1

FEDERAL MARITIME COMMISSION

_______________________________________________

FACT FINDING INVESTIGATION NO. 30

_______________________________________________

COVID-19 IMPACT ON CRUISE INDUSTRY

_______________________________________________

INTERIM REPORT: ECONOMIC IMPACT OF COVID-19 ON THE CRUISE 

INDUSTRY IN ALASKA, WASHINGTON, AND OREGON

October 20, 2020

_______________________________________________
2

Table of Contents

I. Executive Summary ............................................................................................................. 3

II. Fact Finding Method............................................................................................................ 4

III. Observations ........................................................................................................................ 5

A. Cruise Industry in Alaska................................................................................................. 5

B. Anchorage ...................................................................................................................... 11

C. Seward............................................................................................................................ 13

D. Whittier........................................................................................................................... 14

E. Juneau............................................................................................................................. 15

F. Ketchikan........................................................................................................................ 17

G. Skagway ......................................................................................................................... 21

H. Icy Strait Point/Hoonah.................................................................................................. 24

I. Sitka................................................................................................................................ 26

J. Other Alaska Ports and Regions..................................................................................... 27

K. Seattle, Washington........................................................................................................ 33

L. Astoria, Oregon .............................................................................................................. 36

IV. Conclusion ......................................................................................................................... 37
3

I. Executive Summary

In April 2020, the Federal Maritime Commission (Commission) initiated a fact-finding 

investigation (Fact Finding 30 or FF30). The Order of Investigation1 directed Commissioner 

Louis E. Sola to investigate and respond to the current challenges impacting the cruise industry 

and the U.S. ports that rely on it. Commissioner Sola, as the Fact Finding Officer, has been 

engaging cruise industry stakeholders, including passenger vessel operators (PVOs), cruise 

passengers, and marine terminal operators, in public and non-public discussions to identify 

possible solutions to COVID-19-related issues that interfere with the operation of the cruise 

industry. Commissioner Sola also established consultative panels comprised of representatives 

from various port authorities, marine terminal operators, cruise lines, trade associations, 

consumer advocates and the financial industry. The culmination of this process will be a series of 

reports with each report dedicated to either a particular concern or to the ports of a designated 

region. This report will focus on Alaska, Washington, and Oregon and will examine the 

economic impact of the COVID-19 pandemic and the Centers for Disease Control and 

Prevention’s (CDC) No Sail Order on that region of the United States. As per the Commission’s 

Fact Finding 30 Order, this report will focus on the economic impact of the inability of the cruise 

lines to sail. This report will not address such items as crew member repatriation or the 

environmental impact of the cessation of passenger vessel sailings; nor will it address the various 

health related issues which must be attended to prior to the resumption of travel.

On March 13, 2020, members of the Cruise Lines International Association (CLIA) announced a 

pause in the operations of its members to assess and address the risks posed by the COVID-19 

pandemic. On March 14, 2020, the CDC issued a No Sail Order and Suspension of Further 

Embarkation instructing PVOs whose vessels carry 250 or more individuals (passengers and 

crew) with an itinerary anticipating an overnight stay onboard or a 24 hour stay onboard for 

either passengers or crew.

2 On April 9, 2020, the CDC extended the termination date of the order 

to July 24, 2020. On June 19, 2020, CLIA announced that the major cruise lines have agreed to 

voluntarily extend a suspension of operations out of U.S. ports until September 15, 2020. On 

July 16, 2020, the CDC extended the termination date of its order to September 30, 2020. On 

August 5, 2020, CLIA voluntarily extended no sailings until October 31, 2020.3 On September 

30, the CDC extended again the order until October 31, 2020. As of this writing, the CDC has 

not extended the no sail order beyond October 31st, however, Canada has yet to open their ports 

to cruise traffic and there is uncertainty as to when this will change.

1 Order of Investigation, Fact Finding Investigation No. 30, COVID-19 Impact on Cruise Industry (FMC April 30, 

2020), https://www2.fmc.gov/readingroom/docs/FFno30/ffno30_ord.pdf/. 2 The CDC’s No Sail Order applies to vessels with a capacity to carry 250 passengers and crew anticipating to stay 

overnight or for over 24 hours. The Commission’s requirements apply to vessels with berth/stateroom capacity to 

carry 50 or more passengers. So, there could be small PVOs the Commission regulates that are not subject to the 

CDC’s No Sail Order (with vessels carrying more than 50 passengers but less than 250 passengers and crew). 3 Press Release, Cruise Lines International Association, CLIA and Its Ocean-Going Cruise Line Members Announce 

Third Voluntary Suspension of U.S. Operations (Aug. 5, 2020), https://cruising.org/en/news-and-research/pressroom/2020/august/clia-announces-third-voluntary-suspension-of-us-cruise-operations (last visited Sep. 14, 2020).
4

To understand the effect of COVID-19 on the economy, Commissioner Sola has examined the 

fiscal impact of the cruise industry on local and state economies and included those figures in 

this report. 

The cruise industry supports a wide range of other industries in the U.S. There exists a close 

nexus between the cruise industry and the hospitality industry, transportation industry (including

airlines, rail roads, rental cars, and taxis), agriculture, commodity exports (including goods 

dedicated to cruise operations which are exported from the U.S. Pacific Northwest to British 

Columbia and Alaska), tour providers, the healthcare industry, and retail. It supports business of 

all sizes; some in the local community and some in a greater geographic area beyond the port 

communities. In the case of Alaska, there exists an outsized economic impact from the cessation 

of cruise activity. While the symptoms are the same as in other parts of the United States, the 

impact is much greater because of Alaska’s distance and economic reliance on the tourism 

industry and, at the micro level, the almost total reliance of some small towns (and native 

Alaskans) on the income generated by cruise tourism.

II. Fact Finding Method

Meetings with Government, Port, and Industry Leaders 

Commissioner Sola communicated with port directors, cruise industry leaders, business executives, 

and labor leaders across Alaska, Washington, and Oregon. The Commissioner appreciates all those 

who contributed their valuable insight to this report. 

Open Source Information 

A variety of open source information is used in this report. These include annual reports by ports and 

reports by various research firms.4 Port websites, industry association websites, industry-related 

magazines and news sources were also considered.

Individual Port Analysis 

This report presents brief observations related to individual cruise ports in Alaska, Washington, and 

Oregon. Due to the unique nature of each port and the variety of source material available from one 

port to another, each segment will vary to some degree. This report attempts to provide a consistent 

format for each individual port review. Given the disparities mentioned, however, no two port 

reviews are exactly the same. 

Terminology 

This report discusses direct, indirect, and induced impact as found in various reports, especially 

in job and wage numbers. In general, these terms can be defined as follows:

4 More information on methodology used for the studies can be found in the studies, provided in footnotes or text.
5

Direct jobs are those that would not exist if activity at the Port’s cargo and cruise 

facilities were to cease... Direct employees created by the cruise operations include 

the jobs with the firms providing the direct vessel services – chandlers, pilots, 

longshoremen, line handlers, local advertising firms, caterers, liquor wholesalers, 

linen companies, security firms, waste disposal firms, parking, local transportation 

-- as well as the firms providing services to the passengers on the vessels.5

Indirect jobs are created throughout the state as the result of purchases for goods 

and services by the firms directly impacted by the port activity, including the 

tenants, terminal operators and the firms providing services to cargo – which 

includes...cruise passenger operations.6

Induced jobs are jobs created in the state by the purchases of goods and services 

by those individuals directly employed by each of the lines of business at each 

port...The induced jobs are jobs with grocery stores, restaurants, health care 

providers, retail stores, local housing/construction industry, and transportation 

services, as well as with wholesalers providing the goods to the retailers.7

III.Observations

A. Cruise Industry in Alaska

Both overall summer tourism8

and the number of cruise 

passengers to Alaska have

grown over the past ten years. 

According to the Alaska Travel 

Industry Association’s Alaska 

Visitor Volume Report (Alaska 

Visitor Volume Report),

9 the 

number of visitors to Alaska 

grew from 1.5 million in 2010 to 

2.2. million in 2019. The Alaska 

Visitor Volume Report explains

that of the 2.2 million visitors in 

5 Florida Seaport Transportation and Economic Development Council, The Statewide Economic Impacts of Florida 

Seaports (Dec. 2016) at 2, http://scdn.flaports.org/wp-content/uploads/EconomicImpactsofFloridaSeaports.pdf (last 

visited Aug. 17, 2020).

6 Id. at 3.

7 Id. at 3.

8 May to September.

9 Alaska Travel Industry Association, Alaska Visitor Volume Report Winter 2018-19 and Summer 19 (June 2020), 

http://www.alaskatia.org/wp-content/uploads/Alaska-Visitor-Volume-2018-19-FINAL-7_1_20.pdf (last visited Sep. 

30, 2020). 

Source: State of Alaska, https://alaska.gov/kids/learn/region.htm
6

2019, over 1.33 million traveled by cruise ship in Alaska. This constitutes approximately 60% of 

the visitors to Alaska during that time. The 1.33 million cruise visitors to Alaska represent a 14% 

increase in visitors cruising compared to the summer of 2018. 

The two most popular types of Alaska cruises are round-trip (out and back from the same port

outside of Alaska, e.g., Seattle) and cross-gulf cruises, which are a one-way transit between 

Seward or Whittier and a port outside Alaska. Per the Alaska Visitor Volume Report, between

2018 and 2019, round-trip cruises increased more (18% growth) than cross-gulf cruises (11% 

growth). Small ship passengers grew 11%. The number of cruise passengers since 2018 can be 

seen on the charts below. 

Alaska has more port of call, as opposed to homeport, passenger visits than any other U.S. state.

In 2018, the state received approximately 61% of all port of call passenger visits at U.S. ports.10

That year, passenger port-of-calls visits in Alaska totaled around 3.8 million.11 As of spring 

2019, 20 cruise lines of various sizes operated in Alaska.12

Alaska attracts international visitors as well as domestic visitors. The Alaska Visitor Statistics 

Program 7, Summer 2016, from the Alaska Department of Commerce, Community & Economic 

Development, and the Alaska Travel Industry Association (Alaska Visitor Statistics Report)13

10 Cruise Lines International Association Alaska, Cruising in Alaska, https://akcruise.org/cruising-inalaska/overview/ (last visited Oct. 9, 2020). 11 As passengers generally make several port-of-calls during each sailing, the number of passenger visits are around 

three times the amount of total passengers cruising. Cruise Lines Industry Association Alaska, Cruising in Alaska, 

https://akcruise.org/cruising-in-alaska/overview/ (last visited Sep. 30, 2020). 12 Tracy Barbour, Alaska Business, Alaska’s Shipshape(d) Economy (Apr. 8, 2019), 

https://www.akbizmag.com/industry/tourism/alaskas-shipshaped-economy/ (last visited Oct. 9, 2020). 13 Alaska Department of Commerce, Community, & Economic Development, and Alaska Travel Industry 

Association, Alaska Visitor Statistics Program 7 Summer 2016 (May 2017), https://www.alaskatia.org/wpcontent/uploads/Full-AVSP-VII-Report.pdf (last visited Oct. 4, 2020). 

878,000

883,000

937,000

999,600

967,500

999,600

1,025,900

1,089,700

1,169,000

1,331,600

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CRUISE PASSENGERS IN ALASKA

Cruise Passengers in Alaska
7

includes international visitor statistics from 2016. According to the Alaska Visitor Statistics 

Report, 167,000 international visitors traveled to Alaska in 2016, and 68% took a cruise.

According to the Alaska Visitor Volume Report, over two thirds of the cruises going through 

Alaska do not begin or end in Alaska. The ones that do, around 32%14 of the cruises during 

summer 2019, are considered cross-gulf cruises. The other 68% are round-trip cruises, generally 

sailing from ports outside Alaska (e.g., Seattle). 

No one type of government/business structure is used for managing all cruise ports. Some 

terminals that cruise ships use for docking in Alaska are owned by the local port, others by a 

public-private partnership, and others are privately owned.15 For example, privately owned ports 

include Skagway, Whittier, Sitka, and Icy Straight Point.16 Owners of those ports include the 

White Pass and Yukon Route Railroad (Skagway)17 and Halibut Point Marine Services LLC 

(Sitka).18 Juneau’s docks include private and public docks. “Each community has its own system 

of charging cruise lines for using port facilities. Dock charges are generally assessed on a per 

foot/per day basis. Additional charges may include tonnage fees, passenger fees, lightering fees, 

and water supply fees, depending on the community.”19

The size of cruise ships visiting Alaska vary greatly. Some ports cater to large ships, some 

medium and small, and others cater to all. Most cruise visitors to Alaska travel on large ships. 

The Alaska Visitor Statistics Report explains that in 2016, 99% of cruise visitors traveled on 

ships with a capacity larger than for 250 people. 

