Legislature(1995 - 1996)
02/14/1995 03:05 PM House ITT
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON INTERNATIONAL TRADE & TOURISM
February 14, 1995
3:05 p.m.
MEMBERS PRESENT
Representative Beverly Masek, Chairman
Representative Alan Austerman, Vice Chairman
Representative Jeannette James
Representative Brian Porter
MEMBERS ABSENT
Representative Pete Kott
Representative Irene Nicholia
Representative Caren Robinson
COMMITTEE CALENDAR
Overview - Division of Tourism, Department of Community and
Regional Affairs
WITNESS REGISTER
MARY PIGNALBERI, Director
Division of Tourism
Department of Community and Regional Affairs
P.O. Box 110801
Juneau, Alaska 99801-0801
Telephone: 465-2012
POSITION STATEMENT: Gave an Overview of Division of Tourism
SHARON GAIPTMAN, Tourism Development Specialist
Division of Tourism
Department of Community and Regional Affairs
P.O. Box 110801
Juneau, Alaska 99801-0801
Telephone: 465-5478
POSITION STATEMENT: Related marketing details
JOHN BEILER, Tourism Development Specialist
Division of Tourism
Department of Community and Regional Affairs
P.O. Box 110801
Juneau, Alaska 99801-0801
Telephone: 465-5475
POSITION STATEMENT: Offered job-specific comments
WENDY WOLF, Manager, Tourism Programs
Division of Tourism
Department of Community and Regional Affairs
P.O. Box 110801
Juneau, Alaska 99801-0801
Telephone: 465-5471
POSITION STATEMENT: Elaborated on highways issues
PETE CARLSON, Tourism Development Specialist
Division of Tourism
Department of Community and Regional Affairs
P.O. Box 110801
Juneau, Alaska 99801-0801
Telephone: 465-5476
POSITION STATEMENT: Offered job-specific comments
ACTION NARRATIVE
TAPE 95-2, SIDE A
Number 003
The House Special Committee on International Trade and Tourism
was called to order by Chairman Beverly Masek at 3:05 p.m.
Members present at the call to order were Representatives Masek,
Austerman, James, and Porter. Members absent were
Representatives Kott, Nicholia, and Robinson.
Number 038
MARY PIGNALBERI introduced her staff and explained their areas of
responsibility. Sharon Gaiptman's primary function is the
international marketing area for German-speaking Europe and
Mexico. She also provides business and technical assistance
covering Southeast Alaska. John Beiler, the other international
marketing person, handles primarily the Asian countries, Japan,
Korea and Australia. On the business and technical assistance
side, he covers the Interior and the Northern part of the state.
MS. PIGNALBERI said Wendy Wolf oversees different programs of the
division but, her primary responsibilities are the highway
development marketing plan that the division implements and the
Alaska Host Program. She also deals with projects that have to
do with state and federal lands that the division is involved in.
Pete Carlson oversees their program of the visitor research and
statistical programs. He also does business and technical
assistance for many of the Native communities about requests on
how to develop a tourism business. He services the Prince
William Sound, Valdez and Southwest Alaska areas.
MS. PIGNALBERI explained in addition to the Film Office and the
development function that's located in Anchorage, those are the
primary programs that the division is involved in. The division
has an inquiry fulfillment section that handles all of the
incoming mail and sending out the vacation planner and visitor
information. They have an administrative assistant that handles
the budget and requirements for bills, (i.e. analysis and fiscal
notes, et cetra.).
Number 130
REPRESENTATIVE BRIAN PORTER asked if the division had a game plan
for the money allocated for tourism in the latest supplemental.
Number 144
MS. PIGNALBERI responded that isn't the Division of Tourism. She
explained the Alaska Marketing Tourism Council (ATMC) didn't
exist before 1988. There was a marketing council advisory board
as part of the Alaska Visitor's Association (AVA) to the
division. All the functions that the ATMC now performs were
within the Division of Tourism. In 1988, when the ATMC was
formed, it removed the Domestic and Canadian Marketing Program
out of the Division of Tourism and under the ATMC. The bulk of
the marketing budget is what the legislature allocates to the
ATMC for the Domestic and Canadian Program. The supplemental was
the result of the cuts that the ATMC took last session, and in
the additional veto. They're attempting to reinstate those funds
this fiscal year to play catch up. They're intending to use the
bulk of those monies for television placement.
