Speaking for Nevada - July 2003

Travel and Tourism in Southern Nevada:

Boosting Our Allure and Economy

by Harry Reid

The travel and tourism industry in Nevada is the basis of our economy. When travelers face unexpected obstacles or increased costs when traveling to our state, they are discouraged from visiting. In order to help boost our state’s economy while making it more convenient for people to visit Nevada, I have been working to decrease travel time in the airports and to reinstate tax deductibility of spousal travel on business trips.

The Transportation Security Administration (TSA) recently announced plans to cut the security checkpoint workforce at McCarran International Airport. In order to comply with the White House’s proposed budget, the TSA has proposed eliminating 149 security screeners, nearly 15 percent of the already understaffed workforce. This would have meant that the checkpoint workforce at McCarran would be decreased from 983 to 834 workers by September 20. The plan would not have affected the number of TSA screeners at Reno/Tahoe International Airport.

The timing of this proposal was damaging, as it came at a time when several airlines announced they were adding flights and seat capacity to the Las Vegas market. The announced decrease of TSA service at McCarran would have had an immediate adverse financial impact to our recovering travel and tourism-based economy.

In addition, this decision would have had severe customer service ramifications and could have driven short-distance leisure travelers to their cars during peak times. About 63 percent of McCarran's traffic is from short-haul locations, or markets that can be reached through flights lasting two hours or less. A decrease in the number of security checkpoint workers would increase the time it takes for travelers to get through checkpoints to their flights. This increasing delay might be enough to deter leisure travelers from traveling to Las Vegas by air – or altogether.

Las Vegas’ McCarran Airport has the second largest number of origination and destination passengers in the entire nation, which means it processes more people through TSA security checkpoints than every other airport except Los Angeles. TSA screening personnel demands at McCarran – when measured in terms of passengers requiring screening – far exceed many airports that actually handle fewer passengers, but have more screeners. Other airports are actually getting additional TSA screeners even though they handle fewer passengers.

I and the other members of Nevada’s Congressional delegation called on TSA Administrator Admiral Loy to re-examine the details of TSA’s plan to cut the screeners at McCarran International Airport. We met with Loy to discuss McCarran’s growing security needs and the impact of these cuts on the Las Vegas travel and tourism-based economy.

We will continue working to boost the travel and tourism industry in Las Vegas and make it an enticing destination for all travelers. To accomplish this goal, I introduced, and the Senate passed, legislation to boost Nevada’s number one industry by making business travel expenses tax deductible for spouses and dependents, encouraging more Americans to travel and promoting longer trips.

This legislation offers an incentive for business travelers to bring their spouses and children with them when they travel. This will mean more people flying, eating out and shopping while at convention destinations such as Nevada. It will provide critical help to parts of the country that are economically dependent upon tourism, by targeting incentives in exactly the right place.

The legislation will take effect from the date of enactment until the end of next year, giving an immediate incentive to encourage more family travel and additional tourism spending. Spouses and dependents will qualify if they are on any kind of business purpose, such as a convention that includes a dinner for spouses or if spouses help network or market during the trip.

Until 1993, business travelers and their spouses could deduct portions of the cost of a trip. Under current law, a business traveler can deduct expenses, but a spouse may not. The change in the law has discouraged workers from traveling with family members.

Over the past two years, travel and tourism-dependent regions, such as Nevada, have weathered the effects of Sept. 11, the wars in Iraq and Afghanistan, the airline financial crisis and the SARS epidemic. The travel and tourism industry has borne a disproportionate share of the country’s present economic downturn. It is important that Nevada remains a convenient travel destination, and that people are allowed to save time while traveling, and given economic relief as well.

Reviewing the TSA plan as well as enacting the spousal tax deduction legislation will help return these sectors of the economy back to some of their previous vigor.