Mat-Su suffered less when tourism slowed

While much of Alaska’s visitor industry suffered through tough times during the 2009 summer season, the Mat-Su Valley was somewhat insulated from the sharp downturn — a positive sign for the local economy.

The primary way tourism is measured in the Valley is by revenue generated through the bed tax — a 5 percent tax levied on overnight stays of less than 30 days at properties in the Mat-Su Borough. Because the Mat-Su Valley does not have a traditional border crossing or an airport at which to count incoming passengers, there is simply no way to measure the actual number of visitors entering the borough, leaving the bed tax as the main measuring stick.

According to the Mat-Su Borough’s collections, the bed tax revenue declined 10.5 percent during the summer 2009 season, compared to the 2008 season. At first glance, that seems like terrible news. While nobody likes a decline, if you look at Alaska as a whole, that 10.5 percent decline is actually a reason to be encouraged.

In Anchorage, bed tax revenue fell by 19 percent from 2008 numbers, and that is only the start of some alarming numbers. Fairbanks and other communities felt dramatic declines, some as much as 30 percent from 2008. The overall economic downturn in the U.S. was certainly felt among Alaska’s visitor industry, as fewer travelers came to Alaska amidst the recession and concerns over employment. Alaska is a long-haul destination, a travel segment that was particularly hard hit last summer by the economy.

So why did the Valley stay ahead of other Alaska communities? While it’s hard to pinpoint one exact reason, there are several factors that helped. Last spring, when it became apparent the number of visitors coming to Alaska was going to shrink substantially, the Mat-Su Convention and Visitors Bureau and its board of directors put an emphasis on marketing the Mat-Su Valley to Alaskans. Our organization made it a point to position the Valley as a great playground for Alaskans. We did this through aggressive marketing in the Southcentral region; created a new Valley Values Web site that highlighted local activities and trails; and stressed the “value” of staying in the Valley.

The term “staycation” was used a lot during the summer — the idea of staying close to home instead of traveling for vacation because of money concerns — and clearly the Mat-Su Valley benefited from this trend. Alaskans who didn’t spend the money to travel Outside still took vacations, but they did so in their own state. Instead of filling up with tourists from the Lower 48, many local bed and breakfasts and other lodging facilities had fellow Alaskans staying the night, for example.

The bed tax is the primary funding mechanism for the Mat-Su Convention & Visitors Bureau, which works to market the Mat-Su Valley as a premier destination, and in turn, further grow the bed tax.

A portion of the bed tax also goes into the Tourism Infrastructure Grant program that funds tourism-related projects around the borough. Community organizations use this pool of money for projects that add tourism-related infrastructure to the borough, including trail improvements and roadside amenities such as bathrooms and rest stops. Tourists and residents alike benefit from these worthwhile projects and community development improvements.

With a continued emphasis on marketing the Mat-Su Valley to Alaskans, in addition to out-of-state visitors, we can continue to bolster the local economy as well as aid infrastructure projects around the borough.

Casey Ressler (casey@alaskavisit.com) is the marketing and communications manager for the Mat-Su Convention and Visitors Bureau.