Introduction
Tourism has implications on the economy depending on whether the factors influencing the very tourism are favorable or not. Tourism can either boost or drain the economy of an area in which it occurs, thus the need to conduct observations on the performance of tourism in an area to promote positive implications of the economic activity of tourism. Depending on how adverse or beneficial the factors of tourism are, the performance of an economy of a particular region can be established, thus the effects of tourism on that region’s economy. Anchorage, Alaska’s tourism has had various implications on the area’s economy, which can be established by examining some of the factors that influence tourism in the region. The aim of this paper, therefore, is to discuss the effects on the Anchorage Alaska economy as a result of the tourism that occurs in the region.
Statistical Information on Tourism in Alaska and its Positive Effects
Tourism in Anchorage Alaska has been of benefit to many businesses in the area including restaurants, hotels, as well as tour companies (Snyder& Stonehouse, 2006). Similarly, other businesses have also benefited from the economic activity of tourism in the region such as construction companies, as well as car repair services. As a result, this has positive implications on the region’s economy owing to the many benefits it has introduced and continues to provide within the region. Through the region’s tourism, employment has been created, which has promoted the growth of the region’s economy as there is an increase in the flow of money in the region. Similarly, when tourists visit the region, they also spend money on various tourism-related activities, which injects money into the region’s circulation, thus promoting the growth of Anchorage Alaska’s economy. According to statistics, in the entire region of Alaska, direct visitors spend over $2.4 billion in the tourism industry every year. Similarly, through tourism, jobs have been created in the sum of 37,800 jobs as well as $1.3 billion in labor income since 2005 (Naske & Slotnick, 2014). The revenue generated through tourism as well as the jobs created are both factors that promote economic growth, thus tourism having a positive implication on the region’s economy.
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Statistics further indicate that in Anchorage, it is where over 40% of the visitors’ spending with regards to tourism is done, thus promoting economic growth in the South-central region of Alaska. Visitors spend over $798 million every year in Southcentral Alaska without including the money spent on transportation to the region (Hillmer-Pegram, 2016). This has injected money into the region’s economy, thus improving the region’s economy since some of the money is used to develop infrastructure in the region. Tourism in Anchorage has promoted the development of the region’s infrastructure, which has facilitated conducting business in the region, thus promoting its economic development and growth. Meetings and conventions account for $94 million, which is injected into the economy in the region, which promotes the economy’s growth, thus a positive implication on the economy (Hillmer-Pegram, 2016). Tourism has facilitated the creation of employment as one in ten jobs in Anchorage is in the tourism industry.
Creation of employment has a positive effect on the region’s economy since it is a form of income generation. The income is used to promote economic growth since the employees use their income to purchase goods and services provided by businesses in the region, thus injecting money into the economy and ensuring money flow (Hillmer-Pegram, 2016). Both the injection and regular cash flow in any economy promotes its growth. Tourism also generates millions of dollars in tax within the region, thus promoting its economic growth. This is because the revenue generated through the tax is used for the development and growth of the businesses and infrastructure, which in turn promotes economic growth in the region (Hillmer-Pegram, 2016). Throughout Alaska, infrastructure has been improved due to tourism, which has seen roads, airports and ferries been improved making the region more accessible to new visitors whose spending in the region promotes economic growth.
Tourism has also made the economy in the region better since there has been creation and enforcement of policies that require conservation and preservation of the ecosystem. Preservation and conservation of ecosystems facilitate the continuation of tourism, which promotes the continuous generation of income in an economy (Hillmer-Pegram, 2016). Tourism in Anchorage Alaska has also promoted community development through job creation, improved infrastructure all which promote the creation of a sustainable economy, thus a positive implication of tourism on the economy of the region.
Negative Implications of Tourism in Anchorage Alaska
Tourism also has a negative implication on any region’s economy owing to some of the negative consequences of having foreigners around. Consumptive tourism that occurs in the region which includes fishing and hunting have raised concern especially the locals regarding its implication on the economy (Fennell, 2002). The number of visitors engaging in consumptive tourism in the region is rather significant and as a result poses a threat to the sustainability of the economy (Fennell, 2002). Consumptive tourism threatens culture in the region, which may result in erosion of culture, which is also central to tourism in the region, this may result in reduced number of visitors in the future owing to the elimination of the cultural element in the region’s tourism, thus negatively impacting the region’s economy. Consumptive tourism also promotes increased land leasing for tourism as opposed to other economic activities, which are also important for economic growth, thus negatively impacting the economy of that region.
Conclusion
Overall, tourism in the region of Anchorage in Alaska appears to have more positive implication than negative on the region’s economy, thus should be promoted. The economy has greatly experienced growth as a result of the many benefits of tourism such as injection of money into the economy. However, the negative implication of tourism, particularly consumptive tourism, should be addressed in an effort to maximize on the benefits and minimize costs and adverse implications of tourism.
References
Fennell, D. A. (2002). Ecotourism programme planning . Wallingford, Oxon, UK: CABI Pub.
Hillmer-Pegram, K. (2016). Integrating Indigenous values with capitalism through tourism: Alaskan experiences and outstanding issues. Journal of Sustainable Tourism , 24 (8-9), 1194-1210.
Naske, C. M., & Slotnick, H. E. (2014). Alaska: A History .
Snyder, J., & Stonehouse, B. (2006). Prospects for polar tourism . Wallingford, Oxfordshire: Cabi.