“Although small cruise ships (those with capacities of less than 250 passengers) 

make up only 1 percent of Alaska’s overall cruise volume, these ships can 

significantly impact the communities they visit. Small ships are more likely to visit 

ports not frequented by larger ships (such as Petersburg). In addition, passengers 

can have a greater per-person economic impact because they often overnight in 

their Alaskan embarkation and/or disembarkation port.”20

14 Based on number of passengers who sailed in or out of Seward and Whittier, per the Alaska Visitor Volume 

Report. 

15 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020).

16 State of Alaska, Alaska Department of Commerce, Community, and Economic Development, Economic Impact 

of Alaska’s Visitor Industry 2017 (Nov. 2018), https://www.alaskatia.org/wp-content/uploads/VisitorImpacts2016-

17Report11_2_18.pdf (last visited Oct. 1, 2020). 17 Skagway Development Corporation, Port of Skagway, https://skagwaydevelopment.org/economicdevelopment/port-of-skagway/ (last visited Oct. 17, 2020). 18 Halibut Point Marine Services, Company History, http://www.halibutpointmarine.com/about.html (last visited 

Oct. 17, 2020). 

19 State of Alaska, Alaska Department of Commerce, Community, and Economic Development, Economic Impact 

of Alaska’s Visitor Industry 2017 at 18 (Nov. 2018), https://www.alaskatia.org/wpcontent/uploads/VisitorImpacts2016-17Report11_2_18.pdf (last visited Oct. 1, 2020). 20 Alaska Department of Commerce, Community, & Economic Development, and Alaska Travel Industry 

Association, Alaska Visitor Statistics Program 7 Summer 2016 at 3-10 (May 2017), https://www.alaskatia.org/wpcontent/uploads/Full-AVSP-VII-Report.pdf (last visited Oct. 4, 2020).
8

Small cruise ships, though not bringing in thousands of passengers on each ship, still bring in a 

sizeable number of cruise visitors to Alaska. The Alaska Visitor Statistics Report estimates that 

in 2016, 14,400 visitors traveled in Alaska on small ships of 250 people or less. Further, it is not 

uncommon for small ships to have their homeport in Alaska. 

When examining the various ways the cruise industry benefits Alaska economically, one must 

acknowledge the revenue generated by the overnight landside accommodations for cruise 

passengers. The option for a landside overnight stay is generally only available to visitors 

traveling on a small cruise ship homeported in Alaska and the 32% of cruise passengers who take 

a cross-gulf cruise. Per the Alaska Visitor Statistics Report, over 61% of cross-gulf passengers, 

and over 87% of small cruise ship visitors stayed in a hotel or motel during their visit to Alaska. 

An estimated 110,000 visitors spent nights in Alaska independently before or after their cruise or 

cruise/tour. 

Cross-gulf cruise passengers had the opportunity to spend more time in Alaska with an 

embarkation or disembarkation in the state. Thirty one percent of cross-gulf cruise visitors

traveled on their own (not on a cruise/land tour) in addition to their cruise.21

Cruise passenger spending 

helps local economies. 

According to the Alaska Visitor 

Statistics Report, in 2016, 

cruise passengers spent an 

average of $624 per person in 

Alaska (not including airfare). 

Cross-gulf passengers spent an 

average of $882 per person and 

round-trip passengers spent an 

average of $498 per person in 

Alaska. Visitors who took a 

cruise/land tour spent an 

average of $894 in Alaska. The 

average small cruise ship 

visitor spent $1,350 in Alaska.

Cruise passengers spend on a 

variety of activities such as

dining, lodging, transportation, 

and shopping that support the local economy and infrastructure. The Alaska Visitor Statistics 

Report estimates that 85% of cruise passengers to Alaska take part in some sort of shopping in 

Alaska. In 2016, 48% of cruise visitors took a train in Alaska.

21 Alaska Department of Commerce, Community, & Economic Development, and Alaska Travel Industry 

Association, Alaska Visitor Statistics Program 7 Summer 2016 (May 2017), https://www.alaskatia.org/wpcontent/uploads/Full-AVSP-VII-Report.pdf (last visited Oct. 4, 2020). 

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Average -

all cruise

visitors

Round-trip

cruise

visitors

Cross-gulf

cruise

visitors

Cruise/land

tour

visitors

Small ship

cruise

visitors

$624 

$498 

$882 $894 

$1,350 

Average Cruise Visitor Spending in Alaska

Average - all cruise visitors Round-trip cruise visitors

Cross-gulf cruise visitors Cruise/land tour visitors

Small ship cruise visitors
9

Thousands of vessel crew members are in Alaska for Alaska’s cruise season. According to the 

Alaska Department of Commerce, Community, and Economic Development’s Economic Impact 

of Alaska’s Visitor Industry 2017 report (Alaska Economic Impact Report),22 in 2017, around 

27,000 crew members visited Alaska. Their spending was estimated to be $22 million. In 

addition to spending at restaurants and bars as passengers do, crew members also purchase phone 

cards, internet, postage, and visit retail outlets. 

Cruise lines also work with businesses in Alaska. During 2017, the Alaska Economic Impact 

Report estimates $297 million was spent by cruise lines and their subsidiaries on goods and

services from Alaska businesses as well as employee payroll and taxes.

State and local governments also benefit from the cruise industry. According to the Alaska 

Department of Revenue’s Revenue Sources Book Fall 2019 (Revenue Sources Book),

23 the 

Commercial Vessel Passenger (CVP) Tax brought in $4.3 million in state revenue and $18.7

million for municipalities. Revenue in 2020 was projected to increase to $4.8 million and $20 

million, respectively. These funds are restricted. Per the Revenue Sources Book, “All funds 

received from the CVP tax must be spent on port facilities, harbor infrastructure, and other 

services provided to commercial passenger vessels and the passengers on board those vessels.”24

Though this may not be able to directly fund other local government programs such as schools, 

the port operations that benefit from this tax provide an indirect economic impact as those 

activities likely involve the purchasing of items from the local community. Jobs are also created,

along with an even wider induced impact of the cruise industry, as employees spend in the local 

community. 

The CVP tax is not the only source of revenue for the state and local governments. According to 

the Revenue Sources Book, in 2019, the state received $1.3 million from the Environmental 

Compliance Fees, $4.2 million from Ocean Ranger Fees, and $10.1 million from the large 

Passenger Vessel Gambling Tax. The Alaska Economic Impact Report shows that in 2017, $17.8 

million was collected as dockage/moorage revenue. Most of this was in Juneau and Ketchikan.

One estimate concludes that in 2018, the cruise industry was responsible for over $1.24 billion in 

direct expenditures in Alaska, with a total employment impact of 22,447 jobs and over $1.15 

billion in wages in the state.25

22 State of Alaska, Alaska Department of Commerce, Community, and Economic Development, Economic Impact 

of Alaska’s Visitor Industry 2017 (Nov. 2018), https://www.alaskatia.org/wp-content/uploads/VisitorImpacts2016-

17Report11_2_18.pdf (last visited Oct. 1, 2020). 23 Alaska Department of Revenue, Revenue Sources Book Fall 2019 (Dec. 6, 2019), 

https://www.alaskajournal.com/sites/alaskajournal.com/files/files/Fall19%20Revenue(1).pdf (last visited Oct. 18, 

2020).

24 Id. at 39. 25 Cruise Lines International Association Alaska, Cruising in Alaska, https://akcruise.org/cruising-inalaska/overview/ (last visited Oct. 9, 2020). 
10

The cruise industry was anticipating another record-setting year before the COVID19 pandemic began. In 2020, cruise visitors to Alaska had been expected to increase 

by 6%, totaling over 1.4 million visitors.26 Losing an entire season worth over 

$1.24 billion and supporting over 22,000 jobs has significant adverse effects to the 

tourism industry in Alaska. 

One of the many affected groups of employees are longshoremen. The International Longshore 

and Warehouse Union’s (ILWU) Alaska Longshore Division represents over 500 longshoremen, 

over 60% of those working in the cruise industry.

27 According to the ILWU, approximately 

140,000 man hours of work in Alaska have been lost due to the COVID-19 pandemic. In 2019, 

ILWU wages in Alaska associated with the cruise industry were $5.5 million and benefits (health 

and welfare, pension, and holiday and vacation) were $3 million. During Commissioner Sola’s 

September 2020 Fact Finding review in Alaska, he met with union members who stated that their 

shops were currently experiencing a 100% unemployment rate. It was explained that union 

workers get most of their annual hours during the high cruise season months. 

As with organized labor, hoteliers, food service providers, and motorcoach operators depend 

upon traffic generated by the cruise lines. Many cruise passengers take tours while in port. 

According to the Alaska Tourism Industry Association,

28 one motorcoach operator operates in 

several ports in southeast Alaska and provides tours to passengers of large, medium, and small 

cruise ships. The company has 150 employees and generates approximately $4 million annually 

in additional revenue for other Alaska businesses. We believe that without a demand for tours 

from cruise visitors, the amount of money that coach companies infuse into local economies is 

reduced. 

Southeast Alaska is hit especially hard without cruises. According to the Southeast Conference, a 

not-for-profit regional corporation in Alaska,

29 two-thirds of visitors to Alaska visit that area, 

and an estimated 90% of the tourists visiting that area are from cruise ships. It is estimated the 

visitor industry in southeast Alaska is responsible for 8,350 annualized jobs and $272 million in 

wages. Visitors were predicted to spend around $800 million in 2020 in southeast Alaska. The

southeast Alaska employment statistics for April-August 2020 show that 50% of the jobs in the 

26 Cruise Lines International Association Alaska, Cruising in Alaska, https://akcruise.org/cruising-inalaska/overview/ (last visited Oct. 9, 2020). 27 Report from President, International Longshore and Warehouse Union Alaska Longshore Division, email 

attachment to FF30 (Sep. 26, 2020). 

28 Alaska Tourism Industry Association, Alaska Motorcoach Operators Quick Facts, email attachment to FF30 (Sep. 

30, 2020). 

29 Southeast Conference, Southeast Alaska By the Numbers 2020 (Sep. 2020), 

http://www.seconference.org/sites/default/files/Southeast%20Alaska%20by%20the%20Numbers%202020.pdf (last 

visited Oct. 2, 2020). 
11

transportation industry have been lost and 39% of jobs in the leisure and hospitality industry 

have been lost, as compared to the prior year.

30

In June 2020, the Southeast Conference conducted a survey (Southeast Alaska Business 

Survey)31 of leaders of all types of businesses, not just those in the tourism industry. Forty-three 

percent of those surveyed indicated that the loss of cruise ships has had an enormous impact. 

The survey also requested an elaboration of COVID-19 impacts. Survey responses are presented 

in this report beginning page 16.

B. Anchorage

Anchorage is in the southcentral part of the state, along with Seward, Whittier, Homer, and 

Valdez. The Port of Alaska,

32 in Anchorage, is primarily a cargo port but also has a cruise port. It 

was reported that 13,700 cruise passengers traveled through the port in Anchorage during the 

summer of 2019.

33 According to the Alaska Visitor Statistics Report, in 2016, just over a third, 

or 35%, of visitors to Anchorage traveled via cruise ship.

In 2020, the Port of Alaska was projected to have 14 cruise ship visits.34

Direct economic impact

According to the Alaska Visitor Statistics Report, in 2016, 21% of cruise visitors to Anchorage 

spent an average of 1.5 nights in the area.

Anchorage is unique in that it does not just benefit from cruise visitors to its port. Whittier and 

Seward are in the Anchorage area, with many passengers traveling through those ports visiting or 

staying in Anchorage. Alaska Visitor Volume Report estimates that, in 2019, over 237,000 cruise 

visitors came through Seward and over 193,000 came through Whittier. These cross-gulf cruises 

began or ended their cruise in the Anchorage area. 

30 Meilani Schijvens, Rain Coast Data, Southeast Conference, Southeast Alaska By the Numbers 2020 (presentation 

at Southeast Conference Sep. 22, 2020), 

http://www.seconference.org/sites/default/files/Southeast_Alaska_by_the_Numbers_PPT.pdf (last visited Oct. 9, 

2020). 

31 Southeast Conference, Southeast Alaska Business Climate and COVID-19 Impacts Survey 2020 (June 2020), 

http://www.seconference.org/sites/default/files/Southeast%20Alaska%20Business%20Climate%202020%20final.pd

f (last visited Oct. 2, 2020).

32 Called Port of Anchorage until 2017. Alaska News Source, Anchorage Assembly gives the Port of Anchorage a 

new name (Oct. 25, 2017), https://www.alaskasnewssource.com/content/news/Anchorage-Assembly-give-the-Portof-Anchorage-a-new-name-452942803.html (last visited Oct. 19, 2020). 33 Alaska Travel Industry Association, Alaska Visitor Volume Report Winter 2018-19 and Summer 19 (June 2020), 

http://www.alaskatia.org/wp-content/uploads/Alaska-Visitor-Volume-2018-19-FINAL-7_1_20.pdf (last visited Sep. 

30, 2020). 

