Too reliant on tourism

Education and services are key to diversifying our community

January 29, 2010 -Southern Nevada’s dependence on tourism has been noted time and again, but the level of the region’s dependence is surprising. A report by Applied Analysis found that there may be no other large city in the nation more reliant on tourism than Las Vegas.

As Richard N. Velotta reported in last week’s In Business Las Vegas, Applied Analysis created six indexes measuring tourism and ranked 23 metropolitan areas. Las Vegas ranked no lower than fourth in any of the indexes.

Applied Analysis principal Jeremy Aguero noted that Atlantic City and Orlando, Fla., also ranked high. Las Vegas, however, topped the nation in the percentage of leisure and hospitality employment as a percentage of total employment, 29.3 percent.

“No matter how the data are carved or the final rankings ordered, Southern Nevada’s economy is remarkably dependent on its tourism sector,” Aguero said in the report. “This dependence appears to have lessened during the past decade; however, the region remains among the most tourism-dependent in the nation.”

This is just more proof that Southern Nevada needs to put more energy into diversifying its economy. During this recession, Nevada has been hit twice as hard because people aren’t spending money on vacations when times are this bad.

Nevada needs a wider array of businesses. Unfortunately, many government leaders think that tax breaks are the only way to lure new business and that isn’t the case. Businesses need a qualified workforce and good infrastructure. Nevada has been stingy when it comes to paying for things such as schools and roads.

The bottom line is that the state should be doing more to attract more industries here, but until it takes a comprehensive approach and improves services and education, it is doubtful much will change.