Winter Tourism in ­ Not an Anomaly By Neal Fried and Holly Stinson

Some people may think winter tourism in Alaska is a contradiction in terms. However, the industry is very much alive in the state and slowly growing in spite of a three-year recession in the economy.

For the purposes ofthis article, 'winter tourists' are defined as all those who take advantage ofwinter recreation. A few winter tourists come from outofstate; they are included in this briefstudy as 'winter visitors' no matter what their primary purpose for visiting might be. The words 'tourist,' 'visitor,' 'guest,' and 'traveler' have identical meanings.

Out-of-state guests make up a minority of those usingwinter recreation facilities in Alaska. It is those who are already here in the state who constitute the vast majority of people enjoying recreation, sporting events, festivals and other attractions during the winter months.

Alth ough winter officially begins Dec. 21, Alaska's winter season begins much There is a renewed interest earlier. Activities staged in the state between November and March are discussed in developing world class in this article, along with some activities that take place in the 'shoulder season' months of October, April and May. resorts near Anchorage

Anchorage has been in the public spotlight lately for making two unsuccessful winter Olympic bids. This has created renewed interest in developing world class, two-season resorts near the city. Proposals for these resorts are examined in this article, as are other less extravagant options for future winter recreation opportunities in the state.

Out-of-state Winter Tourists Are Few Compared to Summer Tourists

Winter tourism certainly has a much lower profile than the summer tourist season of June through September. The number of visitors in the summer recently equaled or exceeded the state population: 533,000 in 1987, over 550,000 in 1986, and 473,000 in 1985. In contrast, winter visitor numbers are very small: atmosttheynumber 25,000 per month. (See Figure 1.) The number of winter Figure 1 visitors increases as the season passes; Total Visitors to Alaska - 1987 about 30% arrive in the fall months (October, November and December), 33% arrive in the winter (January, Jan-Mar February and March), and 37% arrive in the spring months of April and May.

'Winter visitors' is defined as all people Apr-May arriving from out-of-state, not justthose coming for a vacation only. There are those who come to visit friends and relatives, to attend conventions, to Jun-Sep conduct business, and those employed seasonally. While the summer months have the greatest percentage of guests coming here to vacation only, many Oct-Dec visitingfor otherpurposes in the winter make time during their trip for some type of recreational U ur. o 100 200 300 400 600 800 Thou••nels

December 1988 Alaska Economk Trends 1 Winter guests differ from those of the however, that resorts and other summer in many respects. First of all, winter recreation facilities reported the number of vacationers drops increased usage during those same significantly from one season to the years. Since visitors from out of state other. (There were nearly 370,000 have not increased in number, but use vacationers in the summer of 1987, ofthe facilities have, it is clear that the butonly 24,808 vacationers in the state vast majority using facilities are local between October and March 1988). Alaskans. A look at the difference Conversely, the proportion of business between the typical Alaskan and the travelers is greater during the winter typical non-Alaskan American explains than the summer: business travelers why winter sporting and recreational make up almost halfof all Alaska guests activities are so heavily used by people during the winter season. (See Figure living in this state. 2,) During the winter, a much higher percentage of those traveling for Americans have become more health pleasure are repeat visitors. conscious in the 1980's, and Alaskans Specifically, 40% of vacationers are no exception. Alaskans areyounger travellingto this state during the winter and more outdoor-oriented than are repeat visitors, while only 15% of residents of other states. Also, Alaskans summer vacationers are repeatguests. are in volved in outdoor recrea tion of all Nearly one·half And winter visitors are usually younger kinds at almost five times the national of winter visitors than those here in the summer. The average. They participate in winter average age of those visiting the state sports at two-to-eight times the national are here on business during the winter is 40; the average average. For example, 26% of Alaskans age of those visiting during the summer - versus 3% of other Americans - are is 50. In addition, about 65% of the cross-country skiers; 20% of Alaskans state's winter guests are from the - versus 3% of other Americans - use western states - especially California off-road vehicles for recreation; and and Washington. 14% - versus 6% - are alpine skiers. Alaska offers a long season and an almost ideal climate for winter The Local Market: recreation. Alaskans take advantage Alaskans Touring Alaska ofthis in large numbers.

