02/07/2012 10:15 AM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| HCR19 | |
| Presentation: the Department of Commerce, Community & Economic Development Updates | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HCR 19 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, INTERNATIONAL
TRADE AND TOURISM
February 7, 2012
10:18 a.m.
MEMBERS PRESENT
Representative Bob Herron, Chair
Representative Kurt Olson, Vice Chair
Representative Neal Foster
Representative Reggie Joule
Representative Wes Keller
Representative Cathy Engstrom Munoz
Representative Steve Thompson
Representative Berta Gardner
Representative Chris Tuck
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative David Guttenberg
COMMITTEE CALENDAR
HOUSE CONCURRENT RESOLUTION NO. 19
Acknowledging the lessons learned from the 2011 Norway Policy
Tour and encouraging investment in the state's oil and gas
industry.
- MOVED CSHCR 19(EDT) OUT OF COMMITTEE
PRESENTATION: THE DEPARTMENT OF COMMERCE~ COMMUNITY & ECONOMIC
DEVELOPMENT UPDATES
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HCR 19
SHORT TITLE: OIL & GAS POLICY/NORWAY TOUR
SPONSOR(s): REPRESENTATIVE(s) HERRON
01/17/12 (H) READ THE FIRST TIME - REFERRALS
01/17/12 (H) EDT
01/26/12 (H) EDT AT 10:15 AM BARNES 124
01/26/12 (H) Heard & Held
01/26/12 (H) MINUTE(EDT)
02/02/12 (H) EDT AT 10:15 AM BARNES 124
02/02/12 (H) Heard & Held
02/02/12 (H) MINUTE(EDT)
02/07/12 (H) EDT AT 10:15 AM BARNES 124
WITNESS REGISTER
SUSAN BELL, Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Assisted by the deputy commissioner, gave a
PowerPoint presentation entitled, "EDT&T Presentation," dated
2/7/12, and answered questions.
CURTIS THAYER, Deputy Commissioner
Office of the Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Assisted by the commissioner, gave a
PowerPoint presentation entitled, "EDT&T Presentation," dated
2/7/12, and answered questions.
ACTION NARRATIVE
10:18:56 AM
CHAIR BOB HERRON called the House Special Committee on Economic
Development, International Trade and Tourism meeting to order at
10:18 a.m. Representatives Herron, Keller, Olson, Joule,
Thompson, and Foster were present at the call to order.
Representatives Gardner, Tuck, and Munoz arrived as the meeting
was in progress. Representative Guttenberg was also in
attendance.
HCR 19-OIL & GAS POLICY/NORWAY TOUR
10:19:51 AM
CHAIR HERRON announced that the first order of business would be
HOUSE CONCURRENT RESOLUTION NO. 19, Acknowledging the lessons
learned from the 2011 Norway Policy Tour and encouraging
investment in the state's oil and gas industry.
10:20:04 AM
REPRESENTATIVE KELLER moved Amendment M.2 which read [original
punctuation provided]:
Page 4, line 5, after "benefit" insert
"private sector job expansion, affordable energy
options, value-added options,"
10:20:13 AM
REPRESENTATIVE OLSON objected. He opined that the amendment
included items that are not related to the original purpose of
the resolution.
REPRESENTATIVE KELLER said the proposed amendment was fully
aligned with the intent of the sponsor. He read the amendment
and explained that the reason for the amendment was that private
sector job expansion was listed as one of desirable goals on the
comprehensive list of goals presented during testimony on the
2011 Norway Policy Tour. He characterized the amendment as a
friendly amendment.
REPRESENTATIVE OLSON removed his objection.
10:22:25 AM
REPRESENTATIVE TUCK objected for the purpose of discussion. He
said he was unsure whether Statoil - the partnership between
Norway and the oil industry - employees are private or public
sector employees, and offered an amendment to Amendment M.2 to
say "jobs."
REPRESENTATIVE KELLER said the emphasis of those attending the
2011 Norway Policy Tour has been to the expansion of private
sector jobs.
REPRESENTATIVE TUCK withdrew his amendment to Amendment M.2, and
removed his objection.
10:23:54 AM
There being no further objection, Amendment M.2 was adopted.