Number 185
REPRESENTATIVE JEANNETTE JAMES commented that in the tourism
industry, people don't even agree amongst themselves. Some get
their income from the cruise ships, some from the tours, some
from the road traffic, then there's Southeast and the Interior,
et cetra. As the ATMC proceeds to market Alaska, there is always
someone dissatisfied and those are the loudest voices when it
comes time to fund the ATMC. What can the Division of Tourism do
to pull these people together to work as a team?
Number 213
MS. PIGNALBERI replied that the industry has become more
segmented with special interest groups, among tourism, that all
want their share of the pie. With the current structure that
exists between the division and the ATMC, it's very difficult to
accomplish what Representative James has suggested. The way the
state has set this up with the private sector match, it's very
difficult to keep the groups unified. That structure should be
looked into.
Number 241
REPRESENTATIVE JAMES mentioned that Southeast, as a regional
group, has been able to pull in resources from various different
places and focus on Southeast to supplant what the statewide
effort is. She feels that regional areas across the state should
do likewise and not depend on the state to provide for them.
What suggestions can the division offer that she can take to her
people in the Interior that they can do to help get more tourists
in conjunction with what the Division of Tourism and the ATMC are
doing?
Number 259
MS. PIGNALBERI noted there are other regional groups (i.e. Kenai
Peninsula and Prince William Sound) and there is even talk of one
in Fairbanks. She noted attempts in the past have failed for the
Interior. There are many other ways that they can get involved.
Number 273
SHARON GAIPTMAN, Tourism Development Specialist, Division of
Tourism, Department of Commerce and Economic Development,
explained that the division takes all the leads from trade shows
and write up specific requests from tour operators and travel
agents. The division mails those out to every Convention and
Visitors Bureau (CVB), every regional marketing organization, and
their private sector partners. She said the division hopes that
the CVBs and the regionals are sharing those leads with their
members in getting the word out that this is what people are
looking for. They blanket the state with whatever they do.
People need to follow up on those leads.
Number 290
JOHN BEILER, Tourism Development Specialist, Division of Tourism,
Department of Commerce and Economic Development, added the
division invites the private sector and CVBs along on their trade
missions and trade shows. They try to involve as many
businesses, statewide, into their efforts.
Number 297
WENDY WOLF, Manager, Tourism Program, Division of Tourism,
Department of Commerce and Economic Development, added that it's
easy for Southeast, being such a concise area, to consolidate
efforts in a regional group. Whereas, if a tourist is traveling
the highways, the roads will take them to the Interior, to
Southcentral, to the Kenai, et cetra. It's difficult to develop
a highway group. The division goes after the international
visitors and the highway traveler. Within the division's Highway
Marketing Program, they're joint-marketing with Yukon and British
Columbia since road travelers have to go through either of those
territories to get to Alaska. Fairbanks and Haines also
participates in that program. The division identified this as a
way to have a regional presence without having a regional
marketing program.
Number 315
REPRESENTATIVE JAMES related that visitors come into her district
to see Denali and then the complaint is they go back to
Anchorage. She tells the travel people in her district that they
need to take the initiative to provide an interest to get those
visitors to stay once they come. She said she doesn't feel
that's the state's responsibility to do that. Representative
James said they're not getting the message.
Number 327
PETE CARLSON said he handles a lot of itinerary planning for
motor coach and tour groups. They work very hard at getting them
into all outlying areas of the state, not just Anchorage. They
work closely with Fairbanks. Fairbanks is trying but, does have
a way to go.
Number 341
CHAIRMAN MASEK asked if Ms. Pignalberi could go over their new
tourism programs and initiatives.
