NORTH LAKE TAHOE, Calif. / Nev. – An economic report delving into the impact of travel on the North Lake Tahoe region reveals many key metrics increased between 2022 and 2023.

Folks at Travel North Tahoe Nevada and North Tahoe Community Alliance say this is an indicator that tourism continues to be the primary driver of North Lake Tahoe’s economy.

“It validates the other bodies of research that have been conducted,” Andy Chapman, president/CEO of Travel North Tahoe Nevada said, “confirming the fact that tourism is vital to the success of both our economy and business community.”

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The report, prepared by Dean Runyan Associates, uses metrics such as spending, employment, earnings and taxes to measure the impact travel related tourism has had on North Tahoe regions, including Tahoe City, Carnelian Bay, Tahoe Vista, Kings Beach, Crystal Bay, and Incline Village. 

Here are how certain aspects of those metrics played out between 2022 to 2023:

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• 3.7% increase in travel spending 
• 370 jobs gained 
• 11.2% growth in earnings 
• 2.1% increase in tax revenue 

The report reinforces what many already know. “I think almost every business here in some way is catering to that travel,” Amy Wood said with Tahoe Dave’s.

The ski/snowboard rental and retail shop has a valued local customer base, but without tourism, Wood explained, it likely wouldn’t expand to its six locations during peak winter season.

According to the report, recreation, along with arts and entertainment, raked in the most travel spending at $383.4 million in 2023. Tahoe Dave’s, which has three year-around retail stores, expands to its six locations with ski/snowboard rentals in the winter, capturing that recreation market revenue.

Food service was another top travel spender at $364.6 million. David Renkert, owner of the well-known Tahoe City restaurant and brewery, Tahoe National Brewing Company, also has a dedicated local base but a large percentage of revenue comes from visitors. “Like most restaurants up here,” Renkert said, “we depend on tourism to stay afloat.”

Tahoe National’s operations mirror peak tourism, with staffing, menu, and event planning all reflecting that.

“Our entire operation is built around anticipating those travel waves,” Renkert said.

Another front runner, accommodations, brought in $379.2 million in travel related spending in 2023.

The report, done annually through Travel North Tahoe Nevada and North Tahoe Community Alliance, offers many data points that were expected, while others were a bit of a surprise.

Employment

One of the key indicators within the report is employment. The report not only shows a gain of 370 jobs between 2022 and 2023, but also reports travel tourism directly generated 55.8% of jobs in North Tahoe. That’s roughly six out of 10 jobs.

“I’m actually surprised it’s not higher,” Wood said.

Renkert also felt the numbers seemed low.

Tahoe Dave’s has many employees who return year after year for the company’s busy winter seasons. When the company goes from retail in the summer to ski/snowbard rentals in the winter, their employee numbers more than triple.

It lends to the report revealing that recreation, arts, and entertainment had the most travel generated jobs in the region at 3,887 employees in 2023. That’s out of total of 9,070 travel generated jobs on the north shore.

Those industries falls just behind accommodations and food services, with 4,817 employees.

The report also shows an interesting discrepancy between the amount of travel generated jobs compared to travel generated earnings. The percentage of travel generated jobs are higher at 55.8%, compared to travel generated earnings, at 50.8%. Chapman notes the discrepancy is likely due to non-travel generated jobs potentially paying higher, while hospitality jobs are higher in quantity.

Strong average daily hotel rates

Some industry experts are scratching their heads at the strength of the average daily hotel rates in North Lake Tahoe. The report shows the average rate hovered around $400 for hotels, motels and short-term vacation rentals in 2021, climbing above $400 in 2022 and 2023.

An online search reveals the rate outpaced the average price in larger cities in 2023, like Los Angeles, San Francisco and Las Vegas.

“That’s due to, I think,” Chapman said, “to people getting out and about for the first time during COVID and continuing to do that to get to the outdoors.” The rate strength, as well as its holding pattern, continues to interest industry experts.

A part of its significance is that it drives transient occupancy tax, which gets reinvested into the local community.

California versus Nevada

Also of note in the North Tahoe region, which spans both California and Nevada, are the differences the report reveals between states. California’s numbers appear to have increased more than Nevada’s in 2023.

California/Nevada numbers from 2022 to 2023:

• Overnight visitor volume increased 1.8% in California and 1.2% in Nevada
• Direct travel-related spending increased 4.1% in California and 2.3% in Nevada
• Direct earnings from travel grew 12.2% in California and 6.4% in Nevada
• Direct travel generated employment, 300 jobs gained in California and 60 jobs gained in Nevada
• Direct tax revenue saw a 2.8% increase in California and 0.3% in Nevada

Longterm numbers

Travel spending in North Lake Tahoe amounted to $1.32 billion in 2023. That’s up $46.6 million from 2022. Chapman, who’s been looking at these numbers for years, finds the longterm trend of travel spending particularly noteworthy.

For example, that same number ten years ago was $725 million, meaning travel spending has almost doubled in less than a decade.

He notes that comes with very little infrastructure changes, such as no new hotels, although short term rentals have come into play.

“Part of what we’re dealing with now is obviously the impacts of those successes,” Chapman says, whose organization, Travel North Tahoe Nevada, has shifted from destination marketing to destination management, having a role on the Lake Tahoe Stewardship Council.

The impacts are something many sustainably minded companies take into consideration.

“We see the impacts of over-tourism firsthand—trash left behind, crowded roads, strain on infrastructure. It can be discouraging,” Renkert said, “but in the end, we’re lucky to live and work in a place this beautiful.”

Tahoe National leads by example, demonstrating to visitors how to enjoy Tahoe with respect for the land and community with many sustainable practices such as using compostable straws, never selling plastic water bottles, and using recycled fiber to-go cups.

For the full report visit, gotahoenorth.com/benefits-of-north-lake-tahoe-tourism/