The number of win tel' travelers during 1986-87 was down by 16,000 from the Going to the Dogs number arriving one year earlier. And the figures for the winter of 1987-88 Sporting events attract the largest were down by about 1,000 over the portion of winter visitors to Alaska. previous year. Itis interesting to note, They come as spectators, as well as participants. Dog mushing enjoyed Figure 2 remarkable growth in the 1970's and Visitors by Trip Purpose - 1987 the 1980's. It was declared the official state sport by the legislature in 1972. Dog sled races of sprint distance (20 to WINTER/SHOULDER* 30 miles in length) have been the backbone of winter festivals in Fairbanks and Anchorage for decades. Because of the short time period in Seasonal Worker 6% which these races are run, people are SUMMER* able to watch both the start and finish Visit Friend/ReI. of a race. Often, local businesses are 24% patronized by the spectators during Seasonal Worker the slack periods as they await the 2% teams at thefinish line. The sprintrace staged during Anchorage's winter ViSit Friend/ ReI. 13% festival, Fur Rendezvous, remains one Vacation of the largest spectator events in the 24% Vacation 69% state. Almost 40,000 people t.urn out to watch it in person. Many more watch it on local television. ·.Summ.r (Jun-S.ph Wina., (Noy-Mar), Should.r (Oct,Apr....y) Sourc.: Data Oacl"ona Group

2 Alaska Economic Trends December 1988 Long distance races - from 200 to over country skiing, which surged in 1,000 miles in length - have made a popularity during the lasttwo decades, comeback in Alaska. After a heyday in is responsible for the growth of many the earlier part of this century, long small lodges which caterto these skiers. distance races faded away until the Many ofthe lodges offer trails groomed Iditarod Sled Dog Race was developed for skiing, h ot meals, sh owers, and in the 1970s. The lditarod has created saunas and hot tubs. The lodge renewed interest in and growth of the operators find their market almost sport. Further, ithas spawned a host of exclusively in Alaskans who want to other "Iditaraces" along the historic get away to be weekend tourists. Iditarod trail: races involvi ng skiers, snowshoers, bicyclists, andyoungsters The owner of Lodge in driving dog teams. Officials with CBS the Talkeetna Mountains says that he television estimated that almost 5 can count on his fingers the number of million people nationwide watched the non-Alaskan tourists who have in finish of the 1985 Iditarod. Such recent years vacationed at his lodge. widespread coverage can only help But business at his lodge has grown 10 kindle interest in Alaska as a tourist to 20% per year over the last several destination. years. He estimates thatwinter activity in the Hatcher Pass area has doubled, With the success of the Iditarod, other or even tripled, in the last 15 years. On long distance races have developed, any given winter weekend, the area is Skiing holds the most including the Kuskokwim 300, which used not on ly by cross-country, potential for drawing the runs from Bethel to Aniak and back, telemark and downhill skiers, but also international tourist here and the Yukon Quest, which runs by winter enthusiasts who mush dogs, between Fairbanks and Whitehorse, parasail, snow machine, sled, and during winter Yukon Territory. Although a small snowboard. group travels to Alaskafrom the Lower '48 for these races, local Alaskans turn The numbers of people visiting 'all out in large numbers. Another trend in parks' in the state drop during the the sport of dog mushing is in the winter months, compared to the growing number of small races run in summer mon th s. (See Figures 3 and 4.) local communities and villages ('All parks' means, for the purposes of throughout the winter months. this article, both 'unofficial' parks [state lands which are not dedicated park Other winter sporting events, held at lands but are used for that purpose by indoor arenas and rinks, also draw the public] and the official state and large numbers of spectators. Hockey, federal park lands.) Trail systems in basketball, and curling are all popular the parks are used extensively in the in the state. Sports promoters in winter by cross-country skiers, dog Anchorage, Juneau and Fairbanks regularly draw teams and their Figure 3 accompanying staffand boosters from Visitors to Major National Parks by Season - 1987 Outside by hosting national and international competitions. The majority of spectators, though, are again local Alaskans. Basketball plays a big role in many bush communities during the winter months. When competing teams travel to other Shoulder communities in the state, members of 79,413 the teams become winter tourists ~~_..... ~. Winter themselves. 13.087 Summer 900.273 Skiing: The Winter Sport

