If my thoughts today are heard because of who I represent you understand that they are driven by my love and affection for this community. I have lived in Southern Nevada for my entire life, growing up here as a boy. My children and grandchildren call southern Nevada home. I know, Senator Reid, you share my experiences, growing up in a small desert town, going to school, on to college, all the time watching the town grow into a city and then a thriving metropolis of now more than 1.1 million people.
For most of all that time Las Vegas was the most livable of communities. We were an enviable blend of the best aspects of a small town and the amenities more closely associated with big city life. We had a sense of being a small town wherein everyone knew each other and cared for each other. But we had the luxury of living amid the excitement that can only be found in the "Entertainment Capital of the World".
And the success of our unique brand of resort community has led to incredible economic prosperity. In the last ten years the number of tourists visiting Las Vegas has gone from a little more than 17 million people per year in 1988 to 30.6 million in 1998. Hotel space has nearly doubled in a similar time period, going from 61,000 rooms in 1988 to more than 106,000 by the end of 1999.
Those millions of visitors, tourists, and conventioneers have increased taxable resort revenues by nearly 100%, going from $6 billion in 1990 to $11 billion last year. Furthermore, investments of billions of dollars have gone into new megaresorts such as the Mirage, which started it all, to our most recent examples of Bellagio, Mandalay Bay, and the soon-to-be-opened Paris.
As you can well imagine, very much like other communities which have experienced exponential growth, the issues quickly turn to those of livability, as infrastructures become strained, social schisms begin to emerge, and environmental consequences begin to be felt. The shadows cast by growth and prosperity are always economic, social, and environmental. In Las Vegas, at least, these consequences have been held to a minimum, in large measure due to the resort industry.
The resorts are more than just the sum of concrete, steel, casino tables and slot machines; they are the product of creativity and, more importantly, commitment to this community. The resorts are where hundreds of thousands of Nevadans work each day. According to a recent report by the University of Nevada, Las Vegas, the hospitality industry employs more than 300,000 Nevadans directly, an increase of nearly 50% in the last decade. Not only do these jobs provide livable incomes to hundreds of thousands of new Nevadans, they provide some of the basic social needs in the form of health insurance and pension benefits. The impact is staggering, with nearly one of every three adults you meet employed directly by the tourism industry and many more employed as a result of the economic expansion and diversification made possible by this flourishing industry.
That prosperity has been an economic success story which is the envy of the country. And the industry I represent is justly proud of the role we play. We do far more, however. Due to Nevada's tax structure the gaming industry provides the backbone for all state and local finances. As all of you know Nevada does not have a state income tax, or other broad-based revenue generators. The taxes levied on the gaming industry provide more than $22 billion in federal, state, and local taxes, and account for nearly 50 percent of Nevada's general fund budget. Moreover, our customers contribute to the sales, gasoline and other user-based taxes.
As strong as our industry is and as large as our contribution is to state and local finances, there are public needs still not being met. In education -- kindergarten through 12th grade and higher education -- and in the public health arena programs are still underfunded. Many infrastructure needs still exist. As public officials all of you know that there is never enough revenue to fund the many legitimate, worthy public programs. But you also realize that equity must exist in how the tax burden is distributed. Herein lies a quintessential shortcoming in Nevada's system. Whereas the economic base has diversified, that diversification has not been visible in the distribution of the tax burden.
Governor Guinn has taken the lead and is in the process of a top to bottom review of state spending to insure that public funds are being spent wisely, efficiently and within the priorities he and the legislature have determined. The Governor has indicated that he will also review state finances -- who pays the taxes and who doesn't.
As I stated earlier, an examination of our state revenue picture will reveal that the gaming industry is more than meeting its obligations to our community. I also believe that this examination will reveal that other sectors of the economy are virtually escaping responsibility.
We in the resort industry have met our obligations. Over and above our tax contribution, we have directly invested in meeting environmental challenges and social and cultural demands that have confronted our hometown. We have always been the first to step up to the plate - not the last to bat. We will continue to provide good jobs with the necessary healthcare and retirement benefits to our employees. As we watch the funding debate, we in the resort industry will be particularly interested in how any new burdens, if they must come, will be apportioned. If fairness and concern for the health of our economy drive this debate we would expect that new burdens would not be added to those businesses which already pay the lion's share of today's taxes before those enterprises escaping the tax collector are asked to match our contribution.
As this committee examines the question of what makes a livable community, I would suggest that the bedrock of any community that calls itself livable is a sustainable, growing economy which provides good, solid jobs. Without that stability, we cannot ever hope to address our social and environmental challenges. The time has come for those sectors of our economy who so richly share in the prosperity and who desire the same "livable community" accept the responsibilities that are rightfully theirs to share as well. Thank you.