California and Nevada are the only states in the country that still use the old paid-for-stay system that relies on state agencies to help residents stay in hotels, motels, and other guest-catering services.
But those states also continue to pay hotels and motels to host and operate their services.
That means that, for some residents, those services have not been available.
“If you’re a Nevada resident, you may have paid for a hotel room to stay in for a week or a month or even longer,” says Tom Reedy, an economics professor at the University of Nevada, Reno.
“And you may not have had access to a hotel to stay there until a year later.”
That’s because Nevada’s hotel and motel industry is part of a national trend that is changing how hotels are paid for their use.
In many states, the industry is not profitable, and the state of Nevada has seen its revenues shrink from a peak in 2008 of $1.6 billion.
But Reedy says Nevada’s hotels and motel industry has a bright future, thanks to a combination of tax incentives and incentives from the federal government.
In 2016, the Nevada Legislature passed a bill that provides incentives to help businesses in Nevada.
Reedy and other economists say Nevada’s hospitality industry is on the verge of creating a new revenue stream, one that could be even more significant than the hotel and motel industries that have long provided a source of revenue for the state.
“Nevada is at a point where it’s more than likely that this new revenue could be as big as the tourism industry,” Reedy said.
“There’s a big potential there.”
Reedy, along with the University at Buffalo economists David W. Smith and Steven L. Guglielmi, recently published a paper on the state’s hospitality sector.
Their study found that while Nevada hotels and the hospitality industry overall are still struggling, the hospitality sector in the state is making significant progress.
Nevada’s tourism industry is the fifth-largest in the United States, according to the Bureau of Economic Analysis.
And the tourism sector accounts for nearly half of the state government’s revenue, according a study released in March by the Legislative Fiscal Bureau.
In a study published in February, Nevada researchers found that the state economy is growing by 7.5 percent in the first quarter of 2020.
Reeds research suggests that that growth could be higher.
“I think it’s a pretty impressive job that we’re doing,” Reeds said.
Reedy says that the recent growth in the hospitality and tourism sectors may have started in the last couple of years, but that it’s unlikely to continue indefinitely.
He says Nevada could see a new growth rate of 3.2 percent over the next few years, which is “really dramatic” for the tourism and hospitality sectors.
That growth would also have a big impact on hotel rooms and motocampuses in Nevada, and potentially on the hotel industry as a whole.
Rees research suggests hotel occupancy rates are falling in Nevada as well, which could affect the hotel sector’s prospects for continuing to grow.
“This would have a major impact on what the hotel occupancy rate is going to look like in the future,” Rees said.
“In addition to having a much higher hotel occupancy than the general population, we could also see that occupancy rates in motocamps are going to decline because of the decrease in occupancy rates,” he added.
The economic impact of that change would be huge, Reedy adds.
“Hotel occupancy rates have been trending down for a long time, and they’ve been declining for decades.
But what that would mean in the near term is that Nevada could be at the very bottom of the list of places where the hotel business is operating,” he said.
While Nevada is still facing challenges to keep up with the growth in hotel occupancy, it’s possible that the tourism economy could see some of that growth offset by a significant reduction in hotel rooms.
“What the industry needs to do is look at the trends and see if they can mitigate some of the negative impacts of this change,” Reys said.
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