Legislature(1993 - 1994)
10/27/1993 07:00 PM House ECO
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE ECONOMIC TASK FORCE
WORK SESSION ON TOURISM
October 27, 1993
7:00 p.m.
REPRESENTATIVE JEANNETTE JAMES, Chair of the Task Force's
tourism working group, opened the session by stating that
the purpose of this teleconference is to gather public input
on the state's role in promoting tourism. She asked people
to make specific recommendations on what the state should be
doing to encourage development of the tourism industry. She
also reserved time at the end of the teleconference in case
any participants want to discuss other aspects of economic
development.
JOHNE BINKLEY, ATMC Board, AVA Board, Fairbanks Convention &
Visitors Board, Fairbanks, said tourism generates over $1
billion in revenue in Alaska. He said tourism affects many
residents who don't realize its benefits, because tourism
dollars circulate through the economy. He said nearly
20,000 people are employed in tourism (13,500 on an annual
basis.)
MR. BINKLEY recommended that the Economic Task Force
highlight the importance of the ATMC. ATMC is a
public/private partnership, and its funding is money well
spent.
MR. BINKLEY added that some legislators say they don't want
more economic development or more tourism because it only
increases the load on state services and state expenses. He
said he hopes the current legislature doesn't take that
attitude.
NEIL JOHANNSEN, Director of State Parks, Department of
Natural Resources (DNR), Anchorage, said he was speaking on
behalf of DNR Commissioner, Harry Noah. His prepared
testimony is on file.
CHUCK WHEELER, Wheeler & Associates, Nome, said the benefits
of the state's involvement in tourism promotion do not
spread to all areas of Alaska, including Northwest Alaska.
He said ATMC does not address tourism in his region and
AVA's "Destination Alaska" report does not address rural
Alaska.
MR. WHEELER also said Nome needs a deep-water port. He
urged the legislature to work for repeal of the Jones Act.
BOB MILLER, Director of Public Affairs, University of
Alaska-Fairbanks, praised the joint public/private efforts
of the ATMC. He urged reauthorization of ATMC next session.
He added that ATMC's budget is insufficient to market
Alaska, and that more advertising should be targeted to the
Lower 48, Canada and foreign countries.
MR. MILLER said visitors want a more active involvement in
Alaska. Princess Cruises now takes people to El Dorado
instead of the UAF museum. This has encouraged the museum
to carve a new niche, and the result is a greater diversity
of attractions and more satisfied customers.
MR. MILLER said the Division of Tourism needs more
development specialists to work with rural Alaska. This
kind of assistance is necessary for the development of new
rural businesses.
MR. MILLER summarized his recommendations as:
- expand the marketing efforts of Alaska as a visitor
destination.
- support ATMC.
- expand the Division of Tourism.
MIKE WINDRED, Alaska Travel Adventures, Juneau, said the
number of smaller tourism companies is increasing, but they
can't afford to do their own marketing. ATMC has been a
boon to them in this respect.
DENNIS BRANDON, President, AVA, Anchorage, gave prepared
testimony which is on file.
GARY MOORE, Economic Development Specialist, Tanana Chiefs
Conference, Fairbanks, gave prepared testimony which is on
file.
CATHY DUNBAR, Mat-Su Convention & Visitors Bureau, Wasilla,
said she supports ATMC. No agency can replace their work,
she said. They need more money for marketing, especially in
times of declining revenues.
She also recommended "Destination Alaska" as a good
blueprint for statewide tourism development.
MIKE MACHULSKY, Kodiak Visitors Association, Kodiak, said
the state "cannot get a better bang for its buck" than it
currently gets through the cooperative marketing program of
ATMC. He said tourism always seems to be at the bottom of
the list for economic development dollars, and he urged
continued funding for ATMC.
CLIFF ROUSEL, Fairbanks Visitors Bureau, Fairbanks, said
tourism in Fairbanks results in 2,000+ FTE jobs and a $34
million payroll. He said ATMC should be extended past its
sunset date in 1994 and should have increased funding. He
also urged support for the Division of Tourism.
BOB ENGELBRECHT, Vice President, Temsco Helicopter, ATMC
Board, AVA Board, Juneau, said the industry contribution to
ATMC is substantial, amounting to $3 million plus in-kind
contributions. He complimented "Destination Alaska" and
supported the reauthorization of ATMC.
LINDA JERNIGAN, Alaska Campground Operators Association,
Tok, presented prepared testimony which is on file.
