Tourists walk on the cruise ship dock towards Haines’ Fort Seward. (Emily Files)
Self-employment is rising in Haines, and personal income growth locally is slightly ahead of the state as a whole. Those are a few of the takeaways from an 80-page report on local economic data. It’s the start of a five-year economic development plan for the community.
The newly formed Haines Economic Development Corporation is working with the consulting firm McDowell Group, to better understand the local economy.
The first step in that process: a baseline economic report, a foundation looking at where the economy stands now and where it’s headed, to help create a five-year economic development plan.
Jim Calvin is with the McDowell Group. He spoke at a community meeting in Haines this week.
“You can get a pretty good picture of the condition of the economy, the forces that are at work in the economy, the trajectory of the economy. That’s what we’re trying to do,” said Calvin. “We just want to understand where we are today and how we got here as a community so we can better understand where we’re likely to be in five years or ten years in the absence of any really proactive economic development effort.”
At eighty pages, the report is lengthy. It’s still a working draft, while more data is collected and community members are surveyed. But, here are some of the important conclusions, so far:
- From 2007 to 2016, personal income growth in Haines was slightly ahead of the state in general.
- In Haines, it increased by 9 percent over the past five years. That’s compared to a growth of 3 percent in Alaska.
- Most of that growth has come from non-employment related income.
- Self-employment is rising in Haines. It increased 10 percent from 2012-2016.
- About a third of residents who filed income taxes reported income from small businesses.
- Haines has a very seasonal economy. The number of winter jobs just about doubles by mid-summer.
According to Calvin, population can be a good indicator of economic health.
“Some of the real take home points about Haines population is it’s just sort of steady as she goes,” said Calvin.
The report also looks to the future, at things that could potentially alter the economy, like cruise ship traffic.
“We project that between 2017 and 2019 there’s going to be a 33 percent growth in cruise related visitation to the community,” said Calvin.
And, resource-related developments, like a potential hard rock mine in the Chilkat Valley. The Canadian company Constantine Metal Resources is conducting mineral exploration known as the Palmer Project in the Upper Valley.
The McDowell report says the project employed 64 workers in 2017, half of which are based in Haines. Constantine reportedly spent $3.3 million in goods and services in Haines from 2013-2017.
McDowell also looks at a 10-year negotiated timber sale, recently announced by the University of Alaska.
The University estimates the sale to generate 150-million board feet and $10 million in revenue. It’s unclear at this point how the local economy will be impacted. Though, according to the McDowell report, the University estimates 55-60 local jobs will be created over those 10 years.
Both projects are points of contention within the community.
Commercial fishing, the visitor industry and the arts also play big roles in the current economy of Haines.
As data continues to be generated, the Haines Economic Development Corporation is also surveying the community. And, incorporating the results of that survey into the five-year plan.
That survey is open until the end of April.
The HEDC got its footing last year, after receiving $95,000 in borough funding.
The development corporation is paying McDowell $49,500 for the economic assessment and development plan.
Fred, I agree on most points, nothing was learned from this report except it has been spruced up with new dates, percentages and numbers.
I could have gathered all the other dated studies and cut and pasted them together with supporting conclusions for far less.
Haines needs a blanced economy, period. Seasonal economies will push us towards the Skagway style of cultureand economy, providing lots of empty homes and no services in the winter, we are pretty much already there.
I believe the mine has a long way to go, but realizing the renewable aspects of the timber in the Chilkat valley, and the positive effects of responsible havest of that timber is worth jumping on immediately. Local wood workers, fire wood, pellet production, and agriculture industries will sprout up along with the harvest to balance an promote a healthy economy and culture in the valley.
As predicted, nothing new was learned in this survey.
“Haines has a very seasonal economy. The number of winter jobs just about doubles by mid-summer”
I needed to spend $50,000 to learn that? This survey and the Haines Economic Development Corporation (or should I say the Corrupt Haines Economic Development Corporation) is a complete waste of taxpayer dollars. This corporation takes tax dollars and provides NO direct services to the community or the taxpayers. $50,000 to learn that Haines has a seasonal economy? Never a bigger waste of tax dollars. My taxes directly into the coffers of McDowell. A corrupt horrible deal for the taxpayers. A waste of $95,000.