10:24:08 AM
REPRESENTATIVE TUCK, on behalf of Representative Gardner,
offered Amendment M.3 which read [original punctuation
provided]:
On page 2, line 21, insert a new sentence:
"(13) Norway has developed a free, comprehensive and
rigorous educational system spanning pre-school to
graduate school that provides professional expertise
for the oil and gas sector and contributes to a
vibrant national economy; and"
CHAIR HERRON objected for the purpose of discussion.
10:25:25 AM
REPRESENTATIVE OLSON expressed his opposition to Amendments M.3
and M.4 because they do not have any bearing on the scope of the
tour or on the intent of the resolution. The amendment labeled
M.4 read [original punctuation provided]:
On Page 4, after Line 6, INSERT a new sentence:
"FURTHER RESOLVED that the Alaska State Legislature
shall explore measures to support in-state educational
systems and training programs necessary to provide
world-class, professional expertise in the oil and gas
sector to Alaska, and potentially to other states and
nations: and be it"
REPRESENTATIVE TUCK said a key to a strong economy is a solid
educational system, and this was made clear on the Norway tour;
in fact, as a result of Norway's investment in its educational
system, it sends experts in the oil and gas field to work around
the world. This is an important component to what Alaska should
be striving for: graduating people of the best caliber and
leaders in technology, and promoting a stronger economy.
CHAIR HERRON referred to Amendment M.4 and its placement in the
resolution.
REPRESENTATIVE TUCK confirmed that Amendments M.3 and M.4 "[are]
a 'whereas' and then the 'further resolved,' to go along with
that."
CHAIR HERRON asked Representative Olson whether his concern "is
with the 'resolve' or was it a concern with the 'whereas' and
the 'resolve'?"
10:27:48 AM
REPRESENTATIVE OLSON restated that neither have a bearing to the
intent of the work product. The intent of the tour was to "find
out what Norway was doing different and how we might learn from
their experience." He opined that there are many other things
Norway does that may be explored at some time, but the
amendments have no bearing on this particular topic. He
expressed his support of the resolution in its present form.
REPRESENTATIVE MUNOZ agreed with the amendment, but also agreed
that legislators must stay consistent with the title of a bill
or a resolution. She pointed out that the title of the
resolution encourages investment in the state's oil and gas
industry, and is not dealing with an education policy issue.
She said she is not in support of including the proposed
language.
10:29:12 AM
REPRESENTATIVE KELLER also agreed with the objection, and noted
that one of the differences between Norway and Alaska is that
Norway has a "cradle to grave welfare system," and including the
amendment is distracting to the purpose of the bill.
REPRESENTATIVE JOULE observed that the amendment may create an
expectation "by implying that we should go in a certain
direction to be supportive of the oil and gas industry." In
addition to job opportunities, efforts are currently being made
in the areas of education, health care, and others. He agreed
with Representative Olson, and mentioned several education
programs currently underway. He said he did not want to create
an expectation that may not ever be fulfilled; however, "it
doesn't diminish my support for these kinds of things in other
venues.
REPRESENTATIVE TUCK opined the amendments are the result of
hearing testimony that 36 percent of Norway's residents have a
post-graduate degree or higher, as compared to 9.8 percent in
Alaska. He said he always supports an educational component;
however, the comments heard caused him to withdraw the
amendments on behalf of Representative Gardner.
10:32:33 AM
CHAIR HERRON suggested the amendment could be offered to another
committee, or on the floor of the House. There being no further
amendments, he asked for discussion on the resolution.
REPRESENTATIVE OLSON commended the work product from those who
participated in the 2011 Norway Policy Tour. As an aside, he
noted that Norway has a 38 percent value-added tax, and the
highest personal income tax in Europe.
REPRESENTATIVE OLSON moved to report HCR 19, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes.
10:34:22 AM
There being no objection, HCR 19(EDT) was reported out of
committee with individual recommendations and the accompanying
fiscal notes.
10:34:34 AM
^PRESENTATION: The Department of Commerce, Community & Economic
Development Updates
PRESENTATION: The Department of Commerce, Community & Economic
Development Updates
10:34:57 AM
CHAIR HERRON announced that the final order of business would be
updates by the Department of Commerce, Community & Economic
Development on the Broadband Task Force and the Division of
Economic Development, Tourism Section.