MIKE O'CONNOR, KIC Village Corporation, Kotzebue, spoke to
the need for infrastructure development in rural Alaska, in
particular an alternative dock in Kotzebue. He pointed out
that reducing the cost of doing business in rural areas is
equivalent to increasing economic development.
BOB JACOBSEN, Wings of Alaska, Juneau, spoke in support of
the work of ATMC and AVA.
HEIDI BOHI, SWAMC, Anchorage, said that all the ARDORS
recognize tourism as the number 1 economic development
opportunity in their regions. She recommended:
- More marketing assistance for tourism businesses.
- Continued support for ATMC.
- Increased staff at the Division of Tourism and
more funding for rural tourism matching grants.
- More resources available at the local and regional
levels.
- Increased transportation services, e.g., more ferry
stops.
JOHNE REEVES, Fairbanks, supported ATMC. He also suggested
that the Dalton Highway (Haul Road) is a tourism opportunity
waiting to happen. The state should swap land with the feds
along the highway in order to control development, he said.
MR. REEVES also recommended greater access to the Kantishna
area for mineral development, and he said mining reclamation
should be approached with incentives rather than a heavy
regulatory hand. He said reclamation credits should be
offered for reclamation done at private expense.
PAUL SMITH, Chamber of Commerce, Tok, supported greater
funding for ATMC, and suggested Tourism North should receive
additional funding. He also said the Taylor Highway needs
to be upgraded.
CARLA HART, Alaska Wilderness & Tour Association, Juneau,
said tourism should have equal status with other resources
in discussions of economic development and funding
priorities.
LINDA ANDERSON, Fairbanks, said ATMC should be extended by
the legislature. She also recommended that current highway
sign laws be relaxed so that signs can better accommodate
visitors on the highway system.
KARI WESTLUND, President, Juneau Convention & Visitors
Bureau, Juneau, spoke in favor of ATMC, the Division of
Tourism and "Destination Alaska." She recommended that
more matching funds be dedicated to infrastructure
development at the local level. She also suggested that
regulations can make it very difficult for tour operators
to carry on business; e.g., DEC's 12-minute docking
requirement.
STEVE COCKERELL, AVA Board, Unalaska, said the vacation
planner is crucial to small tourism businesses.
ADELHEID HERMANN, Naknek, expressed support for:
- The Alaska Business Development Center.
- The U of A Marine Advisory program.
- Increased funding for rural U of A campuses.
- More rural information in state tour guides.
- Development of freshwater fisheries.
- Distribution of Native arts and crafts to national
and international markets.
- Grants to museums.
KAREN COWART, Executive Director, AVA, Anchorage, said the
legislature should reauthorize ATMC and should continue
funding for cooperative marketing. She mentioned AVA's
survey of Alaska residents showing that 82 percent believe
tourism is good for the state and good for local
communities.
SUSAN BELL, Haines, encouraged development of a scenic
byways program and supported improvements to the marine
highway system, including the dock facility in Haines.
CONN MURRAY, Director, Division of Tourism, Juneau,
recommended the legislature explore the possibility of
biennial funding for tourism programs. He said one-third
of the states now do it, and the result is more efficient
marketing and planning. He also mentioned:
- $100.0 has been requested for the Gold Rush
Centennial activities.
- Tourism North has requested $225.0, which is the
same as current year funding.
- The tourism grants line should be reinstated to
build tourism infrastructure.
- The Alaska Visitor Statistics program should be
funded.
JANET McCABE, Alaska Society of Historic Preservation,
Anchorage, mentioned the value of historic structures as
tourist attractions; e.g., Kennicott, Skagway, Eklutna. She
urged funding for the Gold Rush Task Force.
JUDY BITTNER, Alaska Society for Historic Preservation,
Anchorage, talked about the value of "heritage tourism," and
spoke in favor of historic markers and the Gold Rush Task
Force.
ED PHILEMONOF, St. George Tanaq Corporation, Anchorage,
talked about tourism development since the end of the fur
seal harvest forced people in the Pribilofs to develop
alternative industries. Eighty-ninety tourists visited St.
George this year. They need more air service, but they are
awaiting FAA approval for larger planes to land. They also
have a problem with birds on the runway.
REPRESENTATIVE JAMES thanked everyone for their time and
comments, and promised to keep them in mind as her working
group assembles its recommendations for consideration by the
full task force.
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