Skiing in its variousforms - downhill, cross-country, and telemarking ­ draws the most participants of any -Sum",1tI' (Jun-Sap), Wln~r (Nov"".r)1 sport in the state. Itis this sport which Shouldar (Oct, Apr, May) holds the most poten . al for bringingin Souroa: National Par k Sa,vloa guests from the Lower 48, Europe or Asia during the winter months. Cross-

December 1988 Alaska Economic Trends 3 mushers, and by those using snow An important goal of many winter machines and snowshoes. Probably the resorts is to improve their profitability lone exception to this trend of fewer by increasing and diversifying their winteT park visitors is th e Alaska faci lity's use. Snow-makingequipment Chilkat Bald Eagle Preserve near can help stretch the skiing season to Haines. When the greatest number of some extent. Another way to increase eagles fl ock to the Chilkat River for use of a fa cility is to operate the ski lifts salmon Cduringthe months of October, year-round. Alyeska, for example, November and December), the greatest operates a during the summer number of visitors flock there, also. months; 35,000 summer tourists rode the lift in the summer of 1986 to gain While downhill ski resorts have great a summertime scenic view from the Year-round use a goal for potential for drawing tourists from mountaintop. If a winter facility can outside the state, it is mostly Alaskans diversify by selling both summer and winter resorts who currently patronize them. The winter recreation, it can prove itselfa largest downhill resort, Alyeska, isjust more profitable enterprise. 40 miles south of Anchorage and pulls about 99% of its skiers from the Anchorage, MatSu, and Kena i There's More: Peninsula region. The number of "skier Luge, Northern Lights.... visits" (lift tickets sold) has grown steadily over recent years. During the In addition to the common winter 1987 -88 season, Alyeska registered sports, Alaska also hosts unusual 160,000 skier visits. (Expansion plans winter activities. The luge track in currently underway at the resort are Fairbanks is one of only three such discussed later in this article.) The few tracks in the U.S. The Fairbanks club other facilities scattered around the thatoperatesit offers rides to the public state are also heavily used. The number between Thank sgiving and March. of skiers at Hilltop in Anchorage Heliskiing - flying to the top of a increased from 38,000 in its first year mountain or icefiel d in a helicopter of operation, 1983-84, to 53,000 in the and then skiing to the bottom - is 1987 -88 season. That increase came in becoming popular and can be enjoyed spite ofa recession in the economy and year-round. Recent negative cost a considerable drop in that region's factors, however, have reined in population. It is statistics like these customer traffic for both heliskiing and that lead many people to believe that another popular winter activity, h ot there is a market for additional ski air ballooning. It has been huge facilities in Alaska. increases in insurance rates which have slowed the growth of these sports. Figure 4 State Park Visitors - 1987 The aurora borealis, or northern lights, is a phenomenon unique to the northern Thousands .regions and a possible resource that could be exploited for the purposes of boo stingwinter tourism. The northern lights have become a marketable item for hot springs resorts located near Fairbanks. Area resorts there promote their facilities in the winter not only .for cross-country skiing and for the springs themselves, but also as excellentvantagepointsfor theviewing of the famous phenomenon.

