Legislature(2001 - 2002)

01/23/2001 09:02 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
GENERAL SUBJECT(S):  Presentation by Alaska Travel Industry                                                                     
Association                                                                                                                     
                                                                                                                              
The  following overview  was  taken  in log  note  format.   Tapes  and                                                         
handouts  will be on  file with  the Senate  Finance Committee  through                                                         
the  22nd  Legislative  Session,  contact  465-4935.   After  the  22nd                                                         
Legislative  session they  will be  available  through the  Legislative                                                         
Library at 465-3808.                                                                                                            
                                                                                                                              
Time Meeting Convened:  9:02 a.m.                                                                                               
                                                                                                                                
Tape(s):  SFC-01 #4                                                                                                             
                                                                                                                              
                                                                                                                              
       PRESENT:                                                                                                             
                                                                                                                                
x      Senator Donley                                                                                                         
x      Senator Kelly                                                                                                          
x      Senator Austerman                                                                                                      
x      Senator Green                                                                                                          
x      Senator Hoffman                                                                                                        
x      Senator Leman                                                                                                          
x      Senator Olsen                                                                                                          
x      Senator Ward                                                                                                           
x      Senator Wilken                                                                                                         
                                                                                                                                
ALSO PRESENT:                                                                                                               
ANNE CAMPBELL, Chair, Alaska Travel Industry Association                                                                      
TINA LINDGREN, President and Chief Operating Officer, Alaska Travel                                                             
Industry Association                                                                                                          
                                                                                                                                
