Alaskan groups express concern over federal cuts, ripple effects on tourism economy
ANCHORAGE, Alaska (KTUU) - Tourism in Alaska is a significant pillar of the state’s economy, according to the Alaska Travel Industry Association, which said that more than 3 million people visited to state last year, creating an economic output of $5.6 billion.
The industry alone, it noted, was responsible for creating around 48,000 jobs that supported tourism across the state.
“We definitely think it’s one of the main pillars that drives the Alaska economy, especially for small businesses and entrepreneurs across the state that are making their living off of showing the state to visitors,” said Alaska Travel Industry Association President and CEO Jillian Simpson. “It kind of includes, you know, restaurants, stores, and other things associated with, you know, where tourists might be visiting.”
According to the National Park Service, in 2023, Alaskan national parks saw 3.3 million visitors and generated $1.5 billion in spending on different sectors, including lodging, recreational activities, and restaurants.
In addition, according to the National Park Service (NPS), visitors contributed $2.3 billion to the state’s economic output.
The Alaska Outdoor Alliance said it has concerns about what recent federal layoffs could mean for the tourism industry, specifically for money generated from America’s national parks.
“My concern is that we could see facilities closure or reduced level, so the level of services could be cut, said Lee Hart, who is with the alliance, on Monday. ”Because these public land managers, if they have less staff, are going to have to make some hard decisions."
According to Hart, federal layoffs and cuts to NPS staff could have a ripple effect in gateway communities. If park services are limited, she said, this could potentially impact local spending.
“They won’t be able to spend as many dollars there,” Hart said, “so the economy of those economies will be affected. As will the fact that, should this result in any closures in facilities, that’s going to have an even bigger effect.”
Simpson said it is still unclear what financial impact the federal cuts could have on the tourism industry for 2025.
She said the association is concerned and is watching with a close eye what impacts might result, and what they could mean for both independent travelers and the cruise ship industry in 2025.
Alaska’s News Source reached out to Gov. Mike Dunleavy, R-Alaska, regarding the potential impacts on tourism in the state, but had not heard back as of press time. Alaska’s News Source also did not receive a response to a request for comment made of NPS.
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