HOUSE ECONOMIC TASK FORCE WORK SESSION ON TOURISM October 27, 1993 7:00 p.m. REPRESENTATIVE JEANNETTE JAMES, Chair of the Task Force's tourism working group, opened the session by stating that the purpose of this teleconference is to gather public input on the state's role in promoting tourism. She asked people to make specific recommendations on what the state should be doing to encourage development of the tourism industry. She also reserved time at the end of the teleconference in case any participants want to discuss other aspects of economic development. JOHNE BINKLEY, ATMC Board, AVA Board, Fairbanks Convention & Visitors Board, Fairbanks, said tourism generates over $1 billion in revenue in Alaska. He said tourism affects many residents who don't realize its benefits, because tourism dollars circulate through the economy. He said nearly 20,000 people are employed in tourism (13,500 on an annual basis.) MR. BINKLEY recommended that the Economic Task Force highlight the importance of the ATMC. ATMC is a public/private partnership, and its funding is money well spent. MR. BINKLEY added that some legislators say they don't want more economic development or more tourism because it only increases the load on state services and state expenses. He said he hopes the current legislature doesn't take that attitude. NEIL JOHANNSEN, Director of State Parks, Department of Natural Resources (DNR), Anchorage, said he was speaking on behalf of DNR Commissioner, Harry Noah. His prepared testimony is on file. CHUCK WHEELER, Wheeler & Associates, Nome, said the benefits of the state's involvement in tourism promotion do not spread to all areas of Alaska, including Northwest Alaska. He said ATMC does not address tourism in his region and AVA's "Destination Alaska" report does not address rural Alaska. MR. WHEELER also said Nome needs a deep-water port. He urged the legislature to work for repeal of the Jones Act. BOB MILLER, Director of Public Affairs, University of Alaska-Fairbanks, praised the joint public/private efforts of the ATMC. He urged reauthorization of ATMC next session. He added that ATMC's budget is insufficient to market Alaska, and that more advertising should be targeted to the Lower 48, Canada and foreign countries. MR. MILLER said visitors want a more active involvement in Alaska. Princess Cruises now takes people to El Dorado instead of the UAF museum. This has encouraged the museum to carve a new niche, and the result is a greater diversity of attractions and more satisfied customers. MR. MILLER said the Division of Tourism needs more development specialists to work with rural Alaska. This kind of assistance is necessary for the development of new rural businesses. MR. MILLER summarized his recommendations as: - expand the marketing efforts of Alaska as a visitor destination. - support ATMC. - expand the Division of Tourism. MIKE WINDRED, Alaska Travel Adventures, Juneau, said the number of smaller tourism companies is increasing, but they can't afford to do their own marketing. ATMC has been a boon to them in this respect. DENNIS BRANDON, President, AVA, Anchorage, gave prepared testimony which is on file. GARY MOORE, Economic Development Specialist, Tanana Chiefs Conference, Fairbanks, gave prepared testimony which is on file. CATHY DUNBAR, Mat-Su Convention & Visitors Bureau, Wasilla, said she supports ATMC. No agency can replace their work, she said. They need more money for marketing, especially in times of declining revenues. She also recommended "Destination Alaska" as a good blueprint for statewide tourism development. MIKE MACHULSKY, Kodiak Visitors Association, Kodiak, said the state "cannot get a better bang for its buck" than it currently gets through the cooperative marketing program of ATMC. He said tourism always seems to be at the bottom of the list for economic development dollars, and he urged continued funding for ATMC. CLIFF ROUSEL, Fairbanks Visitors Bureau, Fairbanks, said tourism in Fairbanks results in 2,000+ FTE jobs and a $34 million payroll. He said ATMC should be extended past its sunset date in 1994 and should have increased funding. He also urged support for the Division of Tourism. BOB ENGELBRECHT, Vice President, Temsco Helicopter, ATMC Board, AVA Board, Juneau, said the industry contribution to ATMC is substantial, amounting to $3 million plus in-kind contributions. He complimented "Destination Alaska" and supported the reauthorization of ATMC. LINDA JERNIGAN, Alaska Campground Operators Association, Tok, presented prepared testimony which is on file. MIKE O'CONNOR, KIC Village Corporation, Kotzebue, spoke to the need for infrastructure development in