10:35:24 AM
SUSAN BELL, Commissioner, Department of Commerce, Community &
Economic Development (DCCED), said the department would begin
with a presentation on the Division of Economic Development, and
then discuss the Broadband Initiative and Tourism.
10:35:51 AM
CURTIS THAYER, Deputy Commissioner, Office of the Commissioner,
Department of Commerce, Community & Economic Development
(DCCED), began a PowerPoint presentation entitled, "EDT&T
Presentation," dated 2/7/12, and said the Division of Economic
Development oversees timber, fisheries, and minerals
development, and financing, tourism, and marketing, as well as
the Made in Alaska, Alaska Product Preference, and Alaska
Regional Economic Assistance (ARDORS) programs. In addition,
the division has been working on underutilized species,
mariculture, and outreach to seafood processors on regulatory,
workforce, and product form issues. There has also been robust
commercial fishing and small business lending which resulted in
an increase in the number of new loans from 268 to 313, and that
have a value of $30 million. Further, the Timber Jobs Task
Force - along with other initiatives - has increased outreach to
the forest products industry. The division has also been
working on regulation development for the Alternative Energy
Loan Fund. Mr. Thayer continued, saying there was also an
increase in film and television productions; last year there
were 33 film productions with an estimated credit of $21
million, and 17 productions were pre-approved for tax credits in
the amount of $6.3 million. Big Miracle - filmed in 2010 -
qualified for tax credits of $9.6 million and had a "ground
spend" in Alaska of approximately $30 million. He mentioned
other potential film projects.
10:38:23 AM
CHAIR HERRON asked how to answer those who are critical of the
tax credits given to the movie industry.
10:39:07 AM
MR. THAYER explained that the total spend for Big Miracle was
$40 million, and although it could have qualified for a maximum
tax credit of 44 percent, it qualified for the average credit of
30 percent. Extra credits are given for filming in rural areas,
for filming during the shoulder season, and for an Alaska-hire
workforce. He advised the program is working as designed, and
the exposure for Alaska tourism is priceless.
CHAIR HERRON noted the need to share with the public the
collateral financial benefits to the local economy that balance
the tax credits.
COMMISSIONER BELL said there is a comprehensive economic impact
study from the Anchorage Economic Development Corporation that
indicated the movie made a $16 million direct and indirect
economic impact on the state. She suggested that the department
must seek similar detailed data and analysis.
REPRESENTATIVE FOSTER asked for a copy of a summary of the
economic impact report.
10:42:20 AM
COMMISSIONER BELL offered to distribute the executive summary to
the committee.
CHAIR HERRON asked how the administration balances the debate
between the differing tax credit legislation.
COMMISSIONER BELL advised more effective performance measures
give the legislature consistent information on the cost of, and
return from, programs. Also, incentives change behavior and are
vital to attract new industry and investment. On the other
hand, the program has had several years of experience and this
is the time to look at the program and compare it to programs in
other states since the first major feature film has just been
released.
REPRESENTATIVE JOULE acknowledged that the exposure by the movie
industry is intense; however, he questioned whether there will
be long-term development and if the credits will have to be
increased in order to stay competitive. Further, he asked
whether developing another economy will have an impact on the
oil industry in the state.
10:46:23 AM
COMMISSIONER BELL expressed her hope that enough consistency in
the program will enable the state to develop its own workforce
for this industry; in fact, her department is working with the
Department of Labor & Workforce Development (DLWD) on a training
grant. Also, there must be an investment in infrastructure to
realize the full economic benefit of the film industry. Because
the current program will sunset in July 2013, she said the
maximum benefit is for local employment and spending.
REPRESENTATIVE TUCK, in response to a previous question,
observed that other states have serious economic problems and
are removing tax credit programs, thus they would not be in a
position to compete with Alaska. He expressed his belief that
expanding from a five-year to a ten-year program is necessary to
allow time to address workforce and infrastructure needs.
REPRESENTATIVE THOMPSON asked whether the DLWD training grant is
a duplication of the film school classes at the University of
Alaska Anchorage (UAA).
