Legislature(2021 - 2022)BARNES 124
04/01/2021 11:00 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: Alaska Tourism - Covid & Beyond | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ARCTIC POLICY,
ECONOMIC DEVELOPMENT, AND TOURISM
April 1, 2021
11:03 a.m.
MEMBERS PRESENT
Representative Grier Hopkins, Chair
Representative Sara Hannan
Representative Liz Snyder
Representative Harriet Drummond
Representative Tom McKay
MEMBERS ABSENT
Representative Josiah Patkotak
Representative Mike Prax
COMMITTEE CALENDAR
PRESENTATION: ALASKA TOURISM - COVID & BEYOND
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SARAH LEONARD, President/CEO
Alaska Travel Industry Association
Anchorage, Alaska
POSITION STATEMENT: Gave a PowerPoint focused on the Alaska
Travel Industry Association during the presentation, entitled
"Alaska Tourism - COVID & Beyond."
PATTI MACKEY, President/CEO
Ketchikan Visitors Bureau
Ketchikan, Alaska
POSITION STATEMENT: Gave a PowerPoint, entitled "Ketchikan's
Tourism Industry and COVID-19 Impacts" during the presentation,
entitled "Alaska Tourism - COVID & Beyond."
JULIE SAUPE, President/CEO
Visit Anchorage Alaska
Anchorage, Alaska
POSITION STATEMENT: Gave a PowerPoint during the presentation
regarding Anchorage tourism during the presentation, entitled
"Alaska Tourism - COVID & Beyond."
DEB HICKOK, President/CEO
Explore Fairbanks
Fairbanks, Alaska
POSITION STATEMENT: Gave a PowerPoint during the presentation,
entitled "Alaska Tourism - COVID & Beyond."
WENDY ANDERSON, Information Specialist
Skagway Convention & Visitors Bureau
Skagway, Alaska
POSITION STATEMENT: Spoke of impacts of the pandemic to Skagway
tourism during the presentation, entitled "Alaska Tourism -
COVID & Beyond."
ACTION NARRATIVE
11:03:10 AM
CHAIR GRIER HOPKINS called the House Special Committee On Arctic
Policy, Economic Development, and Tourism meeting to order at
11:03 a.m. Representatives Hannan, Snyder (via teleconference),
Drummond, McKay (via teleconference), and Hopkins were present
at the call to order.
[Committee members introduced themselves and spoke to their
interest in House Special Committee On Arctic Policy, Economic
Development, and Tourism issues.]
^PRESENTATION: Alaska Tourism - COVID & Beyond
PRESENTATION: Alaska Tourism - COVID & Beyond
11:09:41 AM
CHAIR HOPKINS announced that the only order of business would be
a presentation, entitled "Alaska Tourism - COVID & Beyond."
11:11:15 AM
SARAH LEONARD, President and CEO, Alaska Travel Industry
Association, Gave a PowerPoint focused on the Alaska Travel
Industry Association (ATIA) during the presentation, entitled
"Alaska Tourism - COVID & Beyond." She turned to slide 2 and
related that ATIA is the leading statewide association for
travel-related businesses and partners. The mission of ATIA is
to promote Alaska as a top visitor destination and [tourism] as
one of the state's economic contributors. She said ATIA has
more than 600 tourism business members and community partners
representing businesses of all sizes from around the state.
There is a 24-member elected board of directors; Alaska's
lieutenant governor is an ex-officio member of the board. She
noted that ATIA has long-managed the state's tourism marketing
program, Travel Alaska.
11:13:43 AM
MS. LEONARD directed attention to slides illustrating the global
and local struggles resulting from COVID-19. She related that
according to the World Tourism Organization, destinations
received 900 million fewer tourists between January and October
[2020] as compared to the same period in 2019. This translated
into a loss of $935 billion - more than 10 times the loss as
during the global economic crisis of 2009. She said
international arrivals fell by 72 percent over the first 10
months of 2020. She stated that travel restrictions, low
consumer confidence, and the global struggle to manage the virus
generated a statement by the World Tourism Organization that
[2020] was the worst year on record in the history of tourism.
