Tourism-2009
June 16th, 2009The tourism industry in Alaska provides around 40,000 jobs and was worth $1.7 billion to the state economy in 2008. As 2009 advances, the tourism industry is experiencing considerable downturn and it seems that this will continue through the next year, according to some projections.
Tourism is one of the state’s top industries in terms of revenue and employment. The revenue from tourism is substantial and can be explained by the number of visitors to Alaska each year. During the 2000-2001 visitor season, over 1.4 million visitors came to Alaska. This number has been increasing over the years. Just over 1.7 million out-of-state visitors came to Alaska between May and September in 2008. However, the major concern is how badly the tourism industry will be affected by the recent economic recession, since tourism is important for state’s revenue and employment.
According to an online article, “Tourism Industry Likely Poised For A Dismal 2009,” state revenue from tourism might decrease substantially in 2009 and some businesses that are closely related to tourism and visitors are already reporting a 30 percent decline in performance compared to last year at this time. Dave Worrell with the Alaska Travel Industry Association is projecting a decline in tourism for 2009 of 10 to 15 percent, which represents more than $200 million of spending.
Another article in the Wall Street Journal, “Alaska Fights a Tourism Cold Front,” also talks about the decline in tourism and missing the “Palin Effect” on tourism. Travel companies were expecting a strong season for Alaska after Gov. Sarah Palin’s turn in the presidential-campaign spotlight. But in early May, which is the start of peak tourism season, some hotels, cruise lines, and tour operators in the state complained that reservations were down as much as 50 percent from last year when all resorts and cruises were fully booked by this time. As a result, tourism agencies and all cruise lines are offering substantial discounts, reaching 25 to 50 percent. The $1.45 billion cruise industry is critically important to tourism. Operating in Alaska for cruise companies has become less profitable, as prices have come down substantially.