10:49:21 AM
MR. THAYER advised that the programs were both added last year
and are not in competition, but are complimentary. The grant
was for approximately $400,000, and after this year the results
will indicate "how complementary the university program is with
it."
REPRESENTATIVE THOMPSON cautioned against duplication, saying
the UAA program covers set design and "all of the background
behind, away from the camera, also."
MR. THAYER said the department was not involved in the
development of the processes, or how each came into existence.
REPRESENTATIVE HERRON referred to HCR 19 and its recognition of
the effects of state direct financial interest. He asked
whether the administration has thought about investing in film
productions.
COMMISSIONER BELL said she heard some discussion; however, the
department has not conducted any analysis, and her initial
reaction is that the industry carries some risk.
MR. THAYER continued to highlight the division's tasks in FY 12:
enhanced outreach to the minerals industry by promotional
materials and teamwork with other agencies such as the
Department of Transportation & Public Facilities (DOTPF), the
Department of Natural Resources (DNR), and the Alaska Industrial
Development & Export Authority (AIDEA), in order to work closer
together to attract mining interest in rare earth and minerals;
and secured a $300,000 State Trade and Export Promotion (STEP),
U.S. Small Business Administration (SBA) grant to promote small
business exports to China. In response to Chair Herron, Mr.
Thayer said small business exports to China could be mariculture
and bottled water.
10:53:31 AM
MR. THAYER said also within the division are the implementation
of the FY 12 tourism marketing program, and participation in
cross-agency marketing plans with marketing partners such as
Alaska Grown, the Alaska Marine Highway System, the Alaska
Railroad, the Alaska Seafood Marketing Institute, Made in
Alaska, and the Alaska Film Production Incentive program. He
described the activities surrounding the release of Big Miracle
in Washington, D.C., which included tourism agencies,
journalists, the seafood industry, and the congressional
delegation. Additional marketing partners are the Silver Hand
Permit program, and state and national parks tourism. Finally,
the division has been conducting the Alaska Visitor Statistics
Program to collect critical information to refine state
marketing and to help individual businesses by tracking visitor
volume, spending, experience ratings, and visitors' previous and
future travel plans. Draft findings are expected by March,
2012.
10:55:26 AM
REPRESENTATIVE HERRON referred to the commissioner's August 2010
memorandum regarding changes to tourism marketing in Alaska. He
asked for the successes and disappointments resulting from these
changes.
10:56:09 AM
COMMISSIONER BELL stated that her department has preserved
engagement with the industry by regular contact with all
parties, and recognized that these changes are a "stop-gap
measure" to implement the program and partner with - but not
dismantle - the Alaska Tourism Industry Association (ATIA).
Because the tourism industry is still recovering from losses in
independent and cruise traffic, the department is striving to
"have everything in place by July 1, and that we were poised for
legislative decisions this session." Commissioner Bell advised
that the increased internal collaboration with state agencies
and industry engagement should continue, as should a more active
role in the planning process by the department to advise and
direct the tourism contractors, and better serve the needs of
the private sector.
10:59:01 AM
REPRESENTATIVE GARDNER asked how the department measures the
effectiveness of individual programs and contractors to increase
tourism.
COMMISSIONER BELL recalled that the Alaska tourism marketing
program has always been based on research, whether directed by
state agencies or through the qualified trade organization
arrangement with ATIA; in fact, there has been a conversion
study that studies ad placements and direct mail inquiries, and
other consistent measurements. In further response to
Representative Gardner, she indicated that she will provide more
details and referred to a brochure in the committee packet
entitled, "Alaska's Tourism Marketing Campaign."
11:01:14 AM
REPRESENTATIVE GARDNER heard from a constituent that the way to
capture China's tremendous interest in traveling to Alaska is to
work with travel agents within China. She asked whether this
was contemplated by the department.
COMMISSIONER BELL agreed that international travelers rely more
on tour operators and travel agents. In fact, international
marketing efforts focus on travel trade markets, international
contractors, and charter air carriers such as Condor, Japan Air
Lines, Korean Air, and other tour operators.
MR. THAYER returned attention to the PowerPoint presentation.
Slide 6 was a graph entitled, "Visitor Volume 2006-2011." He
cited the decrease in visitor volume from 2008-11 was minus 8.8
percent. From 2010-11, there was a modest increase of 1.6
percent. Although still in a recovery mode, the forecast for
2012 includes approximately 100,000 new cruise passengers.
