Planks, Initiatives, Key Measurements, Values For Board of Directors Consideration/Approval

Executive Summary

In August, 2006 the RSCVA received Board authorization to embark upon developing a strategic plan for the organization. Recognizing the importance of involving the community and its leaders a series of public meetings were held from late fall into early winter to gather input. In December President & CEO Ellen Oppenheim introduced the six planks of the strategic plan. The “Planks” captured the key areas to be addressed and were formulated based on the input from the public meetings, discussion within the community, previous Board discussions and staff input. In January and February the RSCVA staff identified the initiatives that would accompany the planks. The mission statement was adopted in January. The vision, brand, values and SWOT analysis were adopted in February as well as the Special Events Plank. In March the remaining planks have been referred to the appropriate committee meetings for input prior to Board discussion and proposed adoption.

Background

Input from the community, stakeholders, the Board and RSCVA staff allowed for reoccurring themes to present themselves. As the process unfolded and the areas of concentration became evident the following six planks were developed. These will drive the overall direction of the organization for the next 3 – 5 years and provide the foundation for looking farther into the future. The next step will be to incorporate the tactics in the FY 07-08 budget.

Following are the agreed upon definitions for each topic:

Planks

Planks are the big-picture priorities that the organization will concentrate on for the next 3-5 years.

Initiatives

Initiatives are descriptions of how we will address the priority and reach the measures of success specified for each plank.

Tactics

Tactics are the detailed work programs that describe “how” we will accomplish the Initiative.

Key Measurements

How we intend to measure results.

Analysis

PLANK 1

Background:

RSCVA owns and/or operates the Reno-Sparks Convention Center, Reno-Sparks Livestock Events Center, Reno Events Center and the National Bowling Stadium. Some of the visitor attraction assets are currently underutilized. RSCVA plans to increase utilization of these facilities and leverage them to better fill lodging property rooms in the region, bringing more visitors and ancillary revenue.

As Reno-Tahoe continues to evolve, one of the primary opportunities RSCVA will focus on is to bring meetings, conventions and tradeshows to the destination. This market provides the opportunity to bring a visitor here who would not have normally visited. Once someone experiences Reno-Tahoe they typically return. Using conventions and meetings to attract first-time visitors with the intent to get them to stay longer, come earlier or a schedule a visit later with family or friends will increase overnight visitation.

INITIATIVES:

1. A. Increase convention citywide business (RSCC, REC) 
2. B. Increase other business (Hotel, RSLEC, and NBS) 
3. C. Extend your stay

KEY MEASUREMENTS:

1. 1. Achieve or exceed our annual convention sales goals at the RSCC, REC, RSLEC and NBS.
2. 2. Have at least one major citywide a month (or the equivalent) within five years
3. 3. Build convention and tradeshow occupancy of the convention center to equal or exceed the national average of facilities of comparable size within seven years

PLANK 2

Background:

According to the 2005 Visitor Profile results, an estimated 70% of Reno-Tahoe leisure visitation is from the Bay area. Recognizing that the Bay area is a core market, programs targeting the area will continue. In addition, southern California will be evaluated as a potential development market due to the new air service provided by Southwest Airlines and the expanded air service to the Los Angeles area. Another long-term consideration is the International market.

The Reno-Tahoe, America’s Adventure Place campaign will continue emphasizing that we are targeting the “young at heart” where YOU define the adventure allowing the campaign to capitalize on the many destination offerings.

INITIATIVES:

1. A. Grow core products (i.e. Ski, Golf, Outdoor Adventure and Arts & Culture)
2. B. Increase individual and group business
3. C. Based on new air service in southern California, develop a consumer marketing program to support visitation from that area (San Diego and/or Los Angeles)
4. D. Evaluate International Market for Reno-Tahoe and develop a sales and marketing plan for International tourism sales

KEY MEASUREMENTS:

1. 1. Achieve or exceed annual Travel Industry Sales goals

PLANK 3

Background:

The RSCVA vision for special events is to utilize new and existing special events to help brand the destination as America’s Adventure Place (AAP) via marketing opportunities, to increase overnight visitation and to help book RSCVA-owned and operated facilities.

