Tourism rebounds in 2011

MAT-SU — The Mat-Su Borough saw an increase of 4.7 percent in bed tax revenue in fiscal year 2011, a great sign that the tourism industry is rebounding in the wake of a lagging economy.

The bed tax revenue is the strongest measurement of the tourism industry in the Mat-Su Valley, since we have no border crossings or ports to count visitors. In the fiscal year that ended in July, bed tax revenue rose to $987,675, an increase of 4.7 percent.

“We are very happy to see these encouraging numbers,” said Bonnie Quill, executive director of the Mat-Su Convention & Visitors Bureau. “They are a strong sign that we are turning the corner and recovering well from the last two years.”

Karen Harris, owner of Alaska Garden Gate B&B and Cottages on Trunk Road, said she saw the increases across all sectors of visitors.

“It wasn’t just one particular group of travelers — it was everyone. I saw the increase in Alaskans traveling around the state, among visitors from the Lower 48, and even international tourists. It was a very good year,” Harris said.

The bed tax peaked in 2008 in the Mat-Su Valley, when $1,038,000 million was collected. That number dipped a tad in 2009 to $1,037,000 million. Then, in 2010 with the nation’s economy in crisis and travelers less inclined to take long-haul vacations such as to Alaska, the bed tax revenue fell sharply, to $942,891.

“We saw a decrease in 2010, but it wasn’t nearly as sharp as the rest of Alaska felt,” Quill said. “But we feel that was the worst of it. With a 4.7 percent increase this year, we’re confident we’ll see continued growth and reach that $1 million mark again this fiscal year.”

Bed tax revenue has also increased in Anchorage and in Fairbanks, which are more positive signs for the tourism industry for all communities. Unlike in major metropolitan areas such as Seattle or Los Angeles, Alaska communities tend to “share” visitors. When a visitor comes to Alaska, they often explore the entire state, rather than basing in one city. As a result, when major Alaska airport cities like Anchorage and Fairbanks see increases in tourism, the rest of the state tends to see increases, too.

The bed tax is a 5 percent tax on transient accommodations (stays of less than 30 days) in the Mat-Su Valley. For example, if a visitor rents a hotel room for $100, they are charged $105 with the bed tax. This tax is paid only by those renting rooms at hotels, bed and breakfasts and lodges and has no bearing on residents’ property taxes.

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