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Web posted Monday, February 18, 2002

Tourism prepares for a downturn

By Chas St. George
For the Journal

photo: focus

 
Julie Saupe, executive director of the Matanuska-Susitna Convention & Visitors Bureau, expects a flat year for tourism growth.
PHOTO/Ed Bennett/AJOC

PALMER -- The Matanuska-Susitna Convention and Visitors Bureau says it is bracing itself for what could be a very slow tourism season. The Mat-Su CVB's executive director, Julie Saupe, says early indicators are not meeting revenue projections.

"For the first time since bed tax collections, we are projecting a flat year," Saupe said. "Much of this growth in our bed tax revenues has been generated by the two new lodges on the northern end of the borough, the Talkeetna Alaskan Lodge and the Mount McKinley Princess Lodge. These revenues, generated largely by cruise/tour passengers, help us market all Valley businesses. We are predicting that those revenues will not meet expectations."

The Mat-Su CVB conducted a poll of its membership in December. That poll revealed that most businesses have experienced a downturn in bookings or anticipate a decrease in business for the coming year because of the events of Sept. 11.

According to Saupe, 67 percent of the respondents stated that they were either "stable and expecting further growth" or "strong and expecting further growth" before Sept. 11. After the terrorist attacks, 77 percent expect a negative impact, ranging anywhere from an 11 percent to a 40 percent decrease in revenues."

Many in the Valley tourism industry are responding to the anticipated decrease by doing what the CVB is doing: reallocating resources into creating new markets and looking for cooperative marketing opportunities.

The Mat-Su CVB plans to work the in-state market this spring to make up for some of the expected decline from out of state visitors.

"We're fortunate in the Mat-Su to be so close to Anchorage and to have product that already appeals to Anchorage residents looking for adventure, whether that's a fishing adventure, a dog mushing adventure, a rafting adventure or flight seeing," Saupe said.

Another thing the CVB is doing is working with its membership to create more dynamic ways of marketing Valley tourism.

"We're excited that there are businesses in the Valley that have developed package tours," Saupe said. "This will be a great addition to what we offer and get visitors and residents alike to realize that the Mat-Su Valley is an ideal base camp location. From here you can just about see everything that visitors come to Alaska for. That will be a growth area for Mat-Su."

The Mat-Su CVB is also actively supporting the effort to get emergency marketing funding from the Legislature, Saupe said.

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