34 Port of Alaska in Anchorage, What’s New at the Port, https://www.portofalaska.com/whats-new-at-the-port/ (last 

visited Oct. 9, 2020). 
12

Getting to Seward and Whittier from the Anchorage airport requires additional transportation. 

Passengers can reach the ports by road, through cruise ship transfers, or rail using the Alaska 

Railroad.

35

The Ted Stevens Anchorage International Airport (ANC) is the closest major 

airport to Seward and Whittier. The airport had a record-setting number of 

passengers in 2019.36 “ANC attributes this growth to Alaska’s bullish tourism 

sector – specifically, increases in cruise passengers flying to or from ANC in 

conjunction with their one-way, cross-gulf itineraries.”37

Indirect economic impact

Though not the top cruise destination in Alaska, the southcentral part of the state still benefits 

from the cruise industry. The cruise industry supports about 20,000 jobs in that area, and 1,100 

businesses in that part of the state work with cruise lines.

38

The cargo industry in Anchorage benefits from the cruise industry in other parts of the state. 

About half of the cargo moving into Alaska comes through Anchorage, including cargo heading 

towards the cruise-tourism-heavy area of southeast Alaska.39

Current status

Commissioner Sola visited Anchorage in September 2020 to appreciate first-hand how COVID19 pandemic has affected the industry and economy in Anchorage. As Fact Finding Officer, he 

received information that Anchorage now has between a 5-7% unemployment rate due to the 

cruise industry being shut down, and two hotels are currently closed that usually host cruise 

visitors.

Even though cruise ships have not been sailing in 2020, as cruising is not the port’s primary 

function, the port is still operational and has maintained normal cargo operations.40

35 Visit Anchorage Alaska, How Do I Get Between Anchorage and my Cruise Ship?, 

https://www.anchorage.net/plan-your-trip/ask-a-local/how-do-i-get-between-anchorage-and-my-cruise-ship/ (last 

visited Oct. 9, 2020). 

36 Press Release 20-004. ANC News, Alaska Department of Transportation and Public Facilities, ANC Reports 

Record Passenger Numbers in 2019 (Feb. 13, 2020), 

http://dot.alaska.gov/anc/business/communityRelations/pressReleases/2020/20-004.shtml (last visited Oct. 9, 2020). 37 Id. 38 Cruise Lines International Association Alaska, Economic Impact by Region, 

https://akcruise.org/economy/economic-impact-by-region/ (last visited Oct. 9, 2020). 

39 Port of Alaska in Anchorage, https://www.portofalaska.com/ (last visited Oct. 9, 2020). 40 Port of Alaska in Anchorage, What’s New at the Port, https://www.portofalaska.com/whats-new-at-the-port/ (last 

visited Oct. 9, 2020).
13

C. Seward

Seward is an embarkation/disembarkation port in the Anchorage area with a population of 

around 2,600 people.

41 Many week-long, one-way, cross-gulf cruises42 depart or end at Seward. 

According to the Alaska Visitor Volume Report, in 2019, Seward had 237,900 visitors traveling 

via cruise ship. This makes up about 18% of total cruise visitors to Alaska.

The number of ship calls in Seward has increased by almost 50% over the past few years. In 

2015, the city had 64 cruise ship calls, and in 2019, it had 95 cruise ship calls.43 In 2020, Seward 

was scheduled to have 90 ship calls.44

The Port of Seward is owned by the Alaska Railroad Corporation (Alaska Railroad).

45 During 

fall 2019, the Alaska Railroad was looking for partners to expand Seward’s cruise ship facilities, 

to include a new cruise passenger terminal building.46

In addition to being a cruise port, Seward has several attractions. These include the 

Alaska SeaLife Center, the Kenai Fjords National Park, and the Alaska Native 

Heritage Center.

47

Direct economic impact

In 2016, the Alaska Visitor Statistics Report estimates that 45% of visitors to Seward traveled by 

cruise ship.

In addition to owning the port, the Alaska Railroad has benefitted from cruise visitor traffic 

between Anchorage and Seward. In 2018 and 2019, their Coastal Classic train, which runs 

41 City of Seward, City Profile, https://www.cityofseward.us/business/economic-development/city-profile (last 

visited Oct. 9, 2020). 

42 One-way cruises compared to round-trip cruises that depart from Seattle or Vancouver. 43 Elwood Brehmer, Alaska Journal of Commerce, Anchorage Daily News, Alaska Railroad seeks to overhaul and 

expand Seward cruise ship terminal (Sep. 27, 2019), https://www.adn.com/business-economy/2019/09/27/alaskarailroad-seeks-to-overhaul-and-expand-seward-cruise-ship-terminal/ (last visited Oct. 9, 2020). 44 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020).

45 State of Alaska, Alaska Department of Commerce, Community, and Economic Development, Division of 

Economic Development, Economic Impact of Alaska’s Visitor Industry 2017 (Nov. 2018), 

https://www.alaskatia.org/wp-content/uploads/VisitorImpacts2016-17Report11_2_18.pdf (last visited Oct. 1, 2020). 46 Elwood Brehmer, Alaska Journal of Commerce, Anchorage Daily News, Alaska Railroad seeks to overhaul and 

expand Seward cruise ship terminal (Sep. 27, 2019), https://www.adn.com/business-economy/2019/09/27/alaskarailroad-seeks-to-overhaul-and-expand-seward-cruise-ship-terminal/ (last visited Oct. 9, 2020). 47 Seward Alaska, Attractions, https://www.seward.com/attractions/ (last visited Oct. 9, 2020). 
14

between Anchorage and Seward, carried more passengers than any of their other trains.48 Some 

railcars are owned by the cruise companies, which are contracted to the railroad to pull.49

Indirect economic impact

As mentioned in the Anchorage section, about 1,100 businesses work with cruise lines in the 

southcentral region of Alaska.

50 The cruise industry supports 20,700 jobs in that region of the 

state.

51 

Current status 

Commissioner Sola visited Seward in September 2020 to ascertain the effects of the COVID-19

pandemic on the industry and economy in Seward. Local union leaders and members shared with 

Commissioner Sola that 100% of local longshoremen union members are currently unemployed. 

A car rental company has had to sell their vehicles to stay afloat. The Alaska SeaLife Center, 

which has great educational and environmental value to the area, is down 85% in attendance. 

The center has a budget gap spanning several million dollars and it is unlikely to survive if there 

is no 2021 tourist season. 

D. Whittier

Whittier is a town of around 280 people which has tourism and fishing as its main industries.52

Like Seward, it is an embarkation/disembarkation port in the Anchorage area. According to the 

Visitor Volume Report, in 2019, Whittier had 193,800 passengers come through the port. This 

was around 15% of all visitors cruising in Alaska. The Alaska Visitor Statistics Report estimates 

46% of visitors to Whittier in 2016 traveled by cruise ship. In 2020, Whittier was expected to 

have 35 ship calls.53

Several tourism-related businesses operate out of Whittier. They include tour companies for 

activities such as kayaking and jet ski tours, overnight accommodations, restaurants, and shops.54

48 Alaska Railroad, Annual Report 2019, 

https://www.alaskarailroad.com/sites/default/files/Communications/2019_ARRC_AnnualReport_withFinancials_SE

CURED.pdf (last visited Oct. 9. 2020). 

49 Elwood Brehmer, Alaska Journal of Commerce, Anchorage Daily News, Alaska Railroad seeks to overhaul and 

expand Seward cruise ship terminal (Sep. 27, 2019), https://www.adn.com/business-economy/2019/09/27/alaskarailroad-seeks-to-overhaul-and-expand-seward-cruise-ship-terminal/ (last visited Oct. 9, 2020). 50 Cruise Lines International Association Alaska, Economic Impact by Region, 

https://akcruise.org/economy/economic-impact-by-region/ (last visited Oct. 9, 2020). 51 Id. 52 Haven Orecchi-Egresitz, Insider, How Whittier, Alaska, the ‘town under one roof,’ is preparing for the 

coronavirus pandemic (Apr. 4, 2020), https://www.insider.com/whittier-alaska-covid-19-unique-threat-2020-4 (last 

visited Oct. 9, 2020)

53 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020).

54 Greater Whittier Chamber of Commerce, https://www.whittieralaskachamber.org/about-whittier-alaska/ (last 

visited Oct. 9. 2020).
15

Direct economic impact

The city relies on funds brought in by the cruise industry. Tourism provides for 38% of the city’s 

budget.55 They are experiencing two main losses of revenue associated with the loss of cruise 

visitors in 2020. The first is the over $900,000 the city would receive in cruise ship passenger 

fees, and the second is an expected decline in sales tax, due to the lack of visitors.56

Indirect economic impact

As explained in the Anchorage section, about 1,100 businesses work with cruise lines in the

southcentral region.

57 The cruise industry supports 20,700 jobs in that region of Alaska.58 

E. Juneau

The Alaska Visitor Volume 

Report states that in 2019, Juneau 

had over 1.3 million visitors from

cruise ships. Around 98% of all 

cruise visitors to Alaska stopped 

in Juneau. Though large cruise 

ships generally have Juneau as a 

port-of-call and not a homeport, 

some smaller cruise ships start 

and end their journeys in Juneau. 

According to Travel Juneau’s 

Juneau Visitor Profile and 

Economic Impact Study 2016 

(Juneau Economic Study)59, in 

2017, only 1% of cruise visitors 

stayed overnight in Juneau.

Most visitors to Juneau travel by 

cruise ship. Per the Juneau 

Economic Study, 93% of visitors to Juneau visited by cruise ship, 6% by air, and 2% by ferry or 

highway.

55 Haven Orecchi-Egresitz, Insider, How Whittier, Alaska, the ‘town under one roof,’ is preparing for the 

coronavirus pandemic (Apr. 4, 2020), https://www.insider.com/whittier-alaska-covid-19-unique-threat-2020-4 (last 

visited Oct. 9, 2020)

56 The City of Whittier, Whittier City Council Regular Meeting Packet (Sep. 15, 2020), 

https://www.whittieralaska.gov/wp-content/uploads/9.15.20-City-Council-Regular-Meeting-Packet.pdf (last visited

Oct. 9, 2020).

57 CLIA Alaska, Economic Impact by Region, https://akcruise.org/economy/economic-impact-by-region/ (last 

visited Oct. 9, 2020).

58 CLIA Alaska, Economic Impact by Region, https://akcruise.org/economy/economic-impact-by-region/ (last 

visited Oct. 9, 2020). 

59 Travel Juneau, Juneau Visitor Profile and Economic Impact Study 2016 (Oct. 2017), http://www.alaskatia.org/wpcontent/uploads/juneau-visitor-profile-and-economic-impact-report-october-2017.pdf (last visited Oct. 4, 2020). 

0%

10%

20%

30%

40%

31%

19%

15% 14% 13% 13%

8%

16%

Cruise Visitor Activities in 

Juneau (2016)

Cruise Visitor Activities in Juneau
16

Most cruise visitors to Juneau are from the U.S., but the city 

does get international visitors as well. The Juneau Economic 

Study explains that according to a group of passengers 

surveyed in 2016, cruise visitors to Juneau come from the US 

(80%), Canada (10%), Australia/New Zealand (5%), Europe 

(3%), Asia (1%), and Latin America (1%).

In 2020, Juneau was scheduled to have 623 ship calls.60 The 

effects of the ship calls cancelled can be seen below in the 

economic impact not realized in 2020. 

Direct economic impact

Per the Juneau Economic Study, cruise visitors participate in a 

variety of activities in Juneau, as seen on the chart above. This 

translates to each cruise visitors spending an average of $162 

each in Juneau. Each cruise visitor spends an average of $95 on 

tours/activities/entertainment, $53 on gifts/souvenirs/clothing, 

$12 food/beverage, and $2 other. 

As explained in the Juneau Economic Study, cruise line 

expenditures included purchasing food and equipment from 

local businesses, marine passenger fees, port development fees, 

and port dockage fees. In 2017, Juneau collected $9.1 million 

in dockage/moorage fees.61

Cruise visitors, crew, and cruise lines all contribute to the total 

economic impact in the area. According to the Juneau 

Economic Study, in 2016, visitors, including non-cruise 

visitors (7% of visitors) to Juneau, spent $183.6 million. In

2016, cruise lines spent $26.4 million, and crew members spent 

$8.2 million. Direct economic impact of the visitor industry to 

the Juneau area in 2016 was $238 million. That year, the visitor 

industry was responsible for 2,150 jobs (full and part-time), 

and $77 million in wages. 

Indirect economic impact

The Juneau Economic Study explains how a gift shop bringing 

in $1 million annually could result in over $100,000 in various 

60 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020).

61 State of Alaska, Alaska Department of Commerce, Community, and Economic Development, Division of 

Economic Development, Economic Impact of Alaska’s Visitor Industry 2017 (Nov. 2018), 

https://www.alaskatia.org/wp-content/uploads/VisitorImpacts2016-17Report11_2_18.pdf (last visited Oct. 1, 2020). 

“Complete loss of tourism 

devastated business.”