According to the U.S. Travel Association, in 2019, "the Mexican
international travelers spent $1.1 trillion in the U.S.,"
spending which supported 9 million jobs, 7 percent of total
private industry employment in the U.S. at that time, and
generated $277 billion in payroll income and $180 billion in tax
revenues for federal, state, and local government. From the
beginning of March 2020, the pandemic has resulted in over $500
billion in cumulative losses for the U.S. travel economy; at the
current pace, the industry is not expected to recover until
2025.
MS. LEONARD said pre-pandemic, Alaska's summer visitors arrived
as follows: [56] percent by cruise ship, [36] percent by air,
and the remaining [4] percent by land or ferry. More than 2.5
million visitors in 2019 generated over $4.5 billion in economic
activity for the state and supported over 50,000 direct and
indirect jobs - one in ten jobs attributed to the tourism
industry. She said tourism in Alaska has generated $215 million
in tax revenues for state and local governments.
MS. LEONARD reported that since March 2020, almost 100 percent
of cruise sailings were canceled in Alaska, air travel has been
significantly impacted, and the extended closure of the highway
into Canada to March 2022 continues to impact large ship cruise
itineraries and highway travel.
11:16:48 AM
MS. LEONARD showed a series of slides with statistics comparing
2019 to 2020. Anchorage, Fairbanks, and Juneau saw 59 percent
decreases across the board; there were almost 250,000 fewer
travelers by land, and the Alaska Marine Highway also saw
decreases. She said ATIA would be implementing a study in
partnership with the McKinley Research Group to assess
comprehensive economic impact from COVID-19 on the industry.
She showed a graph illustrating "Percentage Change in Leisure
and Hospitality Employment, June 2019-June 2020." She reported
that overall Alaska was down 37 percent in employment in the
industry. Similar job losses occurred in related air
transportation employment. She said overall Alaska was down 35
percent in the food service and accommodation sectors; the
Denali Borough and community of Skagway were significantly
impacted, showing 87 and 80 percent employment losses,
respectively. In the area of sightseeing, Ms. Leonard said 85
percent employment losses occurred in Anchorage, Juneau, and
Ketchikan. She mentioned a blog that reported February
employment was down 7 percent from February 2020, with a loss of
over 22,000 jobs, with leisure and hospitality continuing to
record the largest losses, and with over 7,000 fewer jobs as
compared with the prior February. She said these devastating
losses translate into people's jobs - their livelihoods.
11:19:55 AM
MS. LEONARD moved on to the next group of slides and stated that
since the pandemic, ATIA has employed a multi-pronged approach
toward moving and keeping Alaska's tourism industry on the
economic path to recovery. She said the health and safety of
its teams and visitors has remained the association's priority.
She spoke of high-level industry safety protocols being
implemented in April 2020 that businesses can incorporate and
market to travelers. She stated that ATIA advocates for a safe
return of cruises to Alaska. She said Canada's continuing its
prohibition of cruise vessels to February 2022 has threatened
the already fragile tourism industry, and ATIA has worked with
Alaska's congressional delegation to brainstorm solutions toward
safely resuming cruising operations, especially relating to
conversations with the Center for Disease Control (CDC) and
complicated federal regulation changes, such as a temporary
waiver of the Passenger Vessel Services Act. She said ATIA is
watching for updated timelines from the CDC related to the
conditional sailing order. She acknowledged the House and
Senate for their resolutions urging U.S. Congress to exempt
cruise ships from "threat provisions" of the Canada Border
Services Agency (CBSA). She said there was another 30-day
extension by the Canadian Government to keep the land borders
closed; these orders "continue to be confusing by province."
She said ATIA has also partnered with the Department of Health
and Social Services (DHSS) on travel guidelines at the state
level during the pandemic. She stated, "We support the governor
to be able to have the tools available in a public health
emergency; at the same time, our industry is moving forward and
letting visitors know now we are ready to safely provide Alaska
experiences." She related that vaccine availability has been "a
hot topic" and has changed the conversation for travel, and
Alaska is perceived as "an even more safe destination and one
that is open for business." With the availability of the
vaccine to residents and nonresidents 16 and older, ATIA is
encouraging businesses to make the vaccine available within
their workforce so that "our teams are safe."
11:23:27 AM
CHAIR HOPKINS, regarding the resolutions, asked Ms. Leonard
whether she has any idea about [whether] the effort in
Washington, D.C., would allow the waiver related to cruise ships
stopping in Canada.
