A recovering economy, coupled with several large conventions, gave Anchorage a banner year that pushed bed tax revenues to a record $11.5 million in 2004, the city's key tourism official said Jan. 20.
"Unlike other tourism economies across the country, Anchorage has seen a quick recovery (from the nationwide recession)," said Bruce Bustamante, president and chief executive officer of the Anchorage Convention and Visitors Bureau.
"It was a fantastic year; probably one of the best years on record for this city for visitors, and we're looking forward to another good year in 2005," Bustamante told an audience composed mainly of those involved in the visitor industry.
Occupancy in Anchorage hotels was up 3.6 percent and room revenues rose by more than 4 percent, Bustamante said.
Those bed tax revenues also got a boost from new hotels and the Anchorage Assembly, which passed an ordinance in 2003 extending the bed tax to accommodations at all bed and breakfast facilities throughout the municipality, effective April 1, 2004. There are 275 licensed bed and breakfast facilities within the municipality, and more getting licensed every day, according to city officials.
For the second and third quarters of 2004, bed taxes collected from B&Bs totaled about $125,000, officials said.
Half the bed tax revenues go to the municipality's general fund to pay for city services, while the other half is used by ACVB to market Anchorage as a visitor destination.
Bustamante also urged support for a new convention center, a $93 million, 193,000-square-foot facility on what is now a downtown parking lot. Construction depends on voters in April approving a boost in the city's bed tax from 8 percent to 12 percent.
"There are many other cities we compete with that have a higher bed tax than we do," said Nance Larsen, vice president of communications and marketing for ACVB. "Even at 12 percent, we are below the national average."
Some comparable bed tax rates are Austin, Texas at 15 percent; San Antonio, at 16.8 percent; Raleigh, N.C. at 13 percent; Anaheim, Calif. at 15 percent; and Chicago, at 14.9 percent, she said.
Bustamante said a recent report on declining convention business in dozens of cities did not apply to Anchorage. That report was focused on the top 200 trade shows in the nation, and Anchorage cannot accommodate large-scale trade shows.
"We're not building a convention center to get people to come to Anchorage," he said. "They already want to come. We're just giving them a business excuse."
Even without new facilities, the convention bureau in 2004 brought in $89.7 million in conventions and events, compared with $74.4 million in 2003.
ACVB exceeded its goal of selling $75 million in meetings in 2004, turning in $80.7 million in sales, up from $71.8 million in meetings sold in 2003, he said.
There are already several major conventions booked for upcoming years. The National Congress of American Indians, scheduled for June 2007, will have an estimated 1,400 delegates and estimated economic impact of $3.3 million. The International Electrical and Electronic Engineers international conference on robotics and automation, with 1,000 delegates and estimated economic impact of more than $1 million, is set for May 2010.
The most successful tourism events of 2004 included hosting the U.S. Alpine Ski Championships at Alyeska Resort and the filming of the Celebrity Sports Invitational, viewed by millions of television viewers on network and cable stations nationwide, Bustamante said.
Anchorage will hold fewer large conventions in the spring of 2005, but the fall calendar is full.
September events alone include the American Fisheries Society convention, with 1,800 delegates expected to have a $1.7 million economic impact; the International Association of Assessing Officers, with 1,800 delegates and anticipated $1.5 million impact; and World Wilderness Congress, with 1,200 delegates and $1.3 million impact.
Bustamante said the convention bureau would continue to promote winter marketing and help sell in Anchorage and Southcentral Alaska activities and packages. ACVB will also pursue conventions, mainly during the shoulder season, as well as smaller meetings during summer months, he said.
Web resources:
ACVB - www.anchorage.net.