“I am an owner/operator, 

my tour businesses is shut 

and the 2 ships I contract 

with as a guest lecturer 

will not happen. I have no 

business this summer.”

“I have three retail spaces 

that I lease to seasonal 

shops. No cruise ships 

equals no visitors equals 

seasonal shops do not 

open equals no funds to 

pay rent to me equals I

can just barely pay the 

interest only on my 

commercial loan which 

means that I will now 

have a balloon payment at 

the end of my loan.”

IN THEIR OWN WORDS RESPONSES FROM THE SOUTHEAST 

ALASKA BUSINESS SURVEY 

QUESTION “PLEASE ELABORATE ON 

HOW COVID-19 HAS IMPACTED 

YOUR ORGANIZATION.”
17

taxes, tens of thousands of dollars in owner/employee spending 

on housing, clothing, transportation, medical services, 

recreation, and food, as well as the business perhaps spending 

tens of thousands of dollars a year on rent, utilities, 

construction, marketing, and miscellaneous supplies. Sales 

from cruise passenger spending result in a wide range of other 

spending by the business and employees/owner throughout the 

community. 

Per the Juneau Economic Study, total direct, indirect, and 

induced economic impact of the cruise industry on Juneau in 

2016 was $319 million. This was around 10% of Juneau’s 

economic output that year. In addition to 2,150 direct jobs 

related to the tourism industry, it is estimated that there are an 

additional 650 indirect jobs, totaling 2800 jobs. Previously 

mentioned direct wages of $77 million, along with the $32 

million of indirect labor income, resulted in $109 million total 

labor income to the area.

Current status 

One small cruise ship (60-person vessel sailing at 60% 

capacity) left Juneau on August 1. According to the company’s 

website,62 a passenger who had tested negative for COVID-19 

prior to departing their home city, was tested again at the 

Juneau airport on August 1 before embarkation with a positive 

test result three days later which required the ship’s return to 

Juneau on August 5. The company also cancelled its four 

additional planned sailings in Alaska, and passengers returned 

home. 

F. Ketchikan

Ketchikan is in southeast Alaska. With a population of 14,000 

in the Ketchikan Gateway Borough, it is the sixth largest 

community in Alaska, and its major industries are commercial 

fishing and tourism.63

62 Press Release, UnCruise Adventures, COVID Cruise? Not on UnCruise Adventures. Small Boat Company Bursts 

the Bubble of Presumption about Transmission on Board Cruises (Aug. 19, 2020), https://www.uncruise.com/aboutus/media/press-releases/covid-cruise-not-uncruise-adventures (last visited Oct. 4, 2020). 63 Ketchikan Visitors Bureau, Ketchikan 101, 101 Facts About Our Community, https://www.ktnak.us/media/Port%20&%20Harbors/Port/Tourism%20MythBusters/Ketchikan%20Visitors%20Bureau%20101%20Facts%20About%20Our%20Community.pdf (last visited 

Oct. 3, 2020).

“No cruise ships means 

nobody wants to finance 

construction projects. The 

little scraps of projects 

that are offered don’t 

appeal, but it looks like it 

will be the only way to 

survive, if that’s even 

possible.”

“The biggest impact is the 

lack of ships. We still 

have loyal locals, but 

summer visitors are a 

huge source of income.”

“The cruise industry 

collapse has shut us out of 

any business income for 

2020. I chose to complete 

the building of a new 

vessel and will be unable 

to meet any debt service 

with business income and 

will be using personal 

funds to cover the 

expenses until business 

income resumes in a 

year.”

IN THEIR OWN WORDS RESPONSES FROM THE SOUTHEAST 

ALASKA BUSINESS SURVEY 

QUESTION “PLEASE ELABORATE ON 

HOW COVID-19 HAS IMPACTED 

YOUR ORGANIZATION.”
18

Ketchikan has several cruise ship 

berths. It is a port of call as opposed 

to an embarkation/ disembarkation 

port. No large cruise ships begin or 

end the voyage there. 

According to the Alaska Visitor 

Volume Report, Ketchikan had 

over 1.1 million visitors arrive via 

cruise ship in 2019. This includes 

89% of all cruise passengers to 

Alaska during summer 2019. 

Almost all of Ketchikan’s visitors 

arrive by cruise ship. Per the 

Ketchikan Visitor’s Bureau 

Summer Visitor Profile and 

Economic Analysis, from 2018 

(Ketchikan Economic Analysis),

64

in 2017, 95% arrive by cruise ship, 

4% arrive by air, and 1% arrived by 

ferry.

Cruises to Ketchikan attract visitors from not only the U.S., but 

also Canada and other parts of the world. According to the 

Ketchikan Economic Analysis, of passengers surveyed in 2017, 

75% were from the U.S., 12.5% from Canada, and 12.5% from 

Australia and/or New Zealand, Europe, Asia, and Latin 

America. 

In 2020, Ketchikan was scheduled to have 562 ships call in 

port.65

Direct economic impact

Cruise visitors take part in a variety of activities while in 

Ketchikan. Other than shopping, which in 2016, 84% of 

visitors took part in,66 no one type of activity dominates the 

market. The Ketchikan Economic Analysis explains that the 

top activity, city/sightseeing tours, were only taken by 23% of 

64 Ketchikan Visitors Bureau, Ketchikan Summer Visitor Profile and Economic Impact Analysis (April 2018), 

https://www.alaskatia.org/wp-content/uploads/kvb-visitor-profile-and-impacts-6_10_18-1.pdf (last visited Oct. 2, 

2020). 

65 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020).

66 Alaska Department of Commerce, Community, & Economic Development, Division of Economic Development, 

and Alaska Travel Industry Association, Alaska Visitor Statistics Program 7 Summer 2016 (May 2017), 

https://www.alaskatia.org/wp-content/uploads/Full-AVSP-VII-Report.pdf (last visited Oct. 5, 2020). 

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Visitors to 

Ketchikan in 

2017

Cruise Air Ferry

“I own a small seafood 

restaurant. We usually 

serve many cruise ship 

passengers and tourists. 

There are not very many 

people traveling to Sitka 

right now, so our revenue 

is down. Also, I have 

only been doing takeout. 

My space is very small, 

and social distancing for 

dine in is not a 

possibility.”

“We had to issue over 

$50,000 in pre-booking 

refunds over the last three 

months. We generally 

work with approximately 

15,000 cruise passengers 

in a summer, and all that 

business appears to be 

lost, based on the cruise 

projections and our sales 

over the last few years, I 

expect approximately 

$1M loss in gross sales.”

IN THEIR OWN WORDS RESPONSES FROM THE SOUTHEAST 

ALASKA BUSINESS SURVEY 

QUESTION “PLEASE ELABORATE ON 

HOW COVID-19 HAS IMPACTED 

YOUR ORGANIZATION.”
19

cruise passengers. The other activities had no more than 12% 

of visitors participating, and include shows/entertainment, 

native cultural tours/activities, day cruises, hiking/nature walk, 

historical/cultural attractions, museums, and flightseeing. 

As Ketchikan is a port of call, passengers do not spend money 

on lodging in the area. They do heavily support the tours and 

retail industries. Per the Ketchikan Economic Analysis, 

average spending per passenger is $87 on 

gifts/souvenirs/clothing, $60 on tours/activities/entertainment 

$10 on food/beverage, and $1 on rental cars/fuel/transportation.

Crew members have a different spending in port. According to 

the Ketchikan Economic Analysis, crew members primarily 

spend at large retail stores, grocery stores, and pharmacies. 

Crew members spent an average of $430 in Ketchikan during 

the entire season. 

The cruise lines contribute to the local economy in various 

ways. The Ketchikan Economic Analysis explains that

expenditures include dockage/moorage fees ($9 million in 

2017), purchases from food/beverage vendors, transportation 

services, medical providers, and business supply companies. 

The city brings in revenue through cruise visitors in the form of 

taxes. According to the Ketchikan Economic Analysis, sales 

taxes from summer visitors, cruise lines, and crew members

were estimated to be $5.1 million in 2017. The area also 

brought in $4.3 million from the statewide Commercial 

Passenger Vessel tax. 

Per the Ketchikan Economic Analysis, the direct economic 

impact of the tourism industry67 on Ketchikan in 2017 was 

$223 million: $187 in spending by visitors, $29 million from 

the cruise lines, and $7 million in crew spending, as seen on 

67 Includes both cruise- and non-cruise visitors; however, cruise visitors made up 95% of the visitors in 2017.

“I lost all my charter 

bookings when the cruise 

ships cancelled.”

“Loss in cruise travel 

results in 20 months of no 

revenue. Funding the gap 

will affect our future 

revenue projections for 

years.”

“Loss income and don’t 

know how long we can 

get renters; businesses 

closes because of tourism 

industry. No cruises, no 

workers to come and look 

for place to rent.”

“Shut it down, since we 

are a tourism related 

business and with no 

cruise ships means no 

business.”

“We are completely shut 

down until tourism (cruise 

ship) returns to southeast. 

Unfortunately, we are not 

eligible for any other 

loans and grant at this 

time.”

IN THEIR OWN WORDS RESPONSES FROM THE SOUTHEAST 

ALASKA BUSINESS SURVEY 

QUESTION “PLEASE ELABORATE ON 

HOW COVID-19 HAS IMPACTED 

YOUR ORGANIZATION.”
20

the chart. This resulted in 1,350 jobs with 

associated income of $57 million. Of this, 31% 

was in the tour sector, 21% in the 

gifts/souvenir/clothing sector, 20% food/beverage, 

12% transportation, 11% lodging,

68 and 4% local 

government/health care/finance.

Indirect economic impact

According to the Ketchikan Economic Analysis, in 

addition to direct jobs and income, 400 indirect 

jobs and $19 million in labor income are a result of 

the tourism industry in Ketchikan.

Current status 

Cruise and tourism-related businesses are 

struggling. In a May 2020 report that surveyed 

tourism-related businesses in Ketchikan, only 26% 

of businesses said they would be able to endure a delayed restart of the tourism industry in 

Ketchikan if business do not resume until spring 2021.69

Unemployment in Ketchikan Gateway Borough has been higher than usual since the COVID-19 

pandemic began. According to the Alaska Department of Labor and Workforce Development,

70

Ketchikan’s highest unemployment rate since March 2020 has been 17.4%. The annual

unemployment in the Borough was 6.2% in 2019 and 6% in 2018. 

Preparing for reopening

A Business Economy Recovery Group (BERG) has been formed in the Ketchikan area and their 

website provides that “the primary focus of the BERG has been to connect individuals and 

businesses with the available resources during the state of the COVID-19 emergency.”71

68 Generally no lodging and only a little transportation can be attributed to the cruise industry. The average air and 

ferry visitor spends $207 and $187 on lodging, respectively, and $62 and $58 on transportation, respectively. The 

average cruise visitor spends $0 on lodging, $10 on food/beverage, and $1 on transportation. 

69 Patti Mackey, CEO & President of Ketchikan Visitors Bureau, City of Ketchikan, Ketchikan Tourism Survey –

Impacts of COVID-19 and related information (May 4, 2020), 

https://ketchikan.primegov.com/Portal/viewer?id=1116&type=2 (last visited Oct. 4, 2020). 70 Alaska Department of Labor and Workforce Development, Annual Unemployment Rates for Ketchikan Gateway 

Borough and Alaska 2010 to 2019, https://live.laborstats.alaska.gov/labforce/labdata.cfm?s=15&a=0 (last visited 

Oct. 18, 2020). 71 Ketchikan Gateway Bureau, COVID-19 Response, Business & Economic Recovery, 

https://www.kgbak.us/913/COVID-19-Response (last visited Oct. 4, 2020)

84%

13%

3%

DIRECT EXPENDITURES -

TOURISM IN KETCHIKAN

Visitors (including non-cruise) - $187 million

Cruise lines - $29 million

Crew members - $7 million
21

Ketchikan already has “Code Red” procedures in place for 

businesses that run shore excursions in case of a norovirus 

outbreak, including increased cleaning, employee exposure 

prevention, and post incident clean-up procedures.

72 As of May 

2020, the city was considering using these as a base for 

COVID-19 plans.73

Despite the current situation, business regarding the port 

continues. Steps are being taken to expand Ketchikan’s cruise 

capacity through turning an old lumber mill into a port.74 Last 

October, before the COVID-19 pandemic began, some thought 

it could have been open for the 2020 cruise season.75

According to a recent article, the City Council has also 

received a proposal to have the port be privately managed over 

the next few decades, something the council will be 

considering.76 The article also notes that the city would no 

longer receive the head tax; the company would collect the 

head tax and increase it over the next several years. Instead the 

city would be paid by the company $40-45 million over 7 

years.