Further, operators of Chena Hot .Sp rings report thattheir customer base is diversifying. Increasing numbers of Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Japanese are patronizing the springs, . and more people on organized tours !Z2l Non-Residents _ Residents are stopping there. Inpastyears, Chen a Source: AI• • k. DHR. Diy. 01 P.rka Hot Springs' primary customer has been the Alaskan.

4 Alaska Economic Trends December 1988 And icec1imbers from around the world winter, too. Fairbanks, Anchorage and have adopted Valdez as a favorite Juneau allhostconventions duringboth destination for the 50frozen waterfalls the winter and summer seasons. located near that city in Keystone Revenues raised in Anch orage via tbat Canyon. Climbers from as far as Austria city's hotellbed tax h ave been twice as and New Zealand have been drawn to great in the 2nd and 3rd quarters of Valdez's Ice Climbing Festival. The 1988 and 1987 than in the 1st and 4th festival is an annual event that has quarters of 1988 and 1987. (See Figure been staged every February since 1983 5.) Juneau's revenue picture is by the community of Valdez. different. That city's bed tax revenues have been highest in the October/ Another trendin the business ofAlaska N ovemberlDecember quarter. (Again, winter tourism is the burgeoning see Figure 5.) Winter tourism industry popularity of 'adventure trips.' These adventures include heliskiing, skiing Even smaller towns bring in dominated by small Mt. McKinley, and travelling and considerable numbers with businesses camping via dogsled over considerable conventions. Sitka hosted over 2,000 distances into the backcountry. One conventioneers lastwinter. And Kodiak adventurebusiness in Fairbanks offers hosts each winter a commercial fishery a variety oftrips, including a two-hour trade show which draws over 4,000 sled dog tour of the local area and a people. $2,200 package of glacier skiing for seven people. The number oftravelers The winter tourism industry is drawn by 'adventure trips' is probably dominated by small business operators quite small now. There may be, though, and is currently patronized mostly by significantfuture traffic in this niche of Alaskans. It is primarily the small the tourism business. business operators who lay the necessary groundwork for attracting additional winter visitors. A recent Winter Festivals study conducted for the Municipality and Conventions, Too of Anchorage identified winter recreation as the key to stimulating An alternative for tourists seeking that city's tourist industry during its entertainment other than outdoor traditionally slow winter season. winter recreation are the festivals and Meanwhile, as the small winter carnivals held in both large and small business operators continue to see towns throughout the state. Fur Rondy in Anchorage, Taku Rondy in Juneau, Figure 5 and the Fairbanks Ice Festival host Revenues from Bed Taxes sporting events but also offer many other tourist-drawing activities ­ Thousands of dollara including parades, fur auctions, arts and crafts exhibits, snow and ice sculpting competitions, dinners, dances, and more. Some guests from outside Alaska are attracted to these festivals. One survey showed that over 13% of airline passengers arriving in Anchorage during the month of February were coming to attend or participate in Fur Rendezvous. Festivals smaller than the ones held in Anchorage,Juneauand Fairbanks,but just as important to their townspeople, include the Iceworm Festival in 3rd Q 87 4 th Q 87 1st Q 88 2nd Q 88 Cordova and the Beaver Roundup in Dillingham. Another, the Festival of IS.Sl Anchorage _ Juneau g;g Falrbanka Native Arts in Fairbanks, an annual eventin its16thyear, lastyearattracted Source. City Finance Deple. 13,000 people from throughout Alaska and Canada.

