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Demography and Economy
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Understanding People, Places, and Money in Lake Tahoe

Where people live and work, how and where they recreate, the kinds of jobs they have and how they flow into and out of the Basin all have a direct impact on the environmental health of Lake Tahoe.

Because decisions about restoration and planning initiatives affect human interests and activities, demography and economy data are collected and studied as part of the planning and restoration decision-making process.

Demography describe various population characteristics of the Basin´´s people. Primarily collected by local, state, and/or federal agencies such as the Census Bureau and local public health departments, demographic information covers a range of topics including population size, sex, age composition, ethnic backgrounds, household characteristics, geographic distribution, part-time versus full-time residents and other vital statistics. Demography and economy data are frequently displayed in graphs and charts for ease of interpretation. Figure 1. shows that in 2000, 18% of the population in the Lake Tahoe Basin resided in Placer County.

Figure 1.

Economy includes economic conditions and employment and describes the Basin´s economic history, current economic well-being, and often its potential for future economic development. This information takes into account such factors as employment levels, types of jobs, per capita income, poverty and unemployment rates, the range of incomes in the community, and trends in employment opportunities (e.g., family-owned businesses versus national chain businesses). Because tourism and recreation are an integral part of the economy of the Lake Tahoe Basin, these statistics are especially important to collect and understand.

Why are Demographic and Economic Information Important?

Restoration and planning initiatives must take into account impacts these initiatives might have on housing, jobs, and local commerce. The quality of the Lake Tahoe environment and the viability of a sustainable recreation economy in the Basin are interrelated. The center of the Lake Tahoe economy is tourism. Tourists are attracted to Lake Tahoe because of its environmental beauty as well as the recreation offered by the environment. Because of the inter-relationship between the environment and the economy, it is important to track population trends, visitor movement, and other demographic and economic information to ensure the presence and transportation of people will not adversely affect Lake Tahoe Basin environmental quality. Likewise, it is also important to ensure the means for protecting environmental quality do not place an undue burden on people living and working in the Basin. Demographic and economic information help provide vital statistics relevant for decision-making to ensure this delicate balance is maintained.

Demographic and economic information are used in other ways and provide important information about the community. Some of the information provided includes:

  • Background data on the diversity of residents who make up the community´s population;
  • The structure of family units;
  • Education level of residents;
  • Descriptions of subgroups within the population; and
  • Different values present within the community.

This information can be used to effectively design public participation, outreach and education strategies for community environmental goal setting and planning that reflect the different age, educational and economic backgrounds present in the community.

Demographic information also describes characteristics of the existing population as well as the ways in which the community´s demographics are expected to change in the future (e.g., population growth or decline, ethnic or age make-up). Seasonal residential patterns may highlight sewer and water quality/quantity issues for the community. Demographic information is also useful for assessing the existing community´s need for public services and natural resources (e.g., clean water, land), estimating how population changes may increase pressures on natural resources, and developing strategies that address the environmental concerns associated with growth in the community.

Information on economic conditions and trends in a community help determine how to develop environmental protection strategies that account for local economic needs as well as environmental values.

Economic data can tell you how much of the economy is based on commerce, industry, outdoor recreational, other categories of tourism, small versus large businesses, and other categories. Comparing these figures to proposed economic development plans can help the community decide how it can grow its economy while still protecting its natural resources. One can also analyze what economic endeavors in the past have been successful and which look promising for the future. Specifically, employment data can be used to identify the major sources of employment for communities. It can help identify what proportion of the community relies on certain economic sectors (e.g., natural resource-based jobs, tourism, service) for personal livelihood and the ways in which environmental protection strategies may affect jobs in the local economy. Figure 2. shows that employment in the lodging and gaming industry surpassed by far, any other single industry in the region.

Figure 2. Lake Tahoe Region Employment by Major Industry Group, 1998

Economic information can determine the employment conditions in the community, determine causes of past job dislocations (e.g., restrictions on logging or mining activity), anticipate important changes in the employment base, and identify potential sources of local environmental change that result from employment activities. This information is also important for targeting areas of environmental concern and identifying activities within the community (e.g., population growth, urban sprawl) that may compete with development of certain environmental protection strategies. Economic information can determine the relationship of dominant employment patterns to the environment and natural resources, and may be critical in designing environmentally compatible economic development strategies

Information on economic conditions and employment can lend important insights into the trade off between money and other values in the community, thus allowing you to develop strategies consistent with both.

What Kind of Demographic and Economic Information are Important for Lake Tahoe?

The economics chapter (Chapter 11) of the 2001 Threshold Evaluation Report, provides an updated economic description of the Tahoe Basin, including population characteristics, economic trends, and a section highlighting travel and tourism in the Basin. It also establishes some goals for monitoring and using economic and population information. These goals are to routinely monitor economic conditions, develop a framework from which to consider economic impacts associated with policies and regulations, and assist in strategies for economic development and diversification consistent with the established environmental threshold carrying capacities. The 2000 Lake Tahoe Watershed Assessment report for Lake Tahoe found that, “relatively little comprehensive or integrated social and economic analysis has been done in the Basin to date.” TRPA is hoping to improve this condition in the future.

All kinds of demographic and economic information are important to understand for the Lake Tahoe Basin. The following list identifies the kinds of statistics that are currently being compiled. The next section describes a few these in more detail, including current characteristics. Refer to the reports themselves for more details.

