Regulatory regime boosts tourism

By Marleanna Hall

Tourism in Alaska this year was strong, aided by a more favorable regulatory environment and tax policy, said Ralph Samuels, RDC board vice president and Vice President, Government and Community Relations, Holland America Line. Samuels spoke at the Alaska Resources Conference in November.

About half of the visitors to Alaska come on a cruise ship each year, with many returning to Alaska after having previously taken a cruise. In 2013, approximately 937,000 people traveled to Alaska on a cruise ship.

Samuels explained he often sees a statement that tourism numbers in Alaska are recovering from the recession. “That is fundamentally an incorrect statement,” Samuels said. “The numbers dropped because ships left Alaska and went somewhere else.”

The cruise industry is the driver for bringing people to Alaska. Ships hauled the same number of people, Samuels explained, they just didn’t come to Alaska.

The regulatory environment and tax policy in Alaska changed, forcing the industry to redirect ships to other destinations. In 2010, Governor Parnell and the legislature lowered the tax, and the regulatory environment changed to something far more reasonable, said Samuels. We don’t agree on everything with our partners in government, but “we feel we get a fair shot,” Samuels stated. “We can have a conversation on any subject.”

Joint partnerships between industry and government are working on projects like the South Denali Visitor Center, in an effort to grow the pie of tourism in Alaska.

But its not all good, Samuels explained. The National Marine Fisheries Service has begun a review on the Alaska harbor seal. Industry has encouraged NMFS to wait until studies are completed on the seal before moving forward with a rule making.

Tourism has an economic impact to Alaska of $3.72 billion, and provides 37,800 jobs annually. Taxes from the tourism industry, including bed taxes, pay boroughs, municipalities, and the state.

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