Tourism & the Pandemic
The economic stability of Southeast Alaska was devastated by the onset of the Covid-19 pandemic and consequently, the disruption to Alaska's critical tourism industry. Skagway, for instance, saw a 48% reduction in their total wage base year over year and several other communities realized revenue losses that exceeded their annual operating budget.
While the symptoms were the same as in other parts of the United States, the impact was much greater because of Alaska’s distance and economic reliance on the tourism industry.
Small business revenue statewide was down 12% as compared to pre-COVID and many shut down.
Wage & Employment Impacts
Port and cruise line related communities saw a collective 22,297 in job losses as compared to the previous year, representing over $305.7 million in wages lost. Sales tax figures assume an average of $188 spent in each port of call by tourists.
Revenue Losses to Alaska Businesses
The financial effect of the cruise industry is evident across multiple sectors, including direct visitor spending, cruise line spending and payroll, crew member spending, air and ferry tickets, employment and labor income, and revenue to municipal and state governments.
Losses to local businesses are estimated at $1.1billion based on an analysis by McDowell Group.
An estimated $700-800 million in direct spending by cruise passengers in local Alaskan communities.
$297 million in cruise line spending on goods and services.
$22 million in crew member spending while at port.