Tourism: state's second-largest industry shines in 2004: about $1.8 billion is brought into the state in tourism dollars on an annual basis.

• Author: Pardes, Joan

If truth be told, it probably all started with John Muir-maybe even before. Regardless, once people heard tales of the last great place, the stampede began. Comprised of gold seekers, adventurers of all sorts, and tourists (defined in the New Scholastic Dictionary as people who travel for pleasure), travelers have been migrating to Alaska for the past two centuries. And while The Last Frontier still has a hold on modern day entrepreneurs and wilderness enthusiasts of all stripes, it's the pleasure traveler that drives one of the biggest economic engines that fuels the state's economy.

With more than 1.5 million visitors in 2002, the Alaska travel industry brings in an average of $1.8 billion into the state on au annual basis, provides one in eight private-sector jobs, and weighs in as the largest industry in Southcentral, Southeast and the Interior. Combining all the factors, tourism is the state's second-largest industry, trailing behind natural resource development and running slightly ahead of Alaska's seafood industry. And despite tremendous growth in the last decade, there's still room for future expansion.

A 15-YEAR OVERVIEW

According to the Alaska Department of Community and Economic Development, the state's summer visitors have doubled in numbers since 1990. Between the summers of 1988 and 1998, the total number of travelers to Alaska pew an astounding 86 percent. Currently, 14 out of Alaska's top 100 employers are directly involved in the travel industry.

In the accommodation sector, which is comprised of all types of lodging facilities, including campgrounds, employment has been growing faster than the overall state employment rate for the past decade. In 2002, the state's employment rate hovered around 1.8 percent, while the accommodation business held steady at 2.8 percent per year. For comparison purposes, the accommodation business in Alaska employed 7,600 people in 1992 and last year offered 10,600 jobs.

While the employment rate in the accommodation sector is impressive, it pales in comparison to the hotel construction boom that started in 1997. Adding 4,200 new rooms throughout the state, 34 hotels have been erected in the past seven years and more are still under construction. Half of these hotels are located in Anchorage where the room capacity shot up 30 percent from 1996. Alaska's largest city now boasts more than 7,100 hotel rooms and is actively positioning itself as a competitive national convention destination...