MS. LEONARD said she hears that the congressional delegation is
in constant conversation in Congress and with the CDC. She said
she is not a cruise ship executive, thus cannot comment on their
timeline; however, she offered anecdotally that ATIA is hearing
that "the window is closing on timing for that."
CHAIR HOPKINS said he has heard the same.
11:24:28 AM
PATTI MACKEY, President/CEO, Ketchikan Visitors Bureau, gave a
PowerPoint, entitled "Ketchikan's Tourism Industry." She
directed attention to the second slide, which read as follows
[original punctuation provided]:
Founded in 1976
? The mission of the Ketchikan Visitors Bureau is to
promote Ketchikan, attract visitors and enhance the
economy.
MS. MACKEY spoke about expansion of cruises into Alaska and the
efforts of Ketchikan to maximize that potential for the economy.
She then turned to the next slide, a list of numbers showing a
typical tourism year for Ketchikan, which read as follows
[original punctuation provided]:
A Typical Tourism Year for Ketchikan
? TOURISM TRAFFIC 2019:
? cruise ships 46
? cruise ship stops 570
? cruise ship passengers 1,188,915
? Airline visitors 38,764
? AMHS ferry visitors 3,623
? TOTAL Visitors 1,231,302
MS. MACKEY said the bureau had anticipated growth in the market
for 2020 and 2021. She noted that the cruise economy makes up
approximately 96 percent of the industry. She pointed out that
the numbers listed for airline and Alaska Marine Highway System
(AMHS) visitors have been extracted from totals to include
visitors only - not residents - and budget issues for AMHS
resulted in numbers about half of what they would have been the
prior year.
MS. MACKEY showed the next slide, which read as follows
[original punctuation provided]:
A Typical Tourism Year for Ketchikan
? Accommodations $27.4 Million
? Restaurants $20.7 Million
? Retail (Jewelry, Curios, Gifts) $63.8 Million
? Tours $35.8 Million
? Marine/Charter $ 6.5 Million
? Bus/Taxi/Car rentals $ 4.9 Million
gross sales as reported to Ketchikan Gateway Borough
on sales tax reports
MS. MACKEY noted that Ketchikan is quite a distance from other
tourist destinations in Alaska, and more often than not it is
the final destination rather than the first for cruise
itineraries, which benefits the retail aspect of the economy
because tourists engage in last-chance purchasing of souvenirs.
11:28:50 AM
MS. MACKEY turned to the next two slides, entitled "What we lost
in 2020," which lists typical earnings from tourism [that were
lost when cruise ships were not allowed in port in 2020]. The
slides read as follows [original punctuation provided]:
?52 cruise vessels
?606 Port calls
?1.25 Million passenger visits
? Passenger spending: $190 million
? Crew member purchases: $7 million
? State/local fees: $19 million
? Misc. Cruise line purchases $10 million
? Sales taxes on purchases- passengers, etc. $4.3
million
MS. MACKEY moved on to the next slide, entitled "Employment."
[The slide shows statistics of unemployment]. It read as
follows [original punctuation provided, with some formatting
changes]:
$76 Million in total labor income attributable to
visitor industry
? 1350 Direct jobs + 400 Indirect jobs
Month 2019 2020 % change
April 6.8% 17.4% 61%
May 5.8 15.4 62%
June 5.6 14.5 61%
July 4.8 12.7 62%
August 4.6 7.6 39%
September 4.9 7.7 36%
11:31:59 AM
MS. MACKEY turned to a slide regarding survey responses in 2020,
which read as follows [original punctuation provided]:
? 26% of businesses remained closed
31% operated with reduced hours/days
11% were closed to public but offered limited
services
? 70% reported revenues down 50-75% or more
MS. MACKEY next showed a slide with two comments, which read as
follows [original punctuation provided]:
"We lost all our cruise ship traffic like everyone
else and 99% of our independent bookings cancelled as
well." (Gross sales from 2019 to 2020 were)
"approximately 60% lower, as we had expanded
operations in preparation for the 2020 season, which
didn't happen. It has been disastrous. I pray we can
hang on till 2022"
MS. MACKEY talked about the length of time businesses in the
industry have been without income because of the pandemic, and
that they still need to make purchases to maintain their
businesses, even while income is greatly reduced. She then
moved on to the next slide, which gives the outlook for 2021,
and which read as follows [original punctuation provided]:
? 601 port calls have declined by 55% to 330
? 1.3 million passenger estimate down 56% to 744,000
Flights added back to Alaska Airlines' seasonal
schedule
? Pent up demand for travel
? Alaskan destinations can position as safe
alternatives
11:35:35 AM
MS. MACKEY brought attention to another slide showing survey
responses, where businesses were asked in 2021 whether they
could endure a delayed restart and, if so, for how long? The
answers are shown on the slide as follows [original punctuation
provided]:
18% if cruise/FIT travel is back in May
35% if cruise resumes by July 1
24% if the 2021 season is canceled
"we are hoping to get some independent travelers but
are banking on zero and are in talks with our lender
to restructure our loan so we don't lose the business,
the results of that conversation are unknown still"
"My employees got other jobs - just hoping they come
back so we can have a 2022 season."
