Visitor Services and Tourism Economic Cluster Meeting

1. Lake Tahoe Basin Prosperity Plan Visitor Services and TourismEconomic Cluster Meeting Facilitated by Doug Svensson, Trish Kelly, Kathie Studwell and Michael Ward April 22, 2010 Embassy Suites, South Lake Tahoe

2. Meeting 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

3. Project 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

4. Steering 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

5. What is an Economic Cluster?

6. What is an Economic Cluster? We are here

7. Lake Tahoe Resident Population

8. Lake Tahoe School Enrollment

9. Lake Tahoe Basin Employment2000-2007, Basin and Larger Region Comparable Data – Non-Farm Payroll Jobs Long-Term Trend, using 2000-2007 change Region: +24% Tahoe: -6% Counted at place of work (though workers may live elsewhere) Region may be gaining, but Tahoe Basin is losing jobs

10. South Lake Tahoe Gaming Revenues 1990-2009

11. Key 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

12. 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

13. Tourism 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

14. Tourism 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

15. Key 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

16. Cluster 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

17. Cluster 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

18. Trends in Major Industries Declining Industries

19. Economic Cluster Analysis

20. Preliminary 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

21. Draft 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.

22. Issues 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

23. Opportunities • 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

24. Regional 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

25. Next 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

26. Contact Information Doug Svensson, ADE President dsvensson@adeusa.com Trish Kelly, ADE Principal tkelly@adeusa.com Kathie Studwell, ADE Senior Associate, kstudwell@adeusa.com Michael Ward, Project Manager mklward@pacbell.net

27. Lake Tahoe Basin Prosperity Plan Building The Knowledge And Resources Clients Need To Realize Their Economic and Business Potential