Sitka: beautiful and historic, stable and steady.

• Author: Barbour, Tracy
• Position: Regional Focus - Statistical data

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The city and borough of Sitka are nestled on the outer coast of Alaska's famous Inside Passage. Stretching across portions of the Baranof and Japonski islands, they occupy the heart of our nation's largest national forest: the Tongass National Forest.

Home to about 9,000 residents, Sitka is the fourth-largest city by population in Alaska and the largest city by area in the United States. It's four times the size of Rhode Island, but not nearly as accessible. There are only two ways to get to Sitka--by air and sea. Or as Sitka Mayor Cheryl Westover puts it, "You either have to have wings or fins to get here."

Sitka has a rich Native heritage and Russian history that's accented by its role as a former capital city. The town was founded in 1799 and served as the capital of Russian America until 1867, when the United States purchased Alaska from the Russians and made it the state's first capital city. Sitka continued to reign as Alaska's principal city until Juneau became the state capital in 1906. In its early days, Sitka was the busiest seaport on North America's west coast. Gold mining and fish canning accelerated its growth.

Today, the link to the past is evident in Sitka, which is home to Alaska's oldest national park: the Sitka National Historical Park. The city has more than 20 buildings and sites on the National Register of Historic Places. Prime examples are the Russian Bishop's House, St. Peter's Episcopal Church and St. Michael's Cathedral. The Sitka Chamber of Commerce proclaims Sitka is "the most beautiful and historic city in Alaska."

Industries

Sitka has a small and very seasonal economy driven by various industries. First and foremost, Sitka is a port community that thrives on seafood harvesting and processing. It ranked as one of the top 20 seafood ports for pounds landed in the U.S. in 2010, with 74.6 million pounds--worth $62.2 million dollars, according to Mali Abrahamson, an Alaska Department of Labor economist who specializes in the Southeast economic region.

The city's economy is also strongly supported by healthcare, education and government. Some of the area's largest employers are the Southeast Alaska Regional Health Consortium, the Sitka School District and the City of Sitka. "The local Native health center as well as the health and education sectors provide stability and boost average wages while drawing funds into the economy from state and federal sources," Abrahamson says.

Graying Workforce

In addition to the seafood, government and health care industries, the city's economy is fueled by tourism, retail and a mixture of visitor-related services. Unfortunately, Sitka's tourism industry is way down. In 2008, the city had 289,000 cruise ship passengers. This year, that number's down to 110,000 to 120,000. The decline can be attributed to a combination of things: strained economies worldwide, Sitka's out-of-the-way location, the fact that it doesn't have a waterfront downtown to accommodate cruise ships and the emergence of Icy Strait Point, a competing port in Hoonah operated by Huna Totem Corp.

The reduction in cruise ship passengers has negatively impacted revenues for the city. Between 2009 and 2011, the...