If you build it they will come
By Tim Pershing, Outpost contributor
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From the comstock to casinos to corporations |
But while Nevada mines still produce a significant amount of ore, the face of the economy has changed dramatically. Today, gaming and tourism drive Nevada's economy, and state leaders are striving to diversify into other means of income.
Now, instead of prospectors toiling under the desert to find the glittering offerings, tourists look up to the bright, neon-lit casinos looming overhead, businesses incorporate and silver-haired citizens flock here to take advantage of Nevada's generous tax laws.
And don't forget the tourists. According to the Center for Business and Economic Research at the University of Nevada, Las Vegas, almost 30 million people visited Las Vegas last year, twice the number of 10 years ago. Those 30 million visitors spent upwards of $22 billion. Gross gaming revenue from the tourists to Clark County topped $5 billion.
In Reno, every year thousands of people cruise the streets in classic hot rods for Hot August Nights, burn their lips at the Chili Cookoff, rumble through town on their "hogs" during Street Vibrations and join the Dawn Patrol at the Reno Balloon Races.
More than 5 million tourists spent time in Washoe County in 1996. They also spent millions of dollars at the National Bowling Stadium, Lake Tahoe and, of course, the casinos. In all, visitors to Washoe County plunked down more than $1.6 billion in local casinos, restaurants and hotels. Total general fund revenue, the money collected from taxes, is up 4.8 percent in 1997 to $1.3 billion for Washoe County.
What does this mean for Nevada? Money. And lots of it.
Chief Deputy State Treasurer Mike Krolicki says the Silver State is a nationwide economic success story.
"The Nevada economy is truly the envy of the United States," Krolicki says from his office in Carson City. "We have been booming at a 5 to 7 percent growth for the last several years. We lead the nation in job growth and growth in income per capita."
Krolicki attributes this to the state's biggest revenue producers: gaming and sales tax. For the first time in Nevada's history, Krolicki says that sales tax revenues outpaced gaming.
"The gaming image is hard to shed, but gaming makes our economy happen," Krolicki says. "But our sales tax surpassed gaming for leading revenue in the state and we know several billion dollars are opening up outside gaming."
According to the Las Vegas Chamber of Commerce, Clark County has seen considerable investment in the casino industry. Since 1989, more than $16 billion has been invested in mega-casinos such as the Mirage and New York, New York.
The chamber reports that Las Vegas already boasts 10 of the world's 11 biggest casinos and is planning on building more. The $1.2 billion Italian fantasy of Bellagio will have its own Eiffel Tower and 2,500 hotel rooms. And investors are plunking down $1.8 billion for a Venice-themed, 2,800 room casino. These hotel-casinos, along with the expansions of already existing casinos such as Caesar's Palace, will add 20,000 more hotel rooms to the 100,000 existing rooms there.
Forty-five years ago, the population of Las Vegas was only 48,000. Today state demographers estimate the metropolitan area around 1.1 million, and it is reported that between 4,000 and 6,000 people move there every month.
And, according to state demographers, more than 1.8 million people reside in Nevada. That far exceeds the state's projections of 1.6 million by the year 2000. Las Vegas leads the state in yearly population growth with 6 percent, but Reno is not far behind at 4.9.
Many of these people are refugees from California who, after a severe recession, decided that the Silver State was a more stable and attractive suitor than the Golden State.
copyright 11/15/97 Nevada Outpost
http://www.jour.unr.edu/outpost
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