Special events in Reno-Tahoe help create a distinctive perception of the region and attract visitors to the area.  With the success of special events in Reno-Tahoe and the destination’s unique ability to host large events, it is a natural fit for the RSCVA to be involved in the growth and future of special events in our community.   The role that RSCVA plays with regards to special events is very unique in comparison with other Convention and Visitor Authorities in cities of like size and budgets.  The RSCVA’s mission is to market the destination with the ultimate goal to bring visitors to Reno-Tahoe, while the City of Reno’s special event program purpose is to showcase the renaissance in our destination, stimulate interest in downtown and enhance the quality of life for residents and visitors to the Truckee Meadows.  The RSCVA will work with the Cities of Reno and Sparks to ensure we have complimentary special event programs.

The RSCVA has a vested interest in special events and the organization is committed to special events in a number of ways. Above and beyond financial support, the RSCVA will develop a variety of tools that special event organizers can utilize to be successful, ultimately contributing to the America’s Adventure Place branding and driving new room nights.

INITIATIVES:

1. A. Adoption and implementation of new RSCVA special event philosophy (Approved February 15, 2007)
2. B. Implement new funding procedures including utilization of a panel of experts to help evaluate all funding applications
3. C. Support networking to leverage knowledge and expertise
4. D. Roll out support services program including housing bureau, education component, buying power

KEY MEASUREMENTS:

1. 1. Achieve room night goals associated with special events 
2. 2. Achieve satisfactory ROI for the RSCVA funded events 

PLANK 4

Background:

RSCVA owns and/or operates the Reno-Sparks Convention Center, Reno-Sparks Livestock Events Center, Reno Events Center, National Bowling Stadium, Northgate and Wildcreek golf courses; and owns and leases the Pioneer Center for the Performing Arts and the IVCBVB visitor center facility. RSCVA needs to maximize the use of these valuable assets by maximizing revenues and managing expenses to reduce operating deficits. The Reno Events Center currently has an annual operating surplus, while the RSCC, RSLEC, NBS and both golf courses, operate at a deficit, decreasing the available funds for other priorities.

INITIATIVES:

Reno-Sparks Convention Center 

1. A. Increase RSCC occupancy and revenue produced
2. B. Implement cost-saving measures

Reno-Sparks Livestock Events Center

1. A. Continue and expand existing efforts to recruit business within equestrian market segment
2. B. Evaluate capital projects that could expand core business, increase revenue or reduce expenses
3. C. Increase revenue generated at the RSLEC

Reno Events Center 

A. Increase convention/tradeshow and other event occupancy and revenue to generate additional funds to offset NBS operating deficit

B. Evaluate and recommend capital projects to the City of Reno that could increase revenue or reduce expenses

National Bowling Stadium

1. A. Increase use of the National Bowling Stadium to increase revenue generated
2. B. Evaluate and recommend capital projects to City of Reno that could increase revenue or reduce expenses

Northgate Golf Course

1. A. Re-analyze self operation potential by increasing use and/or prices, decreasing expenses and/or making an investment that would allow a change in the financial dynamics
2. B. Examine alternative golf operations
3. C. Evaluate alternative uses

Wildcreek Golf Course

1. A. Increase rounds on executive course
2. B. Evaluate improvements necessary to allow revenue improvements and greater competitiveness with newer public golf courses
3. C. Fine-tune to ensure continued break-even status

KEY MEASUREMENTS:

1. 1. Reduce the RSCC operating deficit percentage by half within five years
2. 2. Unless major renovations can be done to improve the financial performance, maintain the RSLEC operating deficit percentage (keep it from growing)
3. 3. Improve REC operating surplus by 10% within five years
4. 4. Keep NBS operating deficit percentage from growing
5. 5. Eliminate operating deficit for Northgate Golf Course within two years and Wildcreek Golf Course within three years
6. 6. Achieve consistent positive customer satisfaction ratings for each facility

Background:

RSCVA assets are insured for approximately $250,000,000 a year. It is imperative that we develop and maintain a capital improvement program to ensure that the existing facilities are safe and competitive within industry standards.

An on-going capital improvement program should be developed and funded to address life safety and life cycle replacement needs. Parallel to other convention facilities, major improvements/expansions are likely to require large scale one-time or debt service funded financing tools.

