Alaska tourism slows, Mat-Su holds steady

MAT-SU -- At the end of the 2002 summer tourist season, Alaskan industry leaders released survey results that show business growth slowing to a "decisive halt" statewide. But the survey results and local sources report that Southcentral Alaska -- along with the Mat-Su area -- might have suffered the least. Local industry leaders say that opportunities for growth exist here, and bed-tax revenues seem to suggest that the summer of 2002 wasn't so bad.

The Mat-Su Borough collected approximately $211,000 in bed-tax revenues from July to September this year, according to figures from the borough finance department. That number is up from about $190,000 during the same period in 2001. The Mat-Su bed-tax growth was nearly 11 percent, but the borough finance department couldn't translate that number into the number of rooms rented.

Still, Bonnie Quill, executive director of the Mat-Su Convention and Visitor's Bureau (Mat-Su CVB), said the bed-tax information was good news. Quill said when large hotels open the borough reports a bed-tax spike, but she also said there wasn't a large increase in the number of rooms for rent this year.

"There could be growth in the bed and breakfast rooms and smaller operators, but there hasn't been growth in the number of rooms due to expansion by large operators," Quill said.

The damage to the statewide market was caused by the nationwide economic slowdown and changing American travel patterns after the Sept. 11, 2001, terrorist attacks. The statewide industry survey was conducted in late September by the McDowell Group for the Alaska Travel Industry Association (ATIA) and released at ATIA's convention in Juneau earlier this month. The survey found that some sectors of the industry saw increases while others were in sharp decline, rendering an overall zero growth in 2002.

Cruise ship companies reported record numbers of passengers this year -- 720,000 compared to 690,000 in 2001-- but the passengers spent less, often avoiding shore excursions critical to small tour operators. Travelers arriving by highway were down 10 percent and arrivals by air on domestic flights were down 2 percent.

Mat-Su CVB president Steve Mahay said that the organization's marketing campaign -- which introduced the slogan "Yahoo! Mat-Su" and targeted Alaska residents -- could have been responsible for some of the area's success. Other Southcentral destinations didn't fare as well.

"Don't have a real scientific polling [for the campaign], but through the industry we have gotten feedback and it's been very positive," Mahay said. "Kenai didn't do well this year and they didn't have that campaign. We really were a bright spot."

Quill said the Valley still has opportunities to offer entrepreneurs who want to start in tourism. She noted that the state and the borough have identified South Denali and Hatcher Pass as areas where future growth will be encouraged. And both of those areas have recent road upgrades making them more accessible. Quill also said that industry leaders are asking for more attractions and activities than the Valley currently has.

"There are a lot of entrepreneurial ideas and opportunities for people who want to start up here," Quill said. "Tour operators are looking for new and different things. They want visitors to get off the bus and step on the soil and learn what it's like to farm here or learn how it was to live here in the colony era."