fter a devastating “lost season” in 2020, Alaska tourism stakeholders are hoping this summer will see a much-needed return of visitor spending—or at least the start of the recovery process.
Alaska went from expecting 1.5 million cruise passengers in 2020 to experiencing a dearth of cruise ships coming to the state, according to Alaska Chamber President and CEO Kati Capozzi. And with half of Alaska’s visitors historically arriving by cruise ship, this greatly reduced the number of visitors who traveled within the state. Many businesses in the community were impacted—and not just in the typical, tourism-oriented cities—but also in places up north.

So is Deb Hickok, president and CEO of Explore Fairbanks. Fairbanks, like many other places in Alaska, has been pounded by tourism-related losses. The leisure and hospitality industry—composed primarily of tourism or tourism-related jobs—for the Interior Region experienced a dramatic decline in jobs. The region, which includes Denali and Fairbanks, usually has an annual average of 6,000 leisure and hospitality jobs per month, peaking at 8,300 in July, says Hickok. But in 2020, leisure and hospitality averaged just 4,225 jobs per month, peaking at 5,500 in July, Hickok says, citing Alaska Department of Labor and Workforce Development statistics.
Hotel/motel tax collections also took a major hit in the Fairbanks North Star Borough region. According to Hickok, the region’s hotel/motel taxes had five years of unprecedented increase, with 2019 generating the highest numbers to date in both summer and winter. She says: “The lack of cruises to Alaska has had a devastating impact, given the important role the cruise market plays in our summer visitor season. In 2016 the Alaska Visitor Statistics Program indicated that of Interior Alaska’s 320,000 summer visitors, 41 percent, or 131,200 were on a cruise land tour. Through December 2020, hotel/motel taxes for the region showed a 54.51 percent decrease from 2019. This extraordinary growth made the unprecedented fall-off-the-cliff in 2020 even more devastating.”
Visit Anchorage President and CEO Julie Saupe echoes her peers’ sentiments saying, “In Anchorage, 2020 saw a 57 percent drop in people passing through the airport. Hotel demand in 2020 was down 33 percent year-over-year. On the employment front, the travel industry shed 4,500 local jobs in 2020.”
Saupe says the industry locally has done everything it can to diversify its offerings in the short term and to show potential travelers that it is ready to welcome them when the time is right. “We have our work cut out for us, but as conditions improve, there are some encouraging signs that travelers’ tastes in 2021 align well with what we have here in Alaska,” she says. “Looking ahead, the emphasis has to be on independent travel, which was a significant swath of Anchorage’s overnight visitation year-round, even before COVID-19.”
It has been an incredibly tough year, says Bill Popp, president and CEO of the Anchorage Economic Development Corporation (AEDC). But he doesn’t think Alaska has seen the full details and scope of the damage that was done in 2020. The lost jobs and revenue in the leisure and hospitality sector has severely affected businesses, although federal aid has helped. Many companies have resorted to minimal operation models just to keep business going while others closed completely.
Discover Kodiak
In Kodiak, the magnitude of tourism losses during the 2020 season was “colossal,” says Aimee Williams, executive director of Discover Kodiak. “Many of our wilderness lodges did not even have enough business scheduled to make it possible to operate,” she says. “Industry members are hoping for the best in 2021 but are remaining realistic because we understand that we have a higher-than-average vaccination rate on our island.”
She adds: “There’s also some indication that Anchorage and Alaska specifically are near the top of travelers’ wish lists, particularly if they’re considering destinations in the Western United States. Beyond that, there’s an opportunity to grab the attention of travelers that might normally head overseas to vacation. In light of uncertainties around international travel, these travelers may look more closely at domestic options that still pack something epic and new.”
People have indicated that they are eagerly waiting for the time when they can vacation in Alaska again. Some customers have said they miss coming to Alaska and are extremely excited about the prospect of returning to Kodiak. And the pandemic has been particularly disruptive to people who make regular trips to the area. “There are some guests who did not make it to Kodiak last season for the first time in over twenty years,” Williams explains.
Fairbanks is receiving a few travelers who are defying the pandemic to visit the state. Hickok explains: “We have been seeing a ‘trickling of intrepid’ visitors throughout last summer, aurora, and winter seasons, with noticeable blips over the Christmas/New Year holidays and President’s Day Weekend/Valentine’s Day and anticipated throughout the month of March. The summer forecast is hazier.”