rural Alaska, in particular an alternative dock in Kotzebue. He pointed out that reducing the cost of doing business in rural areas is equivalent to increasing economic development. BOB JACOBSEN, Wings of Alaska, Juneau, spoke in support of the work of ATMC and AVA. HEIDI BOHI, SWAMC, Anchorage, said that all the ARDORS recognize tourism as the number 1 economic development opportunity in their regions. She recommended: - More marketing assistance for tourism businesses. - Continued support for ATMC. - Increased staff at the Division of Tourism and more funding for rural tourism matching grants. - More resources available at the local and regional levels. - Increased transportation services, e.g., more ferry stops. JOHNE REEVES, Fairbanks, supported ATMC. He also suggested that the Dalton Highway (Haul Road) is a tourism opportunity waiting to happen. The state should swap land with the feds along the highway in order to control development, he said. MR. REEVES also recommended greater access to the Kantishna area for mineral development, and he said mining reclamation should be approached with incentives rather than a heavy regulatory hand. He said reclamation credits should be offered for reclamation done at private expense. PAUL SMITH, Chamber of Commerce, Tok, supported greater funding for ATMC, and suggested Tourism North should receive additional funding. He also said the Taylor Highway needs to be upgraded. CARLA HART, Alaska Wilderness & Tour Association, Juneau, said tourism should have equal status with other resources in discussions of economic development and funding priorities. LINDA ANDERSON, Fairbanks, said ATMC should be extended by the legislature. She also recommended that current highway sign laws be relaxed so that signs can better accommodate visitors on the highway system. KARI WESTLUND, President, Juneau Convention & Visitors Bureau, Juneau, spoke in favor of ATMC, the Division of Tourism and "Destination Alaska." She recommended that more matching funds be dedicated to infrastructure development at the local level. She also suggested that regulations can make it very difficult for tour operators to carry on business; e.g., DEC's 12-minute docking requirement. STEVE COCKERELL, AVA Board, Unalaska, said the vacation planner is crucial to small tourism businesses. ADELHEID HERMANN, Naknek, expressed support for: - The Alaska Business Development Center. - The U of A Marine Advisory program. - Increased funding for rural U of A campuses. - More rural information in state tour guides. - Development of freshwater fisheries. - Distribution of Native arts and crafts to national and international markets. - Grants to museums. KAREN COWART, Executive Director, AVA, Anchorage, said the legislature should reauthorize ATMC and should continue funding for cooperative marketing. She mentioned AVA's survey of Alaska residents showing that 82 percent believe tourism is good for the state and good for local communities. SUSAN BELL, Haines, encouraged development of a scenic byways program and supported improvements to the marine highway system, including the dock facility in Haines. CONN MURRAY, Director, Division of Tourism, Juneau, recommended the legislature explore the possibility of biennial funding for tourism programs. He said one-third of the states now do it, and the result is more efficient marketing and planning. He also mentioned: - $100.0 has been requested for the Gold Rush Centennial activities. - Tourism North has requested $225.0, which is the same as current year funding. - The tourism grants line should be reinstated to build tourism infrastructure. - The Alaska Visitor Statistics program should be funded. JANET McCABE, Alaska Society of Historic Preservation, Anchorage, mentioned the value of historic structures as tourist attractions; e.g., Kennicott, Skagway, Eklutna. She urged funding for the Gold Rush Task Force. JUDY BITTNER, Alaska Society for Historic Preservation, Anchorage, talked about the value of "heritage tourism," and spoke in favor of historic markers and the Gold Rush Task Force. ED PHILEMONOF, St. George Tanaq Corporation, Anchorage, talked about tourism development since the end of the fur seal harvest forced people in the Pribilofs to develop alternative industries. Eighty-ninety tourists visited St. George this year. They need more air service, but they are awaiting FAA approval for larger planes to land. They also have a problem with birds on the runway. REPRESENTATIVE JAMES thanked everyone for their time and comments, and promised to keep them in mind as her working group assembles its recommendations for consideration by the full task force.