G. Skagway

Skagway is in southeast Alaska and has a population of just 

over 1,000 people.77 Skagway’s main industry is cruise ship 

tourism.78

72 Patti Mackey, CEO & President of Ketchikan Visitors Bureau, City of Ketchikan, Ketchikan Tourism Survey –

Impacts of COVID-19 and related information (May 4, 2020), 

https://ketchikan.primegov.com/Portal/viewer?id=1116&type=2 (last visited Oct. 4, 2020). 73 Id. 74 Saul Elbien, Reuters, New port brings tourism hope and pollution fears to Alaskan town (Jul. 30, 2020), 

https://www.reuters.com/article/us-usa-cities-tourism-feature-trfn/new-port-brings-tourism-hope-and-pollutionfears-to-alaskan-town-idUSKCN24V2CO (last visited Oct. 4, 2020). 75 Eric Stone, KRBD, How developers plan to turn a symbol of Ketchikan’s timber past to a hub for tourism (Oct. 

31, 2019), https://www.krbd.org/2019/10/31/how-developers-plan-to-turn-a-symbol-of-ketchikans-timber-past-to-ahub-for-tourism/ (last visited Oct. 4, 2020). 76 Eric Stone, KTOO, Private port operator’s proposal for Ketchikan dock management could mean $40M+ for city 

general fund (Sep. 29, 2020), https://www.ktoo.org/2020/09/29/private-port-operators-proposal-for-ketchikan-dockmanagement-could-mean-40m-for-city-general-fund/ (last visited Oct. 4, 2020). 77 Municipality of Skagway, A Review: 2019 Cruise Ship Presence, Skagway, Alaska (Apr. 8, 2019),

https://www.skagway.org/sites/default/files/fileattachments/port_of_skagway/page/277/final_2019_skg_cpv_update

_2019_04_08_1.pdf (last visited Oct. 6, 2020). 78 Claire Stremple, KHNS FM, Skagway braces for economic impacts as coronavirus stalls the cruise ship season 

(Mar. 14, 2020), https://khns.org/skagway-braces-for-economic-impacts-as-coronavirus-stalls-the-cruise-ship-season

(last visited Oct. 6, 2020).

“Closed my business for 

2020 and may not ever 

reopen thereafter. Rent is 

too high in Skagway as it 

is, and if the cruise 

industry returns, it won’t 

be at 100%. My future in 

Skagway is very 

uncertain.”

“We have lost cruise ships 

for the summer and that is 

2/3 of our revenue. It 

helps us to survive in the 

winter months. We will 

survive the summer 

scaled down dramatically, 

but we aren’t sure we will 

survive past December.”

IN THEIR OWN WORDS RESPONSES FROM THE SOUTHEAST 

ALASKA BUSINESS SURVEY 

QUESTION “PLEASE ELABORATE ON 

HOW COVID-19 HAS IMPACTED 

YOUR ORGANIZATION.”
22

Per the Alaska Visitor Volume Report, during summer 2019, 

Skagway welcomed over 1 million visitors via cruise ships. 

This includes 78% of all cruise passengers to Alaska during 

that period. According to the Alaska Visitor Statistics Report, 

in 2016, 96% of visitors to Skagway traveled by cruise ship.

As most of the ships visiting Skagway are large, cruise ship 

days can bring up to 20 times the local population to port. It 

was estimated that before the 2019 cruise season, Skagway 

would have 21 days with over 16,000 visitors in port, one day 

with over 21,000 visitors, and an average of 9,358 visitors on 

days when ships were in port.79 With the significant number of 

visitors, over the cruise season, a lot of the business revenue 

for the area is earned during those months.80

In 2020, Skagway was scheduled to have 454 ship visits.81

Direct economic impact

Almost all visitors to Skagway arrive via cruise ship. The 

Alaska Visitor Statistics Report estimates that in 2016, 96% 

visited via cruise.

Skagway, like the other ports, have a variety of shore 

excursions available to passengers. A big draw to the area is 

the scenic railway route. The top excursion in the Alaska is to 

ride the White Pass and Yukon Railroad, and the railroad is 

Skagway’s biggest employer.82 In addition, according to the 

Alaska Visitor Statistics Report, 85% of visitors, including 

non-cruise visitors, shop while in Skagway. Of the other 

activities visitors participated in during 2016, no more than 

16% of visitors took part in any particular activity. Sixteen 

percent went on city/sightseeing tours, 12% culture/history, 

11% wildlife viewing, 8% hiking/nature walks, and 6% 

dogsledding.

79 Municipality of Skagway, A Review: 2019 Cruise Ship Presence, Skagway, Alaska (Apr. 8, 2019), 

https://www.skagway.org/sites/default/files/fileattachments/port_of_skagway/page/277/final_2019_skg_cpv_update

_2019_04_08_1.pdf (last visited Oct. 6, 2020). 80 Id. 81 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020).

82 Claire Stremple, KHNS FM, Skagway braces for economic impacts as coronavirus stalls the cruise ship season 

(Mar. 14, 2020), https://khns.org/skagway-braces-for-economic-impacts-as-coronavirus-stalls-the-cruise-ship-season

(last visited Oct. 6, 2020). 

“No cruise ships amounts 

to an economic disaster 

for everyone in Skagway. 

We need help. Our city is 

listening, thankfully.”

“We have no revenue this 

summer as 100% of our 

customers come by cruise 

ship. We have no revenue 

until May 2021.”

“With no visitors paying 

hotel bed tax and no 

cruise visitors paying 

Marine Passenger Fees, 

our overall funding has 

been reduced by more 

than 50% for this year.”

“We have lost all revenue 

for our summer business, 

due to no cruise ships.”

“We have NO income as 

a tourist seasonal store. 

We pray for ships in 2021 

and hope we can stay 

afloat until then.”

IN THEIR OWN WORDS RESPONSES FROM THE SOUTHEAST 

ALASKA BUSINESS SURVEY 

QUESTION “PLEASE ELABORATE ON 

HOW COVID-19 HAS IMPACTED 

YOUR ORGANIZATION.”
23

Per the Alaska Visitors Statistic Report, visitors to Skagway, including the 4% of visitors not 

traveling by cruise, spend an average of $149 while visiting. A breakdown of the $149 from the 

report can be seen on the chart.

83

Indirect economic impact

The cruise industry is crucial to 

Skagway. According to the mayor, the 

cruise industry generates up to 95% of 

the town’s revenue.84

Current status 

Skagway’s unemployment is 

significantly higher than last year. 

According to the Alaska Department of 

Labor and Workforce Development,

85

between May and September 2020, the 

unemployment in Skagway ranged from 

12.2% to 20.2%. Unemployment during 

these months in 2019 ranged from 2.6% 

to 3.6%.

Preparing for reopening 

Skagway and Ketchikan have started a 

working group to assess what the cities want the cruise industry to do, what they want to see 

from the communities, and how to function together in 2021.86 As of September, a study was 

underway with a private firm and Ketchikan to determine what protocols should be in place to 

keep cruise visitors safe, and to be seen as a model port following those protocols.87 The mayor 

83 Lodging is included, though generally not used by cruise passengers, as this is for all visitors, including the 4% of 

visitors who visit Skagway not by cruise. 

84 Aaron Saunders CruiseCritic.com, USA Today, ‘This is about survival’: Alaska ports issue plea to save 2021 

cruise season (Oct. 8, 2020), https://www.usatoday.com/story/travel/cruises/2020/10/08/alaskan-cruise-ports-wemay-not-survive-without-2021-cruise-season/5922837002/ (last visited Oct. 8, 2020). 85 State of Alaska, Alaska Department of Labor and Workforce Development, Annual Unemployment Rates for 

Municipality of Skagway and Alaska, https://live.laborstats.alaska.gov/labforce/labdata.cfm?s=26&a=0 (last visited 

Oct. 19, 2020). 

86 Gretchen Wehmhoff, Skagway News, Skagway, Ketchikan Plan for the 2021 cruise season (Aug. 1, 2020), 

https://skagwaynews.com/2020/08/01/skagway-ketchikan-plan-for-the-2021-cruise-season/ (last visited Oct. 6, 

2020). 

87 Municipality of Skagway, Alaska, Regular Assembly Meeting (Sep. 3, 2020) Meeting Minutes, 

https://www.skagway.org/sites/default/files/fileattachments/borough_assembly/meeting/43311/09_03_2020_assemb

ly_minutes.pdf (last visited Oct. 8, 2020).

$2 

$98 

$38 

$10 

$1 

Average Visitor Spending in 

Skagway (2016)

Lodging Tours/activity/entertainment

Gifts/souvenirs/clothing Food/beverage

Transportation/other
24

also believes it is important to work with cruise lines to come up with a facility that could deal 

with possible health issues, as there is no major hospital in this small community.

88

“It is essential for our small businesses that they are able to engage the cruise 

ship companies and the cruise ship passengers in a normal way. They local 

businesses are going to go 17 months in a best-case scenario without any 

revenue.” – Skagway Mayor Andrew Cremata89

H. Icy Strait Point/Hoonah

Icy Strait Point is the port in Hoonah, a city in southeastern Alaska with 800 residents.90 The port 

is owned by the Huna Totem Corporation. Per the Alaska Visitor Statistics Report, in 2019, the 

port had 267,200 cruise visitors. Around 20% of cruise passengers visiting Alaska during 

summer 2019 stopped there. Almost all visitors, or 98% in 2016, to Hoonah travel via cruise 

ship.

In October 2020, Icy Strait Point won the Seatrade Cruise Award of Port of the Year.91

“Hoonah is a proud community and the largest Tlingit village in Alaska. The 

Hoonah Indian Association is a federally recognized tribal government that 

supports Hoonah’s Native community. Residents hunt, fish, and gather foodstuffs 

off the land. Children attend public schools where they combine traditional 

academics with cultural activities and language learning.”92

A new cruise ship dock was finished in 2016, allowing passengers to go directly to shore instead 

of tender transfer.

93

In 2020, Icy Strait Point was scheduled for 202 ship calls.94

88 Aaron Saunders CruiseCritic.com, USA Today, ‘This is about survival’: Alaska ports issue plea to save 2021 

cruise season (Oct. 8, 2020), https://www.usatoday.com/story/travel/cruises/2020/10/08/alaskan-cruise-ports-wemay-not-survive-without-2021-cruise-season/5922837002/ (last visited Oct. 8, 2020).

89 Id.

90 City of Hoonah, Hoonah Today, https://www.cityofhoonah.org/visitors?pgid=jeeyg5p2-8ab2d819-0f6c-470ba21b-da851aa071d9 (last visited Oct. 10, 2020). 

91 Seatrade Cruise News, Seatrade Cruise Awards winners announced (Oct. 6, 2020), https://www.seatradecruise.com/people-opinions/seatrade-cruise-awards-winners-announced (last visited Oct. 10, 2020). 

92 City of Hoonah, Hoonah Today, https://www.cityofhoonah.org/visitors?pgid=jeeyg5p2-8ab2d819-0f6c-470ba21b-da851aa071d9 (last visited Oct. 10, 2020). 

93 City of Hoonah, 2017-2027 Hoonah Economic Development Plan (Oct. 2016), https://e233222e-fb39-4482-95d5-

54925cd05e40.filesusr.com/ugd/63a996_ab316dcc26164c739b98ede5efdd9040.pdf (last visited Oct. 10, 2020). 

94 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020).
25

Direct economic impact

As with other ports, shopping is a popular activity with visitors. According to the Alaska Visitor 

Statistics Report, 86% of visitors, including non-cruise visitors, shop while in Hoonah.

Regarding other activities, 18% of visitors went on day cruises, 13% participated in wildlife 

viewing, 12% visited culture/history attractions and/or activities, 7% went ziplining, and 7% 

went on a hiking/nature walk.

Per the Alaska Visitor Statistics Program, visitors in Hoonah in 2016, including non-cruise 

visitors, spent an average of $92. This includes $1 on lodging,95 $57 on 

tours/activity/entertainment, $26 on gifts/souvenirs/clothing, $7 on food & beverages, and $1 on 

transportation/other. 

The 2017-2027 Hoonah Economic Development Plan, adopted in 2016 (Hoonah Economic 

Development Plan),

96 discusses changes that were occurring in the Hoonah economy. The city 

had only 158,000 cruise visitors that year, less than 60% of the number of visitors who visited

Alaska in 2019. The Hoonah Economic Development Plan explains that goods-producing jobs, 

such as the fishing and timber industries, have been declining. Tourism is driving more jobs to 

service-providing industries such as restaurants, tours, and selling items to visitors. 

Per the Hoonah Economic Development Plan, many of these tourism-related jobs are seasonal. 

The Icy Straight Point employed 138 people during the summer of 2015 and had a payroll of 

$1.8 million. Almost two-thirds of the employees were local. 

According to the Hoonah Economic Development Plan, the city brought in over $1.1 million in 

State Commercial Passenger Vessel Excise Tax and Sales Tax by Icy Straight Point. 

Indirect economic impact

The port, Icy Strait Point, supports local businesses. The port facilities are only open when cruise 

ships are in port.97 According to the Hoonah Economic Development Plan, the port facilities buy

local beer and fish. A local restaurant purchases local fish as well. Other industries, such as an 

oyster farm that had recently opened, a commercial greenhouse that had also recently opened,

and sawmill were looking at how to integrate their businesses into the tourism or restaurant 

industries. 

