Travel Weekly Destinations Editor Kenneth Kiesnoski spoke with Susan Bell, commissioner of Alaska's Department of Commerce, Community and Economic Development, about the state of the Last Frontier's tourism industry and what 2012 might have in store.
Travel Weekly: How did 2011 pan out for Alaska, and what are your forecasts for this year?
Susan Bell: We have learned from the state's ongoing Alaska Visitor Statistics Program that visitation to Alaska during summer 2011 increased 2% over the prior summer. We are very pleased that the near-term forecast includes an increase of more than 50,000 cruise passengers in 2012 and another 40,000 passengers in 2013. When coupled with the increases in domestic and international air, the health of Alaska's visitor industry is gaining since the sharp visitation declines in recent years.
TW: Last year, the governor and legislature upped tourism promotion funds to $18.7 million, from $11.7 million in 2010. Was there an appreciable effect on arrivals and/or revenue? The Alaska Travel Industry Association (ATIA) predicted 5% growth in arrivals; was that goal met?
Bell: Alaska's tourism marketing budget has benefited from two consecutive years of increases. Last year, the total Alaska program budget was $18.7 million, with $16 million contributed by the state. This year, the total program budget is $14.7 million, with $12 million contributed by the state. Visitation increased 2% between 2010 and 2011, to an estimated 1,556,800 summer visitors.
TW: Last year, the ATIA postulated that record arrivals levels would be reached again by 2012 or 2013. Is that still the belief?
Bell: Alaska's peak visitation years were 2007 and 2008, when more than 1.7 million visitors traveled during the summer months. With a continued strong presence in the marketplace -- and continued commitment to Alaska from tour operators, travel agents, cruise lines and air carriers -- we hope to restore the health of the industry by 2014 or very soon afterward.
TW: Cruise is important to Alaska. What's the state of that market segment? Do you have more sailings and port calls today? Are more planned for 2012?
Bell: Cruising to Alaska is the most popular mode of transportation to and from our state during the summer months. Importantly, many of these visitors spend additional time in Alaska on their own or on a tour package before or after their cruise, and many cruise passengers return to Alaska. We expect to see nearly 100,000 additional cruise visitors over the next two years.
TW: This year, as last year, there's a lot of new tourism product coming online in Alaska. Would you say that indicates confidence in the private sector?
Bell: We continue to see new product development in land tours, cruise itineraries [and] shore excursion options as well as new offerings in both retail and dining that feature products from Alaska. The visitor industry is one of Alaska's largest private-sector employers, and we are pleased to see continued investment by the private sector.
TW: How do you think Alaska is faring compared to the competition, such as Hawaii and other long-haul destinations? Do you have any advantages over them?
Bell: Alaska has a cachet because of our unique history and culture, dramatic natural beauty and [the] strong individualism of many Alaska residents. Even with those advantages, we need to continue to be responsive to evolving market needs and ensure that Alaska is seen and heard in the marketplace.
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