MS. MACKEY showed the next slide, entitled "Moving Forward,"
which read as follows:
? Independent traveler opportunities and challenges
? Resources to provide planning assistance
? Marketing/promotion tools above the noise
? Cruise
? Support to restart the industry
? Alaskan Businesses
? Recognition of seasonality
Owner operator challenges
? Assistance + getting back to work
MS. MACKEY, regarding the first bullet point, said tourism is
limited by the number of seats on planes and boats that bring
travelers to Ketchikan; however, some business owners are
striving to market more to independent travelers. Regarding the
second bullet point, she noted it is important that those
planning trips for others are knowledgeable about the
limitations in traveling to a remote Southeast locale, and the
bureau, which has reduced its staff to four, tries to provide as
much one-on-one assistance as it can.
11:38:51 AM
MS. MACKEY closed by emphasizing the challenges that Alaska
businesses have faced in the last year. She pointed out that
some of the funding programs and aid did not recognize the
seasonality of businesses in the tourism industry. The other
issue is the number of small businesses operated and the
difficulty small business owners had in "being recognized as
employees." She said the assistance has been "a godsend" for
business whose goal is to return to entertaining folks,
showcasing Alaska, and helping to drive the economy.
11:40:09 AM
CHAIR HOPKINS remarked that it would help if AMHS was reliable,
so he expressed hope that "we can get you that, as well."
11:40:30 AM
REPRESENTATIVE DRUMMOND, regarding the 2020 outlook numbers,
noted that 601 port calls have declined by 55 percent to 330,
and she asked if that was before Canada made its announcement or
if that was something the bureau has "to look forward to right
now should nothing change with Canada."
MS. MACKEY confirmed that "that's exactly what happened." She
said the initial cruise ship schedule that came out had a full
season. She remarked that Canada's decision to close port has
been a challenge. She stated that cruise lines have canceled
sailings because they have neither received sufficient
guidelines nor had their questions answered by the CDC. She
said the cruise lines have indicated it takes 60-90 days to get
a ship "up and running again," so the early season sailings of
late April, May, and up to July have been canceled.
REPRESENTATIVE DRUMMOND concluded that "those 330 still stand,
but only if the CDC gets its act together in terms of what the
cruise lines need, and ... the Canada piece has to be taken care
of." She asked whether the 330 vessels include the smaller
vessels that fly under the U.S. Flag.
MS. MACKEY answered no. She said those ships are still
scheduled to come through Alaska, as long as they can get
through Canada without having to stop.
11:42:53 AM
CHAIR HOPKINS asked whether, when the initial funds came through
from the Coronavirus Aid, Relief, and Economic Security Act of
2020 ("CARES Act"), the Ketchikan Visitors Bureau was able to
work well with the municipality to get the funds to itself and
its members.
MS. MACKEY answered yes, regarding the funds getting to its
members. Regarding the money getting to the bureau, she
explained that unfortunately when Congress passed the CARES Act,
it did not include industry groups such as visitor bureaus or
other groups testifying on behalf of ATIA. She said the
Ketchikan Visitors Bureau is a nonprofit organization classified
as a 501(c)(6), and she explained that 501(c)(3) nonprofits
organizations were the only ones eligible. In response to a
follow-up question, she talked about the COVID-19 mitigation
guidelines being offered through the bureau, and she emphasized
that the State of Alaska has been helpful in addressing the
needs of the bureau when requested.
