Washoe recovery on track as room tax revenue down just slightly from pre-COVID levels

Just a year after COVID-19 first showed up in Northern Nevada, Washoe County’s tourism and travel sector is showing promising signs of recovery with room tax numbers down only slightly from pre-pandemic levels.

Washoe generated nearly $71.6 million in room tax revenue during the first three months of the year, down less than a percent from nearly $72 million in 2020, according to the Reno-Sparks Convention and Visitors Authority. Washoe’s room tax numbers for the first quarter of this year were also down by less than 15% compared to 2019. That year, Washoe posted room tax revenues of $83.9 million for the first quarter — about a year prior to the pandemic.

Although cash-occupied room nights — an industry term for paid room nights — were down by 6.4% in the first quarter of this year, the average daily rate for rooms rose by 6.3% from $113.38 to $120.48.

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“Northern Nevada has been somewhat insulated due to the destination’s outdoor amenities, arts and culture, and the draw of gaming entertainment,” said Charles Harris, RSCVA president and CEO. 

“The growth of business travel via an enhanced and diversified economy ... is also directly contributing to the relative, sustained success.”

The solid room tax numbers are a far cry from June of last year, when an 89% drop in room tax revenue for April fueled concerns that the RSCVA could potentially run out of money. The RSCVA ended up implementing austerity measures as a result, which included salary cuts for employees.

In another sign of recovery for the area, Washoe County also posted $799.2 million in taxable sales for February. The number represents a 14.4% increase from the same month last year.

Mike Kazmierski, president and CEO of the Economic Development Authority of Western Nevada, credited the region’s more diversified economy for the strong sales tax numbers.

“Unlike Las Vegas, which is dominated by gaming and tourism, most of our economy is at work — manufacturing is at work, logistics and distribution are at work, tech workers are working from home but they’re still at work — people are still getting paid,” Kazmierski said. 

“There are businesses that are obviously still struggling and you have to respect that but I’m out in the community every day and it’s gotten pretty busy.”

The recovery is also being seen at the Reno-Tahoe International Airport, which is entering the summer with the highest number of nonstop destinations in its history. The airport just announced several new routes recently, including new seasonal flights to Orange County from Southwest Airlines and Palm Springs from Alaska Airlines.

The question now is what impact reopening will have on new COVID-19 cases. While the area has managed to keep its latest mini-surge in cases under control, the Washoe County Health District is also urging continued caution in order to avoid a big surge during the summer months.

The county’s board of commissioners just recently voted for a gradual reopening in May. Nevada is also eyeing a June 1 target for fully reopening the state with most restrictions lifted.

Interest in companies looking to relocate or expand to the area remains strong and EDAWN expects a continued recovery for the economy for the rest of the year, according to Kazmierski.

“We’re pretty much open already,” Kazmierski said.

Jason Hidalgo covers business and technology for the Reno Gazette Journal, and also reviews the latest video games. Follow him on Twitter @jasonhidalgo. Like this content? Support local journalism with an RGJ digital subscription.