic influence. The rise of enterprises as Airbnb and Uber against more established brands is “here to stay,” Ribaudo said. “One only needs to look at the adoption of gaming in California. Twenty years ago, no one imagined that tribal gaming would get traction in California.”

Climate change. Against the backdrop of rising temperatures, record drought and widespread wildfires, “The Reno-Lake Tahoe region must have a contingency plan to deal with wildfires and other natural disasters,” he said.

Increased nonstop air service. Ribaudo cites recent successes at Reno-Tahoe International Airport to get longer nonstop flights outside of California’s primary tourism market, including New York City and Guadalajara, Mexico.

“The importance of long-haul air service cannot be overstated,” he said, adding that Tesla Motors’ $5 billion battery gigafactory going up east of Sparks as well as other new businesses will help open up new markets.

Branded subregions/regional cooperation. The emergence of community tourist destinations within Reno-Tahoe, Ribaudo said, will help “provide the travelers with more diversity and more choices when considering visiting the area, which in turn makes the region more competitive.”

A special event-driven region. Reno-Tahoe’s growing roster of sports/recreation, entertainment and arts/culture/food-focused events signals a “deliberate shift from the region’s traditional gaming focus as a primary revenue driver.”

Demand for recreation. As one of the region’s greatest assets, the outdoors has “come into its own as a formidable economic generator,” part of a $646 billion-a-year industry nationwide, Ribaudo said.

“The stunning natural beauty and iconic landscapes and waterscapes are a significant point of differentiation for the Reno-Lake Tahoe region that will always help to maintain its competitive edge.”

Rise of the non-tourism economy. Tourism will be a major benefactor of the diversification away from gaming via Tesla, Apple and other tech-oriented ventures, he said.

“Less obvious, the needs and interests of these technology employees will accelerate lifestyle changes that will in fact also affect the visitor experience,” he said.

Entrenched arts and culture scene. Ribaudo said Burning Man, with a quarter-century of annual gatherings in the Black Rock Desert, has been the “most profound” arts-oriented special event on the Reno-Tahoe calendar.

“The event has a regional impact from the number of burners from the Reno-Lake Tahoe region who attend and the influence they have within the community. Above all, Burning Man has ignited innovation and creativity in Reno-Lake Tahoe.”

Looking ahead

Ribaudo, a 30-year resident of the region, has participated in several tourism endeavors, including the Reno-Tahoe Regional Air Service Committee, which helped bring JetBlue Airways’ Reno-New York flights this year, and Ski Lake Tahoe, a consortium of Tahoe Basin ski resorts.

His report lists several “strategic opportunities” for the Reno-Tahoe tourism market, including continuing to reshape itself beyond the gaming profile and growing residents’ “passion-based” connection to the outdoors to translate to the visitors’ market.

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