Legislature(2021 - 2022)BARNES 124

03/24/2022 11:00 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM

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Audio Topic
11:03:47 AM Start
11:05:15 AM Presentation(s): Alaska Tourism Update
12:27:19 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Alaska Tourism Update by Sarah TELECONFERENCED
Leonard, ATIA; Scott McCrea, Explore Fairbanks;
Liz Perry, Travel Juneau; Julie Saupe, Visit
Anchorage
                    ALASKA STATE LEGISLATURE                                                                                  
           HOUSE SPECIAL COMMITTEE ON ARCTIC POLICY,                                                                          
               ECONOMIC DEVELOPMENT, AND TOURISM                                                                              
                         March 24, 2022                                                                                         
                           11:03 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Grier Hopkins, Chair                                                                                             
Representative Sara Hannan                                                                                                      
Representative Liz Snyder                                                                                                       
Representative Harriet Drummond                                                                                                 
Representative Mike Prax                                                                                                        
Representative Tom McKay (via teleconference)                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Josiah Patkotak                                                                                                  
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):  ALASKA TOURISM UPDATE                                                                                         
                                                                                                                                
     - 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 presentation on behalf of                                                              
ATIA during the presentation titled "Alaska Tourism Update."                                                                    
                                                                                                                                
SCOTT MCCREA, President & CEO                                                                                                   
Explore Fairbanks                                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Gave a PowerPoint presentation on behalf of                                                              
Explore Fairbanks during the presentation titled "Alaska Tourism                                                                
Update."                                                                                                                        
                                                                                                                                
JULIE SAUPE, President & CEO                                                                                                    
Explore Anchorage                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Gave a  PowerPoint presentation on behalf of                                                             
Explore  Anchorage   during  the  presentation,   titled  "Alaska                                                               
Tourism Update."                                                                                                                
                                                                                                                                
LIZ PERRY, President & CEO                                                                                                      
Travel Juneau                                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Gave a  PowerPoint presentation on behalf of                                                             
Travel  Juneau during  the  presentation  titled "Alaska  Tourism                                                               
Update."                                                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
11:03:47 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  Prax,   Hannan,  McKay   (via                                                               
teleconference), Drummond,  Snyder, and  Hopkins were  present at                                                               
the call to order.                                                                                                              
                                                                                                                                
^PRESENTATION(S):  Alaska Tourism Update                                                                                        
            PRESENTATION(S):  Alaska Tourism Update                                                                         
                                                                                                                                
11:05:15 AM                                                                                                                   
                                                                                                                                
CHAIR HOPKINS announced that the  only order of business would be                                                               
a presentation titled "Alaska Tourism Update"                                                                                   
                                                                                                                                
11:06:17 AM                                                                                                                   
                                                                                                                                
SARAH   LEONARD,  President   &  CEO,   Alaska  Travel   Industry                                                               
Association,  gave a  PowerPoint presentation  on behalf  of ATIA                                                               
during  the presentation  titled  "Alaska Tourism  Update."   She                                                               
began the presentation  on slide 2, which detailed  the makeup of                                                               
the Alaska Travel Association (ATIA)  and moved to slide 3, which                                                               
emphasized  the  importance of  Alaska's  travel  branding as  an                                                               
asset.   She continued  to slide 4,  which detailed  the economic                                                               
impacts of Alaskan tourism in  2019 and moved through slides 5-6,                                                               
which  described how  "Alaska is  doing now"  with regard  to its                                                               
travel  industry.    She  continued  through  slides  7-8,  which                                                               
described Alaska's travel  trends as an outlook on  its future as                                                               
an industry  in the state  and moved  to slide 9,  which proposed                                                               
the idea  of arctic tourism  in Alaska.   She continued  to slide                                                               
10, which  warned of  possible roadblocks  in the  advancement of                                                               
tourism  in Alaska  and moved  to slide  11, which  spoke to  the                                                               
employment   opportunities   that   Alaska's   tourism   industry                                                               
provides.                                                                                                                       
                                                                                                                                