Con ventions bring a measurable number of visitors to Alaska in the

December 1988 Alaska Economic Trends 5 increases in their client numbers, a recent report that tourist dollars passenger aerial tram, and additional handful of large projects are being expended in the state could be as high chair lifts. The company also plans to proposed in Anchorage to further boost as $1 billion eight years after the double the size of t.he eating facilities winter tourism. Olympics. located at the top of the mountain so that 350 people can be accommodated. Planned for next summer is the Will the Olympics Torch World-class Developers construction of roads, a sewer system, Be Passed to Alaska? Eye Alaska Ski Slopes and the foundation fo r the hotel. Completion date fo r these Alaskans first contemplated making a Even without the prospect of the improvements is late 1991. An bid fo r the international winter Olympics, Alaska's winter tourism estimated 150 jobs and $3.1 million in Olympics 32 years ago when George industry ha s the potential of changing payroll will be creat ed with these Beyers, then the mayor of An chorage, dramatically. It co uld go fr om iln proj ects if they are implemented. Phase traveled to Chicago to offer his city as a intrastate-dependent in dustry to one two of Alyeska's expansion plans is on host for the 1960 Olympics. Mayor drawingmostly international travelers. the drawing board. It includes more Beyers returned without making his It could go fro m an industry dominated hotel space, more lifts, and additional pitch because he didn't think Anchorage by small indepen dent operators to one facilities. No firm date h as been set for was quite ready. It was years later, in dom inated by int ernation al the start or completion of th is second 1984, when a number of Anchorage conglomerates. It would be the 1998 phase. residents attended the winter Olympics Olympics, h owever, that would provide in Sarajevo that the city was deemed the ultimate future backdrop fo r Any com prehensive look at the Alyeska ready to bid for future Olympic games. Alaska's winter tourism industry. resort is incomplete without mentioning the potent ial development of Winner Creek Mountain. This mountain is located one mile northeast of the present Alyeska resort. Some skiing Winter Olympics: aficionados and the U.S. Forest Service An economic jump start for believe that this mountain provides the greatest potential fo r major new winter tourism downhill ski expansion. They believe this site would offer the best skiing because of its terrain, tree cover, size, Since then, Anchorage has offered Anchorage's failed bids for the 1992 snow, and views. And the site would unsuccessful bids for the 1992 and 1994 and 1994 Olympics did succeed, complement the Alyeska resort. The games. But city leaders proclaim that nevertheless, in catalyzing worldwide two sites could be tied together they plan to try again in 1991 for the interest in Alaska as a potential providing skiers with the variety 1998 Olympics. destination for world-class ski/summer necessary to attract international resorts. Indeed, two development firms business, ski team training, and Many believe the Olympics would 'jump are considering building two world­ . competition. Throw in a golf course and start' an international winter tourism class, year-round resort complexes; and . other summer amenities, and it could industry in Alaska. it's diffi cult to a third firm is planning on expanding become a major international summer/ imagine that a world event of Olympic an existing complex. Ifanyone ofthese winter destination. (The potential of stature would not forever change the three developments moves forward as Winner Creek MoW)tain was addressed face of winter tourism in Alaska. New presently envisioned, winter tourism in a recently released Alyeska Resort facilities would be built, and the in the state will be forever changed. Master Plan.) worldwide exposure would be a dream Following are brief descriptions of the come true for marketers of winter three contemplated developments. The two new resorts being proposed tourism in this state. An economic are the Eagle Valley Resort by Robert consulting firm, Economic Research The most moderate proposal is the Rogner of Austria, and th e Hatcher Associates, was recently hired by the planned expansion of Girdwood's PassAlpine Ski Development by Mitsui Anch orage Olympics Organizing Alyeska . This facility is & Company of Japan. Both of these Committee. The firm projected that owned by the Japanese company Seibu proposals are ambitious, world-class, 38,300 out-of-state travelers would Alaska, Inc. Alyeska is presently year-round resorts. Rogner has attend the games in Anchorage. installing a new $2.6 million detachable experience in resort devel opments; Approximately $317 million would be quad chair lift capable of moving more Mitsui is the second largest trading expended, and more than 14,700 jobs than twice as many people than it now companyin Japan. Many details remain would be created before and during the moves. In addition, the company is also preliminary, but the two development games. Although the year after such an' adding$900,000 worth of snow-making co mpanies h ave provided enough event would be anticlimactic, equipment, trails, and other new information to provi de a basic sketch. cumulative effects on tourism would fe atures during this current ski season. endure for year s. Though there is no The Eagle Valley Resort would be way the post-Olympic impact can be Future plans have Alyeska bUllding a located in th e vicinity of Eagle River, accurately projected, E co n omic new 300-room hotel at the bo ttom of an Anchorage bedroom community Research Associates estimated in its the mountain, along with a new 60­ located 10 miles north of that city's

