The tourism industry in Alaska, after experiencing several years of robust growth, is currently facing a mix of challenges and positive indicators as the season unfolds.
Tourism operators have reported a slightly slower pace of bookings among international and independent travelers this summer, potentially tied to President Donald Trump’s confrontational stance on international relations that has caused concern among potential visitors.
In contrast, cruise ships, which make up a significant portion of Alaska’s tourism, are arriving at full capacity, signaling strong demand for these pre-booked travel experiences.
As the season progresses, tourism operators note that data remains limited, complicating their ability to assess the industry’s overall health accurately.
Some businesses are enjoying healthy sales, while others report reduced foot traffic and reservations, indicating that the season might end up being flat overall.
Operators believe there are specific factors at play, with reports of international travelers canceling trips out of frustration toward President Trump’s aggressive policies regarding trade and immigration, which has especially impacted Canadian visitors.
U.S. travelers, too, appear to be postponing their Alaska plans amid worries about the ramifications of Trump’s trade wars and slashes to federal employment.
However, some in the tourism sector believe that the potential slowdown in U.S. tourism might not be mirrored in Alaska immediately.
The state’s appeal as a bucket-list destination encourages travelers to book well in advance, helping to insulate it from broader trends affecting other regions of the country.
Josh Howes, president of Premier Alaska Tours, highlighted the contrasting experiences, stating, “I can tell you that the cruise ships are full,” which reflects the strong pre-arranged demand for cruises.
Yet he also observed that many independent travelers booked on shorter timelines may have hesitated earlier in the year.
As fears related to the economy and tariffs recede, bookings from this demographic appear to be picking up again.
Howes suggested that while the season might ultimately be slightly down or flat due to a decrease in independent travelers, this could be viewed positively since the prior year had been relatively strong.
In Anchorage, hotel occupancy reflected this mixed sentiment, with a reported decrease of about 5% in May.
According to Jack Bonney, a spokesperson for Visit Anchorage, the decline amounted to roughly 9,650 fewer room nights utilized compared to the previous year.
Although this trend raised concerns, Bonney expressed cautious optimism for a solid season by the summer’s end, pointing to significant investment in the local tourism landscape.
This includes ongoing renovations, such as the prominent Wildbirch Hotel project, which is replacing the Aviator Hotel.
The combination of positive and negative indicators creates a complex backdrop for the industry.
Carl Donohue, owner of Expeditions Alaska, a provider of outdoor excursions, noted a troubling trend among his client base, with cancellations from international visitors primarily from Canada and Europe, driven in part by the Trump administration’s international policies.
Some clients chose to forfeit deposits rather than travel to a country they perceive as adversarial.
Despite these cancellations, Donohue mentioned an overall increase in trips this year compared to 2024, part of a long-term growth trajectory.
However, he acknowledged that the lost business affects overall income, and reducing guest lists for planned excursions could threaten their viability.
The unpredictability of tariff policies further complicates prospects, as Donohue remarked on the difficulties in planning due to sudden changes in trade relations.
The impact on cross-border tourism has been particularly evident in communities near the Canadian border, such as Haines, where director of tourism Rebecca Hylton reported a notable decrease in Canadian visitors.
She observed a significant drop in attendance at local events, such as a popular craft beer festival that saw ticket sales decline by 20%.
Similar trends in RV park bookings further emphasize the importance of Canadian tourism to local economies.
Down in Skagway, tourism director Jamie Bricker noted strong numbers from cruise ships, but also acknowledged a decrease in RV park reservations compared to previous years.
Community leaders in both Haines and Skagway have actively sought to foster good relations, recognizing the importance of Canadian travelers to their economies.
In Juneau, cruise ship arrivals are reported to be operating at full capacity, with expectations for another active season after last year recorded a record 1.68 million cruise ship passengers in Southeast Alaska.
Meilani Schijvens, owner of Rain Coast Data, expressed optimism, pointing out that preliminary indicators suggest Southeast Alaska’s tourism might mirror last year’s success.
With such a vast number of visitors anticipated, Schijvens indicated that the outlook remains positive for the Southeast economy despite initial concerns.
Operators in Juneau have reported a busy start to the season, with general manager of Juneau Tours and Whale Watch, Serene Hutchinson, sharing her observations from Canadian visitors.
Many considered canceling their trips but ultimately decided to proceed due to non-refundable bookings.
Liz Perry, president and CEO of Travel Juneau, noted the national economic indicators and their potentially dampening effect on tourism spending.
She revealed that some businesses in Juneau reported a softer month of May, alongside a slight dip in spending.
Perry expressed concern for the future, anticipating a decline in cruise ship passenger numbers in 2026 and beyond, indicating a future to watch closely.
Tom Tougas, co-owner of two hotels in Seward and Major Marine Tours, reported a consistent business year compared to last, despite experiencing some inclement weather.
He stated that many of Seward’s visitors made their reservations well in advance of current political events, helping buffer the community against potential declines.
Tougas has taken initiative to promote goodwill with Canadian travelers by distributing stickers that celebrate the friendship between Alaskans and Canadians.
In Talkeetna, services that support activities such as flightseeing have observed various trends.
Courtney Shaffer from Talkeetna Air Taxi noted steady visitor volume akin to previous years, but acknowledged slight hesitance among some groups to opt for additional expenditures like glacier landings.
She speculated this could stem from a global atmosphere of economic uncertainty.
K2 Aviation, on the other hand, saw an early surge in bookings compared to last year, although they too noticed a tapering off in April.
Suzanne Rust emphasized the need to monitor numerous factors, including economic conditions and international travel dynamics, suggesting that the situation still holds potential for variation in outcomes.
There is a sentiment of caution regarding the following year, as expressed by multiple industry stakeholders.
Cyrus Aldeman from Anchorage Trolley Tour described reduced customer volumes this season, but he remained hopeful for a strong overall performance due to favorable circumstances such as a low-snow winter that benefitted local wildlife sightings.
Overall, as Alaska grapples with this mixed tourism climate, operators are balancing optimism with trepidation, hoping that the state’s enduring appeal can weather the complexities of the current landscape.
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