Convention authority announces layoffs to redirect budget funds

RENO -- The Reno-Sparks Convention & Visitors Authority is eliminating jobs so it can redirect budget money toward promoting the area to reverse a continuing downturn in the number of visitors.

The agency confirmed on Tuesday it is cutting 14 jobs and leaving three vacancies unfilled so it can reallocate $1.1 million into marketing. The layoffs are effective immediately.

RSCVA President and CEO Jeff Beckelman said the money is needed to tout the region, particularly to large conventions like the Elk Foundation, the Safari Club and the Boat and RV Show.

Washoe County hotel room occupancy has declined in the first three months this year, compared with 2002, agency officials said. Room taxes account for about 85 percent of RSCVA revenue.

"We're trying to stop this erosion of visitation," Beckelman told the Reno Gazette-Journal on Tuesday. "We found that there was not enough money for marketing to affect the short-term, with regard to the drive-in market and the short-flight market."

"I think it's a decision that had to be made," said Sparks Councilman and authority chairman Phil Salerno. "I don't think we had any choice."

In a statement, the agency cited continued U.S. economic woes, increased gaming competition, the threat of terrorism and the war in Iraq among the reasons for consistent decreases in the area's room tax revenues.

However Judith Borders, visiting from Florida, told KOLO-TV her plane was full. "The war's not something we'd take into consideration," she said.

For the fiscal year that ends June 30, Beckelman said the marketing budget was $2.7 million. Without reductions in staff, the marketing budget for 2003-04 would have been $2.6 million. Now, it will be at least $3.5 million, he said.

The layoffs include three jobs in the finance department, one at the Reno Livestock Events Center, one at the Reno-Sparks Convention Center, one at the Wild Creek golf course, one travel industry sales person and seven from the convention sales department.

Those laid off received four weeks severance pay and benefits through June 30. No senior executives were let go, although KOLO reported they won't be getting any bonuses or raises.

"What is going on here in Reno is pretty much indicative of what's going on around the country," said Jon Rosensweig, whose position as national trade show sales manager was eliminated.

"I've been to a number of trade shows since the beginning of the year and attendance is way down. It's a trickle-down effect. We're no different than the rest of the U.S."