Few disagree that this year's tourism downturn is tied to the global recession.
But an even bigger decline in tourism is expected next year, and for that, many of the state's tourism leaders aren't blaming the economy. They say the cruise industry -- the biggest player in Alaska tourism -- is sending fewer ships to Alaska next year due to the taxes and environmental restrictions approved by voters three years ago. That will mean roughly 140,000 fewer cruise ship passengers for Alaska.
The debate is ongoing but one thing is certain: The cruise industry, which annually spends about $1.35 billion in Alaska, had to discount heavily to fill its ships this year and is poised to make major cuts next year. That means big financial losses for tour operators, hotels and retail businesses in Alaska.
Anchorage residents can expect to see reduced airline flights in and out of the city next year. Thanks to this year's downturn, the city is experiencing a 20 percent decline in tax revenue from hotels and motels, according to Julie Saupe, president of the Anchorage Convention & Visitors Bureau.
On Thursday, more than 300 people, from politicians to tour operators, gathered in downtown Anchorage to brainstorm ideas on how to survive this year and next year's tourism meltdown.
Whatever the reason that visitation is declining, "Alaskans need to figure out what to do to bring people back," said Susan Bell, a researcher at the McDowell Group, a consulting firm based in Juneau.
The Southcentral Tourism Summit was organized by the Alaska Travel Industry Association, the Anchorage Convention & Visitors Bureau and others. A similar meeting was held in Juneau a month ago.
CLOSED DOORS
Speakers at the summit talked about some of the hardships that Alaska businesses are suffering this year -- some along the state's highways have shut down, for example -- and say next year's tourism season will be worse.
"This really didn't have to happen," said Stan Stephens, owner of Stan Stephens Cruises, a longtime Prince William Sound glacier cruise operator.
Stephens said the state has not spent enough money for years on advertising to attract potential visitors.
"I learned if I was going to survive, I had to spend a lot of money on marketing," he said,
He and other speakers touted legislation filed this spring in the state House and Senate that would give a corporate income tax credit to cruise lines that donated money to ATIA's marketing initiatives.
The ATIA budget needs to be dramatically increased, from $12 million to $20 million, according to Stephens.
"It takes dollars to produce dollars," he said.
CHANGING THE LAW?
One speaker, a Skagway assemblyman, said the state should review the $50 tax on cruise ship visitors. The tax has helped the city pay for major harbor improvement but city leaders are worried about the decline in visitors, said Assemblyman Mike Korsmo.
The proposed Alaska itineraries the cruise lines have published for next year will reduce cruise visitation down to its 2004 level, according to ATIA president Ron Peck. He spoke in favor of reducing cruise industry taxes and increasing the state's spending on tourism marketing.
The sponsors of the 2006 voter-approved law that created the taxes and increased water pollution restrictions for cruise ships said they are skeptical of proposals that undermine the initiative, and said it remains unclear what Alaskans would get out of providing more money to the ATIA.
FEWER PORT CALLS
For some Alaska port communities, next year's reduction in cruise ship visits will be drastic:
• Whittier is expected to get 40 percent fewer cruise passengers.
• Seward will lose roughly 17 percent of its cruise visitors.
• Anchorage will be a cruise port of call for the first time in many years. But local tourism leaders say Anchorage will host thousands fewer people who spend time and money in the city before boarding or after leaving a cruise ship in another Southcentral port.
For more information about the summit, go to www.alaskatourismsummit.org.
Find Elizabeth Bluemink online at adn.com/contact/ebluemink or call 257-4317.
Important warning about e-mails purporting to be from the adn.com staff.