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Small businesses along the north shore of Lake Tahoe are hoping for good snow this winter to help them survive the economic downturn, which is putting a damper on Tahoe tourism.
INCLINE VILLAGE, Nev. - The effects of the ailing economy are washing up into the tourism industry of north Lake Tahoe, according to local business officials.
Don Cauley, owner of the Vacation Station, a local vacation home rental agency, estimated his profits are down 25 to 30 percent this fall.
Mark Pardue, general manager of the Hyatt Regency Lake Tahoe, said vacationers and business conventions are coming less often and spending less money at the hotel, resort and casino.
Don Cauley, owner of the Vacation Station, a local vacation home rental agency, estimated his profits are down 25 to 30 percent this fall.
Mark Pardue, general manager of the Hyatt Regency Lake Tahoe, said vacationers and business conventions are coming less often and spending less money at the hotel, resort and casino.
Among business owners polled on the North Shore, 93 percent said the economic downturn has hurt business, according to a survey taken in early October by the North Lake Tahoe Chamber of Commerce.
In the report, which is available on www.northlaketahoechamber.com, 46 percent of respondents also said the economy has affected their staffing levels.
That's true of the Hyatt, Pardue added. No jobs were cut, but the hotel brought in less staff than it generally does after the summer change-over this year.
"This has had a deep and dramatic effect on the resort," Pardue said. "We saw the first signs by spring of this year in relation to escalated oil prices, which affected our drive market from the Bay Area."
Similar trends are seen in rental properties, where early indications are that holiday bookings will be low this year.
"I'm seeing more of a trend toward downsizing," Cauley said. "People aren't looking at the luxury properties like they have in the past and are looking more at the condominium market."
In the report, which is available on www.northlaketahoechamber.com, 46 percent of respondents also said the economy has affected their staffing levels.
That's true of the Hyatt, Pardue added. No jobs were cut, but the hotel brought in less staff than it generally does after the summer change-over this year.
"This has had a deep and dramatic effect on the resort," Pardue said. "We saw the first signs by spring of this year in relation to escalated oil prices, which affected our drive market from the Bay Area."
Similar trends are seen in rental properties, where early indications are that holiday bookings will be low this year.
"I'm seeing more of a trend toward downsizing," Cauley said. "People aren't looking at the luxury properties like they have in the past and are looking more at the condominium market."
Gas prices a factor
Respondents to the chamber survey agreed that gas prices, which peaked over the summer, are hurting business: 49 percent said gas prices have had a high effect on a downturn in business, and 32 percent reported a moderate effect.
Guests also are arriving later in the week, staying for fewer days and spending less money in the spa, restaurants and casino, Pardue said.
"Business owners are wondering if this is only a seasonal drop or, if it lasts into winter, will (they) be able to hold out?," said chamber Executive Director Steve Teshara.
Local business people are hoping for a lot of snow to survive the larger recession.
"With a good snow year, most business can survive, but I think an additional number of businesses would close if we don't get good snow," Teshara said.
Help may come from Bay Area skiers who may typically take their business to the Rocky Mountain resorts, but may view the drive to Tahoe as a cost savings.
With continued turmoil in stock and credit markets and economists talking about a recession, business owners are starting to plan for a long haul.
"Initially, we thought this drop would last through the second quarter of next year," Pardue said. "But now, it's looking like it may last all the way through next year and early into 2010."
Teshara said he is counseling local business owners to visit with their financial advisors to form a plan for dealing with the tough economic times.
"With a good snow year, most business can survive, but I think an additional number of businesses would close if we don't get good snow," Teshara said.
Help may come from Bay Area skiers who may typically take their business to the Rocky Mountain resorts, but may view the drive to Tahoe as a cost savings.
With continued turmoil in stock and credit markets and economists talking about a recession, business owners are starting to plan for a long haul.
"Initially, we thought this drop would last through the second quarter of next year," Pardue said. "But now, it's looking like it may last all the way through next year and early into 2010."
Teshara said he is counseling local business owners to visit with their financial advisors to form a plan for dealing with the tough economic times.