Number 351
MS. PIGNALBERI responded that the division is participating in
the American Bus Association (ABA) and the American Society of
Travel Agents (ASTA) to explore new avenues of marketing the
state and educating outside agencies. They've also expanded into
the United Kingdom with a contract representative that will
handle public relations, meeting with press, trade activities and
escorting groups of press and trade to Alaska. They are also
doing the symposium at the end of March on tourism on public
lands with respect to access. They're efforts are aimed at
bringing state and federal land agencies to work closer with the
division when it involves tourism issues.
Number 388
CHAIRMAN MASEK asked what the process is in determining which new
projects the division will take on.
Number 391
MS. PIGNALBERI felt it was a combination of things. They get
input and feedback from constituents and business owners. They
learn about some of the problems and successes that other states
are having that relate to Alaska. The division also responds to
requests for advice and help. They try to get more involved in
relatively underdeveloped areas that need development. In some
cases, there's a duplication of effort with other state agencies.
In an attempt to unify it they are investigating working with the
Alaska Village Initiatives (AVI), a non-profit organization.
They do have the support of eight or nine of the regional native
corporations contributing to their efforts. There's not a clean,
step by step process that they have in determining which projects
to undertake.
Number 439
CHAIRMAN MASEK asked what would a joint project with the AVI
cost?
Number 441
MS. PIGNALBERI stated $120,000 for a pilot project involving one
full-time person zeroing in on one or two areas with projects
that have potential. They did include that figure in their
budget request for FY 96.
Number 460
CHAIRMAN MASEK inquired about the selection process of their
representatives.
Number 471
MS. GAIPTMAN replied that for the big contracts, they go through
a formal bid process. The United Kingdom representative is a
small contract. They wanted someone who understood the trade and
the press and was willing to do it for next to nothing. She said
was chosen from an informal interview.
Number 480
MS. PIGNALBERI elaborated on the number of the division's
international employees; one in the United Kingdom, one in
Japan, one in Germany and one in Australia. The Australia
contract is fairly new, since 1990; Germany and Japan since 1983.
Number 488
CHAIRMAN MASEK asked how the selection process was made in
choosing those individuals.
Number 489
MS. WOLF clarified that these people are contractors, not
employees, who specialize in travel from their countries. They
are not Alaskans who live in those countries. These are
established companies that are fluent in the language, know the
media and have the connections.
Number 498
MS. PIGNALBERI added that those representatives understand those
cultures. They know what will or won't work for those individual
cultures and can offer the division that insight and guidance.
Number 505
CHAIRMAN MASEK asked about their targeted national programs for
repeat and new visitors to the state.
Number 520
MS. GAIPTMAN explained that they try to do different things with
new tour operators to dispel the perception that Alaska is
similar to other cold-climate countries. For example, the
division showed a Norwegian marketer the Inside Passage and now
he sells a program to Alaska. They try to suggest and sell tour
operators on other areas of the state when their particular
section is sold out on any given day.
Number 545
CHAIRMAN MASEK brought up their plans to place ads in leading
trade publications in German-speaking Europe, to select ten
agents to come for an education of tourism in Alaska. She feels
they need to expose more visitors to the smaller business tour
operators in the Interior, on the Kenai and along the rail belt
as there is always a guaranteed number of people that come up on
the ferry system. She asked how the division plans to put
together the itinerary for these ten agents to see what Alaska
has to offer them?
Number 565
MS. GAIPTMAN responded that they have a week in Alaska. Their
standard routine is to spend a night in Anchorage, go up to
Eklutna, Wasilla and then overnight in Talkeetna. Then they will
try to fly or rail them into the Denali, then up to Fairbanks and
then bring them back down. They also have Prince William sound
route. That's also where the flights come in. They might take a
group to Kodiak, Wrangell-St. Elias. There is no formula. The
division does try to highlight new areas.
Number 584
MS. WOLF mentioned that in an effort to reach the highway
consumer, they sent a box of information to every American
Automobile Association and Canadian Automobile Associations.
TAPE 95-2, SIDE B
Number 002
MS. WOLF said the division works with the CVBs and the highway
communities in deciding what should be in those mailings in
targeting the highway markets.
