Dear ATIA Members:

Here's a brief update on the status of Alaska's Tourism Marketing Program.

$14.7 million Alaska Tourism Marketing Program for FY12

In the FY12 Capital Budget, the legislature appropriated $12 million to the Department of Commerce, Community & Economic Development (DCCED) to direct Alaska's tourism marketing program. This appropriation was the result of a House Finance Committee amendment by Representatives Costello, Thomas and Stoltze. It was then passed by the legislature as part of SB 46. Given that Governor Parnell worked to maintain tourism marketing funding at $16 million, it is our expectation that he will sign the bill with the $12 million intact.

Combined with the $2.7 million contributed by ATIA members through co-op programs and voluntary contributions the marketing budget for FY12 will total $14.7 million. You might note that this is the midpoint between recent marketing budgets (from $11.7 million in FY10 to a peak of $18.7 million in FY11.)

Regarding the FY12 Operating Budget, an initial appropriation was provided to ATIA in HB 108 for $9 million, however because statute would have required ATIA to increase match contributions to 100 percent, the entire tourism marketing program was at risk until the final appropriation in the capital budget (SB 46) was achieved. Upon passage of the capital budget, the initial operating budget appropriation was repealed.

Although we did not achieve our goal for long-term funding, a plan was passed by the House in HB 160. If enacted, this bill would limit the State's annual contribution to tourism marketing to $12 million, increase the industry match requirement, direct that all future appropriations be subject to the new match requirement and prohibit ATIA from lobbying for marketing funding. In the Senate, the bill received a hearing in Senate Finance but concerns were voiced by committee members and HB 160 was held over for possible work next session. Another bill of note regarding tourism marketing is HB 222 which was introduced in the House Economic Development, Trade and Tourism committee late in the session. Under this bill, an Alaska Promotion and Marketing Fund would be created, as would a board to provide annual recommendations on award of matching monies to funding applicants from various Alaska industries. As further developments occur on HB 160 and HB 222 over the next year, ATIA will provide further updates.

Behind the Scenes Changes

Because this FY12 appropriation is directed to DCCED, we will be collaborating with the department on execution of the program. DCCED's stated intent is that the marketing campaign will maintain as much continuity as possible with programs executed recently by ATIA. The Department has also assured us that industry participation and input through ATIA will continue during the coming year.

Opportunities for You

Through research and industry input in past years, this plan was built as a menu of dozens of programs, many of which offer your business an opportunity to market to consumers, tour operators, travel agents, the international community and the media. Based on initial discussions and meetings with DCCED, we do not believe you will see a noticeable change to co-op programs in FY12. In fact, the largest opportunity of the year is still available - the 2012 Official State Vacation Planner and TravelAlaska.com.

As meetings and discussions with DCCED continue we will keep you informed of further developments.

Ron Peck President & CEO Alaska Travel Industry Association