MR. THAYER then began his presentation on Connect Alaska, which
was funded by the broadband initiative and is tasked to make it
possible for every Alaskan to participate in - and be
competitive in - the global economy by telemedicine, e-learning,
or improved communications during emergencies. In 2008,
Congress passed the Broadband Data Improvement Act and Alaska
received approximately $6.3 million to fund activities through
2014. The funds were redirected from the Denali Commission to
Connected Nation and used to form Connect Alaska, which is
administered by the division. Slide 10 listed Alaska's grant
components: mapping Alaska's last-mile capability and
maintenance and validation; planning an Alaska Broadband
Taskforce; application to assess and improve e-government
services; technical assistance for local-level research on
residential and business adoption, digital literacy, and
community-needs assessments and benchmarking. The statewide
Alaska Broadband Taskforce consists of a representative from 21
organizations, groups, and agencies, including those from the
state legislature, industry, the University of Alaska (UA), the
Alaska Federation of Natives (AFN), and others, who meet monthly
to plan the state's broadband future and infrastructure needs.
11:06:00 AM
REPRESENTATIVE GUTTENBERG asked who represents the department on
the taskforce.
MR. THAYER answered Robbie Graham, Special Assistant, Office of
the Commissioner, DCCED.
REPRESENTATIVE FOSTER asked where he could obtain an update on
the progress being made in rural Alaska.
MR. THAYER offered to have Ms. Graham provide that information.
In further response to Representative Foster, he said GCI
completed TERRA-Southwest, [United Utilities Incorporated's
(UUI) project to build a next generation communications network
in Southwest Alaska] which brought broadband into the Dillingham
and Bethel areas. The TERRA-Northwest network will link up to
Nome and Kotzebue - this project is funded partly through the
Regulatory Commission of Alaska (RCA) and administered by DCCED
with about 25 percent federal grant money - and the goal is to
connect broadband through rural Alaska up to Barrow, and then
connect to the fiber-optic line that runs along the Trans-Alaska
Pipeline System (TAPS). This will complete a circle around
rural Alaska, so a disruption in service will not affect others
within the broadband system.
11:08:03 AM
REPRESENTATIVE FOSTER asked for the expected completion date.
MR. THAYER estimated two years, and will provide more
information after he verifies the date.
CHAIR HERRON asked whether more federal money will be available
to complete the project.
MR. THAYER said he did not know. The chairman of the Federal
Communications Commission (FCC) was in Dillingham in August,
2011, and he visited villages in the area. Further funding
could be coming through the FCC and the chairman was
particularly interested in broadband, but revenue sources are
yet to be determined. Because GCI has 75 percent equity in the
project, he opined the project is not dependent on federal
funding, but it has helped "speed the project along."
CHAIR HERRON observed Bethel has broadband. He asked whether
the administration will propose using the general fund (GF) to
complete the project.
MR. THAYER deferred to the governor's office.
11:11:03 AM
REPRESENTATIVE GUTTENBERG said from his experience, "I see the
providers now being a hindrance to ... meeting the state's goal,
what the state needs, what the people of the state and the
business of the state need for broadband. ... You want to get us
up to 100 megawatts, [but] that's not part of their mission
statement." The state will have a role in finishing this
project, because the providers will not want to do it, and he
asked whether the broadband taskforce will recommend state
action.
11:12:25 AM
MR. THAYER said yes. At the time the taskforce was created
there was some animosity among the providers of broadband, but
they all joined the task force and are providing information on
their systems now, although they are competitors.
11:13:04 AM
MR. THAYER continued to slide 11, which displayed the Taskforce
Vision Statement: To extend the full benefits of broadband
technology to every Alaskan; To make it possible for every
Alaskan to participate and be competitive in the global
community; By 2020, every Alaskan has 100 megabits per second
(Mbps) broadband connectivity; Draft plan roll-out in fall of
2012; Deliver a plan for future broadband deployment and
adoption; Cost to develop a middle-mile infrastructure; Economic
development potentials (based on modeling) when 100 Mbps is
delivered; The impacts on e-commerce, e-government services,
telemedicine, education, emergency services. He noted that the
task force is to issue its report within the next 10 months.
