Nestled on the border of Nevada and California, Lake Tahoe is a pleasure-seeker’s paradise. Sun, snow and slots make this lake and its surrounding communities the No. 1 travelers’ destination in the United States, according to the 2008 TripAdvisor Inaugural Travelers’ Choice Awards.

The majority of Lake Tahoe’s shoreline lies in California territory, though South Lake Tahoe, California and Tahoe City, California share the lake and its amenities with Stateline, Nevada. Gaming is legal on the Nevada side of Lake Tahoe, and it is this combination of scenic beauty and urban excitement that draws tourists to Tahoe’s shores.

The recent economic turbulence has threatened businesses and patrons alike, and Lake Tahoe has felt the effects, though not as severely as its casino counterparts elsewhere in Nevada. The most recent gaming win numbers showed the state down 15 percent, while Lake Tahoe casinos’ win was down 4.7 percent. This small drop in comparison with the rest of the state is due to the area’s economic diversity, according to Ward Bullard, vice president of marketing for Harrah’s Lake Tahoe and Harvey’s Lake Tahoe.

“I think we’ve all been impacted by the softness in the economy,” Bullard said. “Lake Tahoe, because of its natural advantage of being a national icon, has probably done more to support our business because of the destination. People find their way to Lake Tahoe for a whole host of activities, and that economic diversity has served us well.”

Tahoe draws visitors from all over the world for its mix of leisure and sport, glitz and glamour. The Lake Tahoe Visitors Authority, the destination marketing organization for South Lake Tahoe, targets 24- to 55-year-olds—a relatively youthful, sporty group with plenty of discretionary income (though that tide seems to have turned).

The LTVA markets to regional customers in the summer and national customers in the winter. While the summer months are calm and cool, perfect for those escaping the heat of Arizona or California, the snowy months are when the area comes alive with skiing and snowboarding aficionados.

The organization has partnered with Ski Lake Tahoe, the area’s official winter sports group, to craft a message for a large destination market. This collaboration, which will result in advertisements in ski publications and other targeted formats, will likely draw more winter sporting enthusiasts to the lake.

The LTVA is also developing its online presence, which will contribute to its summer campaign, the details of which have not been released. Executive Director Carol Chaplin said hopes to make the organization’s website more interactive, with special promotions to draw value-oriented guests during the recession.

“That’s what people are looking for: what deals are out there,” Chaplin said. “We’re taking a look at lodging partners and attractions and activities. This is the year to create value for the customer and see if we can’t incentivize them to travel. That would be different from the pure image advertising that we would do in the past.”

Resorts in the area are also looking to draw visitors through value packages and other incentives. The recent rise in area casinos has hurt Lake Tahoe properties—Northern Nevadan and tribal properties have drawn customers away from Tahoe, particularly during the summer 2008 months when gas prices were skyrocketing.

“I think that anytime there’s added competition in your industry, you’re going to experience challenge with that,” said Steven Lloyd, general manager of Tropicana Entertainment’s Horizon and Montbleu resorts. “We’re having a better January than we did last year. That would suggest there has not been an impact from [recently opened California tribal property] Red Hawk Casino. I believe the most significant impact on our business, especially during the winter, is whether or not we have an ample supply of snow.”

So far, so good. In late December, Lake Tahoe benefited from an ample amount of snowfall.

“We’re doing quite well,” Lloyd said.

Tropicana’s two Tahoe resorts appeal to different segments of the visitor population. The Horizon has history: between 1971 and 1976, when the property was called the Sahara Tahoe, Elvis Presley performed there regularly. Presley was such a frequent visitor that a suite was constantly prepared for his arrival. That suite remains at the property today, and the Horizon has used this connection as a marketing strategy called “Elvis Is in the Building.”

The Horizon is also a value-oriented hotel and casino, priced for locals and visitors who are looking for the most for their money. The Montbleu, said Lloyd, also has value, but is not necessarily a value-oriented environment. The resort is home to the only four-diamond restaurant in the region, Ciera. It also hosts two nightclubs, Blu and Opal, which draw different visitors than Horizon.

Tom Davis, Horizon marketing director and former mayor of South Lake Tahoe, said in the current economic climate, marketing Lake Tahoe is easier than marketing most other destinations.

“People come to Lake Tahoe because it is one of the 10 most beautiful places on Earth. It just happens to have a great gaming environment as well,” Davis said. “There’s many other things to do: cross-country skiing, fishing, backpacking, boating. Nobody else has that offer. We’ve done a better job at selling the sizzle as a destination. Hopefully.”

Along with both a value-oriented casino and a high-end resort, Tropicana Entertainment is also benefiting from the slip in gas prices, which hurt the company when they rose rapidly last year.

Now things are in flux. Casino operators and residents hope the experience of Lake Tahoe, from gambling to snowboarding to cliff diving and beyond, is enough to keep the region above water.

“Generally speaking, I think when we look at other destinations that are struggling with economic conditions, we tend to be in the middle of that pack,” Chaplin said. “I think Lake Tahoe is doing quite well.

“I think there’s a perception of value when you look at our product which not only includes gaming, but also includes recreation, the name entertainment that the south shore casinos are able to bring in. I think when you’re talking about people making a selection about a destination, I think that we have a well-rounded product that perhaps is perceived by the customer as providing a really memorable experience.”

The economy may fluctuate, but one thing that will always keep people coming back for more is the lake itself.

“It’s very engaging with customers of all ages and all types of people that want to come and feel refreshed or reenergized by the aura of the lake,” Bullard said. “It’s obviously a destination that attracts people in all different seasons—spring or fall, as temperatures change. Some come all four seasons, and some are strictly winter or summer guests.

“Because the experience of Lake Tahoe is so much richer than just a hotel or just a casino or just a showroom…there’s so much for a customer to do, that really makes it a unique value proposition to customers, even in a tough economic period. They can’t have it all in other locations as much as they can have it all here.”

By Caitlin McGarry

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