Tourism industry faces challenging year: some declines in land and travel; year disappoints most.

• Author: Stricker, Julie
• Position: TOURISM

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High gasoline prices and a weak national economy kept many Americans close to home this summer, which was bad news for the Alaska tourism industry.

In late July, tourism officials across the state were reporting fewer people on the roads, in RV parks and on airplanes compared with 2007. Business was so slow at Denali National Park that area hotels and resorts offered discounts at the height of the traditional tourist season.

It didn't help that 2008 ushered in one of the coldest, dampest summers in decades across the state.

Linda Broadhead, visitor services manager for the Homer Chamber of Commerce, calls the combination of high gas prices, fewer visitors and bad weather a "triple whammy" for fishing charters.

"So many days the charters couldn't fish, so they lost money," she says. "It's been incredible how bad the weather's been. I don't think it's been above 60 more than a couple of times this summer."

While May and June were down considerably, Broadhead said visitor numbers rebounded in July. More were tourists from Europe, which she attributed to the drop in the dollar.

While the international tourists are certainly welcome, Ron Peck, president and chief executive officer of the Alaska Travel Industry Association, says they make up such a small percentage of overall visitors that it won't make up the gap.

About 150,000 Europeans visit Alaska annually, Peck says. "They're going to help, but they're not going to compensate for the loss of fly, drive and cruise visitors."

LESS MONEY TO SPEND

Tourism operators are getting doubly stung, he says. The cost of fuel is up and folks just aren't spending as much.

"The cruise industry is telling us the ships are full, but we're not seeing them in the gift shops," Peck says.

He figures it's because they've budgeted a certain amount of money for their trip and it's not going as far. "Folks are just tightening their belt."

Fewer cruise visitors are opting to add a land tour to their itinerary, Peck says. Visitation to Denali National Park and Preserve was down nearly 15 percent by mid-July, spurring businesses around the park entrance to offer discounts and special deals--including free gasoline cards--in the hopes of luring in-state travel.

Ridership on the Alaska Railroad has been steady, according to Tim Thompson, director of external affairs for the Alaska Railroad Corp. "We're about on par with where we were last year," he says.

In Fairbanks, Steve Frank, owner of the...