1/22/04 - ACVB 2003 Report to the Community
NEWS RELEASE
ANCHORAGE, ALASKA – January 22, 2004
ACVB RELEASES 2003 REPORT TO COMMUNITY
Visitor Statistics Reflect Variable Economy, But Bright Spots Loom
In 2003, the Anchorage Convention & Visitors Bureau (ACVB) tracked $153 million in estimated economic impact (EEI) to Anchorage, as a result of conventions, meetings and tourism sales efforts. While that number is up about $1 million from 2002, bed tax revenues are down, and the visitor industry is still fighting a variable national economy that has resulted in fewer travel bookings across the country.
Anchorage is doing well, especially compared to national tourism trends impacted by SARS, the war in Iraq and an unstable economy,” said Bruce Bustamante, ACVB president and CEO. “We’re starting to see a plateau in visitor numbers similar to that in the mid ‘80’s prior to the Egan Center opening, and that’s something we’ve got to react to with targeted marketing, year-round visitation and more tourism infrastructure.”
The economic value of conventions held in 2003 was $71.8 million, compared to $77.1 million in 2002. In October alone, the city hosted more than $13 million in conventions, while March, April and May also were strong months, each with more than $7 million in convention business. Bed tax revenues for 2003 were $10.4 million, compared to $10.9 million in 2002. The lower numbers reflect national hotel occupancy falling 8 percent in 2003, coupled with overall room revenues reportedly down 7 percent for the year.
Convention sales in 2003 were strong at $74.5 million, with several large groups scheduling meetings in Anchorage in the next four years. Major bookings include Ducks Unlimited in May 2007 with EEI of more than $1.3 million; the American Association of Port Authorities in September 2008 with $878,629 EEI; and, the National Wheelchair Games in July 2006 with EEI of $839,530.
“Anchorage has added 523 hotel rooms in the last 18 months, which has resulted in lower prices,” said Bustamante. “Travel is making a slow but steady recovery and visitors are getting better deals when they stay in our city.”
ACVB Tourism Sales & Service department (TSS) reported $79 million in sales in 2003. TSS held numerous sales seminars in many high volume travel agencies and worked with companies such as Holland America and Japan Air Lines to educate travel agents about Anchorage activities and attractions. An increased sales effort in Korea and Japan led to wholesaler support for inbound international flights from Japan and Korea, which brought thousands of visitors to Anchorage during the summer of 2003. This year promises to bring even more international visitors with an increased number of direct flights from Tokyo to Anchorage.
Bustamante also pointed out that Anchorage’s visitor industry faced some tough times in 2003 when warm winter weather forced the cancellation or relocation of several key events including the Tour of Anchorage, U.S. Alpine Ski Championships and the Iditarod start. National trends for people to travel closer to home and a tightening in business travel also impacted total visitors to Alaska.
Still, Bustamante said several bright spots loom for Anchorage. According to Travel Industry of America (TIA), travel will continue to slowly rise with an increase in highway travel, experience-based adventure, cultural tourism, and family travel – all which bode well for Anchorage. The economy is also showing signs of improving, which should spur increased travel. “We worked for more than three years to get the National Wheelchair Games in Anchorage, and see huge potential for hosting international caliber sporting events in the future,” added Bustamante.
Bustamante said it is important to remember how critical tourism is to the city and the state’s overall economy. The 2.5 million visitors who come to Alaska each year spend $949 million annually. At the same time the visitor industry accounts for one in every eight jobs. According to predictions released by the Anchorage Economic Development Corporation (AEDC) this week, an additional 1,900 jobs will be added in Anchorage in 2004, all in the service sector.
The Anchorage Convention & Visitors Bureau’s mission is to attract and serve visitors to the Municipality of Anchorage. ACVB’s marketing functions are funded by half of the bed tax collected by hotels. The other half goes the Municipality’s general fund. ACVB receives no state or federal funds. For more information, explore www.anchorage.net.
Contacts:
Erika Siegel, Public Relations Manager
(907) 257-2331
esiegel@anchorage.net
Explore www.anchorage.net
Nance Larsen, Director of Communications
(907) 257-2310
nlarsen@anchorage.net
Explore www.anchorage.net
