Tuesday, August 11, 2009

Nevada "Poaching" California Businesses?

If California Governor Arnold Schwarzenegger wants to battle Nevada to keep business here, he need only point out that when California loses jobs, Nevada Casinos probably lose customers in the same proportion. According to a study done for the Las Vegas Convention and Visitors Authority by GLS Research, some 28% of visitors to Las Vegas in 2008 were from California. That is almost one third of all the visitors from the USA to the neon city. And the percentage was even higher in prior years. Why else would Nevada Senator, Harry Reid be interested in a high speed rail line from L.A. to Vegas?

Here's a modest proposal. The Govenator might suggest that Californians take a 30 day hiatus from travel to the gambling mecca on our eastern border. He could temporarily "terminate" the flow of California's silver to the Silver State. Maybe then Nevada Governor Jim Gibbons, and Las Vegas Mayor Oscar Goodman might notice the 800 pound guerrilla in the room. This would have the additional benefits of reducing traffic and air pollution in the dessert, and might also be a boost to California's own gaming and entertainment venues.

L.A. Chamber President, Gary Toebben, says that he takes the threat of losing buisnesses seriously. But he rightly points out that the current economic situation demands immediate attention and relocating won't change that. In truth, this Hatfield-McCoy style battle for businesses benefits neither state. It would be far better to work together to improve infrastructure, and cooperate on trade and transportation issues. If western states cooperate, they may find innovative solutions for some of the common problems we all face like energy, water, agriculture, illegal immigration, and health care. Seriously addressing these issues with less rancor could help build the economies of both states.

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