95 Average visitor spending includes non-cruise visitors (98% visit via cruise per the Alaska Visitor Statistics 

Program). 

96 City of Hoonah, 2017-2027 Hoonah Economic Development Plan (Oct. 2016), https://e233222e-fb39-4482-95d5-

54925cd05e40.filesusr.com/ugd/63a996_ab316dcc26164c739b98ede5efdd9040.pdf (last visited Oct. 10, 2020). 97 Icy Strait Point, About Us, https://icystraitpoint.com/about-us/ (last visited Oct. 19, 2020). 
26

I. Sitka

Sitka is a city and borough in southeast Alaska with a population of just over 8,500.98 According 

to the Alaska Visitor Statistics Program, in 2019, Sitka welcomed 218,600 visitors on cruise 

ships. About 16% of all cruise passengers in Alaska stopped there. Most visitors to Sitka, or 

82%, travel by cruise ship. 

In 2020, Sitka was scheduled to have 190 ship calls.99

Direct economic impact

Tourism jobs in the area are very seasonal. According to the Sitka Economic Development 

Association’s 2020 Sitka Economic Profile (Sitka Economic Profile),

100 the tourism, recreation, 

and accommodations sector account for around 150 jobs in the winter and almost 600 during 

some of the summer months.

Per the Alaska Visitor Statistics Report, 77% of visitors, including non-cruise visitors, go 

shopping when visiting Sitka. Beyond 

shopping, Sitka has several popular 

activities that a sizeable percentage of 

visitors take part in. The most popular 

activities for visitors in Sitka are 

culture/history (historical/cultural 

attractions, museums, and native 

cultural tours/activities), wildlife 

viewing, city/sightseeing tours, 

hiking/nature walk, fishing, and day 

cruises, as seen on the chart.

In 2016, the Alaska Visitor Statistics 

Program estimated that the average 

visitor to Sitka, including non-cruise 

visitors, spent $353.

98 Sitka Economic Development Association, Sitka Economic Profile (June 2020), 

https://static1.squarespace.com/static/582222e36a49637d2e6e6edb/t/5f2b130551d9077c854c5ad4/1596658440004/

McDowell+Group+Sitka+Economic+Profile+2020.pdf (last visited Oct. 19, 2020). 99 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020).

100 Sitka Economic Development Association, Sitka Economic Profile (June 2020), 

https://static1.squarespace.com/static/582222e36a49637d2e6e6edb/t/5f2b130551d9077c854c5ad4/1596658440004/

McDowell+Group+Sitka+Economic+Profile+2020.pdf (last visited Oct. 19, 2020).

39%

22%

17% 17%

12% 10%

Most Popular Visitor 

Activities in Sitka

Most Popular Visitor Activities in Sitka
27

Current status 

In April 2020, the city was predicting a $2 million decline in sales tax revenue, primarily over 

the summer.101 In the past, the city has also brought in over $400,000 revenue from the 

Commercial Vessel Excise Tax Fund.102

The city is estimating that $74 million has been lost to the local economy due to the lack of 

cruise visitors.103

The city has the Sitka Economic Resiliency Task Force in place, “to work on ways to mitigate 

the effects of COVID-19 on Sitka’s economy.”104 As of June, one member of the task force

knew of three businesses that had already closed.105 The task force has a website with a variety 

of resources for businesses and individuals.106

J. Other Alaska Ports and Regions

Haines

Haines is a city in southeastern Alaska with a population of 2,400 people.

107 According to the 

Alaska Visitor Statistics Report, in 2019, 63,400 travelers visited Haines via cruise ship. In 2016, 

69% of visitors to Haines traveled by cruise ship.

In addition to the visitors traveling on cruise ships to Haines, the community also benefits from 

some of the cruise visitors to Skagway that visit Haines via the cross-fjord Fast Ferry.108 In 2017, 

43,000 cruise visitors visited Haines this way.109

101 City and Borough of Sitka, Fiscal Year 2021 Consolidated Operating Budget (Apr. 21, 2020), 

https://www.cityofsitka.com/government/departments/finance/documents/FY2021AdoptedBudget5-12-2020.pdf

(last visited Oct. 10, 2020). 102 Id. 103 City and Borough of Sitka, Resolution No. 2020-27, Declaring an Economic Disaster in the City and Borough of 

Sitka Due to COVID-19 and Poor Regional Returns of All Salmon Species (Sep. 22, 2020), 

https://www.akml.org/wp-content/uploads/2020/09/Signed-Res-2020-27.pdf (last visited Oct. 10, 2020). 104 Ariadne Will, Daily Sitka Sentinel, Economy Task Force Sees Hope for Sitka (Jun. 5, 2020), 

http://sitkasentinel.com/7/2012-05-10-22-08-10/local-news/16692-economy-task-force-sees-hope-for-sitka (last 

visited Oct. 10, 2020). 

105 Id. 106 Sitka Economic Resilience Task Force, https://www.sitka.net/sitka-economic-resilience-task-force (last visited 

Oct. 10, 2020). 

107 Haines, Alaska, About Haines, https://www.visithaines.com/about-haines/ (last visited Oct. 11, 2020). 108 Claire Stremple, KHNS FM, Unprecedented cruise ship cancellations affect seasonal, year-round cruise 

businesses (May 12, 2020), https://khns.org/unprecedented-cruise-ship-cancellations-affect-seasonal-year-roundbusinesses (last visited Oct. 6, 2020).

109 Haines Economic Development Corporation, Economic Baseline Report, Haines Economic Development Plan 

(June 2018), https://www.hainesedc.org/wp-content/uploads/2019/11/Revised-Baseline6-12-2018-foundrootedit.pdf (last visited Oct. 11, 2020).
28

According to the Haines Economic Development Corporation’s June 2018 Economic Baseline 

Report, Haines Economic Development Plan (Haines Economic Development Plan),

110 a 2011 

survey showed that cruise visitors spent an average of $85 each in Haines, with an average of 

$59 of that on tours. Fast ferry visitors spent an average of $135 in Haines, with an average of 

$119 on tours. Total spending was estimated at $6.1 million in 2011. At that time, cruise and fast 

ferry visitors totaled only 55,000, compared to over 100,000 visitors by cruise and fast ferry 

(cruise to Skagway) in 2019. 

Haines has had a much higher unemployment rate than usual. Between May and September 

2020, unemployment rates have ranged from 9.6% to 22.6%, compared to May to September 

2019 rates ranging from 4.7% to 6.7%.111

In 2020, Haines was scheduled to have 59 ship calls.112

Petersburg

Petersburg is a city in southeastern Alaska with a population of around 3,100 people.

113 The city 

has an appeal to certain visitors as being a quieter port than those that have large cruise ships. 

The Chamber of Commerce website describes Petersburg as “off-the-beaten-path of the large 

cruise ships, which cannot navigate the Wrangell Narrows.”114

The city has about 20,000 visitors each year.115 According to the Alaska Visitor Statistics 

Report, in 2016, 23% of visitors traveled to Petersburg via cruise ship.

Petersburg is both a port-of-call and embarkation port for cruise lines with smaller ships.116 It 

was supposed to have over 50 ship calls during 2020.117

110 Haines Economic Development Corporation, Economic Baseline Report, Haines Economic Development Plan 

(June 2018), https://www.hainesedc.org/wp-content/uploads/2019/11/Revised-Baseline6-12-2018-foundrootedit.pdf (last visited Oct. 11, 2020). 111 Alaska Department of Labor and Workforce Development, Annual Unemployment Rates for Haines Borough 

and Alaska, https://live.laborstats.alaska.gov/labforce/labdata.cfm?s=11&a=0 (last visited Oct. 19, 2020). 112 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020). 113 Petersburg Chamber of Commerce, Our Town, https://www.petersburg.org/our-town/ (last visited Oct. 11, 2020). 114 Id. 115 Petersburg, Alaska, Business, https://www.petersburgak.org/index.asp?SEC=3BD17808-476E-40D9-B59AE1106B5C6B2D&Type=B_BASIC (last visited Oct. 11, 2020). 116 Petersburg, Alaska, Getting Here, https://www.petersburgak.org/index.asp?SEC=0E4EB1B4-8CCC-4040-9AB5-

AD100E6FFC55&Type=B_BASIC (last visited Oct. 11, 2020). 117 Cruise Lines International Association Alaska, Port Schedule, https://akcruise.org/portschedule/?port=PETERSBURG&ship=0&date_from&date_to&search_schedule=Get%20Port%20Schedules (last 

visited Oct. 11, 2020). 
29

Wrangell

Wrangell is a city in southeastern Alaska with a population of 2,300.118 According to the Alaska 

Visitor Statistics Report, in 2016, 22% of visitors to Wrangell traveled via cruise ship. Only 

small and medium cruise ships visit Wrangell; the largest ship had around 900 passengers, and 

most ships have under 200.119 In 2020, Wrangell was scheduled to have 46 ship calls,

120 none of 

which arrived.121

Per the Alaska Visitor Volume Report, during summer 2019, Wrangell had 17,300 visitors 

traveling via cruise ship. This is up from around 13,000 in 2017.

122 As of April 2020, Wrangell 

was expecting up to 17,222 cruise visitors in 2020.123

In 2017 each cruise passenger spent an average of $148, totaling over $2 million for the area.

124

Homer

Homer is in the southcentral part of Alaska – the same region as Anchorage, Seward, and 

Whittier. The population is just over 5,300, and its main industries are commercial fishing and 

tourism.125 It is 227 miles by road from Anchorage.126

The Alaska Visitor Volume Report estimates that in 2019, Homer had 14,800 cruise passengers 

visit over the summer. Most visitors to Homer are not traveling via cruise ship; per the Alaska 

Visitor Statistics Report, in 2016, 11% of visitors to Homer traveled by cruise ship. 

Thirteen ship calls were expected in Homer in 2020.127

118 Wrangell, History of Wrangell, https://www.wrangellalaska.org/visitorservices/history-wrangell (last visited Oct. 

11, 2020). 

119 Wrangell, Cruise Ship Calendar, https://www.wrangellalaska.org/visitorservices/cruise-ship-calendar (last visited 

Oct. 19, 2020). 120 Report from President, International Longshore Warehouse Union Alaska Longshore Division, email attachment 

to FF30 (Sep. 26, 2020).

121 Wrangell, Cruise Ship Calendar, https://www.wrangellalaska.org/visitorservices/cruise-ship-calendar (last visited 

Oct. 19, 2020). 

122 Wrangell Convention and Visitors Bureau, Wrangell Visitor Economy By the Number 2018 (May 2018),

http://www.wrangell.com/sites/default/files/fileattachments/visitor_services/page/3424/wrangell_visitor_industry_2

018_final.pdf (last visited Oct. 11, 2020). 123 Wrangell Chamber of Commerce, Draft Wrangell Cruise Ship Schedule (Apr. 15, 2020), 

https://www.wrangellchamber.org/uploads/2/6/5/7/26576634/cruiseship_schedule_draft_2020_as_of_4-15-

2020_pax_.pdf (last visited Oct. 18, 2020). 124 Wrangell Convention and Visitors Bureau, Wrangell Visitor Economy By the Number 2018 (May 2018), 

http://www.wrangell.com/sites/default/files/fileattachments/visitor_services/page/3424/wrangell_visitor_industry_2

018_final.pdf (last visited Oct. 11, 2020). 125 Homer, Alaska, Community Facts and Figures, https://www.cityofhomer-ak.gov/community/facts-figures (last 

visited Oct. 11, 2020). 

126 Id. 127 Cruise Lines International Association Alaska, Port Schedule, https://akcruise.org/portschedule/?port=HOMER&ship=0&date_from&date_to&search_schedule=Get%20Port%20Schedules (last visited 

Oct. 11, 2020). 
30

Valdez

Valdez is a city in the southcentral part of Alaska with a population of 4,353.

128

According to the Alaska Visitor Volume Report, Valdez had 12,400 cruise passengers visit 

during summer 2019. This is more than double the 5,000 cruise passengers who visited in 2016, 

when cruise visitors made up 5% of total visitors to Valdez.129

A 2016 economic impact report showed that cruise visitors spend an average of $74 a day in port 

of call communities.

130 The city offers three estimates in their economic impact report with 

cruise visitors spending $55, $65, and $75 in port, with total estimated economic impact between 

$737,400 and $1,102,050 for 2019.131 Revenue from dockage, security, and other fees in 2019 

was $54,435.132

In 2020, 25 ship calls were cancelled.133

Dutch Harbor/Unalaska

Dutch Harbor, as the area is often known as, but officially called Unalaska, is on Unalaska 

Island, part of the Aleutian Islands in southwestern Alaska, with a population of 4,710.134 It has 

the western-most U.S. container port, and its main industries are commercial fishing, seafood 

processing, fleet services, and marine transportation.135

Cruise ships visiting Unalaska are not the large ships like those that do the round-trip cruises to 

southeast Alaska. Cruises to Unalaska are often more expedition-type cruises, traveling to places 

off the beaten path, and/or those traveling between North America and Japan.