6 Alaska Economic Trends December 1988 downtown area. Plans call for building Are These Big Development equivalent to those found elsewhere in a resort village from scratch, which Plans Feasible? the world, the international ski market would include two first-class hotels with will simply fly over Alaska. a total of 500 rooms, nine apartment­ Many Alaskans question thefeasibiIity like buildings with 1,000 units, a ofthese development plans, considering convention center, and a Russian their size. Alaskans have seen over the Will the Japanese be Alaska's Orthodox church. Commercial space years many grandiose plans that never Primary Winter Tourist? for restaurants, retail shops and other materialized. tourist facilities would also be available. Will the Japanese, Koreans,Europeans An integrated lift system would be built Will any, all, or at least one of these and North Americans patronize an to support a comfortable carrying resorts be builtaspresently envisi.oned? Alaskan resortin significa nt numbers? capaci ty ofl1,450 skiers. Cross-country There is no real benchmark to use for Only international market s can skiing, sleigh rides, sledding and other Alask ns to make a clear judgment support a world-class winter/summer winter activities wo uld be offered. And because no wo rld-class resorts are now resort developed by a Rogner or a a wide range of summer activities are in place in this state. But there is a vast Mitsui. Can Ahska compete with the also planned to ensure year-round international ski market out there that resorts of Vail and Aspen in Colorado? patronage. When completed, i.t would only a fe w local residents understand. With Whistler-Blackcomb in British employ 900 full-time and 300 part­ Some believe that more than 100,000 Columbia?With European ski resorts? time workers. Total cost of the project 'skier visits' could be generated from Or will the lore of Alaska's lo ng, co ld is estimated at $230 million. The Alaskans alone if more intermediate winter nights remain a major barrier? primary clientele is seen as coming ski slopes were available. But even Theories abound. Let's expJ ore a few of from Europe, Asia, North Am erica and them. Alaska. Because the Rogner group is requesting loan guarantees from the Many believe the North American state, the state and the Rogner group market is an unlikely source of jumbo have jointly hired a consulting firm. Japanese skiers jetloads of skiers bound fo r Alaska. The firm is now con ducting feasibility The long trip in getting to this state, studies of an Eagle River Resort and of could be on Alaska slopes coupled with stiff competition from other possible resorts elsewhere in the in one day other resorts, may be barriers too great state. to overcome. But the same group of skeptic s believes that Europe is off The other proposal, this one envisioned limits for the same reasons. Adventure­ by Mitsui & Company, would be built seeking tour groups departing from at Hatcher Pass, a site located in the with this additional local patronage, various locations in North America and MatSu Borough 60 miles north of there is a general consensus among Europe may be attracted, but these Anchorage. In March of thisyear Mitsui many 'in the know' that all three groups initially will not be large enough signed a 55-year lease with the state developments could not tum a profit if to support a world-scale r esort. for 11,400 acres. The entire project they were all available for use calls for eight ski lifts, a gondola, a 300­ simultaneously. So, which project is However, Japan as a market is quite room hotel and 900 condominiums. A more feasible? A partial answer to this . another story. On the one hand, just golf course andother summeramenities question might be provided by the joint because Alyeska and Mitsui are are included, once again, to create a feasibility study now being conducted Japanese-owned companies does not winter/summer resort. When all phases for the state and Rogner group. automatically guarantee a customer of the project are complete, Mitsui Ultimately, the question will not be base from Japan. Underscoring this predicts thatpeak per-day traffic would answered until a major financial impression is the experience ofVicton a be 750 out-of-state guests and 1,750 commitment is made by one of the Limited, the largest Japan ese southcentral residents. Phase 1, developers. manufacturer of ski equipment. The scheduled to be finished by April 1993, company recen tly p urchased would employ 344 people. When all Compared with the other two proposed Breckenridge Ski Resort in Colorado. phases are complete, Mitsui officials developments, Alyeska's plans are the Victoria Limited has no immediate predict employment to reach 501. And most modest. Some of the expansion plans to market the resort in Japan. University of Alaska officials estimate plans are already underway. But even Alyeska h as been owned by Seibu for that additional spin-off development with its Phase 1 expansion complete, years and its customer base bas projects would create roughly 300 more the development would not fit the remained strictly southcentTal Alaska. jobs. definition of a world-class resort. On the other hand, however, these co mpanies h ave a clearer There is a general consensus, again understanding of the potential of the among many 'in the know', that until Japanese market. The companies have Alaska has a world-class ski resort the the business contacts. And equally state will probably not put a dentin the important, the companies have the international winter tourism market. financial clout to exploit the potential Over and over again experts have said market. that without a first-class ski facility

