Anchorage Daily News

Unclogged sidewalks, glacier tour cancellations and reservation-free dining in downtown Anchorage were some of the signs of a souring tourism season this year.

As predicted, the dismal economy in the Lower 48 has prevented many visitors from traveling to Alaska this summer, and many locally owned businesses around the state are suffering as a result.

"It's looking kind of scary. People are telling us that there are businesses that aren't going to make it," said David Worrell, a spokesman for the Alaska Travel Industry Association.

It's unclear whether the number of cruise-ship tourists will dip substantially this year, but the amount of money they're spending is likely falling.

The ships typically bring about 1 million visitors to Alaska, well over half of the state's tourists. This year, in response to the national economic crisis, many of the cruise lines began offering drastic discounts to lure people into purchasing tickets for an Alaska cruise.

In general, Alaska tourists this year -- the cruise and independent visitors -- are spending less money, traveling shorter distances or scheduling their activities on shorter notice than usual, Worrell said.

More than a dozen tour operators and visitor bureau officials around Alaska interviewed for this story generally agreed with some or all of Worrell's observations.

"(Tourists) are trying to be as cheap and frugal as possible," said Madeline Kelleyhouse, who manages the Tok Chamber of Commerce visitor center. She has observed more than the typical number of travelers camping overnight in highway pullouts, gravel pits and state parks instead of paying for a spot at an RV park.

Early-season statistics show that independent travel to Alaska is down significantly. Fewer people flew to Stevens International Airport. And Kelleyhouse has recorded a roughly 10 percent decline in visitors to the Tok visitor center along the Alaska Highway. The tally of traffic crossing through the nearby U.S.-Canada border crossing is unavailable.

Scott Reisland, a Denali campground, cabin and RV park owner, said he had to lay off half of his staff and his family is chipping in longer hours to keep the business afloat. At the end of June, his company, the Denali Grizzly Bear Resort, had only half of the bookings it had at the same time last year.

"In our 41-year history as a family-owned business, we've never had such a bad year," Reisland said.

Valerie Morin, owner of the Bridgekeeper's Inn in Seldovia, said her sales turned out better than expected because guests have been booking rooms at the last minute. "It was 'Whoa, where did this come from?' " she said.

GRIM STATISTICS

Anchorage's visitor statistics for June aren't available yet, but the statistics for May -- the first month of the tourism season -- were grim.

• Roughly 11 percent fewer people got off a plane at the Stevens International Airport, according to state officials.

• Car rentals at the airport were down 25 percent.

• Anchorage hotel revenue was down roughly 22 percent, according to the city's visitors bureau.

• About 25 percent fewer people visited Anchorage's five visitor information centers, which are run by the bureau.

• Bookings on the Alaska Railroad are down 10 to 15 percent, year to date, according to the railroad.

UNEQUAL IMPACT

In general, tour operators, hotels and other businesses in Southeast and the Interior have been harder hit than their Southcentral counterparts, tourism officials said.

A few businesses reported that they are bucking the downturn -- including a popular Denali flight-seeing operation in Talkeetna and a downtown Anchorage bicycle rental shop. Their sales have improved from last year, a consequence of this summer's clear and balmy weather, they say.

Jason Eason, a mechanic at the Downtown Bicycle Rental shop on Fourth Avenue, said he thinks the rental shop also is benefiting from tourists' thrifty behavior. Renting a bike is cheaper than booking a more pricey excursion, he said. It costs $16 for a three-hour bike rental and roughly $140 for a Prince William Sound glacier tour, not including transportation to Whittier.

"I think we are piggy backing on the poor economy, among other things," Eason said.

But just a few doors down the street from the bicycle shop, the manager of one of the city's popular Prince William Sound cruise tours is having a stressful summer.

"May was a disaster," said Barrie Swanberg of Phillips Cruises & Tours, which has been in business for 22 years.

He said bookings on his company's 342-passenger Klondike Express, based in Whittier, were down 50 percent compared with last May. The company had to cancel some May cruises because of the low bookings, he said.

While bookings have soared in recent weeks, it isn't enough to cancel out the losses at the beginning of the summer, he said.

"It's going to be a real tough year," he said.

BLESSING OR A CURSE?

Fewer tourists clogging the streets might be a boon for Alaskans who dislike the influx of strangers, but it will reduce the spending power of many communities next year. Some local governments, such as the Denali Borough, derive most of their operating revenue from room taxes levied on local hotels and motels.

In Anchorage, fewer car rentals means less property tax relief for local homeowners; and, fewer hotel room purchases means less tax revenue to support the city's new Dena'ina Civic and Convention Center and less money for marketing programs run by the Anchorage Convention & Visitors Bureau.

"It really does trickle throughout the entire economy," said Julie Saupe, president of the visitors bureau.

The loss of tourists isn't just noticeable to local governments, it results in less sales to a host of other businesses, from gas stations to food and alcohol wholesalers, she said.

Find Elizabeth Bluemink online at adn.com/contact/ebluemink or call 257-4317.

ADVERTISEMENT