136

128 City of Valdez, History of Valdez, https://www.valdezak.gov/121/History-of-Valdez (last visited Oct. 11, 2020). 

129 City of Valdez, Valdez Visitor Market Profile (Feb. 2017), https://www.alaskatia.org/wp-content/uploads/valdezvisitor-profile-2016-1.pdf (last visited Oct. 5, 2020). 130 Port of Valdez, 2019 Passenger & Crew Economic Impact Estimation, 

https://www.valdezak.gov/DocumentCenter/View/7364/1-2019-Passenger-Economic-Impact-Estimation (last 

visited Oct. 11, 2020). 

131 Id. 132 Port of Valdez, 2019 Port Economic Impact of Cruise Ships & Passenger Vessels, 

https://www.valdezak.gov/DocumentCenter/View/7365/2-2019-Port-Economic-Impact (last visited Oct. 11, 2020). 133 Port of Valdez, 2020 Cruise Ship Operations: 2020 Port of Call Schedule Cancellations, 

https://www.valdezak.gov/DocumentCenter/View/7366/3-2020-Port-of-Call-Schedule (last visited Oct. 11, 2020). 134 City of Unalaska, Alaska, Comprehensive Annual Financial Report, Fiscal Year Ended June 30, 2019 (Dec. 20, 

2019), 

https://www.ci.unalaska.ak.us/sites/default/files/fileattachments/Finance/page/8191/fy19_cafr_and_single_audit.pdf

(last visited Oct. 11, 2020). 135 Id. 136 Michelle Theriault Boots, Anchorage Daily News, In an Aleutian fishing port, cruise ships bring possibility and 

peril (Oct. 7, 2019), https://www.adn.com/alaska-life/2019/10/07/in-an-aleutian-fishing-port-cruise-ships-bringpossibility-and-peril/ (last visited Oct. 11, 2020).
31

In 2019, Unalaska had 18 cruise ship calls, bringing in around 10,000 cruise visitors.137 In 2020, 

24 cruise ship calls had been expected.138

Kodiak

Kodiak is a port in southwestern Alaska with around 6,000 people.

139

During summer 2019, Kodiak welcomed 26,300 cruise passengers,

140 and had 28 ship calls.141

Ships generally come through when they are being repositioned between Alaska and Asia.142

According to the Visitor Statistics Program, in 2016, 33% of visitors to Kodiak traveled by 

cruise ship. Kodiak’s largest ship in port had just over 2,000 passengers.143

Cruise ship visitors support the local economy in the Kodiak area, particularly businesses 

running shore excursions and museums.144

Nome

Nome is a city in Alaska’s far north region with a population of around 3,500.

145 Nome’s cruise 

season is usually August and September.146 In 2019, eight different cruise companies stopped in 

Nome.147

137 Michelle Theriault Boots, Anchorage Daily News, In an Aleutian fishing port, cruise ships bring possibility and 

peril (Oct. 7, 2019), https://www.adn.com/alaska-life/2019/10/07/in-an-aleutian-fishing-port-cruise-ships-bringpossibility-and-peril/ (last visited Oct. 11, 2020). 138 Id.

139 Associated Press, 9News, Record number of cruise ships expected in Kodiak, Alaska in 2019 (Oct. 8, 2018), 

https://www.9news.com/article/news/nation-now/record-number-of-cruise-ships-expected-in-kodiak-alaska-in2019/465-490ede98-0031-470c-bd6b-47f30c83573c (last visited Oct. 11, 2020). 140 Alaska Travel Industry Association, Alaska Visitor Volume Report Winter 2018-19 and Summer 19 (June 2020), 

http://www.alaskatia.org/wp-content/uploads/Alaska-Visitor-Volume-2018-19-FINAL-7_1_20.pdf (last visited Sep. 

30, 2020).

141 Maggie Wall, KMXT-Kodiak, Alaska Public Media, Several cruise ships cancel Kodiak visits as companies 

shuffle ships because of coronavirus in Asia (Feb. 26, 2020), https://www.alaskapublic.org/2020/02/26/severalcruise-ships-cancel-kodiak-visits-as-companies-shuffle-ships-because-of-coronavirus-in-asia/ (last visited Oct. 11, 

2020). 

142 Id. 143 Kodiak Daily Mirror, Largest cruise ship to ever port in Kodiak set to arrive today (May 15, 2019), 

http://www.kodiakdailymirror.com/news/article_b25fa5ec-773a-11e9-875a-1f996611371c.html (last visited Oct. 11, 

2020). 

144 Associated Press, 9News, Record number of cruise ships expected in Kodiak, Alaska in 2019 (Oct. 8, 2018), 

https://www.9news.com/article/news/nation-now/record-number-of-cruise-ships-expected-in-kodiak-alaska-in2019/465-490ede98-0031-470c-bd6b-47f30c83573c (last visited Oct. 11, 2020). 145 Nome Convention and Visitors Bureau, History and Culture of Nome, Alaska, 

https://www.visitnomealaska.com/history-culture (last visited Oct. 11, 2020). 146 Emily Hofstaedter, KNOM Radio Mission, Nome Businesses Hope To Learn From Record Cruise Season (Aug. 

9, 2019), https://www.knom.org/wp/blog/2019/08/09/nome-businesses-hope-to-learn-from-record-cruise-season/

(last visited Oct. 11, 2020).

147 City of Nome, Commercial Arctic Shipping Assessment and The Port Of Nome (2019), 

https://www.nomealaska.org/egov/documents/1571420398_8587.pdf (last visited Oct. 11, 2020).
32

Nome is both a port-of-call and an embarkation/debarkation port.

148 Passengers who embark on 

or debark from their cruise usually pass through Nome on their way to and from a chartered 

flight, and visitors from cruise ships tend to be from various parts of the world.149

In 2016/2017, the city hosted a 1,700-passenger cruise ship, the port’s largest.

150 Ships visiting 

port are usually smaller ships sailing to Greenland, Norway, and/or Russia.151

The city has adopted passenger recommendations and, on every Friday during the cruise season,

sets up an area for vendors, including those from outside Nome, to sell crafts to cruise visitors.152

Over the six-week period, some vendors made between $400 and $2,000 in 2018.153

In a 2019 report, consideration was given to the future markets for cruise visitor increase, 

naming China, South Korea, and Japan.154 Nome was anticipating 14 ship calls in 2020.

155

Interior Alaska

Interior Alaska is often visited by cruise visitors taking cruise/land tours or are exploring the area 

on their own before or after a cruise. According to the Alaska Visitor Statistics Report, in 2016, 

51% of visitors to Denali and 41% of visitors to Fairbanks came from cruise ships. That year,

21% of all cruise visitors to Alaska visited the interior, with 20% going to Denali and 12% 

visiting Fairbanks. The same percentage stayed overnight in the areas, with average stays of 2 

nights at Denali and 1.8 nights in Fairbanks. The Interior Alaska city of Talkeetna also benefits 

from visitors going to or coming from cruise ships. In 2016, 39% of visitors to Talkeetna also 

traveled by cruise ship.

In September, Explore Alaska reported on the Status of Interior Alaska Tourism Industry Due to 

COVID-19 (Interior Alaska Report).

156 That report estimates that over 160,000 cruise passengers 

would have visited that region in 2020. Further, many seasonal hotels in Denali and Fairbanks, 

often catering to cruise passengers, did not open at all in 2020.

148 Emily Hofstaedter, KNOM Radio Mission, Nome Businesses Hope To Learn From Record Cruise Season (Aug. 

9, 2019), https://www.knom.org/wp/blog/2019/08/09/nome-businesses-hope-to-learn-from-record-cruise-season/

(last visited Oct. 11, 2020). 

149 Id. 150 Nome, The Nation’s Arctic Port, https://www.nomealaska.org/egov/documents/1569620587_22314.pdf (last 

visited Oct. 11, 2020). 

151 Id. 152 Emily Hofstaedter, KNOM Radio Mission, Nome Businesses Hope To Learn From Record Cruise Season (Aug. 

9, 2019), https://www.knom.org/wp/blog/2019/08/09/nome-businesses-hope-to-learn-from-record-cruise-season/

(last visited Oct. 11, 2020).

153 Id. 154 City of Nome, Commercial Arctic Shipping Assessment and The Port Of Nome (2019), 

https://www.nomealaska.org/egov/documents/1571420398_8587.pdf (last visited Oct. 11, 2020). 155 Emily Hofstaedter, KNOM Radio Mission, Nome Businesses Hope To Learn From Record Cruise Season (Aug. 

9, 2019), https://www.knom.org/wp/blog/2019/08/09/nome-businesses-hope-to-learn-from-record-cruise-season/

(last visited Oct. 11, 2020).

156 Explore Fairbanks. Status of Interior Alaska Tourism Industry Due to COVID-19 (Sep. 18, 2020), email 

attachment to FF30 (Sep. 30, 2020). 
33

According to Explore Fairbanks, not everyone is optimistic that the 2021 season will be back to 

normal.

According to those inside the industry, anecdotally, many cruise ship passengers 

have moved their reservation from 2020 to 2021. . . . There is some speculation, 

however, that Cross Gulf of Alaska sailings for summer 2021 will be minimal at 

best.157

K. Seattle, Washington

The Port of Seattle is a special-purpose government whose mission is “to promote economic 

opportunities and quality of life in the region by advancing trade, travel, commerce and job 

creation in an equitable, accountable and environmentally responsible manner.”158 It runs both 

the seaport and the international airport, and partners with road and rail infrastructure, and 

supports the fishing and tourism industries.

159 “Because the Port is a governmental entity, there 

is no profit, no shareholders, and no dividends.”160

Seattle is the homeport for many cruise ships sailing to Alaska, as well as a port of call for 

others.

161 In 2019, Seattle had 211 ship calls and served 1.2 million passengers.162

Direct economic impact

The Port of Seattle has a program to help small local businesses connect to the 

cruise lines. The aim was to help them link up and supply the cruise lines with local 

products to increase the economic impact of cruising to small businesses in the 

community. The program has been very successful, but these small businesses are 

experiencing the negative effects of a lost cruise season.163

Ships that homeport in Seattle have the greatest economic impact on the local economy. Supply, 

maintenance, passenger and crew transportation, and baggage handling all occur in homeports.164

157 Id. 158 Port of Seattle, About, Our Mission, https://www.portseattle.org/about/our-mission# (last visited Oct. 15, 2020). 

159 Port of Seattle, About, The Commission, https://www.portseattle.org/about/commission (last visited Oct. 15, 

2020). 

160 Port of Seattle, Who Pays for SEA Airport? (Aug. 6, 2020), https://www.portseattle.org/blog/who-pays-seaairport (last visited Oct. 19, 2020). 161 Port of Seattle, Port of Tacoma, & The NWSA, Economic Impacts (Mar. 2019), email attachment to FF30 (Oct. 

7, 2020). 

162 Port of Seattle, Cruise Ship Planning and Infrastructure, Resumption of Passenger Operations, and Additional 

Questions, Comments to the CDC & HHS Request for Information, Docket No. CDC-2020-0087, 

https://www.portseattle.org/sites/default/files/2020-

09/Port%20of%20Seattle%20response%20to%20CDC%20RFI%20-%20Docket%20No.%20CDC-2020-0087.pdf

(last visited Oct. 12, 2020).

163 Notes from meeting between Port of Seattle, Senator Cantwell’s office, MARAD, and FF30 (Oct. 7, 2020). 164 Port of Seattle, Port of Tacoma, & The NWSA, Economic Impacts (Mar. 2019), email attachment -to FF30 (Oct. 

7, 2020). 
34

Passengers need to travel to the port and may drive and pay for parking or use air terminal 

services. According to the Port of Seattle’s 2019 Alaska Cruise Passenger Survey (Seattle 

Passenger Survey),165 in 2019, 85% of cruise visitors flew to Seattle and 9% arrived by car.

Having arrived in Seattle by air, cruise passengers and crew require local transportation services. 

According to the survey, 29% of cruise visitors used Uber or Lyft, 16% used cruise line buses, 

15% used hotel shuttles, and 9% used taxis.

Some cruise visitors stay in hotels, supporting the local tourism industry. Per the Seattle 

Passenger Survey, in 2019, 69% of cruise visitors spent at least one night in Seattle before their 

cruise and 24% spent at least one night in Seattle after their cruise. The average length of stay 

was 1.5 nights before and 1.6 night after the cruise. 

Participating in local activities and 

visiting tourist attractions also 

contributes to the local economy. 

The Seattle Passenger Survey 

estimates that 51% of passengers 

participated in activities in Seattle 

before or after their cruise. The 

most popular activities were the 

Pike Place Market (51%), Space 

Needle (36%), shopping (31%), 

Chihuly Garden and Glass (16%), 

and the Waterfront Ferris Wheel 

(11%).