December 1988 Alaska Economic Trench; 7 Further, a compelling advantage for Alaska's weather is a major stumbling the Japanese investors is Alaska's block to virtually all economic location relative to the Japanese development in the state, not just to market. Skiers from Japan could winter tourism. The Alaska Division of theoretically ski Alaska slopes on the Tourism is constantlyfigh tingAlaska's same day they leave home. Alyeska image of the "land of snow and ice." and the other two proposed resorts are They believe thatthis damagingimage within 90 minutes' drive time of th e remains a major barrier for all tourism Anchorage International Airport. With in the state. The recent international the exception of British Columbia, mo st media coverage of the ice-trapped ofthe international ski resorts require whales near Barrow might have one or two full days' travel from Japan. reinforced this erroneous image of Alaska. Another new development makes even more feasible an increasing Japanese Most people in the tourism industry presence in Alaska. The new Visa regard Alaska's arctic climate as a Waiver Pilot Program, which began in marketing problem, but conclude that December, makes it easier for the it can be surmounted and even used to Japanese to visit Alaska. Japanese the industry's advantage. The tough travelers will no longer need visas to months to sell are between November enter Alaska, and they will be allowed and February. Optimists argue that to stay up to 90 days. there is plenty of natural light even duringthese mid-wintermonths.There Skiing is growing in popularity in is enough natural light, they contend, Japan. The 1972 winter Olympics held for the rapidly moving lifts to allow the in Sapporo undoubtedly helped boost average skier his usual five hours' time interest in the sport. There are an on the slopes. The optimists also point Alaska's arctic climate estimated 10 million-plus skiers in the out that Alaska has, at the very least, island nation. These skiers are believed a six-month skiing season. That length a marketing challenge to have not yet made a dent in the of time compares favorably to most international market. According to otherlocations, which average only four Victoria Limited, only 1O,000Japanese months. travelled to North America or Europe last year for the primary purpose of Other observers of Alaska's winter skiing. Most ofthese skiers ended up in tourism industry have focused their British Columbia, in Calgary Alberta, marketing ideas on the spring skiing and in Europe. This could mean that months - between late February and there is a giant, un:tapped international May. The weather is milder then, and market for Japanese skiers, or that the days are longer. Additional spring there might be resistance among the attractions for Alaska tourists are, for Japanese to go international to ski. example, the Idit arod, the Fur Rendezvous, the Yukon Quest, and the Because Japan is now flush with cash, Fairbanks Ice Festival. And duringthe investors there have the financial latter part of the winter ski season, wherewithal to make a · large tourists' skiing experiences could be investment if the opportunity were complemented by yet other activities, right. As Alaska's largest foreign such as rafting, hiking and fishing. investor, Japan has had considerable experience with this state. For these Summer snow-skiing offers additional and the other aforementioned reasons, potential. While it is still a small if there is ever to be an international industry, it h as become quite popular ski resort in Alaska its market will in recent years at Mount Bachelor and primarily be Japan and, eventually, Mount Hood in Oregon. Alaska's ' other nations on the Pacific Rim. potential for this niche of the market is almost limitless because glaciers are required. Winner Creek, for example, Does the Weather offersfine summer skiing opportunities. Keep Visitors Away? This year, a new training centerfacility was built at Eagle Gl aicer, providing Will the lore of Alaska's long, cold, dark the world's lowest altitude, on-snow winter nights dash Alaska's abiHty to site for summerbiathIon andnordic ski create a viable internation al winter training. tourist industry? Many contend that

