Cancelations or postponements have hit more than half the conventions and business events that were scheduled in and around Reno through June, and the plunge in hotel occupancy could seriously curtail operations at the agency responsible for marketing the northern Nevada gaming hub.
The Reno-Sparks Convention and Visitors Authority already has cut expenses by 40 percent through June 30, as the room tax collections on which it depends have all but disappeared in the wake of the Covid-19 epidemic; and last week, a meeting of the authority’s board conducted via teleconference was presented with a worst-case scenario in which the authority could be forced to shut down all but essential functions such as finance and room tax collections.
The Reno Gazette-Journal reported that of 61 groups scheduled to hold conventions or conferences between March and June 12 have canceled, erasing more than 9,500 room nights. Twenty-three have postponed their events, accounting for more than 51,000 room nights. Another 26, accounting for more than 66,000 room nights, have not decided either way.
“Some of the groups that postponed are looking to move into the June-July time frame,” said Mike Larragueta, RSCVA vice president of sales. “There’s constant communication with clients and stakeholders.”
It is also likely that the number of cancellations or postponements could increase depending on the course of the epidemic.
Another option discussed on the call was pay decreases for staff, but as CFO Robert Chisel noted, salaries represent only about 13 percent of the authority’s budget, while the more substantial expenses involved in maintaining and improving its facilities will still need to be funded.
“We have a number of capital projects in mid-operation and haven’t been able to shutter them because the costs would be more,” Chisel said.
Board member Don Kornstein, a director of Caesars Entertainment, argued on the call for more aggressive cuts, saying, “You don’t know what happens to an agency like this if we run out of money. We need to be able to stay in the game and have as much runway as we can possibly have.”
Board member Andy Chapman, who also serves as president and CEO of the Lake Tahoe Incline Village Crystal Bay Visitors Bureau, took a different stance, cautioning against actions that could impair the authority’s ability to steer the market through its eventual emergence from the crisis.
“I think we’ve got to be careful that we’re not cutting to the point where we’re not in position to recover. We need to be ready when we start peeking out of this.”
The organization is also looking at the possibility of the Reno-Sparks Convention Center being turned into a federal emergency center, a move that would generate additional funds but also make the facility unavailable for events. The Gazette-Journal reported that federal officials were planning to visit the convention center to assess its usefulness.
Another RSCVA facility, the downtown Reno Events Center, currently is being used as a shelter also.
