Economic uncertainty impacts visitor industry: businesses brace for slower summer season.

• Author: Stomierowski, Peg
• Position: TOURISM

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The general economic downturn and the ongoing observance of Alaska's 50th anniversary of statehood have been intersecting to make this summer's tourism landscape something of a high-stakes abstraction. With a tight booking window for cruises and other travel, it's been a rocky ride for travel and tourism vendors in "Big Wild Life" country--and in some corners of the business, a white-knuclder.

Overall, it appears business could be down substantially--possibly as much as 30 percent, said Kathy Dunn, marketing director for the Alaska Travel Industry Association, and this after a recent period of flat growth following gradual increases since the chilly aftermath of the 9/11 terrorism attacks. Summer tourism in 2008 was estimated at more than 1.7 million visitors from out of state between May and September, according to state figures--about a 0.4 percent drop from the year before.

Industry indicators, Dunn said, suggest that those who'd built up a cushion in past years won't be hit as hard as those who'd took out too much debt --perhaps in financing expansions and upgrades. Small operators may be particularly vulnerable.

Many marketing dollars in the early months of 2009 were being used to persuade Alaskans to spend more of their money traveling to attractions within their own state. Amid signals that consumers want more for their vacation dollar, vendors were offering deep discounts and being creative in identifying added-on values for customers, even at discounted rates.

TOURISM OUTLOOK

One cruise line, at the end of a stagnant cruise visitor season in 2008, was advertising seven-day Alaska cruises for $499--or about $70 a day, according to a year-end report in a trade association newsletter.

In 2009 "we are heavily promoting the value message of cruising to Alaska," stated Bruce Bustamante, vice president of community and public affairs and senior executive of Princess Tours in Alaska.

Overall, the Anchorage Convention & Visitors Bureau early this year had been bracing internally for a 10 percent decrease while "we're hoping it's less than that," said Julie Saupe, president and chief executive officer. Planning contingencies take into account 15- to 20-percent slumps. That way, if the decrease levels out at only 5 percent, "we're doing well."

Saupe expressed confidence that some 3 percent to 6 percent visitor growth in recent years will help to balance this year's losses so that visits remain at 2005 and 2006 levels. Over at the Anchorage Chamber of Commerce, new...