8 Alaska Economic Trends December 1988 Winter Tourism Without Big Resorts: Gradual Instead of An increasing number of communities Rapid Growth in the state are promoting their towns as destinations for the winter months, What will happen to th e winter as well as the summer. This marketing tourism industry without any ofthese effort should give rise to additional major developments? It will grow winter recreational opportunities in the slowly at best, and the source of its communities. In many ofthese Alaskan growth will come from increasinglocal communities, individual investors are demand. layingplansfor the development of small scale resorts, again aimed at the winter Some people envision networks of snow recreational user. trails that could be travelled via cross­ country , snow machine, and dog sled. The trails would be connected by Is There Change in the Wind? huts and lodges. Some lodges already offer downhill skiing, a feature which Today, Alaska's wintertourism industry allows them to exploit other future caters largely to Alaskans. Many of the developmentpossibilities. Much ofthe current winter events and recreational snow trails and lodge infrastructure opportunities are regionally oriented, is already in place. In many cases, cateringonly to the local area residents. coordination may be the only thing A sizeable winter tourism industry is in needed to complete a comprehensive network. As far as the marketability of this type of development, international customers and investors Recent trends might justify could be attracted. Norway and other countries have similar developments further development of which draw a mixed local and winter recreational facilities international crowd. This type of development is an evolutionary one, occurring over a spanlongerthan three or four years. place in this state primarily because Despite the state's current poor Alaskans make more timefor play in the economic climate, recent trends winter months than do other Americans appear to justify increased elsewhere in the U.S. development of winter recreational facilities. The demand on the Hatcher Indeed, Alaska does attractnonresident Pass facilities continues to grow. And winter tourists, but their primary the Willow Creek Ski Association of purpose in this state is oriented toward Fairbanks plans to develop a new conducting business in Alaska or toward alpine ski site on Ester Dome. This visiting relatives. Few visitors come to development is aimed at the regional exclusively avail themselves of this market. state's winter recreation facilities.

There are plans to develop more land Ifany ofthe aforementioned developers' in Denali State Park - South Denali plans discussed earlier in this article - that would offer even more winter actually materialize in the not-too­ recreational opportunities. Developing distant future, increasing numbers of the park would provide more access to nonresident winter tourists would be visitors and would relieve the growing wooed here. The primary reason for About the Author: pressure on the park's summerseason. many of the winter tourists' visits to Neal Fried is a Possible development of South Denali Alaska would then be to take advantage labor economist employed would also offer a variety of winter ofthe winterrecrea tional opportuni ties. for 10 years with the sports opportunities, particularly for Research & Analysis Section, accommodating the growing If, on the other hand, these large Administrative Services Division, popularity of cross-country skiing. The developments do not pan out, further Alaska Department of Labor. park, accessible by road and train, development of the winter tourism He is based in Anchorage. offers extraordinary views of the industry will surely occur, but it will Alaska Range. evolve much more slowly. Holly Stinson is a labor economist employed for three months with the same Anchorage ofl'"tee. December 1988 Alaska Economic Trends 9