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Historical Perspective
Tourists began visiting Alaska more than a century ago. The 1899 Harriman expedition might be considered the birth of tourism in Alaska – a ship full of people on vacation to see the sights; pick up some trinkets; do a little hunting and fishing; and have a grand adventure in the last frontier. In the first half of the 20th century, tourism in Alaska continued the pattern of visiting coastal communities aboard ship.
After World War II the pace began to pick up. An influx of new residents; the opening of the Al-Can to private traffic and an expansion of road access; improved air access to gateway communities; coupled with a growing middle class, able to afford an Alaska adventure, led to small but steady growth in Alaska’s tourism industry – particularly in the road accessible interior and southcentral regions.
The last decade has seen large growth in the Cruise Industry worldwide, and Alaska has benefited as larger, faster and cleaner cruise ships have brought millions of visitors to our state.
Current Situation
As Alaska entered the 21st century it became clear that Tourism is a major engine of growth for the state’s economy. The State of Alaska’s “Tourism Satellite Account*” (TSA) is the gold standard for measuring Tourism’s effect on the economy. Here are a few highlights from the Tourism Satellite Account:
Contribution to Alaska’s economy:
• Tourism’s total economic contribution to Alaska’s economy exceeds $1.6 billion
• Tourism’s induced (multiplier or income) effect in the economy is over $2 billion
Contribution to Jobs in Alaska:
• Tourism’s core industry topped 26,000 full-time equivalent jobs (9.1% of
Alaska’s total employment) to become Alaska’s third largest private sector
employer with over $579 million in salaries and benefits.
• Tourism’s total economic contribution to Alaska’s job picture is over 39,000
jobs and $1.15 billion in salaries and benefits
• Tourism’s induced (multiplier or income) effect is almost 47,000 jobs and
$1.36 billion in salaries and benefits
Contribution to State and Local Government:
• In 2002 Alaska’s Travel & Tourism sector generated $152.4 million in state and
local tax revenue
- The State’s share was over $94 million - over $20 million of which is direct
taxes and licence fees, the balance of almost $74.5 million includes airport
landing fees much of which are generated by the travel industry
- Local governments received about $58 million
• In addition, the Statewide Passenger Car Rental Tax generates $7-8 million
per year for the State treasury
Looking Ahead - 2007 and Beyond
Investments made over the past few years by Alaska's private sector travel and tourism industry in both capital construction and in marketing have resulted strong growth some areas of tourism and modest in others. As we look ahead we must continue to invest in a comprehensive marketing program that will benefit small and large independent Alaskan businesses, as well as diversify the types of visitors that come to Alaska.
* the Alaska Tourism Satellite Account report is available from the Department of Commerce, Community & Economic Development (DCCED) at TSA_Final.pdf
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