11:46:47 AM
JULIE SAUPE, President & CEO, Visit Anchorage, offered a
PowerPoint highlighting the impacts of COVID-19 on tourism in
Anchorage. She said Visit Anchorage Alaska began in 1975. She
stated that the pandemic has taken a toll on the industry, and
it will take the assistance of municipalities, the legislature,
and the congressional delegation to rebuild, and she expressed
appreciation to those entities for their support of tourism in
Alaska. She noted that Anchorage hosts travelers both for
leisure and business, nearly $50 million in taxes are earned
from this economy.
11:49:31 AM
MS. SAUPE turned to a slide showing 2020 numbers compared to
2019: 59 percent fewer air arrivals; 33 percent decrease in
hotel demand; 55 percent less hotel revenue; an estimated
economic impact (EEI) of $4 million; and a 25 percent loss in
tourism jobs. Ms. Saupe allowed that a 33 percent decrease in
hotel use does not seem terrible compared to other cities'
statistics. She explained that Anchorage was the quarantine
area for fisheries workers who had 14-day stays, then pointed
out that the feasible rate charge was lower than normal. She
indicated that while a $4 million EEI may not seem bad, it
reflects bookings rescheduled in the future; therefore, the loss
for 2020 is considerable. She noted that Anchorage lost Iceland
Air in 2020, and now 2021, and is hopeful to get its services
back. She said getting an international airline to commit to a
new market takes years of work. She talked about the risks
associated with loss and determining how long it will take to
recuperate. Further, she expressed concern that small
businesses with local flair may be lost and replaced with
businesses that do not exemplify local character. She said
during a normal summer, 40-50 percent of overnight visitors in
Anchorage are cruise passengers who have just debarked or are
about to embark.
11:55:03 AM
MS. SAUPE turned to the next slide, regarding the impact of
relief funds, which read as follows [original punctuation
provided]:
RELIEF FUNDS MAKE THE DIFFERENCE Lessons from CARES,
Guidelines for ARPA [American Rescue Plan Act of 2021]
? Design and delivery of new publications, advertising
creative, website, photos, video
? State/local business relief grant programs
? Healthy Anchorage Pledge program
? Business best practices, preparation, education
MS. SAUPE said [the Municipality of Anchorage] was able to get
$2 million from the allotment the federal government gave the
state, which allowed the monitoring of research to determine
when it made sense to spend money on marketing. Images have
changed to reflect servers and chefs wearing masks while diners
eat outside. She talked about a $7 million grant for which
tourism businesses with a 50 percent or greater loss from 2019
to 2020 were eligible; the goal is to sustain the businesses so
that they are not permanently lost.
11:59:09 AM
MS. SAUPE turned to her final slide, which addresses the future
prospects for tourism in Anchorage. The slide read as follows
[original punctuation provided]:
2021 AND BEYOND What's Ahead?
THREATS
? National vaccine implementation
? New strains
? Return to cruise unlikely
? Drive trips reign (for now)
? Long travel recovery
? Other hazards
OPPORTUNITIES
? Increasing traveler optimism and planning
? Pent-up consumer demand
? High interest in Alaska
? Our strengths line up with traveler desires
? Positive perception of state, local response
? Strong airlift into Anchorage
? Some cruise lines shift to Alaska land product
MS. SAUPE spoke about the impact of cruise ships not being
allowed through Canada and about the work done to convince
people who wanted to see Alaska that it was still worth doing
without being on a cruise. She expressed "cautious optimism"
going forward.
12:02:17 PM
REPRESENTATIVE SNYDER asked if the presenters have recognized
any patterns among states, whether some are worse off, and
whether there are any aspects of Alaska that give it any
advantages.
MS. SAUPE answered that Alaska has open lands and wide open
spaces, which give it an advantage during the pandemic. Other
places of appeal are beach destinations. One disadvantage for
Alaska is that people are hesitant to travel by plane. The
timing of the national vaccination roll out caused delay in
commencing the season, which was distressing, she explained.
REPRESENTATIVE SNYDER asked about Alaska offering vaccines to
travelers coming to Alaska.
MS. MACKEY acknowledged that has been discussed and thinks it
could be marketed. She emphasized the focus on safety of Alaska
communities.
12:07:26 PM
REPRESENTATIVE DRUMMOND asked about vaccine passports.
MS. MACKEY indicated the issue is "a mixed bag across the
country," and she said she is not hearing a lot of support for
the idea.