11:14:18 AM
REPRESENTATIVE GARDNER asked for an explanation of middle-mile
infrastructure.
MR. THAYER explained that middle-mile refers to the distance or
connection between the internet service provider and the
internet backbone; it consists of one or more carrier networks
that have the internet traffic from the access point to the
final destination. In most states, this distance is less than
one mile, but in Alaska it is commonly one hundred miles.
CHAIR HERRON recalled that every house in Yukon Territory has a
broadband connection. In order to strengthen Alaska's
relationship with Yukon Territory, he asked how to include it in
the network.
11:16:02 AM
MR. THAYER restated that the completion of the network involves
a connection with the fiber-optic line at TAPS, and he will need
to get back to the committee on how to connect to the east.
11:16:16 AM
COMMISSIONER BELL agreed that there are tourism, transportation,
and other connections with Yukon Territory and British Columbia
that make strengthening ties to Canada important. She then
turned to the part of the presentation on Alaska Tourism
Marketing and said that last session the legislature
appropriated $12 million for the implementation of tourism
marketing to DCCED instead of to the qualified trade
organizations. This change of direction occurred in May, and
ATIA had already sold advertising in the vacation planner for
2012. She pointed out that this was an increase in funding, and
a message indicating that the industry is important to the
legislature; however, over a two-year period there had been a
loss of 265,000 visitors - the equivalent of 5,000 Alaska jobs -
and a recovery from that is just beginning with growth in air
travel and cruise passengers. Commissioner Bell further
explained that DCCED met with industry to determine how to
direct the $12 million for the FY 12 marketing program funded to
DCCED by the legislature, and the $2.7 million raised by ATIA
largely through Vacation Planner and website advertising. As
indicated on slide 14, the contracts transferred to the
department by July 1 were the advertising contracts, media
relations, website, fulfillment - which includes mailing - , and
research.
11:20:02 AM
COMMISSIONER BELL said that this was "uncharted territory." The
funding influenced decision-making: ATIA maintained contracts
for FY 12 for travel trade and international for $1.2 million,
and DCCED changed its role from participating as part of the
planning effort to one of confer, advise, and direct. This was
reflected in the memorandum of understanding (MOU) with ATIA.
REPRESENTATIVE OLSON asked whether DCCED gets a service fee for
administrative costs.
11:21:46 AM
COMMISSIONER BELL said no. She referred to slide 15 which
indicated cost estimates for major components of the state
marketing budget and said that there was no staff or overhead
added to the department, but if the program continues in its
present form, staffing would need to be transferred from the
commissioner's office. Presently, the department is depending
on staffing from the Division of Economic Development, tourism
development, and the commissioner's office. Referring to the
marketing budget, she said the advertising contract is
implemented by Bradley Reid + Associates Incorporated for
$7,842,000, and includes the production of Vacation Planner, the
production and placement of television ads, print ads, the
direct mail campaign, and the Within Your Reach Brochure. The
budget for fulfillment, or mailing, is $1,335,000. Public
relations - budgeted for $939,000 - is a significant element of
the marketing program and includes collaboration with ASMI,
Alaska Grown, Alaska State Parks, and the Silver Hand program.
Without detracting from the tourism program, this collaboration
will showcase some of the department's sister agencies through
public relations efforts and events. The budget for website is
$733,000 and includes hosting, upgrades to content, and a Korean
language conversion. Collaboration with Yukon Territory,
British Colombia, and Alberta is budgeted through the North to
Alaska Program and a joint Alaska/Canada program for $510,000.
A budget of $239,000 is for research which looks at direct mail
lists, ad placements, and sampling surveys. In-state marketing
efforts - budgeted at $150,000 - are targeted at friends and
relatives; and opportunities and contingency - budgeted at
$262,000 - includes activities at the National Travel
Association conference and other special events.
11:26:43 AM
REPRESENTATIVE OLSON appreciated DCCED's handling of the
appropriation.
REPRESENTATIVE GARDNER inquired, in terms of the contracts
extended by DCCED, whether there is a focus on using Alaska
companies.