Number 008
CHAIRMAN MASEK commented that there are so many people involved
in tourism in too many different directions. She feels we need a
joint effort to create one centralized outlet for tourism
information dissemination.
Number 032
MS. PIGNALBERI said the division used to be that centralized
place. The industry was much smaller and there was a standard
route that tourists visited. It's exploded with special interest
entities. CVBs were non-existent before 1975. In encouraging
people who are interested in getting involved in tourism, she
stressed approaching it as a business year-round. She advises
them to look at the programs of the ATMC, their regional
marketing councils and their local CVB. To be successful, they
need to be involved with these programs. She agreed that the
current structure is fragmented.
Number 085
REPRESENTATIVE JAMES charged that with the size of our state and
the diversity of the land and the people, the challenge to
centralize tourism efforts is unattainable. The only way for
that challenge to be met is for the people, across the state, in
the industry to take an active role and participate. She feels
that the state needs to listen to small business people and give
advice and direction. The only focus of the Division of Tourism
and the ATMC should be to get people to Alaska. What those
visitors do when they get here should be up to the individual
businesses to figure out.
Number 127
CHAIRMAN MASEK asked how the division is involved the promotion
of film and talent in the state.
Number 132
MS. PIGNALBERI replied they have a marketing program that
involves print advertising, direct mail, a sales piece that has
information on statewide locations and a directory listing of
people who have services for film makers. The division responds
to the inquiries that come in from the trade shows, direct mail
and print advertising. The film program has done an excellent
job of providing work It's helped to support a formation of a
chapter of the commercial producers in Alaska. A new technical
production-type crew-based group membership called the Alaska
Film Group has started up. For the money spent in that budget,
it's a $93 to one return to the state. It's a good spin-off for
tourism in getting people excited about visiting Alaska.
Number 166
CHAIRMAN MASEK inquired how the lists of contracts or scouts are
compiled?
Number 168
MS. PIGNALBERI responded the division only asks them to submit a
resume showing they have experience in the areas they are
requesting to be referred in. That's the crew list that goes out
to inquiries about filming here. For the directory, they must
have an Alaska business license.
Number 196
CHAIRMAN MASEK questioned who makes the decision on who is used?
Number 197
MS. PIGNALBERI answered the production company. All the division
does is provide them with the crew list and they're on their own.
However, on two occasions, with "White Fang" and "On Deadly
Ground," as is the national standard, the film office was asked
to be the receptacle for rsums for people interested in
working on the film. When the cutoff date was reached, they just
handed the whole file over to the production company.
Number 211
CHAIRMAN MASEK queried is the Alaska Film Group separate from the
Division of Tourism?
Number 215
MS. PIGNALBERI affirmed that it has nothing to do with the state.
She said she thinks they're a non-profit corporation and call
themselves a film trade association. It's a membership-based
entity that was formed out of the private sector. She does keep
them informed of projects.
Number 229
CHAIRMAN MASEK asked if they're comfortable with the level of
involvement and influence by the division into the private sector
area decision-making process of the crew people?
Number 234
MS. PIGNALBERI felt she had to say "yes." To have much more
involvement from the film group would put the state in a position
she doesn't think they need to be in. She feels that as a state
agency, they have to remain neutral and fair.
NUMBER 275
MS. PIGNALBERI offered that she would like some feedback from the
committee, whether they're satisfied with the division, before
the session ends.
Number 280
CHAIRMAN MASEK stated that currently they're gathering
information on the various agencies to understand the current
status and future expectations.
Number 300
MS. PIGNALBERI felt that there is a perception of duplication of
effort between the division and the ATMC and that they're
competing against each other. As the committee gathers input,
they may find more efficient means and the division is open to
such suggestions.
Number 308
CHAIRMAN MASEK reminded them of their next scheduled meeting on
Tuesday, February 21, in which the ATMC will be giving an
overview .
ADJOURNMENT
Number 326
There being no further business before the committee, CHAIRMAN
MASEK adjourned the meeting at 4:15 p.m.
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