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Industry Profiles :: Tourism Industry

Tourism Industry

Tourism is Alaska's second largest private-sector employer, accounting for one in eight private-sector jobs. It is also Alaska’s fastest-growing industry. More than 1.4 million visitors traveled to Alaska during the year from October 1998 through September 1999, 1.2 million of them in the summer of ‘99.

Estimates for the 2003 summer season are 1.2 million visitors, approximately the same number as the 2002 summer season. The cruise industry experienced a slight increase in travelers, growing from 740,000 in 2002 to 760,000 in 2003. As evidenced by a three percent drop in airport traffic and one percent reduction in border crossings over the last two years, the independent traveler market decreased. From October 2000 to September 2001, Visitors spent over $1.8 billion; between $1200 and $1300 on average, per person per trip.

Most of Alaska 's visitors are from the United States (87%), with 9% from Canada and about 4% from other countries. The majority of Alaska summer visitors come for pleasure. During the fall/winter season, business and convention travel is the primary trip purpose. Another significant visitor segment includes those who are coming to Alaska to visit family and friends. Visitors have been traveling during in normal numbers, but they are taking shorter trips, spending less money and staying closer to home.

ATIA announced that they are encouraged by preliminary advanced bookings for the independent fly and vacation market based upon early initial bookings from hotels, lodges and tour operators. The outlook for increased road travel does not appear to be any better in 2004. The addition of Alaska Marine Highway System's first fast vehicle ferry, the MV Fairweather, should have a positive influence on how people will travel throughout Alaska . It begins service in the summer of 2004 and will provide quicker access between the upper Lynn Canal and Juneau , and between Sitka and Juneau .

ATIA believes that the international market will rebound through continued marketing efforts and if international terrorism does not escalate. In the German market, indications are that charter flights to Anchorage and Fairbanks will continue to grow. Within the Pacific rim , both Japan Airlines and Alaskan Vacations are considering increasing their non-stop charter flights from Tokyo to Anchorage by approximately 25% over last season.

Despite the current challenges, a visit to Alaska continues to be the fulfillment of a life-long dream for many travelers. The state's beauty, wilderness and wildlife continue to attract visitors. In a time of uncertainty and concern for safety, Alaska has an opportunity to capitalize on the perception that Alaska is a safe place to visit and an exotic alternative to traveling abroad. While infrastructure and transportation challenges exist throughout the state, abundant resources are available for communities and business to develop cultural tourism, ecotourism, wildlife viewing, adventure tourism, and sportfishing.

Significant opportunities exist statewide to expand tourism during the winter. Winter visitors are drawn by the Northern Lights, particularly in Fairbanks and the Interior. Aurora viewing is accompanied by dog sled tours, skeet shooting, cross-country and downhill skiing, snow machining, ice-skating, ice fishing and other winter activities. Rural Alaska remains the frontier in tourism, however, rural Alaska often lacks staff and resources necessary to prepare for and attract tourism development.

As the volume of visitors grows, maintaining the quality of the “ Alaska experience” at prime Alaska attractions is a key issue facing the visitor industry. The state and the industry recognize this concern and, through long-term planning efforts, are working to improve the visitor infrastructure and develop new attractions.

The need for adequate tourism marketing funds to keep Alaska competitive in the global travel market continues to be a major concern for the industry.

Key Contacts

Alaska Travel Industry Association
Ron Peck, President
2600 Cordova St., Ste. 201
Anchorage , AK 99503
Tel: (907) 929-2842
Fax: (907) 561-5727
www.travelalaska.com/

Alaska Division of Community and Business Development
Caryl McConkie, Tourism Program Manager
P.O. Box 11801
Juneau , AK 99811
Tel: (907) 465-5478
Fax: (907) 465-3767
www.dced.state.ak.us/cbd/AEIS/AEIS_Home.htm

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