INITIATIVES:

1. A. Address all life safety issues promptly
2. B. Examine potential cost-saving or revenue enhancement projects and implement if ROI warrants
3. C. Identify ways to fund needed lifecycle investments
4. D. Explore potential long-term funding strategies to address major improvements

KEY MEASUREMENTS:

1. 1. Establish an annual capital budget allocation within five years of at least 1% of the insured value of the facilities that can be used each year for the highest priority capital expenditures  
2. 2. Establish a capital reserve within five years of .5% of the insured value of the facilities that is available to address emergency and unforeseen but essential capital improvements  

PLANK 6

Background:

Over the last 10 years, the Reno-Tahoe hotel and casino market has grown Average Daily Rate (ADR) at a slow pace compared to the majority of the North American hotel market which has seen a more substantial growth in ADR. 

Per Smith Travel Research, the average ADR for the entire country will exceed $100.00 for the first time in 2007.  Hotel room demand growth is projected to outpace overall supply growth in North America and the resulting effect will most likely be an additional 2-3 year ADR growth period. 

Growth in ADR, and the maintenance or growth of occupancy would likewise have an extremely positive impact on the Reno-Tahoe lodging and casino market.  Not only would the Reno-Tahoe market be more attractive to new hotel, motel and casino investment, but existing facilities would have a much better opportunity to re-invest in their existing infrastructure. 

Focus on marketing to increase demand and help stimulate ADR growth by creating a growing customer base for Reno-Tahoe that has the discretionary income to spend money on adventure activities, high-end entertainment, world-class spas and celebrity chefs. An increased focus on revenue per available room (RevPAR) growth would also positively impact the funding available to market the destination and thus enhance the RSCVA’s ability to increase marketing and sales efforts to grow the demand for the Reno-Tahoe market.    

INITIATIVES:

1. A. Develop a culture of revenue management with educational programs and associated policies
2. B. Develop and provide tools to analyze Reno-Tahoe performance vs. competitive markets
3. C. Increase use of conventions, groups and special events to drive predictability and effective revenue management

KEY MEASUREMENTS:

1. 1. RSCVA to create market awareness and demand that will enable the lodging properties to make decisions to allow the Annual ADR to reach the current midpoint of the competitive set of convention cities (approximately $95) within five years

INTEGRATION OF PLANKS:

If the RSCVA implements all of the planks as previously described with support from the stakeholders, it will enable room tax revenues and group facility revenues to grow, increasing the RSCVA budget from its present level of $43.1 million a year to approximately $51.7 million a year within five years. These revenue increases, coupled with reduction or elimination of facility deficits will make it possible to substantially grow the sales and marketing budgets and to create funding for a capital improvement program.

RSCVA Values Statement: (Approved by RSCVA Board of Directors February 15, 2007)

In all our relationships we demonstrate a commitment to the following values:

RSCVA Values:

Integrity 

·        We demand of ourselves and others the highest ethical standards by always taking the high road, by a demonstrating personal responsibility to treat people with respect and trust, and by honoring our commitments.

Leadership

·        By living our mission and vision, we set high standards and goals, expect follow through and positive results by inspiring enthusiasm, belief, commitment and accountability throughout the organization.

People

·        Recognizing that people in all their diversity are the cornerstone of our success, we value and respect our individual team members and are committed to improving their knowledge, skills, and abilities.

Teamwork 

·        We recognize that our strength and competitive advantage derives from the collaboration and cooperation of our team members, partners, community and customers. 

Customers 

·        We commit to exceeding the expectations of our customers and constantly focus on customer satisfaction.

INITIATIVES:

1. A. Communicate new RSCVA Values Statement to all staff
2. B. Drive RSCVA Values into the organization
3. C. Continually refresh RSCVA Values to all employees

KEY MEASUREMENTS:

1. 1. Completion and analysis of a baseline employee opinion survey and periodic updates that reflect progress

Recommendation

RSCVA staff recommends that the Board of Directors,

1. 1. Approve the Strategic Plan Planks, Key Measurements and Value Measurements as presented above (including the minor wording simplifications that have been incorporated based on the committee input) to guide RSCVA efforts for the next three to five years

2. 2. Request that staff provide an annual review and update on strategic plan accomplishments and performance relative to the key measures adopted.

RSCVA Strategic Plan

12.14.06

Board Workshop

Meeting Notes

Group Input Exercise on RSVCA Core Services and Budget Allocation Percentage

Non-Fixed Costs                            Current %       Group Input %

Based on public meetings following are the recognized key issues that the RSCVA Strategic Plan will focus on as well as some example measures of success.

Increase Convention Sales and Marketing – Top priority to sell destination as place to do business (i.e. conventions, tradeshows and meetings), while also leveraging the group facility assets to book maximum hotel room nights.

