Tourism.(2007 Alaska Forecast)

Preliminary total visitor count for summer 2006 (May-September) is 1.54 million, up approximately 2.5 percent over 2005. The 2006 season was, overall, good for Alaska's tourism industry, with a couple of notations. Cruise ship and airline arrivals were both up but unfortunately, long-haul Alaska Highway traffic was down approximately 11 percent to 92,000. One other difficult aspect of this season was the substantial rainfall in both Southcentral and Southeast that negatively impacted some day tour and excursion operators.

Looking forward to 2007, the tourism sector is encouraged by early indications that 2007 will continue a pattern of sustainable growth. Some of the reasons for another upward trend this year is:

* Businesses are telling us that early booking trends are already very strong for this year.

* Continuing interest in Alaska as a unique wilderness destination.

* Value of the Euro against the U.S. dollar should bring more European visitors to Alaska.

* An increase in direct nonstop international service from Europe, Japan and Taiwan, which should also lead to increased international visitors from Europe and the Pacific Rim.

* Early estimate of an increase of 10,500 cruise ship berths for 2007 operationg between Southcentral Alaska and Vancouver, British Columbia.

The Alaska Travel Industry Association (ATIA) believes that 2007 looks to be a strong year and that its total contribution to Alaska's economy will climb to more than $1.8 billion.

Ron Peck, President and COO, Alaska Travel Industry Association

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