Southeast visitor industry looks forward to 2022

About 200 people convened in Haines last week - in-person and virtually - for the annual Southeast Conference, and much of the discussion among municipal and chambers of commerce officials focused on the region's economy, in particular the tourism outlook for next year.

Cruise industry and airline officials talked optimistically of strong visitor travel next year, maybe even a record for cruise ship capacity, as the country emerges from the worst of the COVID-19 pandemic.

"Right now, let's be positive ... this actually could happen," said Wendy Lindskoog, an assistant vice president with Royal Caribbean Group, which she said is scheduled to bring two Quantum Class ships to Alaska next year. The 16-deck ships can each accommodate close to 5,000 passengers.

If COVID-19 does not mess up cruise line plans, voyages with capacity for more than 1.4 million passengers could sail to Southeast next year - which would be a record.

Looking back at this past summer, several speakers commented that more independent travelers - non-cruise ship passengers - visited Alaska than anticipated.

For some businesses, independent traveler numbers this year actually exceeded 2019, said Rachel Roy, of the Southeast Alaska Tourism Council, who was among the Sept. 14 speakers.

Looking to build on that growing interest and provide additional months of employment in Southeast communities, "a lot of efforts are being made to spread the season out further," into April and October, she said.

All those unexpected visitors, however, put a strain on some businesses this summer, especially as companies large and small cut back on staffing to better survive the back-to-back two-year economic hit of the COVID-19 pandemic, several speakers said.

"People came into Southeast Alaska better than we expected," said Marilyn Romano, regional vice president for Alaska Airlines in Anchorage. The company had cut back on summer flights into Southeast and was caught off-guard by heavier passenger loads, sometimes making it hard for residents to book the flights they needed, for which Romano apologized at the conference.

Speakers said hiring enough staff was a problem this year and will be an even bigger issue if tourist numbers return anywhere close to normal next summer.

"That will continue to be a challenge," said Jillian Simpson, vice president of the Alaska Tourism Industry Association. The association board of directors is working to develop programs to help travel businesses find and hire sufficient staff for next year, she said.

Beside for recruiting people to come back to work after losing so much business to the pandemic, employers face challenges in predicting what level of service they will need next year. Do they look to 2019 for staffing levels, or something else, Romano said.

The airline sees a direct correlation between its bookings and COVID-19 case numbers, she said. When infections go up, travel goes in the other direction. The uncertainty of future COVID-19 infection rates makes it difficult to plan flight schedules, she said.

Everyone on the visitor industry panels talked about the importance of keeping customers and employees safe, preventing any outbreaks that could ruin next summer's visitors count. "Some of these protocols may be with us for a long time," Lindskoog said of sanitation, distancing and COVID testing for the cruise lines.

After being a leader earlier this year among the 50 states for its high vaccination rate, Alaska is now in the bottom third nationwide. Just over 62% of eligible Alaskans had received at least their first dose of a vaccine as of Monday versus the national rate of more than 74%.

A low vaccination rate among Alaskans could be a problem for next summer's visitor traffic, Sen. Lisa Murkowski said at the Southeast Conference.

The state's senior senator told the gathering that a higher vaccination rate would be good for tourism, especially as Southeast looks to rebuild its economy next year. "It sends the message that we're safe and we want you to come."

Alaska was among the top five states nationwide for an increase in hospitalizations last week, Murkowski said. "That is not where we want to be."

Southeast has so much to offer visitors and should focus on those attractions, Murkowski said, noting in particular that every town has a local brewery.

 

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