Sample Measures of Success:

Immediate

·        Achieve or exceed convention sales goals for the RSCC, REC, RSLEC and NBS

      Beginning 2009

·        Book one RSCC city-wide event per month

Increase Tourism Sales and Marketing – Increase individual traveler and group traveler business for Reno-Tahoe by marketing regionally, nationally and internationally.

Sample Measures of Success:

·        Achieve or exceed Travel Industry Sales goals

·        Develop a 10 year plan for International tourism marketing

Develop Capital Improvement Program – Create a reasonable phased capital improvement plan for the RSCVA owned facilities to ensure they remain safe and competitive with industry standards.

Sample Measures of Success:

By 2011

·        Establish an annual capital budget allocation of 1% of the insured value of the facilities that can be used each year for the highest priority capital expenditures

·        Establish a capital reserve of .5% of the insured value of the facilities that is available to address emergency and unforeseen but essential capital improvements

Efficiently Manage Assets – Increase facility occupancy levels at competitive rates, while simultaneously focusing on efficient operations, to reduce facility subsidies and maintain high quality operations and service, and ultimately increase bottom-line revenues.

Sample Measure of Success:

      Immediate

·        Strong customer satisfaction ratings for each facility

By 2009

·        Reduce subsidy percentage for RSCC

·        Eliminate subsidy for golf properties

Develop Special Events Funding Philosophy – Develop and implement a reasonable special events philosophy and funding system that ties to increasing room nights and ADR and/or measurably increases brand awareness and propensity to visit Reno-Tahoe.

Sample Measures of Success:

         Immediate

·        Establish consistent funding levels with the RSCVA budget

            By 2008

·        Develop a special events network resource that will assist special events with technical advice/assistance and establish a special events community committee that will meet monthly to discuss issues.

Address Average Daily Rate – Hold educational activities and provide occupancy tools which will help area hotel properties make wise pricing decisions. An increased ADR will positively impact the RSCVA budget providing increased dollars to sell and market the destination and enhance the customer perception of Reno-Tahoe, as well as make it possible for area properties to continue to renovate/expand, and increase the likelihood of attracting traditional national convention business brand hotels to the marketplace.

Sample Measures of Success:

Immediate

·        Annual ADR increase for cash occupied rooms

By 2009

·        Annual ADR average at least mid range with competitive convention cities and  approaching the Federal Per Diem reimbursement rate for Reno-Tahoe

Discussion:

            Group A

·        Golf – How do we get out of it? Political ramifications? Who owns them? RSCVA does not own the land at Northgate, but does at Wildcreek.

·        Convention Sales – Depends on how effective Ellie’s team and individual hotel sales teams are … must start showing results.

·        Do we have enough quality rooms?

·        ADR – stop giving it away. Reminder – it’s not our choice and not that easy to just raise the ADR.

·        Lift – need more options for flights.

·        Capital improvements – RSLEC must be renovated quickly. Must come up with a capital improvement program.

Group B

·        ADR – We must make it a top priority. Ellie being new must preach to the operators that we have got to change it. Can’t have collusion in pricing. If everyone went back and increased all rates by $5 – if we all did it – our competitive edge would not change against each other – our competitive advantage to other cities would still be lower, but an impact to the RSCVA bottom-line would be tremendous.

General Feedback:

·        Reno-Tahoe, America’s Adventure Place – Silver Legacy is going to open the Adventure Desk, a place where people can find out about other activities available in the market.

·        Research? Has there been any to validate that it is working? Men’s Journal indicated our destination was the #2 best adventure destination. Giving us an umbrella that is working and we are now evolving it to apply to the meetings & convention market. How do we make the connection between the adventure destination and meeting destination? Just starting to get traction. We should be sensitive to not changing the brand at this time.

·        NCOT – micro study of the city of Elko – the outdoor adventure is the competitive advantage. They have proven that there are positive impacts associated with the change in how they market the destination capitalizing on the outdoors.

