ZZZ - GMG - VEGAS INC 2011-2014

August 29, 2011

VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more

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BILL OF GOODS "We're the image and the icon of sexuality, but the reality is that we aren't that much diff erent from other places." reputation does affect their attempts to lure companies here, but only because it overshadows the state's business-friendly climate. That's unlikely to change, given that NDA operates on a budget of $2.2 million annually—chump change compared to the funding behind the LVCVA, whose summer marketing alone was $24 million. "People don't know the business climate here," Hollingsworth concedes, "but I campaign come for us to outlaw prostitution." The theory here is that upstanding businessmen and women don't want their children growing up with brothels in their backyards. Similarly, many, The Nevada brothel industry makes think that we could change the minds of any company with preconceived notions by showing them Nevada is a compelling place." That they face an uphill battle is a necessary evil. from $35 million to $50 million annually. including John Ensign, have former Sen. suggested that our underperforming K-12 education system is what drives businesses away. The theory is the same: People don't want to transfer their children to such a low- ranked educational system. Some point to a education Hollingsworth doesn't think anyone should criticize the way Las Vegas has marketed itself. Those campaigns and that branding worked, he points out, and the resulting revenue creates the business- friendly climate that nongaming companies will find attractive. The relationship, then, is symbiotic. "It's like the goose that laid the golden egg," he says. "You don't kill that. They're No. 1 and in the meantime, we'll diversify." Hollingsworth chooses to focus on the positive. Others have been more critical. Plenty of politicians, analysts and academics have offered their own theories as to what might be hindering the business of attracting businesses to Southern Nevada. In February, Sen. Harry Reid told the Nevada Legislature, "If we want to attract business to Nevada that puts people back to work, the time has | 29 AUGUST 2011 | system failing struggling higher- to create an educated workforce as the primary speed bump in an out-of-state business' Nevada. Others believe the bottom line is financial incentives given by the state. alluring enough, nothing else would matter. Anecdotal evidence exists to support each of these theories. In December, developer Rich Worthington of the Molasky Group of Cos. said furniture giant Ikea and Internet service provider EarthLink considered moving parts of their businesses to Nevada but didn't because of the region's lack of college graduates. Recruiters for companies based in Southern Nevada also face uphill battles when employees bringing here. Christa potential Foley, road to Southern If Nevada's were recruiting manager for Zappos, says her company has difficulties recruiting software engineers and higher-level positions such as managers, especially when the potential employees have children. She attributes it to the city's adult reputation and troubled school system. In August 2007, the Lied Institute of Real Estate In recent years, brothel owners—who could be Studies brought together 40 prominent members of local government, business, academia and the real estate industry to discuss economic diversification. They flagged several things as hindrances to corporate recruitment in Las Vegas, including the "Sin City" persona, lack of affordable housing, poorly educated workforce, weak school system and a lack of cultural amenities. To look at perceptions from a different point of view, companies based in Los Angeles should have fewer cultural reservations about Las Vegas. Moving away from Hollywood and the porn production capital of the world into Las Vegas, sin or no sin, shouldn't take too much of a mental mind shift. considered small business owners because they employ from 1-50 prostitutes per establishment—have purchased their brothers for between $135,000 and $5 million. These days, that's not small change. the According to Brown, one LA-based industry is showing signs of growth in Las Vegas: Cosmetic procedures. "People are starting to come here to have them done," he explains. "It isn't a lot yet but there's some, and that's something that Las Vegas could be known for in the future." And with that, we're back to boobs. 23 LEILA NAVIDI

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