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My Turn: Juneauites, just think of them as 'Cruise $hips'

Posted: May 2, 2012 - 12:00am

The way I see it, Juneau has two seasons — studded tire season and tourist season. Watching the downtown merchants and cruise dock employees make ready the port for a summer of opportunities is something worth noting. With the arrival of the first ship of the season mooring at 1 p.m. tomorrow, this annual opening day event should be celebrated by all Juneauites. Being a big ship enthusiast myself, I’ve always thought the waterfront Juneau appears a bit bare absent the silhouettes of the ships of summer. I hope I espouse the majority opinion in support of this vitally critical economic driver for Juneau, however, I know there is a significant multitude who mentally equate visiting guests as modern day lepers. Refusing to venture into the downtown corridor on “five-ship days,” some locals would argue our community is better served without the tourist industry altogether. I have talked with several who have declared they haven’t been on South Franklin Street from May to September since 1978 when the first cruise ship arrived. Explaining why Juneau should, and must, embrace this industry is much like me s’plaining why baseball, hands down, is the best spectator sport. If I have to explain reasons why this is true, you probably won’t understand it anyway.

This year the Juneau Convention and Visitors Bureau anticipates 930,000 guests to cross the gangway from 38 visiting vessels. This is up 5 percent from 2011 but down from the high-water mark of 1.03 million passengers in 2008. According to a McDowell Group study, the average cruise tourist will buy $180 of taxable goods in Juneau, including tours, t-shirts, jewelry and trips up the Mt Roberts Tram. In addition to the tourists, 25,000 ship’s crew will infuse an additional $300 per crewmember into the Juneau economy, most likely at Costco, Fred Meyer, Walmart and Nugget Mall. The fact that working crewmembers spend more than paying customers should not be a surprise, as passengers are budgeting for their entire vacation with potential port calls in Ketchikan, Sitka, Hoonah and Skagway. Juneau’s Egan Drive is the equivalent to Beverly Hills’ Rodeo Drive when it comes to retail opportunity in the Panhandle. Local merchants would be well advised to embrace the passengers departing Raul’s Crew Shuttle on its scheduled van route throughout the valley.

These sales numbers equate to around $176 million, from which CBJ collects $9 million in taxes (about 11 percent of their annual operating expenses) or nearly 25 percent of all sales tax collected. CBJ cannot provide the services to its citizens without fully and completely embracing the tourist industry. With all the undeserved complaints directed at Public Works this studded tire season, try providing snow removal with a CBJ budget decreased by millions of dollars. Seasonal direct and indirect employment supporting Juneau tourism is estimated to be 2,730 positions, providing an additional $95 million of local payroll. I generally love my children and want them around as long as possible. Without seasonal work created by tourism, my kids would be hard-pressed to find jobs in a community which is essentially a three-legged stool of government, tourism and resource extraction (mining, fishing and maybe timber). Tourism and the cruise industry provide an ideal renewable economic sector that should be embraced and sustainably grown.

The “Alaskan” brand continues to garnish worldwide curiosity thanks in part to Alaskan reality shows. The cruise industry estimates that 24 percent of Alaskan cruise travelers have previously taken an Alaskan cruise and 38 percent are planning to return to Alaska in the next five years. This means tourism sustainability requires all Juneauites to become ambassadors to the cause. It is not enough to tolerate visiting guests — maybe a prerequisite to receiving a PFD should be mandatory “customer service training” for Southeast Alaskans (waived for fishermen and miners).

Some have argued that CBJ should not support the cruise industry with CBJ funding — which is actually the case. As an “enterprise board,” Docks & Harbors does not receive CBJ tax revenues and, for argument purpose, if the entire department were dissolved, CBJ would incur an additional $300,000 shortfall — for the services Docks & Harbors pays to CBJ for services it receives. The point being, the downtown city docks are funded solely and exclusively from revenues generated from the cruise industry.

The new docks project (16B) is not be constructed at the expense of the school district, city snow removal or homeless initiatives. The State’s Commercial Passenger Vessel Excise Tax (aka Head Tax) collects $34.50 per cruise passenger, of which $5 per passenger is returned to CBJ. CBJ levies two passenger fees — a $3 per passenger “Port Development Fee” and a $5 per passenger “Marine Passenger Fee.” Some of these fees are used to defray costs associated with the cruise industry (security, policing, crossing guards, trash removal, etc) but most are used for recapitalization of the infrastructure necessary to have a sustainable cruise ship industry. The bottom line is that State and CBJ government will take in another $40 million in cruise ship head taxes and fees, thanks to the industry. The 16B floating docks are critical infrastructure to ensure Juneau remains competitive and that opportunity exists into future for the valuable and essential tourist industry.