Per the Seattle Passenger Survey, 

the average pre- and post-cruise 

spending totaled $189 per person. A 

breakdown of that spending can be 

seen on the chart.

Crew spending also contributes to 

the economy in the area. The Port 

of Seattle, Port of Tacoma, & The Northwest Seaport Alliance (NWSA)’s Economic Impacts 

Report from 2019 (Seattle Economic Impact Report),

166 described that according to a 2016 

study, average crew spending in a port is $47.06. This would generate around $2.1 million based 

on the 2019 numbers, supporting 30 jobs with $900,000 in wages/benefits. 

The cruise ships bring in income as well. According to the Seattle Economic Impact Report, in 

2019, cruise operation expenditures were estimated to be $182.7 million. 

165 Port of Seattle, Alaska Cruise Passenger Survey 2019 (Oct. 2019), 

https://www.portseattle.org/sites/default/files/2019-10/Alaska%20Cruise%20Passenger%20Survey%202019.pdf

(last visited Oct. 12, 2020). 

166 Port of Seattle, Port of Tacoma, & The NWSA, Economic Impacts (Mar. 2019), email attachment to FF30 (Oct. 

7, 2020). 

Average Pre- and Post-Cruise Spending 

In Seattle

Lodging - $100 Food/beverage - $39

Tours/activities - $19 Transportation - $17

Retail - $10 Other - $4
35

Seattle was expecting around 1.4 million cruise passenger embarkation, debarkation, and ship 

calls in 2020.167 Per the Seattle Economic Impact Report, total projected direct economic impact 

from the cruise industry in Seattle was $467.8 million in revenue, supporting 2,990 jobs and 

$122.7 million in wages.

Indirect economic impact

According to the Seattle Economic Impact Report, in 2019, the port estimated that direct, 

indirect, and induced economic impacts would total $893.6 million in revenue/business output, 

supporting 5,500 jobs and $260.1 million in wages. This would result in a total of $14.5 million 

in state taxes.

Cargo operations may also be affected due to no cruise ships operating. Cruise merchandise 

comes through the ports of Seattle and Tacoma.168 A lot of cargo going to Alaska goes through 

Seattle as well, some likely supporting the cruise tourism.

169

Current status 

The Port of Seattle has had to cut their capital expenditures by 40%. Several projects supported 

by funds brought in by the cruise industry cannot move forward.170 And a new terminal has been 

put on hold.171 It must be noted that these projects are not exclusively dedicated to the benefit or 

use of the cruise industry.172

Preparing for reopening 

The Port of Seattle is considering modifications, such as plexiglass and touchless fixtures, to 

mitigate COVID-19 risks.

173 However, as with many others with whom Commissioner Sola has 

communicated, they are awaiting guidance from the CDC as to acceptable protocols.174 They 

have some funds available for modifications, but hope that funding for CDC protocols will be a 

joint effort by the port and cruise companies.175

The port administration’s thoughts on this matter may be found in their comments submitted to 

the CDC and Health and Human Services’ Request for Information, Docket No. CDC-2020-

0087, Cruise Ship Planning and Infrastructure, Resumption of Passenger Operations, & 

Additional Questions. In their commentary, the Port of Seattle provided suggestions for the

167 Actual number of people closer to 700,000 as each embarkation and debarkation count as separate passenger 

movements. Notes from meeting between Port of Seattle, Senator Cantwell’s office, MARAD, and FF30 (Oct. 7, 

2020).

168 Notes from meeting between Port of Seattle, Senator Cantwell’s office, MARAD, and FF30 (Oct. 7, 2020).

169 Id. 170 Id. 171 Id. 172 Id. 173 Id. 174 Id. 175 Id.
36

preparation and handling of the discovery of COVID-19 cases aboard a ship. These suggestions 

ranged from cruise company responsibilities to ensuring that ports accept a ship with an 

outbreak.176

L. Astoria, Oregon

The Port of Astoria is “a governmental Special District . . . operating as a competitive business 

enterprise as well as a public service agency.”177 Policy decisions for port management are 

decided by an elected board of Commissioners.

178 In addition to marine facilities, it also includes 

the airport and industrial properties.179

Astoria has both large cruise ships and small cruise ships visiting its port. The port’s large ships 

generally stop in Astoria en route to or from their summer homeports in the pacific northwest.

180

As such, the season starts earlier and ends later here than in Alaska; most ships visit the port in 

April, May, September, or October.181

Astoria was expecting a record year in 2020 with 36 ships calling on the port,182

carrying over 71,000 passengers.183

Small ships generally continue along the Columbia River, making stops at Oregon’s other cruise 

ports at Cascade Locks, The Dalles, and Arlington.184 Some ports such as The Dalles and 

Cascade Locks anticipated 16,000-17,000 cruise visitors in 2020.185

Direct economic impact

Port of Astoria explained to Commissioner Sola that the port expected 36 ships in 2020 with 

2,000 visitors each (1,000 couples).

186 By using CLIA’s estimate of each couple spending $150 

176 Port of Seattle, Comments of the Port of Seattle to the CDC & HHS Request for Information, Docket No. CDC2020-0087 (2020), https://www.portseattle.org/sites/default/files/2020-

09/Port%20of%20Seattle%20response%20to%20CDC%20RFI%20-%20Docket%20No.%20CDC-2020-0087.pdf

(last visited Oct. 12, 2020).

177 Port of Astoria, Strategic Business Plan Update (Interim Draft) 2019-2024, 

https://www.portofastoria.com/Assets/dept_1/pm/pdf/poa%20strategic%20plan%20update%202019-

2024%20%20(september%202019).pdf (last visited Oct. 20, 2020). 178 Port of Astoria, About the Port of Astoria, https://www.portofastoria.com/About_the_Port_of_Astoria.aspx (last 

visited Oct. 15, 2020). 

179 Port of Astoria, About the Port of Astoria, https://www.portofastoria.com/About_the_Port_of_Astoria.aspx (last 

visited Oct. 15, 2020).

180 Notes from meeting between Port of Astoria, Business Oregon, and FF30 (Oct. 7, 2020). 181 Cruise analysis from Director, Cruise Industry Marketing, Port of Astoria, email attachment to FF30 (Oct. 16, 

2020). 

182 Notes from meeting between Port of Astoria, Business Oregon, and FF30 (Oct. 7, 2020). 183 Letter from Port of Astoria, email attachment to FF30 (Oct. 16, 2020). 184 Notes from meeting between Port of Astoria, Business Oregon, and FF30 (Oct. 7, 2020). 185 Id. 186 Id.
37

per port, the Port of Astoria anticipated over $5 million in cruise visitor spending.187 This 

spending includes visitors traveling outside the immediate area to the coast and other sites such 

as Mount St. Helens. This also includes $30,000-$40,000 in shuttle ticket sales typically sold by 

a volunteer cruise host club greeting visitors from the ships.188 The port was expecting to collect

over $1 million in port-related fees from cruise lines in 2020.189

Current status

The Port of Astoria is allowing a cruise ship to dock in Astoria for six months beginning October 

15, 2020.190 The ship will only be hosting crew members.191

Preparing for reopening 

As of July, Astoria had 28 ships with around 70,000 passengers scheduled for 2021.

192

IV.Conclusion

The states of Alaska, Washington, and Oregon are essentially intertwined when dealing with the 

cruise industry. Except for tours along the Columbia River most cruise traffic in the region exists 

between these states and the Canadian Pacific ports. All three states operate a well-defined 

cruising season due to climate. As this season runs from late spring until late autumn, an entire 

year’s revenue has been lost to these port communities. Indeed, almost the entire positive 

economic impact derived from the cruise industry as outlined above has been lost for 2020, with 

no certainty of when cruising will be resumed, when people will be comfortable sailing again, or, 

once active, when the cruise industry will be back to 2019 levels.

“[W]ith so much uncertainty regarding when the CDC or Canada will allow 

operations, or what ship capacity [will] be, planning for the 2021 tourism season 

proceeds cautiously.”193

During Commissioner Sola’s fact-finding trip to Alaska, an industry person expressed concerns 

about the Passenger Vessel Services Act (PVSA). Generally, under the PVSA, only coastwise187 Id. 188 Id.

189 Cruise analysis from Director, Cruise Industry Marketing, Port of Astoria, email attachment to FF30 (Oct. 16, 

2020).

190 Press Release, Port of Astoria, Non-Passenger Carrying Cruise Ship (Oct. 9, 2020), 

https://www.portofastoria.com/News/1090 (last visited Oct. 12, 2020). 

191 Id.

192 Edward Stratton, The Astorian, Port of Astoria doubtful about any cruise ships this year during pandemic (Jul. 

23, 2020), https://www.dailyastorian.com/coronavirus/port-of-astoria-doubtful-about-any-cruise-ships-this-yearduring-pandemic/article_3d1cc756-ccfc-11ea-9b02-130a2fea6c1b.html (last visited Oct. 12, 2020).

193 Southeast Conference, Southeast Alaska By the Number 2020 at 6 (Sep. 2020), 

http://www.seconference.org/sites/default/files/Southeast%20Alaska%20by%20the%20Numbers%202020.pdf (last 

visited Oct. 2, 2020).
38

qualified vessels, i.e., U.S.-built, owned by a U.S. citizen, and documented with a coastwise 

endorsement, can engage in the transportation of passengers between ports or places in the 

United States. The industry person stated that if Canadian ports continue to be closed, even after 

the U.S. allows resumption of cruises, some vessels may encounter issues with the PVSA’s 

requirements.

It appears that under certain circumstances, the PVSA qualification requirements can be waived. 

The PVSA is a law administered and enforced by the U.S. Customs and Border Protection 

(CBP).194 We encourage the industry to contact CBP with any questions about the PVSA and its 

waivers.

Alaska

Of all three of the states examined, Alaska stands out as the most significantly impacted. While 

actual dollar figures may not match the levels of areas previously studied or about to be studied, 

the relative per capita impact is perhaps the most significant of any state in the Union. Alaska has 

three basic industries, energy, fishing, and tourism. It can be stated without equivocation that 

Alaska’s tourist industry is inextricably tied to the cruise industry. Tourists arrive in Alaska 

either by air or by sea and most who arrive by air find themselves on a cruise at some point in 

their journey. As the reports of the individual ports presented in this study show, the loss of an 

entire cruise season has led to the loss of an entire year’s revenue for a disproportionate number 

of Alaskans compared to far more populace and less remote states where alternative forms of 

income generation may be found.

The Alaska Travel Industry Association conducted a survey of businesses in June 

2020. Almost 80% of respondents, most who employ 20 or less people, have 

experienced more than 50% loss of revenue and bookings from the previous year. 

Approximately 45% surveyed indicated that they will have to lay off half of their 

employees, and 65% said they would have to lay off between 5-50% of their 

employees. Over a third of the businesses, at the time of the survey, are concerned 

they will have to close in six months without relief.195

Washington

Although still somewhat seasonal, the State of Washington is certainly not isolated as is the State 

of Alaska and benefits from the Pacific cargo trade. Nevertheless, the fiscal impact of the 

cessation of the cruise line business has resulted in a significant loss of revenue. The cruise 

industry that calls on or considers the Port of Seattle home is itself seasonal in that it is primarily

tied to the Alaskan trade. Consequently, the industry and those that rely upon this economic 

engine have lost what amounts to an entire year’s revenue.

194 See the U.S. Customs and Border Protection, the Passenger Vessel Services Act at 20-21 (September 2019), 

https://www.cbp.gov/sites/default/files/assets/documents/2019-Sep/PVSA-ICP.pdf (last visited Oct. 13, 2020).

195 President & CEO of Alaska Travel Industry, Email to FF30 (Sep. 30, 2020). 
39

Oregon

As with Alaska and Washington, the State of Oregon has seen what amounts to an entire season 

lost. The Port of Astoria with its mix of blue water and river cruises is still seasonal with regard 

to its cruise trade. Although the season is a bit longer than its northern neighbors the season 

essentially ended before it began with the similar effect as its neighbors resulting in significant 

fiscal hardship particularly on small and medium size businesses.

Since the initiation of this Fact Finding, there have been several pieces of proposed legislation by 

various members of Congress designed to assist the Nation’s ports and the cruise industry in 

adjusting to the negative effects of the current pandemic. Similarly, certain state and local 

executive and legislative offices have begun to examine the economic losses being experienced 

due to the inability of the cruise lines to operate and are searching for solutions. This report, 

being specific to the State of Alaska, Washington, and Oregon, is designed simply to provide an 

overview as to the financial impact being experienced by the states due to the termination of 

cruise operations. It is hoped that the data provided will not only draw attention to the 

importance of this issue, but also encourage and assist other authorities in doing what is 

necessary to relaunch the cruise industry in a quick and safe manner that builds confidence 

among consumers. As Fact Finding Officer, Commissioner Sola continues to explore options to 

achieve this goal.