12:09:10 PM
DEB HICKOK, President/CEO, Explore Fairbanks, stated that
Explore Fairbanks is the largest destination marketing
organization in the Interior and the second-largest in the
state, in terms of budget and staffing. She said Fairbanks'
seasons are summer, winter, and aurora, and Fairbanks is the
gateway to Denali National Park and Preserve. Ms. Hickok showed
a series of slides with the heading, "Travel: The Hardest Hit
Industry." The first slide shows a photo of the Explore
Fairbanks Board, with the following information [original
punctuation provided]:
2020 Board of Directors as a microcosm of industry:
6% released from employment
40% furloughed
27% shut down business
27% employed
MS. HICKOK said those who are still employed are involved in
academia and retail businesses that can survive on local
business. She then brought attention to the next slide, which
read as follows [original punctuation provided]:
A re-cap of some of the numbers for 2020 compared to
2019 (key Indicators):
club Employment The Leisure and Hospitality sector
accounted for 40% of all the job losses in Fairbanks;
the second biggest job loss was in Transportation
sector both sectors include and are fueled by
tourism
club Fairbanks International Airport The Main Terminal
had a total passenger loss of 59%
club Alaska Railroad Ridership between Fairbanks and
Anchorage decreased by 85%
club Cruise Alaska's cruise industry was non-existent
for summer 2020 due to the various bans imposed on the
industry. Cruise land tours typically account for 41%
of Fairbanks summer visitation.
club Border Crossings With the U.S./Canada border
closed to non-essential travel, the AlCan traffic
decreased by 78%. Longhaul road travelers typically
account for 9-10% of Fairbanks summer visitation.
club International Travel Ceased by end of March.
International travelers typically account for 16% of
Fairbanks summer visitation, the highest percentage of
international in the state (9% aver.); based on dated
data, Fairbanks typically hosts 64% of all
international leisure travelers to the state in winter
primarily driven by aurora tourism.
club Meetings and Conventions The estimated lost
economic impact of cancelled or postponed meetings and
conventions that Explore Fairbanks has been directly
engaged in is $12.2 million
club Hotel/Motel Tax Collections Collections in the
Fairbanks North Star Borough, including the cities of
Fairbanks and North Pole, decreased by 55%
MS. HICKOK noted that both Princess and Holland America would be
operating land tours in summer 2021. When referring to the
penultimate bullet point, regarding the economic impact of
cancelled or postponed meetings and conventions, Ms. Hickok read
the amount as being $2.2 million. The next slide shows the
motel/hotel tax in the Fairbanks North Star Borough since 2008,
with growth the five years prior to 2020, then a significant
loss in 2020.
12:13:32 PM
MS. HICKOK talked about measures taken, shown on the next slide,
"2020 Amended Expense Budget." The budget was cut from the
projected $4.2 million to $2.9 million; the number of employees
was reduced from 26 to 12; and wages were cut in increments of
10, 15, and, for Ms. Hickok, 25 percent. Ms. Hickok said $1
million of the reserve funding was used.
MS. HICKOK drew attention to a slide, entitled "Revenue Loss,"
which read as follows [original punctuation provided, with some
formatting changes]:
Revenue Loss Actual Operating Revenue as of November 30, 2020:
#1 w/o #2 w/
CARES CARES
Act Act
Funding Funding
2019 2020 2020
Bed Tax/Grant Revenue $3,315,732 $1,748,055 $1,748,055
CARES Act Funding Grants $686,250
Communication Revenue $66,892 $58,189 $58,189
Partnership Development Revenue $129,057 $97,288 $97,288
Meetings & Convention Revenue $112,638 $9,930 $9,930
Tourism Revenue $48,699 $0 $0
Visitors Services Revenue $119 $0 $0
Miscellaneous Revenue $2,003 $0 $
In-Kind Donations/Trade
Out Revenue $336,301 $55,929 $55,929
Total Revenue $4,011,440 $1,969,391 $2,655,641
Revenue Loss percentage to-date: -50.91% -33.80%
MS. HICKOK addressed the next slide, a "Stimulus Funding Recap,"
which read as follows [original punctuation provided, with some
formatting changes]:
CARES Act Funding received as of December 31, 2020
Source Funding % of CARES
SBA EIDL Grant $10,000 1%
COF Cares Act Funding $426,950 62%
FNSB BIG $40,000 6%
State of AK Cares $100,000 15%
AK Community Foundation Grant $25,300 4%
North Pole Cares Funding $84,000 12%
FNSB CARES Act Funding $0 0%
TOTAL $686,250 100%
2021 passed on December 20, 2020
PPP eligibility expanded to 501(c)(6)s - received a first draw of
$285,915 in February
MS. HICKOK said she is on the U.S. Travel Board. She said she
and some of her colleagues have given Alaska's congressional
delegation a heads up that the industry would be asking for
another extension to the PPP because the industry will be so
hard hit. She said she anticipates asking for an extension to
the end of the year and perhaps a third draw of PPP.