11:24:16 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE PRAX asked  if the ATIA was  in communication with                                                               
high schools  and universities in  Alaska to make  students aware                                                               
of employment opportunities in tourism.                                                                                         
                                                                                                                                
MS. LEONARD answered that the  ATIA was in partnership with other                                                               
agencies like  the Department of Labor  and Workforce Development                                                               
(DLWD)  to enlighten  both high  school and  college students  in                                                               
Alaska of the opportunities available to them.                                                                                  
                                                                                                                                
11:26:28 AM                                                                                                                   
                                                                                                                                
CHAIR  HOPKINS asked  how  the J-1  visa  program's status  would                                                               
affect tourism employment in Alaska.                                                                                            
                                                                                                                                
MS. LEONARD said that the ATIA was  keeping an eye on the J-1 via                                                               
program and  explained that  the visa  was beneficial  to Alaskan                                                               
tourism, but it was a very limited and restricted program.                                                                      
                                                                                                                                
11:28:55 AM                                                                                                                   
                                                                                                                                
MS.  LEONARD   resumed  the  presentation  on   slide  12,  which                                                               
explained the  annual revenue that  the State of  Alaska received                                                               
from tourism  and continued  to slide  13, which  highlighted how                                                               
little Alaska  spent in comparison  to other states  with tourism                                                               
marketing  campaigns.   She concluded  the presentation  on slide                                                               
14, which listed  Fiscal Year 2023 capital  budget allocation for                                                               
tourism in Alaska.                                                                                                              
                                                                                                                                
11:32:02 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HANNAN asked  what specific  places had  received                                                               
support from the state for their tourism industries.                                                                            
                                                                                                                                
MS.  LEONARD explained  that certain  policies  like an  electric                                                               
vehicle revenue tax  are an example of  a state-sponsored benefit                                                               
to a local tourism economy and  said that the state is working to                                                               
promote Alaska as a tourist destination on a whole.                                                                             
                                                                                                                                
11:36:41 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  SNYDER asked  Ms. Leonard  for more  detail on  a                                                               
previous slide concerning financial discrepancies.                                                                              
                                                                                                                                
MS. LEONARD  explained that the  outspending figure  was directly                                                               
tied  to  the   money  spent  by  the   Department  of  Commerce,                                                               
Community, and Economic Development on tourism promotion.                                                                       
                                                                                                                                
11:41:07 AM                                                                                                                   
                                                                                                                                
SCOTT  MCCREA,  President  &  CEO,   Explore  Fairbanks,  gave  a                                                               
PowerPoint  presentation on  behalf of  Explore Fairbanks  during                                                               
the presentation  titled "Alaska Tourism  Update."  He  began the                                                               
presentation on  slide 2, which  detailed the outsized  impact of                                                               
the Coronavirus  (COVID-19) pandemic  on the tourism  industry in                                                               
Fairbanks and continued  to slide 3, which displayed  a bar graph                                                               
that  compared  both  winter  and   summer  tourism  spending  in                                                               
Fairbanks.   He  moved to  slide 4,  which displayed  another bar                                                               
graph  that outlined  cruise passengers  in Alaska  between 2019-                                                               
2022  and continued  to slide  5,  which briefly  touched on  the                                                               
Fairbanks North  Star Borough (FNSB)'s 2021  COVID-19 remarketing                                                               
plan.   He moved  to slide 6,  which described  opportunities and                                                               
challenges  facing Fairbanks  tourism in  2022 and  concluded the                                                               
presentation on slide 7.                                                                                                        
                                                                                                                                
11:50:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  PRAX asked  if  there would  be  more hotels  and                                                               
housing spaces opening for summer use in Fairbanks.                                                                             
                                                                                                                                
MR.  MCREA replied  that there  are currently  seasonal operating                                                               
housing buildings owned  by cruise corporations that  are used to                                                               
house employees and travelers.                                                                                                  
                                                                                                                                
