The concessionaire question: an example of the issues and regulations facing tour operators in Alaska's national parks.

• Author: Ajango, Deb

Before the trips begin, adventure-travel businesses must obtain the proper permits or licenses to guide in Alaska's abundant public lands (which account for more than 90 percent of the state). To lead paying customers through any one of Alaska's eight national parks, for example, guides need to get a commercial use license (CUL). A business license and adequate insurance are necessary, and an application form must be completed for review in order to obtain the CUL.

But as Alaska's wild lands become more crowded, limits are being placed on the number of commercial users in some parts of the state. Consequently, competition is heating up for businesses trying to gain access to the more popular areas.

As a case in point, roughly 10 years ago, the National Park Service (NPS) became the watchdog for high-altitude guiding on Mount McKinley (within Denali National Park's boundaries) and imposed a seven-concession limit on the number of agencies permitted to lead climbers up North America's highest peak.

It was an attempt "to protect the environment and promote client safety," says Pat Quinn, concession analyst for the NPS. And ever since, the seven concessions have become very desirable items that have seldom changed hands.

Four of the current permit holders were guiding on the mountain at the time of the policy change and were given grandfather rights to continue their services. Mountain Trip Expeditions of Anchorage was one of them. Alaska Denali Guiding Inc. of Talkeetna received one of the three remaining concessions in 1984 and has been leading trips up Mount McKinley since. The other five permit holders are based in the Lower 48.

A third Alaska business that guided on Mount McKinley, Genet Expeditions of Anchorage, had its concession revoked in 1992 for a number of reasons, says Quinn. These included poor year-end ratings, safety concerns, a couple of accidents involving clients, a death on the mountain, and, Quinn adds, an apparent lack of initiative to amend the cited problems.

Though the revocation resulted in hard feelings and an ensuing lawsuit, it also opened a door for companies hoping to appropriate one of the hard-to-come-by concessions. And consequently, the process of awarding permits was scrutinized closely.

"The NPS looks for several requirements in the bidding process," says Quinn, noting that Mount McKinley's climbing rangers play a large role in setting the criteria. "We look at how long the applicant's business has been...