12:17:19 PM
MS. HICKOK emphasized the impact of social media, segueing into
three slides addressing "2020 Highlights," which read as follows
[original punctuation provided]:
www.explorefairbanks.com website
club Hosted 490,289 new visitors, a 15% increase
club Blog Pages had 117,174 page visits, up 161%
club Total page views were 1,232,385, a 6% decrease
club Number of returning visitors was 90,612, a 8%
decrease
Social Media
club Facebook "likes" were at 306,060, a 16% increase
club Twitter followers were at 6,940, a 3% increase
club Instagram followers were at 23,890, a 31% increase
Instagram likes hovers around 6% engagement
April Campaign: Start Your Virtual Vacation Now
? To engage potential future visitors with Fairbanks
imagery (new 360° stills and video) during COVID-19
lockdown.
Phase One: Explore Local
? "Explore Local" in Alaska's Golden Heart
? Encourage locals to participate in activities,
attractions and tours as well as eating and drinking
establishments normally focused on travelers to Alaska
Phase Two: Statewide Recovery
? Take a Road trip to the Golden Heart of Alaska
? Encourage statewide residents to come to Fairbanks
Phase Three: National Recovery
? Imagine Yourself Here. Explore Fairbanks
Responsibly.
? Incorporate current travel restrictions as well as
travel responsibly themes face coverings, social
distancing, hand sanitizing systemically into all
content throughout all marketing channels and efforts.
? Where Caribou Outnumber People
? Highlighting the Fairbanks region as a lowdensity
destination
? Aurora Season Has Arrived
? Promoting seeing the northern lights virtually or
in person
? Winter Rocks!
12:19:07 PM
MS. HICKOK directed attention to the next slide, entitled
"Explore Responsibly," which read as follows [original
punctuation provided]:
By taking the "Explore Fairbanks Responsibly" Pledge,
I commit my business to honor the following
guidelines:
? Wear Masks
? Practice Physical Distancing
? Keep Clean
? Encourage Contactless Payment
? Follow Expert Advice
? Stop the Spread
MS. HICKOK noted that the pledge mimics the one in Anchorage and
Denali, for the sake of consistency. She then covered the next
slide, entitled "Long Road for Recovery of Travel Industry,"
which read as follows:
Reasons for optimism:
club Anecdotally, independent and small group travel this
past summer and increasing in winter, especially this
month of March
club Increased vaccinations especially among older
populations and now gradually expanding state-by-state
for 16 and older
club While cancelling one-way, cross-Gulf cruises, both
Princess and Holland America are offering land -based
tours this summer
club Increased lift from current and new carriers to FAI
33% more air lift than summer 2019
Most recent from Delta Air Lines:
Launching a new daily nonstop flight from Salt
Lake City beginning May 5 Adding a third nonstop
flight from Seattle beginning June 19 Doubling service
with a second nonstop flight from Minneapolis
beginning June 19 Resuming daily from Chicago In
addition to flying Fairbanks/Seattle year-round, Delta
is extending the Minneapolis and Salt Lake City
service to year-round
Other air service currently scheduled for Fairbanks
for summer 2021 include:
Alaska Airlines with multiple daily flights from
Seattle and Anchorage American Airlines with daily
flights from Dallas-Fort Worth and Chicago United
Airlines with daily flights from Denver by way of
Anchorage Sun Country Airlines with weekly flights
from Minneapolis Condor Airlines with weekly flights
from Frankfurt
MS. HICKOK talked about putting a "best face forward." She said
vaccinations have helped. She reported that at the Fairbanks
International Airport, "we have 35 percent more lift than summer
of 2019." She said this creates opportunity for independent and
smaller group travel. Bringing attention to the next slide, she
talked about analysis done in the Western states, which shows on
the slide that Fairbanks ranked first, with all three top spots
held by Alaska destinations.
