Legislature(2001 - 2002)
01/23/2001 09:02 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
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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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