Public Input Meeting Notes

Overall

Raise the quality of people’s perspective

President & CEO who wants more from the community

Mission Statement Comments

·         RSCVA can’t do alone, needs community partnerships, collaborative approach, teamwork

·         Stakesholders should be represented into the mission statement; develop a stronger brand awareness for AAP to the business standpoint, disconnect between Reno – Tahoe and the attractions offered; better define the business segments; begin developing awareness for the hotels and the attractions, but low awareness of it

·         Not enough emphasis to promote attractions outside the casinos, many other attractions within driving distance that we don’t promote enough; concerned about Wildcreek; stress facilities when people come to town and the amenities available; evolve the community in what you’re doing; invest in the facilities operated by the RSCVA and promote on a year round basis

·         Stronger statement and more competitive and that we have more to offer than the cities that are in our competitive market

·         Put Reno-Tahoe first; align and leverage with those that have become more regional such as the airport

·         Should be aspiration and put a definition on the quality, spending power and demographic of our visitor to better go after those that would be willing and the ability to pay for the amenities; raise the demographic spending power; would spend more if the attraction was there

·         Casino’s role to keep people in with the community that wants to attract visitors and how those two are in conflict of each other

·         Is this mission statement in relation to the current model of the RSCVA (Washoe County) to be regional within an area that is regional with attractions outside the county and in California;

·         Investment by properties like Stations, Atlantis and Peppermill, but is there got to be something we’re missing in relation to the average daily rate; how does the transportation industry help reach out with the regional approach; grow the rate and then find out how it works with the redevelopment efforts

·         Daily rooms versus those during large events and those bring in people that are spending more on rooms and their visits; need to do something with the convention market in relation to the events and expand and do more for them; would like to see new events

·         Projects like Cabela’s will add to the amenities and provide a tourist attraction that we benefit from and they are the investors; build up attractions and facilities and make it attractive enough it can become an attraction and to support those and so that visitors have more to do to add to their visit and experience; leveraging businesses

·         Match the mission to the slogan and or incorporate; not sure of AAP matches to the convention traveler

·         How excited are the people that live in the community? That will help bring people as well as enhance the visitor experience and bring in visitors; leveraging local support; locals are getting excited about the revitalization and will get them here and help build the area and make the entire experience more enjoyable

·         Nothing that indicates excellence or world-class; consider incorporating

·         Leadership helps define the role of the RSCVA

·         Our unique personality attracts people to visit, how do people perceive our personality?

·         Some groups that like to come for some reasons and other choose to go other places; based on the perception and getting the right groups

·         The personality of our market; everyone likes to feel like a VIP; friendly people

·         We have the world’s best climate and we have so many assets that are not well used; not aware of our attractions in some areas; confused and concerned about room prices, would go with the lower price; people are looking for more action and our attractions beat those of many other places

·         Change the perception of our community and not rely on gaming not being the central point; there is not a consensus between RSCVA, cities and county; investment in the RSLEC is helping to make it more attractive 

·         Word adventure might be excluding some, maybe fun; look at the demos; younger audience is a small segment in comparison with Baby Boomers

Dick – Stronger role in shaping the industry, backed by strong leadership; summarize –

Regionalization, Quality, Special events and Attractions, Leadership, Community agreement

RSCVA Businesses and Core Services

·         Lack of awareness of what we have in the marketplace; focus on marketing our product; have to take a hard look at the facilities and what are cash drains on the facilities and are not vital to the mission of the RSCVA

·         Maintenance of facilities

·         Changing the model might be the thing that comes out of the discussions and if we look at it as it is now, we’re disregarding looking at central services if it changes; based on the current model, the money we are spending to attract our visitors is dismal compared to other markets; bet a better balance with our marketing dollars

·         Filter on it; events, marketing and sales dollars or amenities it should be attracting visitors; outside would benefit the residents

·         Agency is in a crisis; generating dollars will not happen in the short term; in the short term you need to have a crisis management plan to determine how to move forward in the process and then determine what’s important; in the process of doing that and look at the assets and what are critical for the agency and needs to take something off the books so that there can be an infusion of dollars so that they could move forward

·         TIS more inclusion of Reno as a destination to visit

·         Dick – How can you make the facilities productive

·         There’s something that’s bringing people like Safari we need to find that out; our city-wides are key to the successes of our community and if we don’t put marketing dollars toward building that then we’ll loose them; taking large event like Safari Club, they are not selecting us based on the room rate

·         Marketing dollars has a need to balance, business, recreation and gaming to partner

·         We have Safari because of the RSCC, but if we don’t have top quality places for people to come and stay, that will become an issue

Dick – Marketing, research, raise quality of area

Key Issues

·         International tourism building; have to look ahead for tourism and look to build those markets now to grow for the future; have RSCVA continue to work with the NCOT on international new markets

