CVBs market Alaska; revitalizing the travel and tourism industry.

• Author: Freeman, Louise
• Position: TRAVEL & TOURISM

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It was a banner year for Alaska tourism in 2008. The number of out-of-state visitors reached a high of 1.7 million. With the downturn in the economy, tourism fell by 7.3 percent in 2009. It fell again in 2010 to 1.5 million as five cruise ships were deployed elsewhere. Since then, the travel and tourism industry has started to rebound. The number of people coming to Alaska by highway and ferry increased in 2010 for the first time in years. Many localities have seen a slight increase in both leisure and business travel in the last two years, although they have not, for the most part, returned to 2008 levels. Some of the credit for this recovery can be given to the sustained efforts throughout the state of numerous convention and visitors bureaus, referred to as CVBs.

Funded by local bed taxes and membership fees, CVBs vary in size, organization and marketing strategies. But all CVBs share a common function: to promote their community as a destination, attracting both individuals and conferences. CVBs play a vital role in bringing both leisure and business travel to Alaska. These organization offer training to travel agents and tour operators, bring meeting planning committee members to town to see what facilities and activities are available, and work closely with the media. They serve as the first point of contact for individual travelers through printed travel planning guides, websites and visitors' centers.

ALASKA JUNKETS DRAW FROWNS

Since 2009 Alaska, as a location for conventions and meetings, has run into "the AIG Effect," said Helen Renfrew, director of meetings and conventions at the Fairbanks CVB. "Alaska and Hawaii are starting to be considered junkets, exotic locations. The cost of traveling that far is starting to be questioned now because of a backlash in the industry about travel. Organizations are aware of the perception about where they have their meetings."

The AIG Effect refers to corporate America's reluctance to spend money on travel and meetings after the negative publicity generated by insurance industry giant AIG spending $443,000 at a California luxury resort days after receiving $85 billion in TARP bailout funds in September 2008.

The Anchorage CVB has fought the "AIG effect" by working to overcome misperceptions about Anchorage's cost and distance compared to other potential convention locations in the Lower 48. The lack of a state sales tax is a big selling point to meeting planners, said...