Terrorist Attacks Impact Alaska's Economy.

• Author: Schmitz, Richard F.

On the morning of Sept. 11,2001, lifelong Alaskan Sarah Asper-Smith walked up a flight of stairs from the New York City subway to a sunlit street in lower Manhattan. Asper-Smith was in the first week of a university internship, realizing a dream to study industrial design in the heart of New York City.

"I turned the corner, and I could see the World Trade Center with smoke pouring out of one tower. People were staring, and saying 'Oh, my God.' Then I saw the second tower explode, and this huge hole open up. I had no idea what was going on. I was in a total state of shock," Asper-Smith recalled.

Asper-Smith returned to her apartment, and then that building was evacuated because of a bomb threat. "I just started walking out of the city. I didn't feel safe. I had no idea what to do," Asper-Smith continued. Finally, she called a friend in Pennsylvania who drove to pick her up. "He drove me to Indiana, and (four days later) I got a flight to Seattle and then to Juneau. All I wanted to do is get back to Alaska where I could feel safe."

Perhaps the biggest impact the events of Sept. 11 will have on Alaska is in its perception as a place of relative safety. It is becoming clear that in Alaska, the tourism and transportation sectors are the most-impacted by the terrorist attacks on New York and Washington, D.C. Yet both are sectors of the economy in which a feeling of safety plays a huge role in marketing and business success or failure.

TOURISM ON DECLINE?

"It's too soon to tell the full impact," said Bob Janes, co-owner of Gastineau Guiding, a small eco-tourism company that offers guided hikes to cruise ship passengers in Juneau. "There are going to be some serious repercussions-not just on tourism. I don't think it is going to affect (Gastineau Guiding) too much, but as time goes on I'm seeing some possible long-term implications. I think we're going to find out just how much of our economy is woven together. When something goes wrong in one area, who knows how it will affect something else later."

Janes said he is anticipating a 10 percent to 20 percent downturn for next season. "I was just at the big tourism meeting in Anchorage, and it was kind of bleak. But there was also a let's wait-and-see attitude."

At the Alaska Travel Industry Association, Mark Morones, communications director, is eagerly awaiting news from its members on how bookings are going for the 2002 summer and shoulder seasons. Bookings typically begin in January and February. "It's a big matter of concern for us," said Morones. "Basically we are trying to get a sense of what these impacts are right now and are aware of the general apprehension about flying nationwide. Even before Sept 11 things had slowed down a bit as far as growth." ATIA plans to increase its marketing efforts in the Lower 48 in the coming months. Morones said the state did lose some convention business in Anchorage and Juneau due to the terrorist attacks.

AGRICULTURE STABLE

Pete Fellman, a dairy farmer in Delta Junction, said he's seeing no impact on his operation-so far. "As far as agriculture goes, I've seen no shift in commodity prices or products sold. People have to eat Agriculture is such a bottom...