·         11 million millionaires in China, they love the western heritage and gaming

·         Erin Fitzsimmons, RTC – Partnership within the community; focus on partnerships

·         Look at it as a great place to visit; is it really a good place to visit; how can we promote that when asked by visitors; make it easier to look and access; can we make it better; how do you make this a uniquely great place to visit

·         To develop out uniqueness and define it for the visitor; factor that in especially in consideration of downtown redevelopment; redeveloped areas might have an adverse affect right now

·         Importance of creating new events; continue to grow those that make us unique; regenerate ourselves

·         Reno is beautiful; Sunday drive service and drive around the city

·         Not sure if this is a great place to walk around town, what’s the appeal factor; city of Reno needs to continue with its redevelopment; education with locals about what’s available; time to reach out to one another; team work and be cooperative in our efforts

·         TIA according to study – dining, shopping and entertainment; quality of entertainment is the same as the Indian gaming properties; elevate the quality and bring them to Reno; that would be an attraction

·         Encourage everyone to go downtown and check it out; there’s something going on; the downtown area is growing and becoming better; a campaign for locals to support and see what’s going on

·         Do we spread our wings outside of Sacramento and No. Cal. or do we look at different segments or look at vertical segments; re-look at who we talk to;

·         Perception, we haven’t done a good job educating the community about what the role and importance to our economy and is one of the most efficient of our community – letting people know that RSCVA is more than just for the gaming properties; break the mold and think outside the box and that the funding mechanism and that its model might not be right considering the current environment and look at other areas

·         Shopping and what its looking like downtown; improve the quality

·         Arts and museums; improvements at the National Automobile Museum; success of Artown and what it has to offer

·         Marketing is important, collectively for what we’ve had to work with we’ve done a good job spread the word; where’s the money coming from?; do you want to be in the property business or in the marketing business and enhance the regional product

·         Partnerships and spread it out to the local business economy and make our convention travelers welcome and how we can make them want to come back; sell them while there here; exceptional service; provide a warm welcome and we can do this based on our size of the community

Public Meeting Invite

Ellen Oppenheim, RSCVA CEO & President

The strategic plan for the RSCVA is an important project to help determine the future direction of the RSCVA. In recent years, the RSCVA has not looked very far ahead. I believe that we need to develop a strategic plan that provides the organization with a road map for at least the next three to five years. We need to do it in a way that reaches out and encourages community participation and develops a shared vision of the future. Joining our team in a facilitator-consulting capacity for this project is Dick Bostdorff. With his background as VP and General Manager at SBC/Nevada Bell, Chairman of EDAWN, and service on the Nevada Commission for Economic Development, plus over a decade in Reno, his guidance will be helpful in reaching our goal.

We are beginning the process of gathering input now, with a goal of having a draft plan by February and adoption in March or April, 2007. We would appreciate your time at the first community meeting on Tuesday, November 7th at 6 p.m. in the Reno-Sparks Convention Center room B-6. We will be discussing and soliciting your input on the mission, services and big issues related to the RSCVA role and responsibilities.

I hope to see you on November 7th! Please RSVP to Charlotte at canderson@rscva.com no later than Thursday, November 2nd.

If you are unable to make the meeting, my strategic plan blog will be updated regularly as developments present themselves. This tool is another way to invite your input and participation. We hope you will take the time to post your comments. Check back for regular updates.

