04/18/1994 03:35 PM Senate RES

 SENATOR MILLER announced  SB 341  (EXTEND TOURISM MARKETING COUNCIL)     )    
 to be up for consideration.                                                   
                                                                               
 SENATOR ADAMS asked why there was a CS, since at the last meeting             
 they were just going to extend the date of the Tourism Marketing              
 Association.                                                                  
                                                                               
 SENATOR MILLER explained that the 25% was added, because he and               
 other people felt that the industry needed to do more in                      
 contributing into the marketing programs, especially in a time of             
 declining revenues.                                                           
                                                                               
 SENATOR ADAMS said he did not support that increase, but he did               
 support the extension of the Council.                                         
                                                                               
 SENATOR LEMAN moved to adopt the CS to SB 341.  SENATOR ADAMS                 
 objected.  SENATORS MILLER, LEMAN, FRANK, and PEARCE voted yes;               
 SENATOR ZHAROFF and ADAMS voted no; and the CS was adopted.                   
                                                                               
 SENATOR ZHAROFF noted that there was a two year extension instead             
 of four.  SENATOR MILLER said that this was so the legislature                
 could timely review their progress.                                           
                                                                               
 KAREN COWARD, Executive Director, Alaska Visitors Association,                
 supported the Alaska Tourism Marketing Council and did not support            
 the CS to SB 341.  The Council markets Alaska as a destination to             
 the Unites States and Canada.  Advertising rates in the Vacation              
 Planner have increased across the Board almost every year.  If they           
 continue to raise rates, some businesses have indicated they will             
 no longer be able to participate in the state's cooperative                   
 marketing program.  It's in the best interest of the state and the            
 population of Alaska to continue funding the Tourism Marketing.               
                                                                               
 SENATOR FRANK said he thought the match was budgeted at 22%.  MS.             
 COWARD said the match was budgeted at 20%.  This was based on a $7            
 million state program for last year.  This fiscal year it is $4.492           
 million.  She explained as the industry dollars go down, the                  
 program becomes less effective and their ability to attract                   
 advertisers in the Vacation Planner will go down.  Advertising is             
 where they get their matching money.                                          
                                                                               
 SENATOR PEARCE asked her to explain why Holland America was so far            
 out of line.  MS. COWARD said they often take 300 - 500 travel                
 agents through an inside passage trip.  They bring people up to               
 market Alaska generically, not just their tours.                              
                                                                               
 Number 310                                                                    
                                                                               
 SENATOR LEMAN moved to discharge CSSB 341 (RES) with individual               
 recommendations.  SENATOR ADAMS objected.  SENATORS MILLER, LEMAN,            
 PEARCE, and FRANK voted yes; SENATOR DONLEY, ADAMS, and ZHAROFF               
 voted no, and the bill passed from committee.