Alaska is known for its breathtaking landscapes, abundant wildlife, and unique culture. It’s no surprise that tourism is a vital part of Alaska’s economy.
But just how significant is the tourism industry in the Last Frontier? Let’s take a closer look at the numbers.
The Importance of Tourism in Alaska
Alaska is a prime destination for travelers seeking adventure and natural beauty. Visitors can explore glaciers, observe wildlife, go fishing or hiking, and experience Alaska Native culture. The state offers a wide range of activities throughout the year, from dog mushing in winter to whale watching in summer.
Tourism creates jobs and generates revenue for Alaska. According to the Alaska Travel Industry Association (ATIA), tourism employs over 52,000 people across the state and brings in nearly $4 billion annually.
The Percentage of Alaska’s Economy That Is Attributed to Tourism
So what percentage of Alaska’s economy is directly tied to tourism? In 2019, travel and tourism accounted for 7% of Alaska’s Gross State Product (GSP). This includes direct spending by visitors on lodging, food, transportation, and other activities.
However, when you factor in indirect impacts such as travel-related businesses’ supply chain purchases and employee spending, the contribution rises to 10% of GSP. This includes industries such as retail trade, construction, and manufacturing that support tourism.
The Impact of COVID-19 on Tourism
The COVID-19 pandemic has had a significant impact on the tourism industry in Alaska. Travel restrictions and safety concerns have led to a decrease in visitors. According to ATIA data from 2020, visitor volume was down by almost 70% compared to the previous year.
The pandemic has also affected employment levels in the sector. Many businesses have had to make difficult decisions regarding staffing levels due to reduced demand. However, the industry is showing signs of recovery as travel restrictions ease and vaccination rates increase.
Conclusion
Tourism plays a vital role in Alaska’s economy, contributing billions of dollars and providing tens of thousands of jobs. While the pandemic has had a significant impact on the sector, there are signs of optimism for the future. As travelers begin to return to Alaska, they will continue to support local businesses and communities while experiencing all that this incredible state has to offer.
- Alaska’s tourism industry employs over 52,000 people.
- In 2019, tourism accounted for 7% of Alaska’s GSP.
- When indirect impacts are factored in, tourism contributes to 10% of GSP.
References:
Alaska Travel Industry Association. (2021). Economic Impact. Retrieved from https://www.alaskatia.org/economic-impact
Economic Development Administration.
(2020). Alaska: Gross State Product by Industry.eda.gov/data-and-resources/data/economic-development-districts/industry-gross-state-product/Alaska-Gross-State-Product-by-Industry.htm