Destination Alaska: Travel industry faces setbacks: dire consequences of drastic marketing budget cut.

• Author: Leonard, Sarah
• Position: Conventions & Meetings

Alaska's tourism industry saw both highs and lows in 2016. Our industry has been named a "bright light" in a turbulent economy. However, the brightness of that light may dim in the face of funding challenges.

As the leading statewide membership trade association for Alaska's tourism businesses, the Alaska Travel Industry Association (ATIA) saw successes in transferring the management of Alaska's tourism marketing program back to industry, in celebrating a record number of cruise ship visitors and in hosting our annual industry convention with over 640 delegates in Anchorage.

In the same year, we also experienced a dramatic cut to tourism marketing funding as the State of Alaska faced another budget year without a sustainable funding plan.

Alaska's state destination marketing program for 2017 is $1.5 million. This is a 90 percent decrease from past government funding in tourism promotion, where industry saw $10 million to $16 million in state investments.

It is concerning that Alaska's tourism marketing investment has continued to decline to a funding level which makes it impossible for Alaska to compete on a domestic and international scale with other traveler destinations. For the first time in forty years, Alaska's marketing program will not include a printed travel planner with Alaska business advertising, television advertising has been eliminated, and international offices are closed. With the current level of funding, many businesses and communities who rely on the broad outreach only a statewide program can facilitate are now significantly worried about their own future.

ATIA believes travel and tourism is one of our nation's largest industries and a healthy industry in Alaska today. Alaska is seeing the results of multi-year tourism marketing investments. Even in a time where there is a need for balanced budget cuts, travel promotion and marketing is one of the best investments a state government can make toward continued positive economic returns.

Alaska's visitor industry generates more than 46,000 jobs and more than $4 billion in economic activity in our state, according to the Economic Impact of Alaska's Visitor Industry 2014-2015 Update by the McDowell Group. Past reinvestment in tourism marketing dollars by government has resulted in $100 million in state revenues and $83 million to local and borough budgets, generated by a record number 2 million visitors. As this investment declines, so too will Alaska's ability to attract...