Room for More Rooms New hotels welcome resurgent visitors despite supply-chain challenges.

• Author: Orr, Vanessa
• Position: CONSTRUCTION

Tourists returning to Alaska after the drought of 2020 had plenty of new and renovated hotels to choose from in 2021. Construction seemingly never ends, even in the face of materials shortages, rising costs, and transportation headaches.

"I would say that things are running on average," says Alicia J. Maltby, president and CEO of the Alaska Hotel b Lodging Association. "It seems like a few things have stalled due to COVID, but if we had not faced a pandemic, several of these projects would already be open, which would keep the state on par with the number of average openings that we have seen in the past five to ten years.

"I think builders are facing the same challenges that all consumers and employers are facing, including materials that are not available and staffing," she adds. "Every industry has been impacted by the pandemic and the lack of raw materials; add to that the challenge of finding employees that are qualified and ready to work, and it's an on-going challenge."

While some projects have been put on the back burner, others are beginning to ramp up in the new year as tourism begins to rebound and travelers once again put Alaska at the top of their bucket lists. According to Visit Anchorage, hotel demand was up 47 percent between May and September of 2021 compared to the same time period last year, a positive yet not unsurprising trend given the anomalous nature of 2020.

"I am very cautious to say that the industry rebounded and is in full recovery mode, but the 2021 season was definitely a bright spot in what had been a very challenging two years in the tourism industry," says Maltby. "Alaska was looking at record bookings for 2020 before the pandemic, and though 2021 did not bring the number of visitors that we have grown accustomed to. it definitely was a look into the future, which has made industry leaders extremely optimistic for the 2022 season.

"If the need wasn't there for more hotel rooms in the state, I can say with great confidence that these business owners and developers would not be spending the millions of dollars required to open a new property," she adds. "Free enterprise is an amazing thing, and bringing more competition into the market will ultimately make the rates for hotel rooms in the summer months much more competitive."

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