Legislature(2003 - 2004)

02/24/2003 05:25 PM House EDT

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
        HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT,                                                                      
                INTERNATIONAL TRADE AND TOURISM                                                                               
                       February 24, 2003                                                                                        
                           5:25 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Cheryll Heinze, Chair                                                                                            
Representative Lesil McGuire, Vice Chair                                                                                        
Representative Nancy Dahlstrom                                                                                                  
Representative Vic Kohring                                                                                                      
Representative Harry Crawford                                                                                                   
Representative Sharon Cissna                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Pete Kott                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  TOURISM                                                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 95                                                                                                               
"An Act relating to permits for aquatic farming of geoducks."                                                                   
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
03-2, SIDE(S) A & B                                                                                                             
                                                                                                                                
CHAIR CHERYLL  HEINZE convened the  meeting of the  House Special                                                             
Committee  on  Economic   Development,  International  Trade  and                                                               
Tourism at  5:25 p.m.  Representatives  Heinze, McGuire, Kohring,                                                               
Dahlstrom,  and  Crawford were  present  at  the call  to  order.                                                               
Representative Cissna arrived as the meeting was in progress.                                                                   
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
LEN  LAURANCE,  independent  consultant for  the  Alaska  tourism                                                               
industry,   was   present   by  teleconference   to   discuss   a                                                               
restructuring  proposal  for the  Alaska  tourism  industry.   He                                                               
provided  a  handout  [titled  "Alaska   Tourism  Promotion:    A                                                               
Restructuring Proposal"]  of the  information he discussed.   His                                                               
proposal revolved around  the development of a  new agency called                                                               
the  Alaska Tourism  Authority, which  would incorporate  some of                                                               
the agencies currently in force.   This new organization would be                                                               
funded by a 2-percent tax  on statewide transient accommodations.                                                               
This would be in addition to the current taxes on the industry.                                                                 
                                                                                                                                
BRUCE BUSTAMANTE,  President and  Chief Executive  Officer (CEO),                                                               
Anchorage  Convention and  Visitors Bureau  (ACVB), spoke  of the                                                               
need for  increased funding of  the tourism industry.   He stated                                                               
the support  of ACVB for  the Alaska Travel  Industry Association                                                               
(ATIA)  and   their  mutual  agreement  on   priorities  for  the                                                               
industry.   He also  mentioned the  general community  support in                                                               
Anchorage for a larger civic  convention center.  This issue will                                                               
again be on the ballot in April of 2004.                                                                                        
                                                                                                                                
MARGY  JOHNSON, Director,  Division  of  International Trade  and                                                               
Market   Development,   Department   of  Community   &   Economic                                                               
Development  (DCED),   provided  a  handout  and   discussed  the                                                               
importance of tourism to Alaska,  mentioning that tourism touches                                                               
all of Alaska's citizens.  As  director, Ms. Johnson is in charge                                                               
of ATIA and  ASMI [Alaska Seafood Marketing Institute].   She has                                                               
seen  overlap in  some  of the  work  of these  two  groups.   To                                                               
increase  inefficiency  and  decrease  some cost,  she  hopes  to                                                               
consolidate some  of the functions  of these two groups.   Alaska                                                               
Host also comes under her purview.   Last year this group trained                                                               
333  people.    She  plans to  dramatically  expand  the  numbers                                                               
trained  and  wants  involvement  at all  levels  of  society  to                                                               
encourage tourism to  the state.  She also noted  that Alaska has                                                               
fallen far behind  other states in numbers of  tourists coming to                                                               
the state,  now standing in 38th  place.  She attributes  much of                                                               
the problem to lack of marketing.                                                                                               
                                                                                                                                
RON PECK,  President and Chief  Executive Officer,  Alaska Travel                                                               
Industry Association, provided an  overview of tourism in Alaska.                                                               
He  stated  that  tourism  provides 36,000  jobs  to  Alaska  and                                                               
generated  income in  the year  2000-2001  of $1.8  billion.   He                                                               
noted that tourism is now  the second largest private industry in                                                               
Alaska, second only to the oil  industry.  He described ATIA as a                                                               
combination  of  three groups:    Alaska  Visitors Bureau  (AVA),                                                               
Alaska  Tourism Marketing  Council  (ATMC), and  DCED.   ATIA  is                                                               
responsible for  publishing the "Alaska Vacation  Planner," which                                                               
has  worldwide  distribution.     ATIA  also  develops  leads  on                                                               
potential tourists  for the state,  which it provides  to others,                                                               
such as the  cruise industry, to help them  develop mailing lists                                                               
and  contacts.    Mr.  Peck emphasized  the  overall  decline  in                                                               
tourism in the  state.  All areas have seen  a decrease, with the                                                               
exception of the cruise industry.                                                                                               
                                                                                                                                
PAMELA  LABOLLE, President,  Alaska  State  Chamber of  Commerce,                                                               
described tourism  as a  renewable resource  and one  of Alaska's                                                               
best  resources.    She  expressed  great  concern  that  without                                                               
support, the tourism industry in  Alaska will fall further behind                                                               
as tourists seek  other destinations.  The need  for marketing is                                                               
urgent.                                                                                                                         
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no announcements.                                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                              
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Economic Development,  International Trade                                                               
and Tourism meeting was adjourned at 6:36 p.m.                                                                                  
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska  99801  (mailing address),  (907)  465-2214,  and                                                               
after  adjournment  of the  second  session  of the  Twenty-Third                                                               
Alaska  State Legislature  this  information may  be obtained  by                                                               
contacting the Legislative Reference Library at (907) 465-3808.                                                                 

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