LOG SPEAKER                DISCUSSION                                                                                       
001 Co-Chair Kelly         Presentation by Alaska Tourism Industry                                                              
                        Association (ATIA)                                                                                      
                           Progress report on what has been going on since                                                      
                           last year                                                                                          
015 Ann Cambell, Chair,    Provided handouts which include a one page                                                           
     Alaska Travel         update, some information on levels of tourism                                                        
     Industry Association  funding for state tourism programs and a copy                                                        
                           of the FY01 marketing implementation plan.                                                           
                           Update of progress of Alaska Travel Industry                                                         
                           Association.                                                                                         
                           Two years ago the Alaska Legislature passed                                                          
                           legislation mandating the consolidation of                                                           
                           statewide marketing into a single contract to                                                        
                           be administered by a qualified trade                                                                 
                           association and managed by the Department of                                                         
                           Community and Economic Development.                                                                  
                           The mandate was the result of:                                                                       
                             1. The states decreasing ability to increase                                                       
                                it's general fund contribution to tourism                                                       
                                marketing.                                                                                      
                             2. It was to provide a mechanism by which                                                          
                                Alaska industry businesses could                                                                
                                voluntarily contribute a greater                                                                
                                proportion of tourism marketing.                                                                
                             3. To consolidate all of the elements of the                                                       
                                statewide tourism effort into a single                                                          
                                point of contact.                                                                             
051                        In July of 2000 ATIA assumed responsibility for                                                      
                           the statewide tourism-marketing program.                                                             
                           Currently ATIA has just over 900 member                                                              
                           businesses most of which are small businesses;                                                       
                           60 percent of our membership has 5 or fewer                                                          
                           employees.                                                                                         
                           ATIA is looking for programs and policies that                                                       
                           benefit a wide variety of businesses.  Regular                                                       
                           membership is as low as $100.                                                                      
079                        ATIA has encouraged participation in the                                                             
                           association and continued to strengthen                                                              
                           membership base.                                                                                   
086                        Fundraising efforts                                                                                  
                           The FYO1 marketing contract was a total of $6.9                                                      
                           million of which the State general fund                                                              
                           contributed $4.85 million with ATIA or the                                                           
                           private industry contributing just over $2                                                           
                           million.                                                                                             
                           Of the $2 million that ATIA is required to                                                           
                           match they have committed or collected just                                                          
                           over $800,000 from cruise partners, $340,000                                                         
                           from community partners and destination                                                              
                           marketing organizations and $900,000 from                                                          
                           memberships.                                                                                       
114                        Anticipated to exceed required match this year                                                       
                           somewhere in the neighborhood of $300,000.  All                                                      
                           of those dollars will be used on marketing this                                                      
                           year.                                                                                              
119 Tina Lindgren,         General overall goal is to market Alaska as a                                                        
     President, Alaska     year-round destination.                                                                              
 Travel Industry       The program is research driven and results                                                               
     Association           oriented.                                                                                          
130                        Working well:  marketing in one place and                                                            
                           efficiency and better tie-ins with programs                                                        
148                        Six major parts to marketing programs                                                                
                             1. Public relations                                                                                
                          2. Advertising                                                                                        
                                · Direct mail                                                                                   
                                · Magazine adds                                                                                 
                             3. Niche marketing                                                                                 
                             4. Travel information                                                                              
                                · State vacation planner                                                                        
                                · Invitation to Alaska                                                                          
                             5. Trade International program                                                                     
                             6. Website, additional emphasis on Internet,                                                       
                                travelalaska.com                                                                              
220                        These programs are designed so businesses can                                                        
                           participate and there are many places to plug                                                        
                           themselves in                                                                                      
                           We are spending $450,000 on payroll to                                                               
                           implement a 7 million dollar program, which is                                                       
                        pretty reasonable.                                                                                    
233                        A couple challenges going on into the future.                                                        
                           One is continuing to raise the match.  Also see                                                      
                           Alaska back on television.  We are expecting by                                                      
                           March to have a marketing plan for FY02.  We                                                         
                           have developed a good working relationship with                                                      
                           the department.  Consolidating and merging the                                                       
                           efforts - we would benefit greatly by increased                                                      
                                                    th                                                                          
                           promotion.  Alaska was at 7 and we are now                                                           
                                        rd                                                                                      
                           down around 33.  Starting to see some                                                                
                           slipping, at the same time, 1 in 8 private                                                           
                           sector workers is now employed by the tourism                                                        
                           industry.                                                                                          
241 Co-Chair Kelly         Payroll?                                                                                           
255 Ms. Lindgren           $450,000                                                                                           
     Senator Austerman     Not doing television now, but hope to in the                                                         
                           future depending on the funding.  What plans do                                                      
                           you have in terms of that funding?                                                                 
     Ms. Lindgren          Have about 9 subcommittees and 29 people on a                                                        
                           marketing committee.  In the last meeting they                                                       
                           did express the desire to add image                                                                  
                           advertising.  Hope is to increase by at least                                                        
                           $500,000 over this year's program and hopefully                                                      
                           more than that next year by increased                                                              
                           contribution.                                                                                      
260 Co-Chair Kelly         Is competition for airtime on Television with                                                        
                           foreign countries or with other states?                                                            
263 Ms. Lindgren           Cost is the competition.                                                                           
273 Co-Chair Kelly         Noticed more foreign countries competing for                                                         
                           Alaskan tourism dollars.                                                                           
275 Ms. Lindgren           Absolutely.  Europe is our biggest competitor,                                                       
                           as well as, the Caribbean and Hawaii.  We don't                                                      
                           compete so much with other states as we do with                                                      
                           other countries.  Have seen a large increase in                                                      
                           the number of countries on Television going                                                          
                           after the same visitors.                                                                           
277 Co-Chair Kelly         Are you doing anything for hunting?                                                                
282 Ms. Lindgren           Not at the moment.  Currently not on the list                                                        
                           as one of the first niches.                                                                        
290 Senator Austerman      The 30 percent that is required of ATIA to                                                           
                           match.  Does that change over time?                                                                
292 Ms. Lindgren           The first two years, FY01 and FY02, it was 30                                                        
                           percent.  The third year it goes to 60 percent.                                                    
     Senator Austerman     It stays at 60 percent?                                                                            
     Ms. Lindgren          Yes.                                                                                               
302 Co-Chair Kelly         Thank you.  Adjournment at 9:22 a.m.                                                               
                                                                                                                                

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