Introduction to Hospitality business
Hospitality business is not a single stand-alone business area but an umbrella that covers several other businesses and multi-specialties. A tourism business in Nevada is an integral part of the industry and so is lodging and accommodation. At the heart of this industry are tourists that visit the state of Nevada for leisure, gaming, to attend conferences, or simply sight-seeing. The tourism industry is hence the largest sector within the hospitality industry. If you have hospitality business ideas then this new business guide will provide you with information pertaining to starting a hospitality business in Nevada.
Hospitality and Tourism Industry in Nevada
The hospitality industry, which includes the tourism industry, is one of the most successful sectors of the Nevada economy. The industry is home to several types and sizes of businesses and you can also be a part of this industry too. You can start a hospitality business in Nevada in the tourism industry, which has been responsible for delivering a state economic impact of $67.6 billion. You can also explore hospitality business ideas in other equally growth oriented and profitable sectors like restaurants, lodging, recreation, sports, events, and health.
A report by the Nevada Commission on Tourism industry reveals the following facts:
- The average expenditure in non-gaming & gaming trips per overnight visitor was $666 in Las Vegas and $522 in Reno-Tahoe territory.
- The average daily expenditure in non-gaming & gaming trips per overnight visitor was $198 in Las Vegas and $158 in Reno-Tahoe territory.
- In Las Vegas, 27.9% of the tourists were on a vacation, 16.4% for gaming, and 11.8% for entertainment.
Four major sectors of hospitality industry
If you are planning to start a hospitality business in Nevada then you need to possess knowledge regarding the major sectors of this industry. In reality, the industry consists of several minor and major sectors but there are four sectors that are the most important part of this multi-billion Dollar industry. Let us take a look at what those sectors are.
Food and Beverages
The first and foremost of the sectors is the food and beverages sector because food is something that everyone needs. Hospitality business ideas in the food and beverage sector don’t necessarily translate into starting a restaurant but it could be a takeaway or an ice cream shop. In order to start a hospitality business in Nevada, you need to consider the following target categories in the food and beverage (F&B) industry:
- Fine dining restaurant
- Organic and natural foods
- Specialty and gourmet stores
- Functional foods
- Processed foods
- Dairy Products
- Food services
- International Food Retail
- Restaurant Supply
The food and beverage sector of the hospitality industry is an essential sector of the US and Nevada economy. The revenue generated from the Food & Beverages sector is projected to surpass US$15,000 million by 2020 with projected sales for restaurants at $899 billion.
Travel and tourism
The travel and tourism industry is one of the largest industries that has a billion dollar impact on the US and Nevada economy. The state of Nevada attracts millions of visitors each year with Las Vegas receiving 42.52 million tourists in 2019. As a result, the Nevada travel and tourism industry generated a state economic impact of $67.6 billion. The rapid growth of this industry is one of the many reasons why entrepreneurs opt to start tourism business in Nevada. The travel and tourism industry offers several important services, which are:
- Outdoor recreation activities
- Airline travel or tickets
- Car rentals
- Cruise lines
- Hotel accommodation
- Travel insurance
- Bureau de change or currency exchange
- Different forms of tourism like adventure tourism, medical tourism, eco-tourism, leisure tourism, and health tourism among others.
Lodging refers to any accommodation that can be utilized for a specific period to leisure, sleep or rest. Lodging can vary from hotels to camp grounds, youth hostels, motels and casino hotels. You can start a hospitality business in Nevada in the lodging industry as gaming and conferences bring a lot of visitors to Las Vegas and other cities. It is not surprising that casino owners and operators in Nevada maintained in excess of $63 billion in fixed assets in 2018. The visitor volume in the Silver State was 56 million with hotel occupancy rates being 83.4%. Las Vegas itself provides 147,000 guestrooms to visitors and there is always space and opportunity for hospitality business ideas in the lodging industry.
Recreation is considered as an activity of leisure; where-in people relax or rest. The objective of recreational activities is to provide enjoyment, adventure, pleasure, or amusement. If you start a tourism business in Nevada then you can offer several types of recreational activities to your customers. The Silver State has plenty of opportunities for recreation other than casinos and these include:
- Exploring North and South Lake Tahoe
- Hiking to Red Rock National Conservation Area,
- Trekking in the Mt. Charleston Wilderness Area
- Cycle through Valley of Fire Scenic Byway
- Snowshoeing the Spring Mountains National Recreation Area
- Skiing over the Nevada-California state line
- Backcountry fly fishing
- Off-roading in the Jarbidge Wilderness Area