North to the Future

May 10, 2009

This largest state in the union encompasses more than 570,000 miles of black-sand beaches, rugged mountains, white-sand dunes, rainforests and fragile Arctic tundra. It’s a land of geographic contrasts, Surpassed only by an even greater diversity of people from all walks of life.

“Alaska is the rebirth of the dream our founding founders saw in America, a frontier land where residents embrace self-sufficiency and individualism in adapting to life in the Far North,” said master guide and longtime Alaskan Jim Bailey. “These qualities helped define the people and helped mold the Alaska territory into our 49th state and, in the process, it created one of the world’s greatest tourist destinations.”

The Iditarod Trail Sled Dog Race

Alaska is celebrating its 50th anniversary of statehood in 2009, and visitors to the state will find that Alaska is a bastion of pride for all Americans. I’ve been an Alaska resident for 35 of its 50 years of statehood. When I first arrived in the early 1970s, the tourism industry was responsible for about 7,500 jobs; that number grew to about 40,000 in 2008.

The modern tourism pioneers that we frequently profile in TravelAge West are not much different than the state’s early pioneers, whose vision of territorial Alaska extended beyond the remote “icebox” sentiments of the time.

Former U.S. Secretary of State William H. Seward saw the potential wealth of Alaska to our nation when he purchased it from the Russians in 1867. Pundits called it “Seward’s Folly.” As explorers soon discovered, however, Alaska was worth much more than the purchase price.

Naturalist John Muir’s writings on Alaska piqued the curiosity of the American people, and the Alaska Gold Rush of the 1890s attracted tens of thousands to pursue the American dream of success.

Tourism benefited from the support infrastructure created through mining, fishing and other industries. A handful of Alaska towns actively promoted tourism in the early 1900s. Visitors enjoyed the rugged overland trek from Cordova and Valdez to Fairbanks, staying in places such as Rika’s Roadhouse, which still serves meals to tourists traveling the Richardson Highway.

The Golden Circle was one of Alaska’s first cruise-tours that began with a Seattle-based steamship cruise up the Inside Passage to Skagway’s White Pass and Yukon Railroad. Passengers boarded a sternwheeler to Dawson and continued onto Fairbanks. From there, they enjoyed a tour of Alaska’s Interior from Mount McKinley to Seward via the Alaska Railroad. From Seward, steamships carried passengers back to Seattle. The 30-day, 4,000-mile trip cost $550.

Jumping forward, Alaska earned its statehood on Jan. 3, 1959, and tourism continued to create a substantial revenue source for the fledgling state. Politicians established a division of tourism and scheduled state ferries linking the remote communities along Alaska’s Inside Passageway and Prince William Sound. Meanwhile, air travel quickly opened up more remote, inland destinations.

Today, tourism is alive and well in Alaska. According to the Alaska Travel Industry Association (ATIA), about 1.7 million out-of-state tourists visited Alaska between May and September 2008. The total economic impact of the Alaska travel and tourism industry is estimated to be $3.4 billion. The majority of Alaska tourism businesses are mom-and-pop businesses with five or less employees. The industry is responsible for 14 percent of the state’s total employment.

As Alaska oil production winds down, tourism and other sources of revenues are expected to be vital to fund the state coffers. With the Internet and growing interest in global travel, however, Alaska has increased competition from both homeland and foreign markets for a finite number of tourism dollars.

“The state legislature is hesitant about earmarking funds to promote tourism,” said Steve Mahay with Mahay’s Riverboat Service in Talkeetna. “Tourism revenues will be funding the state when the oil money runs out. They’ve budgeted $10 million this year, and we need $20 million to effectively compete.”

“Alaska is truly the ‘Great Land’ offering an infinite variety of experiences waiting to be enjoyed,” Governor Sarah Palin told TravelAge West. “We welcome the opportunity to share our beautiful state with visitors from across the globe who yearn for an authentic journey in the last frontier. Tourism is a vital part of Alaska’s economy.”

Karen Lundquist, with the Fairbanks Convention and Visitors Bureau, sees tourism as a foundation for the state’s future.

“In many communities throughout Alaska but, especially Fairbanks, the major tour operators have managers and people who live here, and their hotels and restaurants are part of our community. We visit these during the winter months, when tourism numbers are down. They provide the infrastructure to make life easier and more enjoyable and, as a result, they contribute a great deal to our local economy. The future of tourism in Alaska is good, and I see it becoming more integrated with the local communities.”

Stan Stephens Cruises is another longtime family-run business in Alaska tourism. President Colleen Stephens says Alaska tourism is in a temporary lull because of the economy.

“We are currently experiencing the largest forecasted decline in bookings,” Stephens said, “up to 50 percent lower than 2008. This decrease is larger than what happened after the Exxon Valdez Oil Spill of 1989 or the events of Sept. 11. At this time, our business is working to decrease expenses while maintaining the quality services expected by our guests. As we look to the future, we are expecting to maintain our standards for 2010 and are working to be back on track by 2011. Despite current trends, the Alaska travel industry continues to look to the future and find ways to build the tourism pipeline to Alaska. Alaska has amazing natural resources. Our glaciers, mountains and waterways will continue to entice travelers, providing the travel industry a resource to mine well into the future.”