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Tourism Support Industries Abound in Alaska.

By SAUNDERS, STACEY
Publication: Alaska Business Monthly
Date: Friday, December 1 2000

More than 10,000 jobs are generated in the state's tourism support sector, bringing in about $250 million in wages.

You may be a part of the tourist industry and not even realize it. Tina Lindgren, president of the Alaska Travel Industry Association, recalls hearing a boat mechanic

who overhauled boats for a riverboat tour company state: "I wish I could get a part of that (tourism money)." Lindgren says, "He (the mechanic) didn't realize that by overhauling the entire fleet, he actually was receiving tourism money. It is hard to find a business that is not affected one way or another by visitor spending."

Statewide economic impact studies in 1998 and 1999 found that the visitor industry, Alaska's second largest private-sector employer, affects enterprises beyond those traditionally viewed as tourist industry businesses. The May 1999 "Economic Impacts of Alaska's Visitor Industry" reviewed the secondary economic impact of jobs and income created by visitor spending. The study found that "... in addition to 20,300 direct jobs in Alaska's visitor industry, another 10,400 jobs are generated in the state's support sector. Further, in addition to the $390 million in wage and salary payroll and proprietor's income (earnings), the visitor industry effectuated another $250 million in payroll in the support sector." The study defined the tourist industry as airlines, hotels, restaurants and gift shops, etc. But the support sector cast list ranges from the obvious to the not so obvious. Following are just a few examples of tourism support services and businesses.

Hotel Support Services

Greg Champion, general manager of the Sheraton Anchorage Hotel, sees both the direct and indirect economic benefits of the tourism/hospitality industry. Beyond salaries and benefits for hotel staff, the hotel spends money for dishwasher and refrigeration repair businesses; specialty food vendors, such as Linford of Alaska and Food Services of America; parts and services from Home Depot; and contracts with local maintenance and construction contractors. The Sheraton is in the midst of a $6.5 million renovation to update the hotel's decor and to install a new air conditioning system for the entire facility. "The air conditioning project is in direct response to guest feedback," says Champion. "With 18 hours of radiant heat from the sun against a concrete building-even at 70 degrees, it still gets warm. This was the single biggest complaint we had in customer service." The Sheraton hopes to have all remodeling completed by spring 2001.

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