  • Population characteristics and trends
    • Population by geographic area (e.g., county)
    • Population growth
    • Population by age and race
    • School enrollment
  • Employment and earnings
    • Employment by industry group
    • Earnings by industry group
    • Unemployment rate
  • Sources of personal income
    • Local wages
  • Economic measures of visitor trends
    • Transient occupancy tax receipts
    • Gaming revenue
    • Skier days
  • Housing and commercial development
    • Residential construction
    • Sale price of residential/vacation home units
    • Median home sales prices in the Lake Tahoe Region
    • Commercial and accommodations (non-residential) construction
  • Highway traffic
    • Highway travel routes
    • Average daily traffic
    • Seasonal variation in traffic
    • Visitor traffic
  • Commuting patterns
    • Location of residence for Lake Tahoe Region employees
  • Economic impacts generated by travel spending
    • Spending by type of accommodation
    • Spending by type of activity
    • Employment generated by travel spending
    • Indirect employment generated by visitor spending
  • Visitor volume for the Lake Tahoe Region

Demographic and Economic Characteristics for the Lake Tahoe Basin Area

For the purposes of economic analysis, decision makers divide the Lake Tahoe Basin into two primary areas: the Lake Tahoe Region and the Greater Tahoe Area (2001 Threshold Evaluation) .

Lake Tahoe Region

The Lake Tahoe Region was defined by the TRPA Compact in 1980 is intended to represent the area of TRPA management jurisdiction, which encompasses a large portion of the Lake Tahoe Basin. The region includes portions of El Dorado and Placer Counties in California – including the incorporated City of South Lake Tahoe – as well as portions of Washoe, Douglas and Carson City Counties in Nevada. (The Carson City portion of the region is unpopulated and is composed of U.S. Forest Service and Lake Tahoe Nevada State Park lands). Many of the popular ski resorts in the Lake Tahoe Area are located a short driving distance outside the region.

Greater Tahoe Area

The Greater Tahoe Area includes the Lake Tahoe Region, as well as the communities and areas surrounding Truckee-Donner, Olympic and Squaw Valleys, Reno-Carson City, and Minden-Gardnerville. The Greater Tahoe Area includes all the Lake Tahoe area ski resorts, as well as other locations for recreation activities associated with Lake Tahoe. The Greater Tahoe Area also includes the primary locations where Lake Tahoe Region businesses and employees are most likely to purchase a significant portion of goods, services and housing.

Figure 3 shows the boundaries of these two areas.

The map in Figure 1 shows the boundaries of these areas.

Most of the Lake Tahoe Basin lies in the political jurisdictions of 4 counties – El Dorado and Placer counties in California and Washoe and Douglas in Nevada. There is one incorporated municipality, the City of South Lake Tahoe (CSLT) on the southern shore of the Lake. Actual growth in the Basin in recent years has been relatively slow (about 0.4% from 1990 to 1998) due to an ambitious land acquisition program and strict regulatory environment, although growth in the surrounding areas is significantly higher (2.7% over the same time period). This is important as growth around the Basin can affect environmental quality in many ways, even though the people are not directly living by the Lake. For example, much of the growth in surrounding areas is for workers in the Lake Tahoe area – commuting and the resultant traffic congestion can have a significant impact on environmental quality and human well-being.

The largest concentration of people is on the southern shore, in El Dorado County and the City of South Lake Tahoe. The present population of the area as a whole – all four counties and the City of South Lake Tahoe – stands at about 55,00 permanent residents. This number swells significantly during some of the popular tourist months during summer and winter and millions visit the Basin each year.

For a detailed discussion of the demography and economy of the Lake Tahoe Basin, refer the to Chapter 11 of the TRPA 2001 Threshold Evaluation Report and

Chapter 6, “Social, Economic, and Institutional Assessment,” of the 2000 Lake Tahoe Watershed Assessment report.

Indicators

The Sierra Business Council, in conjunction with TRPA and other agencies within the Basin, are currently working on developing economic indicators. Though there are no formal indicators at this time, numerous demographic and economic statistics within the Basin are collected and analyzed.

Understanding and tracking economic and demographic trends within the Basin is vital to help planners with their decision-making process as they relate to the environmental health of Lake Tahoe. For example, air quality is directly linked to traffic patterns. Therefore, collecting data concerning where people work versus where they live are necessary to understand how traffic flows into and out of the Basin.

Data concerning employment by industry sector shows that tourism is the center of the economy within the Basin. And, tourists are attracted to Lake Tahoe because of its incredible beauty. Working to maintain the environmental health and integrity of the Basin will ensure that tourism continues to be a mainstay of the economy.

To learn more about demographic and economic data within the Basin, refer to Chapter 11 of the TRPA 2001 Threshold Evaluation Report and Chapter 6, “Social, Economic, and Institutional Assessment,” of the 2000 Lake Tahoe Watershed Assessment report.

Research

Demograhic and economic data are collected by local, state, and federal agencies such as the Census Bureau and local public health departments. Research conducted by organizations, agencies and universities is focused on developing more efficient ways to accurately collect demographic and economic data as well as new ways to better analyze and use the data.

For example, USGS collaborated with TRPA, EPA and the Desert Research Institute to build a decision support tool called the Tahoe Constrained Optimization Model (TCOM).

TIIMS is always searching for more information to include in this section so please contact tiims@trpa.org with possible links to other demography and economy research.