But Hickok says, national data indicates that American travelers long to travel and are gaining more confidence as vaccinations become more widespread. “The general consensus as of now is that visitation will start out slow in May and gradually increase through the summer—which actually has been a consistent pattern for a number of years,” she says.
Anchorage Economic Development Corporation
Tourism marketers are aggressively promoting independent travel. “Alaska offers a safe, exotic place to come visit and it’s still on the confines of the US borders,” she says. “We think we have a lot to offer the independent traveler. You can spread out, be safe, and be socially distant here.
Saupe, like most of her colleagues, is doubtful about when things will return to normal. “For this summer, I don’t know that there’s a ‘back to normal’—but I do think there’s a way through to the other side,” she explains.
Explore Fairbanks
In Fairbanks, tourism businesses models are very diverse, but it will take years for the hard-hit industry to recover, Hickok says. In the meantime, COVID-19 best practices will continue to remain in place. “Since April, the Explore Fairbanks website has listed detailed information on what safety and sanitation protocols businesses have established,” she says. “We are launching an Explore Fairbanks Responsibly Pledge, which will mirror pledges in place by Visit Anchorage and Discover Denali, so we have consistency throughout the Railbelt.”
Like most of the state’s tourism industry leaders, Williams is not expecting the sector to make a full recovery in 2021. She does think it will be much better than 2020 but does not think everyone who is looking to travel to Kodiak will feel comfortable enough to do so. However, Kodiak is adhering to local, state, and federal government safety guidelines. William says: “Kodiak has a green, yellow, and red system for what the COVID-19 regulations are on the island. The levels are determined by the number of active cases and what the community transmission rates are. Any restrictions or guidelines would stem from those green, yellow, and red levels.”
Anchorage Chamber of Commerce
He also says he does not believe all tourism businesses will be back to full operations this summer, and this will vary by the type of businesses and whether they provide service or product delivery. “The key variables that will determine tourism volume are the levels of CDC [Centers for Disease Control and Prevention] restrictions imposed on the cruise industry and the status of large passenger vessels traveling through Canadian waters,” he says.
The Canadian cruise ship ban and the CDC’s nebulous restrictions are two huge, multilayered problems. The Canadian ban could possibly be lifted later, but the CDC’s uncertain guidelines are an even bigger challenge for Alaska. The procedures are not clearly defined, leaving Alaska’s tourism businesses wondering if they will be able to meet the eventual requirements by summer. “We don’t have time on our hands to figure this out,” Capozzi says. “The tourism season is quickly approaching. These are precious days and weeks for us ahead, and if it’s not sorted out, there will be a problem.”
From Anchorage’s standpoint, Saupe says, Canada’s ban on large cruise ships means there’s work to be done to make this summer as successful as possible for the community. “Before the pandemic, between 50 and 60 percent of the municipality’s overnight visitation came from independent travelers in the summer,” she says. “Canada’s announcement is likely to have big ramifications for Alaska travel, but it’s possible Anchorage could fare somewhat better than communities that have a much greater reliance on cruise.”
Visit Anchorage
In addition, Saupe notes that Anchorage and Alaska as a whole rank highly on the wish lists of likely US travelers, based on research conducted by destination analysts. Anchorage, she says, was also the fourth most-searched destination for flights on Kayak, which is an encouraging indicator as people plan.
Alaska Chamber
Alaska is ready to have visitors, Williams says, and she encourages travelers to come whenever they feel safe to do so. “The Alaska tourism infrastructure has been working hard to create protocols to keep guests safe,” she says. “About one third of Kodiak Island’s population is currently vaccinated, and we miss seeing guests from all over the world.”
Popp highlights that Alaska is an exotic and stunning place to vacation in the summer. He thinks 2021 will be one of the greatest summers to travel to the state because there will be less congestion, giving visitors more room to spread out and explore. Prior to COVID-19, Alaska saw up to 2 million visitors per season; this year, the state is expecting hundreds of thousands, he says. Visitors can indulge in land tours, take incredible independent trips, and enjoy some good travel bargains. And they can do so safely because of the protocols Alaska has in place. “We’re a state that has been embracing vaccinations…. I think our community will be a safe place to visit this summer.”
Discover Kodiak

Bustamante extends this enthusiastic invitation, saying: “There are still many wonders to experience in our great state, and many accommodations, restaurants and tourism operators will be open for business. We still have mountains, glaciers and wildlife to enjoy, so please make plans to come up this summer.”
And Hickok issues a short and simple plea: “Come, enjoy our open spaces, and travel responsibly.”