Public Input Meeting Notes

Key Issues

• New mission better than old – puts meat on the bones.
• Heritage tourism (history) is very important. Specifically RSCVA promotes heritage tourism reasonably well, but seems like an after-thought. Needs more focus on the value of the heritage of northern Nevada? Travel Industry of America sites that heritage travelers spend $623 vs. $427 per trip and stay 5.2 nights vs. 3.4 nights and 10 million overseas visitors come to U.S. for heritage tourism reasons. Nevada Commission on Tourism has an office in China. People think of the “old west” as something special in Reno. It’s been minimalized and should be a priority.
• Cooperation among RTIA and RSCVA is crucial to the success and using history to connect the region would be mutually beneficial.
• Levis jeans were invented in Reno on Virginia Street and there is a plaque directly across from the main entrance of Harrah’s on Virginia Street.
• Raise the ADR will help across all RSCVA efforts.
• Reno has a problem with its self-image. The marketing is narrow. Expand from just gaming and adventure. America’s Adventure Place – the word place is the wrong word. Sounds like we are talking to kindergartners. We need to think of another way to promote the destination. Indian casinos are not the threat we thought they would be and Vegas is our main competition. Vegas is fake. Reno is real. Real mountains, real lake, real cowboys, real fishing etc. “Reno the real deal” is the suggested tagline. RTI students have worked up a campaign. Encouraged RSCVA to consider the concepts.
• We have a perception problem. Disagree with negative comments about Reno-Tahoe, America’s Adventure Place (RTAAP). Vegas positioned as a family-destination and it did not work. Cautioned RSCVA to examine tagline as relates to the Vegas experience.
• 9% of visitors ski
• 18 major ski areas – largest concentration of ski resorts in Northern America – do we do enough to fulfill on positioning through RTAAP?
• Need to stop subsidizing Street Vibrations and Hot August Nights and put more focus into the winter sports offerings.
• I have 30 years experience in luxury hotel business and new to Reno – the slide with the rates was shocking. That is a mission that I have taken personally. I will not play in the game – it is self-defeating as it lowers the marketing budget. 53% spent on hard assets. $4.5 million on marketing is chump change. RSCVA has no business running hard assets. RSCVA should be laser focused on generating tourism solely.
• $66.83 ADR is unbelievable. We need to turn the negative into the positive. RTAAP broad and general. We have advantages here. Value and cheap are two different things. We can market using the value proposition like Southwest Airlines and Target. Reno has the opportunity now before we become a mature destination.
• ADR is a hard issue. To get all hotels to work together would help. RSCVA should lead the way. Downtown properties work together to make downtown safe and support the new developments in town.
• Dick – there have been recurring themes – we are consistently hearing that it may not be the mission of the RSCVA but RSCVA, EDAWN, Airport, all hotel properties (etc) must all work together.
• Labor pool is low quality. Hotels need to pay higher wages.
• RSCVA should push variety and access.
• ADR is a critical issue. Gaming brings the rate down b/c they are designed to get people in and are subsidized by gambling to make up the revenue. We have to keep in mind that we are a gaming location. The ADR can still be raised, but gaming must be taken into consideration when comparing.
• Need to focus on gaming. We have moved away from it. It is still the main reason for tourism.
• Need to clean up downtown.
• Need to reinvest in properties.
• Need to invest our dollars in marketing. If golf can’t support itself then you should sell it.
• Casinos need to collaborate more on visitor experience to encourage the revisit.
• Question – what are the properties saying about the ADR?
• August room tax was record high – $77 ADR.
• All general managers say it should be higher. Need to have collective courage.
• RSCVA considering building a revenue management tool so that there is a place that revenue managers can see exactly what the occupancy levels are at on each particular day.
• RSCVA needs to provide meaningful data to make smart decisions based on what is happening in the market.
• RSCVA needs to book more convention room night occupancy levels to provide the base for hotel room nights.
• Why are you the organization that collects room tax?
• Can you divest of assets (facilities)?
• Do we study other cities best practices? Ellie responded yes and will continue to evaluate.
• Ellie response to divesting of assets: RSCVA needs to narrow the focus – however another thought – if we manage facilities well they should be a competitive advantage for the destination if we can do it in a cost-effective way.
• Tonight there are three sales managers hosting 28 potential clients at a dinner in Washington, D.C..

Group Input Exercise on RSVCA Core Services and Budget Allocation Percentage

Non-Fixed Costs          Current %        Group Input %

Facility Operations         41.8%               13.2%

Golf Operations             11.9%               2.4%

Special Events              1.9%                 12.8%

Convention Sales          17%                  20%

Tourism and Marketing   15%                  36.8%

Room Tax Collections    1.7%                 2.8%

General and Admin        10%                  8%

Visitor Centers/Services 0.7%                 4%

·         Is there one segment that will have more weight as you consider input?

·         Objective is to get equal input from all properties. Expectation is that there will be some common themes.

Public Meeting Invite

We are interested in what you have to say in regards to the Strategic Planning process for the RSCVA. If you were unable to make our first workshop, mark your calendars for the second opportunity. The RSCVA will host another community workshop on Wednesday, November 15, at the Reno-Sparks Convention Center in meeting room D6 from 6:00 – 8:00 p.m..

Please RSVP to Charlotte Anderson via email at canderson@rscva.com or call her at 827-7618 no later than Monday, November 13 about your participation on November 15.

Thank you for your continued support.