Study: Tourism Marketing Boosts Alaska’s Image as a Place to Live

“These numbers show Alaska’s tourism brand is one of our best recruitment tools,” Simpson says. “Tourism advertising builds the state’s reputation not only as a bucket-list destination but as a desirable place to live and invest.”

As for return on investment, ATIA says its 2024 campaign delivered $378 in visitor spending for every marketing dollar, totaling $2.1 billion in total travel-related spending. Tourism also supports 48,000 Alaska jobs and contributes $182 million in annual state revenues.

Meanwhile, Visit Anchorage counted more than $1 billion in economic impact from travelers to Alaska’s largest city, from more than 1.34 million travelers annually. The report prepared by McKinley Research Group focused on out-of-state visitors who traveled to Anchorage.

Nearly two-thirds of those million-plus visitors to Anchorage, 63 percent, arrived by airplane and did not participate in an overnight cruise. A smaller portion, 35 percent, were cruise passengers, and 2 percent were traveling by highway. Most Anchorage cruise visitors are sailing one-way, meaning they have opportunities to explore pre- or post-cruise.

“Visitation isn’t just about headcount; it’s about increasing length of stay and planting the seed for a return visit,” says Visit Anchorage CEO and President Julie Saupe. “This shouldn’t only be a once-in-a-lifetime visit. There’s so much to see and do in Anchorage.”

Shoulder Seasons of Giants

More than 20 percent of visitors come between October and April, traditionally the off season, yet Anchorage also sees about half of its hotel room demand in fall, winter, and spring.

“Encouraging visitation in all seasons, particularly beyond summer, has been a part of the mission since the very beginning,” Saupe says. “Local companies have expanded year-round offerings, developed new season-specific experiences, and we also work to book meetings and conventions, which skew to non-summer months.”

Visitors also pay the hotel room tax and car and RV rental taxes, totaling $59 million in municipal revenues over the study period. Three quarters of those tax collections are attributed to out-of-state travelers.

“Visitors pay for things we enjoy as residents,” says Saupe. “These tax collections pay for city services, maintain civic infrastructure like the Dena’ina Center and Egan Center, and get reinvested in future tourism marketing and promotions; it’s a win-win-win situation.”

Visit Anchorage is analyzing the effectiveness of its marketing efforts. In the past year, travelers at Ted Stevens Anchorage International Airport have been shown a survey whenever they log on to the facility’s WiFi. Results are being presented at the ATIA conference.

Simpson points out that Alaska currently ranks 37 out of the 50 states in state tourism marketing budgets, well behind competitors like Hawai’i ($79 million) and Florida ($80 million) as well as international destinations like British Columbia ($36 million).

“Other destinations are investing heavily in their brands, and that translates into economic growth,” Simpson adds. “If Alaska wants to grow its workforce, its communities, and its economy, we must continue investing in how we tell our story.”