Tourism Support Industries Abound in Alaska.

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.

CRL Services LLC is the Sheraton's air conditioning contractor. Formed in 1995 when Rock Reber purchased the service division of his former employer, C.R. Lewis, CRL provided maintenance support for the Sheraton's existing heating, air conditioning and plumbing system. CRL then won the bid to upgrade the hotel's 25-year-old air conditioning system that only covered the first two floors. Reber says that Anchorage's newest hotels include air conditioning systems and older hotels are adding air conditioning systems to compete. The Sheraton Anchorage contract is one of CRL's largest contracts. Reber describes his main challenge as scheduling work in an occupied building. "Noise is the biggest issue," he explains.

CRL is the only company in Alaska that installs and maintains indoor air quality systems found in schools and hospitals. CRL also leases air conditioning units to telecommunications and computer businesses, where electronic equipment generates a lot of heat. Still, the future may find CRL helping more of Alaska's visitors to sleep comfortably. A client of CRL recently purchased the Kuskokwim Inn in Bethel and has asked CRL to help design its heating system upgrade.

Retail

Willi Bowen, president of Bag and Baggage Inc., says the largest percentage of her 25-year-old retail business comes from Alaska residents. "Several department stores carry luggage. But they don't have as wide a variety of brands and they don't specialize in luggage," says Bowen. "Travel accessories-neck pillows, luggage straps, adapters and converters-are my number one business as far as volume." While Bowen's Midtown Anchorage business does not market directly to tourists, European visitors shop at Bag and Baggage for quality leather goods and business visitors from Outside come for upscale luggage, briefcases and computer bags-without sales tax.

Less known is the support Bag and Baggage provides to hotels and cruise ship passengers. Local hotels contact Bag and Baggage to assist guests with damaged luggage. The store makes repair arrangements with local shops. Another relief from travel anxiety is the variety of tote bags she sells to handle overflow gifts and souvenirs. Finally, a high rate of lost luggage keys each summer by cruise ship passengers has caused Bag and Baggage to maintain a large assortment of keys for Samsonite, a popular brand. "I also sell a lot of combination locks," Bowen says.

Manufacturing

"Summer tourism is the greatest part of my gross sales," says Alaska Wildberry Products' third owner, Peter Eden. In 1987, Eden decided that the 51-yearold store in Homer, famous for its jams, jellies, syrups and souvenirs, could be much more. He kept the store in Homer, but opened two more stores in Anchorage. The Midtown Anchorage location is Alaska Wildberry Product's headquarters, with a large factory and flagship retail store. Eden designed and built the Midtown building, which displays memorabilia from the Homer shop. A videotape near the candy counter traces the company's history. Eden's staff frequently receives customers who reminisce about picking berries for the previous owners.

With state-of-the-art factory equipment, Eden expanded the product line to fine chocolates featuring wildberry jelly centers. But he did not stop there. "I knew I didn't want the company to be just a retail store and manufacturer. The new (Midtown) store is designed for people to have fun," says Eden. One hundred feet of glass windows allow chocolate lovers to watch the entire process from turning berries into jellies, jams and jelly centers, to chocolate-dipping by "enrobing" machines. Some candies are still handdipped, such as the soon-to-be premiered Bear Claws, a turtle-like confection of white chocolate, caramel and nuts. Shoppers are treated to candy tasting, tours and entertainment by local youth. The biggest draw, however, is the Midtown store's famous 20foot-high chocolate waterfall. With nine tons of melted chocolate cascading 20 feet from copper pots, it is reputedly the largest in the world.

Fishing and Hunting License Vendors

Alaska Department of Fish and Game Accounting Supervisor Francie Foley reports that during 1999 the state sold 269,153 sport fishing licenses and 14,730 hunting licenses to nonresidents. Furthermore, 109,264 King Salmon stamps sold to nonresidents surpassed the 77,709 King Salmon Stamps issued to residents. Similarly, the sale of 18,657 nonresident Big Game tags surpassed the number sold to residents. Although nonresidents may purchase hunting and fishing licenses from the Department of Fish and Game, many buy from licenses from vendors such as grocery stores, gas stations, outdoor outfitters or through charter outfits. Foley says roughly 1,500 vendors are authorized to sell fishing and hunting licenses.

Mailing and Shipping

"Without a doubt, summer tourism is a major source of our revenue," declares Kevin Anderson, part owner of NBV LLC Business Services, which owns Mailboxes Etc. Downtown. "During the summer, tourists leave the cruise ships and want to ship home the gifts they have been buying along the way. They also ship home the tuxedos, ball gowns and dirty clothes they used on the cruise ship, but no longer need when they arrive in Anchorage (and head to the Interior)." Anchorage's major hotels, the Westmark, Marriott and Captain Cook and other businesses refer their guests to Mailboxes Etc. Downtown for assistance with faxes and e-mail when the hotel business centers are full.

After a successful first year as Mailboxes Etc. Downtown's owners, NVB's goal is to expand the store's support of off-season convention service providers. "We can provide document reproduction, computer presentation support, and seminar materials assembly. Then after the conference, we help conference attendees travel light on their return home by shipping conference books, seminar materials and their souvenirs."

Support Industries Diversified

Anchorage Convention and Visitor Bureau President and CEO Bruce Bustamante points to the diversity of businesses among the organization's 1,400 members as evidence of symbiotic relationship between visitor-related businesses and the businesses that support them. Similarly, the Alaska Travel Industry Association extends Affiliate Membership to businesses whose main focus is not the visitor industry, but whose goods and services are critical to ensuring comfort, security, efficiency and entertainment to Alaska's guests. Adds Sheraton's Greg Champion, "Tourism dollars have resulted in a stronger local economy. This is evident by a 30 percent increase in hotel rooms over the past 18 months. It has also accounted for the increase in good quality restaurants in Anchorage such as Ristarante Orzo, Sullivan's, Glacier Brewhouse and the Snowgoose. Without tourism, (these businesses) wouldn't exist in Anchorage."