Tia’s Gourmet Sausages and Gyros, marked by its iconic yellow umbrella, has been a fixture in downtown Anchorage for over a decade.
However, the bustling ambiance normally associated with the location on Fourth Avenue is absent this Monday lunchtime, with owner David Vargas expressing deep concern about the current state of affairs.
“Our sales are really low, really low,” Vargas lamented. “We have to try to survive here.”
This year’s sales figures eerily mirror those from 2020 when the COVID-19 pandemic and subsequent travel restrictions turned popular tourist destinations into desolate landscapes.
Political tensions have caused a notable decline in international travelers, many of whom have chosen to abandon their vacations to Alaska.
Additionally, a reduction in national spending on airfare and lodging has been observed, attributed to falling consumer confidence and concerns over economic stability, as detailed in Bank of America’s April consumer data report.
According to the University of Michigan Consumer Sentiment Index, consumer sentiment in the nation has dropped to a near three-year low as of April, continuing a trend of three months of decline.
While the specific impacts of these factors on 2025 travel plans to and within Alaska won’t be clear for some time, early reports indicate communities are already feeling the strain.
Julie Saupe, President and CEO of Visit Anchorage, provided insight into the current predicament, stating, “As we enter into our busiest season, ‘uncertain’ is really the only word that sums it up nicely.”
A March report prepared for the assembly indicated that the tourism sector is bracing for significant challenges, including inflation, economic downturns, and an unpredictable influx of international visitors.
Saupe noted that although businesses in Anchorage started the year with favorable booking numbers for the summer, there was a noticeable slowdown beginning in mid-February.
She anticipates a slight decrease in visitor numbers this summer compared to the previous year, saying, “No growth or a little bit of lower numbers is never anything you want to see. It’s hard to make plans if you’re a business.”
Reflecting on the upcoming tourist season, she concluded, “I think we’ll have an okay summer. I think it could have been a great summer, and that’s where the disappointment falls.”
Travel statistics for the first quarter showed a slight uptick, but there are already signs of deceleration as the second quarter unfolds.
The tourism industry remains a vital economic driver in Alaska, bringing millions of visitors each year and contributing billions to the local economy.
As per the Alaska Travel Industry Association, the tourism sector supported around 50,000 jobs during the 2022-23 travel season.
Jillian Simpson, President of the Alaska Travel Industry Association, echoed Saupe’s sentiment regarding the travel outlook for this year.
“We’re cautiously optimistic,” she shared. “We don’t have a good sense of anything at this point in time, especially since it’s just the beginning of the season.”
Some business members are reporting satisfactory conditions, while others note a slight downturn.
Despite the prevailing uncertainty, Simpson indicated a large presence of cruise ship passengers is still expected, primarily because cruises tend to be booked months in advance, often with deposits paid, making cancellations less likely.
Economic uncertainty might also encourage more in-state travel, with Alaskans possibly opting to explore local attractions instead of planning pricey trips to the lower 48 states.
For those embarking on local adventures, special offers on various activities, including cruises and rafting trips, may be available, as highlighted by travel writer Scott McMurren in a recent piece for the Anchorage Daily News.
Southeast Alaska businesses dependent on tourism are feeling the pressure from the current state of affairs.
An annual survey conducted by Rain Coast Data, which gathered responses from over 400 business leaders, revealed a significant weight of uncertainty on tourism-related businesses and communities.
Meilani Schijvens, owner and director of Rain Coast, noted that while a considerable number of cruise passengers are arriving, their spending is notably lower than previous years.
“I think that the concern is that visitors coming off the cruise ships seem to have a greater sensitivity towards pricing,” Schijvens explained.
Pre-season advanced bookings for high-end tours have seen a decline compared to earlier years, according to the survey.
Additionally, Airbnb hosts reported a downturn in bookings, and helicopter tour operators have experienced increased cancellations.
This weakened demand for independent and international bookings for cruise ships has been partly linked to the prevailing political turmoil.
In Haines, a picturesque town just about 45 miles from the Canadian border, cruise ships have made their rounds this season, yet the usual road traffic from Canadian visitors has considerably diminished.
Haines tourism director Reba Hylton confirmed this trend, sharing that they typically see robust traffic from both Alaska and Canada.
“This year has been so much quieter,” she remarked.
Highlighting the bond between Haines and its Canadian neighbors, the Haines Assembly reached out to Haines Junction, Yukon, reaffirming their mutual friendship. In response, the Canadian mayor requested Haines show public support for Canada’s sovereignty.
Summer events in Haines generally attract a significant number of Canadian tourists.
For instance, ticket sales for the Great Alaska Craft Beer & Home Brew Festival, held in May, were down more than 20% this year, which Hylton described as “unheard of.”
She emphasized that such a popular event usually sells out, with friends seeking tickets at the last minute.
The decline in attendance is alarming, according to Hylton, who also noted that entries for the Kluane Chilkat International Bike Relay, scheduled for the end of June, have similarly dropped.
“We’re feeling the loss already,” Hylton said. “But at this point, it’s still really early. Knowing that that one particular event was down 20% is a little alarming.”
On social media, Haines’ tourism account has received comments from international travelers expressing their intent to boycott traveling to the town until political changes occur at the federal level.
image source from：https://alaskapublic.org/programs/alaska-economic-report/2025-06-05/alaska-tourism-operators-begin-the-season-with-one-word-in-mind-uncertainty
