Tourism Pays for Anchorage

Tourism generates thousands of Anchorage jobs, brings $297 million in annual direct spending, more than $50 million every year in local tax collections, and improves quality of life for residents and visitors alike.

The money invested into our local economy by visitors circulates throughout our economy several times over, providing an ongoing economic impact that would disappear entirely without tourism. Tourism also jumpstarts a “virtuous cycle.” Creating a place people want to visit creates one that people enjoy living in, and – by extension – one that businesses want to establish a presence in.

You might think first of registration desk staff and housekeepers, but may not notice the supervisors, accountants, sales staff, meeting and event managers and marketers that work in a hotel or resort. We see wait staff, bartenders, and cooks but don’t notice the team of executive chefs, group sales managers, and maintenance supervisors needed to run a restaurant. Tourism jobs are diverse, and account for 1 in 9 jobs in Anchorage.

Companies love to hire employees from the travel industry thanks to the skill sets they learn: customer service, communication skills, teamwork, and conflict resolution. The U.S. Travel Association estimates that nationally, two out of five workers who start their careers in the travel industry go on to earn more than $100,000 per year.

Hotels, tour companies, and restaurants all benefit from visitor dollars, but tourism has benefits for other business as well. After all, each of those businesses needs to manage the books, keep uniforms clean, find ingredients for the menu, or maintain a vehicle fleet ready for the road. From car repair to construction and farming to finance, there are some surprising secondary benefits from tourism.

Likewise, employees in the tourism industry use their wages to make purchases throughout the city. Even though a business may not think of itself as benefiting from tourism, the indirect benefits of tourism impact nearly every type of business in our city. Induced spending – things like tourism employees’ personal buying of goods and services – adds even more economic and employment benefits.

Destination marketing is our community’s way of elevating Anchorage to a national and world stage. Many places are competing for the business of a traveler. Visit Anchorage’s destination marketing programs keep Anchorage top-of-mind as people consider their next trip. In Anchorage, destination marketing and promotions are funded by a portion of hotel bed tax collections. In essence visitors are the ones paying to attract the next crop of visitors. The rest of the bed tax goes to the municipality's general fund and to keep the Anchorage Convention Centers attractive for meetings and conventions as well as for community use.

They don’t. Tourism promotion is funded by hotel taxes paid by visitors. Membership dues and advertising payments by tourism businesses also provide a modest portion of tourism marketing funds. Anchorage residents don’t pay any taxes to promote tourism.

We live in an amazing place, but that doesn’t mean anyone is automatically inclined to visit. In a wide world of wonderful destinations, attracting travelers is a big business. Visit Anchorage has to inspire people to travel, make travelers aware of what the destination offers, explain how we’re in reach, and make the case for why it’s worth adding more time once they do decide to visit.

Tourism is a crowded, competitive marketplace. Without a coordinated, collective approach to marketing, other places would happily lure our visitors away.

Taxes paid by tourism help fund infrastructure improvements, public safety, and most other programs. A third of bed tax collections go into the municipal general fund. Residents would need to pay more for these services without tourism’s contribution.

There are three big ways you can help:

1. Invite your friends and relatives to visit. Word-of-mouth recommendations from family and friends are still the most trusted, most used, most important sources of travel information. You can help inspire the next trip to Anchorage by inviting friends and family.
2. Explore your own backyard. Alaska isn’t just for visitors. Get out and enjoy the opportunities others dream of. It’s a big place – bet you haven’t seen it all. Need inspiration? Check out the Anchorage Neighborhood Guide or dine out with the Local Flavor Restaurant Guide.
3. Share the value of tourism with friends and neighbors. Locals keep tourism strong, and help sustain destination marketing programs. Together we can strengthen the economy and make our community better.