The 50-50 partnership between the state and the tourism industry was developed several years ago to fund what was hoped to be a $10 million annual tourism marketing program. ATIA’s members, mostly small businesses, have been unable to come up with their required 50 percent match, however.

The problem was exacerbated this year when major cruise ship companies, who were a major source of funding for the ATIA match, reduced their contributions because of the $50-per-head cruise ship passenger tax imposed by the state.

The Alaska state promotion program is less important to the cruise companies because they invest heavily in their own advertising. It is much more important to small Alaska tour companies and bed-and-breakfast owners in reaching out to independent travelers and other potential customers.

“The change in the match formula is intended to help out the mom-and-pop, locally owned tourism businesses that are such an important part of the economies of Alaskan communities,” said House Speaker John Harris, R-Valdez, the prime sponsor of House Bill 147. “With inflation factored in the support the visitor industry gets from the state is just a fraction of what it was 20 years ago. I hope that, with the change in the formula authorized by this bill, we will see our dollars go further in tourism destination marketing.”