A new report from the nonprofit Tahoe Prosperity Center says the Lake Tahoe region must diversify beyond tourism in order to thrive. Tourism now accounts for more than 60 percent of Lake Tahoe’s $5 billion economy, up from 40 percent in 2010, the report said.
According to the Associated Press, the report highlighted multiple challenges facing the tourism-reliant economy, including the Covid-19 pandemic, which called a halt to travel for most of 2020. And last summer, a devastating wildfire hit the region, forcing evacuations and shutting down casinos on the Nevada side.
“Exorbitant home prices, the high cost of living, long-haul commuters, a shortage of workers and a flat to down economy over the past 10 years point to an economy that is not healing itself, nor resilient to disruptive changes that impact visitor-based economies more deeply,” the study said.
“Relying so heavily on just one industry for residents’ livelihoods and tax base for schools, health care and public service is a risky proposition,” the report concludes. “And the risks are mounting due to economic downturns, worsening wildfires and changing weather patterns.”
About 15 million people a year typically visit the Lake Tahoe area to ski, hike and enjoy the lakefront beaches.
“On its surface, the Tahoe Basin economy appears strong, powered by billions of dollars in annual tourism spending and skyrocketing real estate values,” the report said.
But a deeper look reveals the local economy “isn’t working for many residents who are struggling to find living wage employment and affordable housing,” it said. “This is accelerating an existing workforce shortage across Tahoe’s service-based economy.”
The report was underwritten by the U.S. Economic Development Administration.