Play ball, come downtown and greet the visitors. If for nothing else, living here provides the opportunity to invite your Uncle Leo (everyone has a crazy Uncle Leo or crazy Aunt Leonora) up to visit Alaska. Pick them up at the cruise dock and spend 8-hours driving them around the sites and send them on their way — guilt free, forced family fun day for pennies on the dollar and something to talk about at dinner. Or, maybe, start looking at the party of five crossing Franklin Street as $900 of local and tax revenue and not the inconvenience of having to wait 45 seconds to get to your next appointment.

• Uchytil is Juneau’s port director

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snagger
8292
Points
snagger 05/02/12 - 07:46 am
4
5

Way back when--

It would be good to have a downtown for residents. Perhaps reopening the AJ will accomplish this with both jobs and revenue.

kpawsuh
10138
Points
kpawsuh 05/02/12 - 07:46 am
5
5

How long have you lived here

How long have you lived here Carl? Having Uncle Leo visit every once in a while is OK. Having a million Leo's every year for four months of the year gets tedious. Being late for work because you got stuck behind two tour buses side by side driving 30mph down Egan is no fun. Not being able to enjoy the beauty and solitude of the glacier for most of the summer is no fun. All so that someone can walk down franklin street and get their authentic plastic totem pole replica and walk the paved photo point trail at the glacier and claim to have "experienced Alaska"!

chipthoma
239
Points
chipthoma 05/02/12 - 08:59 am
7
1

Problems With Carl's My-Turn

I have some problems with Carl's article, primary being his cited figures. Cruise docks do not cost "$16 Billion dollars," even in gold-plated Bahraine, and that inaccuracy is glaring. Also, the taxes and fees collected are not "thanks to the industry," but in spite of every legal and political effort they have made to dice, splice and quash proper CBJ, state and national taxation of the cruise industry. Alaska head taxes are there thanks solely to citizen initiatives, not a willing industry. The cruise industry now pays 1% in US taxes, with 90% of that paid in Alaska. Otherwise they would pay nothing in US or world taxes, period.

For insight on what the industry is really up to this 2012 summer, here is info on their attempts to avoid using clean fuel, thanks to Lisa Murkowski.
http://www.kansascity.com/2012/05/01/3587191/cruise-ship-industry-fights...

Chip Thoma, Responsible Cruising in Alaska

joegeldhof
78
Points
joegeldhof 05/02/12 - 08:27 am
5
2

Ummm

I guess Mr. Uchytil was trying to be somewhat tongue-in-cheek with this column. In any event, the obvious factual errors and significant logic problems in the column make whatever points he was trying to express difficult to comprehend.

A dollar isn't what it was a few years back but where did Mr. Uchytil come up with $16Billion for the new floating docks? And the cruise industry doesn't really "pay" the so-called "head tax" anymore than your grocery store pays the CBJ sales tax. And is it not obvious to anyone paying attention that the passenger fees are simply collected by the cruise lines from the passengers and forwarded to the CBJ and/or the State of Alaska? The "industry" Mr. Uchytil credits with paying these fees fought like cornered wildcats to prevent the fees and lost badly when the citizens of Alaska and the City and Borough of Juneau successfully moved forward with an appropriate tax levy that has been used to build much needed cruise infrastructure and for other cruise related activities, including salaires for Juneau Docks & Harbor employees.

Cruise passengers and the cruise industry are an important part of Juneau and Alaska's economy. Juneau has plenty of cruise ship boosters and cheerleaders, many of whom are on the payroll of the cruise industry. Some of them actually do a good job advocating for the industry. What Juneau needs here is a Port Director that sticks to the essential job of operating Juneau's docks and harbors for the community, including the cruise passengers. Leave the boosterism and cheer-leading to the industry representatives and let the Docks & Harbors Board and CBJ Assembly set policy for our community.

AH HA
1640
Points
AH HA 05/02/12 - 09:42 am
6
2

It is the lowest paid industry in the state.

The Cruise ship industry is providing lots of Jobs for Juneau...

Here are your benifits:

Seasonal employment
Part time work
Minimum Wage

Do you suppose you could afford rent in Juneau working in the cruise industry?

Meanwhile please don't notice that about half the store fronts in both of juneau's malls are vacant and have been for a number of years.

We have invested a lot in an industry that does not return much to the community in the way of an economy.

Rockfish
69
Points
Rockfish 05/02/12 - 09:32 am
5
1

It looks like the cruise

It looks like the cruise lines have a new cheerleader. Too bad Carl hasn't lived here long enough to have experienced the negative impacts of tourism. I suggest he gets to work making improvements to Juneau's dilapitated docks and harbors for the taxpaying residents that live here. I agree with the other comments about how little the tour industry gives for what it takes.

AH HA
1640
Points
AH HA 05/02/12 - 09:49 am
5
1

@Rockfish

You are right and I have some serious doubts that being the cruise industries newest lobbyist is something that tax payers should be paying the port director to do.