11:53:28 AM                                                                                                                   
                                                                                                                                
CHAIR HOPKINS asked if there was  any outreach work being done by                                                               
Explore Fairbanks  to homeowners  willing to  rent some  of their                                                               
property.                                                                                                                       
                                                                                                                                
MR.  MCCREA  answered  that  Explore  Fairbanks  was  working  to                                                               
navigate the challenge of tourist housing.                                                                                      
                                                                                                                                
11:55:09 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  SNYDER   remarked  the  importance   of  ensuring                                                               
affordable housing  remain a  key policy  initiative by  both the                                                               
Alaska State Legislature and  corporations who provide employment                                                               
in the state.                                                                                                                   
                                                                                                                                
11:56:03 AM                                                                                                                   
                                                                                                                                
JULIE  SAUPE,   President  &  CEO,  Explore   Anchorage,  gave  a                                                               
PowerPoint  presentation on  behalf of  Explore Anchorage  during                                                               
the presentation  titled "Alaska  Tourism Update." She  began the                                                               
brief presentation  on slide  2, which gave  a broad  overview of                                                               
Anchorage's   2021   tourism   statistics   and   concluded   the                                                               
presentation  on  slide 3,  which  gave  a detailed  outlook  for                                                               
Anchorage tourism in 2022 and beyond.                                                                                           
                                                                                                                                
12:08:58 PM                                                                                                                   
                                                                                                                                
LIZ  PERRY, President  & CEO,  Travel Juneau,  gave a  PowerPoint                                                               
presentation on  behalf of Travel Juneau  during the presentation                                                               
titled "Alaska  Tourism Update."   She began the  presentation on                                                               
slide 1,  which gave a broad  overview of tourism data  from 2021                                                               
and moved to  slide 2, which further  detailed tourism statistics                                                               
from 2021.  She continued to  slide 3, which spoke to the lodging                                                               
occupancy rates during the 2021  tourism season and concluded the                                                               
presentation on  slide 4, which  emphasized the importance  of an                                                               
investment  from  the Alaska  State  Legislature  in the  state's                                                               
tourism industry.                                                                                                               
                                                                                                                                
12:20:44 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE HANNAN  asked who  took the photo  of the  bear in                                                               
the final  slide of  Ms. Perry's presentation  and also  asked if                                                               
the photo was taken at Pack Creek.                                                                                              
                                                                                                                                
MS. PERRY said that she did not know but would follow up soon.                                                                  
                                                                                                                                
12:21:22 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE PRAX complimented Juneau  on its economic recovery                                                               
made after the  COVID-19 pandemic and opined that  there could be                                                               
great  opportunity in  making  people more  aware  of more  niche                                                               
tourism activities in Juneau.   He commented at the importance of                                                               
expanding the sale of made in Alaska goods.                                                                                     
                                                                                                                                
MS. PERRY assured Representative Prax that                                                                                      
                                                                                                                                
12:25:18 PM                                                                                                                   
                                                                                                                                
CHAIR  HOPKINS  asked  how  the  reopening  of  the  capitol  had                                                               
impacted winter business and lodging in Juneau.                                                                                 
                                                                                                                                
MS. PERRY said that the reopening has had a "big difference" in                                                                 
Juneau.                                                                                                                         
                                                                                                                                
12:26:41 PM                                                                                                                   
                                                                                                                                
CHAIR HOPKINS thanked the presenters and delivered committee                                                                    
announcements.                                                                                                                  
                                                                                                                                
12:27:19 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 12:27 p.m.                                                                                     

Document Name Date/Time Subjects
ATIA 03242022.pdf HAET 3/24/2022 11:00:00 AM
Explore Fairbanks 03242022.pdf HAET 3/24/2022 11:00:00 AM
Visit Anchorage 03242022.pdf HAET 3/24/2022 11:00:00 AM
Travel Juneau 03242022.pdf HAET 3/24/2022 11:00:00 AM