COMMISSIONER BELL assured the committee that her department uses
the state's policy of preference for Alaska companies; for
example, in addition to Bradley Reid, Thompson & Co. is an
Alaska contractor.
REPRESENTATIVE TUCK asked for a description of how the
television marketing campaign appeals to a prospective visitor.
11:28:33 AM
COMMISSIONER BELL explained that this is measured by the
conversion study which tracks the response to a campaign in
subsequent years. She offered to provide a synopsis of the
data. She described the state marketing program as a modest
program but a sound one, in a similar way to the ASMI marketing
program. Due to the size of the budget, there is a reliance on
public relations and direct mail; however, the increase in
budget allows for television visibility. Commissioner Bell
mentioned another national study called "Images" that looks at
the potential for travel in Alaska, and helps identify where to
place ads and what direct mail lists to buy. She advised that a
marketing campaign must continue to invest in "awareness."
11:31:27 AM
MR. THAYER, in response to Representative Tuck, said the $9.6
million in tax credits was for the movie, Big Miracle.
REPRESEENTATIVE TUCK asked if there is a way to measure
awareness.
COMMISSIONER BELL said the Images study measures awareness and
Alaska's desirability. Reality television raises awareness
about Alaska's uniqueness, but the marketing program has a
planned and controlled message.
REPRESENTATIVE THOMPSON recalled cruise companies reduced their
fees which affected land tours in the Interior and Bush Alaska.
He asked whether there was a way to track the number of cruise
visitors that take land tours.
11:33:05 AM
COMMISSIONER BELL said the draft Alaska Visitor Statistics full
report that is expected in the next couple of weeks will have an
excellent picture of Alaska's market, including where visitors
travelled and their participation in land tours. A part of the
recovery, on the cruise side, is an increase in volume and a
return to cross-gulf voyages that are more suited for cruise-
land packages. Her experience is that the cruise visitors that
transfer to land travel "become virtually indistinguishable from
other visitors."
CHAIR HERRON asked how the marketing campaign uses social media.
11:34:48 AM
COMMISSIONER BELL called attention to slides 16 and 17, and
pointed out that advertising included twenty-four full-page ads
in national magazines, nine smaller ads in magazines, national
television advertising, 450,000 Vacation Planners, 200,000
Within Your Reach Brochures, 100,000 North to Alaska Guides, 1.3
million direct main pieces, and new winter photography. Slide
18 was a list of public relations events and she noted that each
year there is an attempt to schedule "something big," such as
the Today Show. In addition, other events included the Media
Road Show, the movie release in Washington, D.C., and an
upcoming New York Media trip featuring an Alaska cooking
competition. Further, a monthly e-newsletter is published. In
response to Co-Chair Herron, she opined ASMI and state tourism
take a very measured approach to social media, but do
participate with a Facebook page and tweets. The campaign is
cognizant of its target market, but as people's habits change,
she cautioned about "being left out." Slide 19 depicted the
campaign's website, TravelAlaska.com, which receives 600,000
visits per month and is used to capture e-mails and send out
400,000 e-newsletters per month. The website includes
information translated into the Japanese, German, and soon
Korean, languages.
COMMISSIONER BELL continued to slide 20, which listed trade
shows and events which are contracts managed by ATIA. Mr.
Thayer participated in a U.S./China tourism summit held in
Hawaii and Commissioner Bell went on a trade mission to China
and South Korea, and there is a trade mission ongoing to Iceland
and the United Kingdom. Upcoming events include a winter press
trip, the New York Media event, the release of a new mobile
application for tourism, the Korean language website, and
planning for FY 13 with industry.
11:39:37 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Economic Development, International Trade
and Tourism meeting was adjourned at 11:39 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HCR 19 - Fiscal Note 1-25-12.pdf |
HEDT 2/7/2012 10:15:00 AM |
HCR 19 |
| EDT 2.7.12 - DCCED - 2012 OverviewFINAL.pdf |
HEDT 2/7/2012 10:15:00 AM |
|
| HCR 19 -Keller amendment M.2.pdf |
HEDT 2/7/2012 10:15:00 AM |
HCR 19 |
| HCR 19, Norway Policy Tour - Answers to Rep. Tuck Questions.pdf |
HEDT 2/7/2012 10:15:00 AM |
HCR 19 |