Mama T
2396
Points
Mama T 05/02/12 - 10:38 am
2
1

The cruise industry paid bills in this house for 20 years

But sadly...no loyalty at the end. As soon as I started to need the medical insurance..I was out of a job. Yea, they use it up and throw it out for sure and not always in a responsible way. Now every time I see a ship I feel like a birdie dropped it's dew square on my head.

The industry does plenty for Juneau, true enough. The industry does much more for itself. The people of Juneau...loyal workers like myself are of little concern to them.
Just sayin.....

nottacheechako
471
Points
nottacheechako 05/02/12 - 11:08 am
1
8

I have to stick up for Carl

just to counter the negatives posted by Chip and pals on here...Juneau has dodged so many of the bullets that have plagued many cities and towns in SE Alaska and the rest of the nation thanks to our local mines and the tourism industry....why look at our property values, up substantially when the rest of the nation's is down? Our unemployment figures are low in Juneau compared to much of America's rates.

I bet if we didn't have the influx of tourist dollars, we would not have the ice rink, the medical services and providers, the huge parks and rec budget, and so many other "things" we take for granted in this town.

Sure, we all get tired by the end of the summer with the visitors in OUR glacier parking lot and congestion down town, but I for one can overlook much of that when you consider the alternative, which is having South Franklin being boarded up 12 months of the year and looking like a ghost town.

Quit your whining Chip and Joe G....we are lucky to have a vibrant tourist trade in Juneau and thanks to Carl for bringing it to the public's attention.

John R. Moses
203
Points
John R. Moses 05/02/12 - 12:42 pm
1
1

Chip-Editing error

The $16 billion was an editing error. The port director was not at fault. Direct all barbs here.

troupie1
4
Points
troupie1 05/02/12 - 01:13 pm
3
1

No Barbs

Still just think the article was poorly written. I can't figure out if he's being funny with looking at people as dollar signs that visit Juneau or not. In my humble opinion it is inappropriate for him to express a view like that while wearing his director's title.

Jo MacNamara
697
Points
Jo MacNamara 05/02/12 - 01:18 pm
4
2

I love the tourists

I love the money they bring, I love talking to them about Alaska. I love being an ambassador.

In fact, I have an idea for the Chamber of Commerce: I think we should put big green wearable buttons around at various Juneau establishments which read: "I'm local. Ask me!" People like me would gladly wear them with pride and instantly become a volunteer ambassador for Juneau. Tourists would see the buttons, and would feel comfortable asking a local where the best place to buy an oosik is. Just a suggestion.

Also, if we want to be a popular tourist destination, we could make it a year-round thing if we really wanted to. We could be the South Lake Tahoe of Alaska if we were to open up Douglas Island, put a few casinos on it, maybe open another Eaglecrest. Then in winter when the ships leave, the casinos could be happening. Hell, let the Native corps own the casinos, and then we tax them! It's a win-win.

Just suggestions. Have you ever visited Tunica, Mississippi? Imagine miles of ugly cotton fields, then you turn a bend and a dozen Vegas style casinos hit you in the face. It works for them, it could work for Juneau. We wouldn't need a dozen casinos. Four or five would be fabulous.

Thunderer
-6
Points
Thunderer 05/02/12 - 01:20 pm
3
7

Curmudgeons galore

What a bunch of curmudgeons trolling this site! With so many negative comments about the duration of Carl's residency, it's no wonder the community has the issues raised by the gentleman in yesterday's editorial. Enough already.

J. E. Fume
5005
Points
J. E. Fume 05/02/12 - 02:26 pm
1
3

I always thought Chuck Keen

I always thought Chuck Keen was way ahead of his time. What a visionary that man was!! Think of what a hit a casino on top of Mt. Juneau would be. People who bellyache about the high property taxes should be in for an idea like that. While we're at it, let's refurbish the AJ Mine and turn it into a casino/whorehouse. While I'm on a roll, let's open a Hard Rock Cafe'. Think of all the money that could be made selling Hard Rock Cafe' Juneau city Ts. With five or so percent of all that going into city coffers, we'd all be able to party.

valley boy
766
Points
valley boy 05/02/12 - 04:48 pm
1
4

@ ah ha

The low wage summer jobs are not important to the people that have them? We keep hearing this as a negative. Is your job important to you?

orionsbow1
628
Points
orionsbow1 05/02/12 - 10:59 pm
1
1

Numbers spin

A good statistician could make the argument that ; If in 2008 (when we had the increased head tax) we had over 1 million people visit Juneau and in 2011 ( when the increased head tax was repealed) we had only 800,000 plus visitors, that the decreased head tax must decrease visitors. Just another spin on the numbers. You know, maybe J.E. Fume has got a point.

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