12:22:26 PM
MS. HICKOK talked about all the videos made and said YouTube is
the second biggest search engine next to Google. She ended her
presentation with a short video illustrating the safety and
sanitation protocol of Explore Fairbanks.
12:24:25 PM
CHAIR HOPKINS mentioned the legislature's current efforts to get
a disaster declaration passed. He noted that Alaska is one of
only two states in the nation currently without one. He asked
Ms. Hickok, "Do you feel there would be a positive or negative
impact, for not having a disaster declaration in place, to
attract visitors here to Fairbanks or to Alaska as a whole?"
MS. HICKOCK, in reply, noted that all the presenters thus far
are on the ATIA Board of Directors and have discussed the issue
and "are leaving that in the capable hands of the legislature."
She stated, "We no longer want strict social districting; we
don't see the need for that." She noted it was required and
implemented, but said, "We've been assured that that won't
happen again." She continued:
We do believe that the governor needs the powers in an
emergency situation. In general, we would not like to
see testing required, but if there is a health
emergency in the state of Alaska, and testing has to
be required from visitors, we understand that. So,
... we would defer to you ... to pick out the
components of those that are necessary to have the
benefits from federal governments, as well as keeping
our state safe in an emergency.
12:26:38 PM
WENDY ANDERSON, Information Specialist, Skagway Convention &
Visitors Bureau, credited those who had spoken before for
covering the topic well. She said she does not think there is a
single community in Alaska that has not been impacted by [the
effect of the pandemic on] income from tourism. Ms. Anderson
noted the committee had been given [a hardcopy of a PowerPoint,
entitled "ECONOMIC IMPACT OF COVID-19 ON SKAGWAY, ALASKA MARCH
30, 2021," included in the committee packet]. She emphasized
the lack of income in Skagway lately and said, "There's no way
around how rough that is." She commended the Municipality of
Skagway for doing a great job distributing funds from the CARES
Act and "other Acts that they have started." That said, she
informed the committee that the funds are rapidly dwindling.
She indicated that businesses are promoting Skagway as an
independent travel destination, but she emphasized the community
needs help getting visitors to Skagway in 2021. She thanked
[Chair Hopkins] for bringing up AMHS, because reliable ferry
transportation is vital to residents and tourism.
MS. ANDERSON shared that she had been procrastinating all
morning, because today is the deadline for removing businesses
that have not renewed their licenses for the 2021 season from
the municipality's web site. She said she knows once she
removes them, there is "a fully good likelihood that they're not
going to come back." She indicated she is talking about mom and
pop businesses, and she expressed her hope that enough tourism
can be stimulated in Skagway to keep year-round businesses open.
She named the Fairbanks family, who owns the grocery store. She
said the owner of Skagway Hardware is the town's oldest
resident, whose family has roots back to the goldrush. She said
these are long-standing families being impacted, and she
acknowledged that this is happening all over the state. She
said it is not just the tourism businesses that are affected but
all the smaller businesses that get "trickle down money" from
visitors. She stated, "We have to support tourism marketing and
the infrastructure around tourism destinations if we're going to
keep that real spirit of Alaska alive and well for our visitors
and our residents." She expressed her thanks for the advocacy
for tourism shown by the legislature.
12:29:27 PM
REPRESENTATIVE HANNAN commented on Skagway's performance during
the loss of 90 percent of its government revenue. She noted
that Skagway had been "the only growing community in Southeast
over the last decade." She talked about the fear of not being
able to restore the economy. She promoted Skagway as "the
sunniest part of Southeast Alaska" and urged Alaskans to visit
and support the economy there while enjoying the town.
CHAIR HOPKINS thanked the presenters.
12:31:29 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee On Arctic Policy, Economic Development, and
Tourism meeting was adjourned at 12:31 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Tourism Presentation 04-01-2021.pdf |
HAET 4/1/2021 11:00:00 AM |
|
| Skagway Borough Resolutions Combined.pdf |
HAET 4/1/2021 11:00:00 AM |
|
| Skagway Impact of Covid-19.pdf |
HAET 4/1/2021 11:00:00 AM |