On Monday afternoon residents and business owners in Skagway were invited to join a virtual town hall with Alaska’s Lieutenant Governor Kevin Meyer. Residents weighed in on the Dunleavy administration’s plan to make $150 million available to the tourism industry.
The Lieutenant Governor has been speaking with communities all over Southeast Alaska about how to properly appropriate the discretionary funds that the Federal Government has made available to the state of Alaska through the American Rescue Plan Act.
The Dunleavy administration’s plan would earmark about $150 million in grant money for tourism-based businesses that have been impacted by COVID-19 shutdowns.
The Lt. Governor asked Skagway residents if giving $10 million for a marketing campaign to the Alaska Travel Industry Association or ATIA, would help Skagway. Skagway business owner Robert Murphy says general advertising won’t help tour businesses in Skagway, even if it was able to bring large numbers of independent travelers to the community.
“It will not be enough for many of the transportation and tour operators to even write our insurance policy, we will not even be able to sign a name with our minimum earned premium to make it back,” said Murphy.
Local hotel owner Beth Smith says that her hotel is usually 80% booked for the summer season by this date, but that isn’t the case this year. Smith says her business, unlike others, isn’t as deeply affected by the lack of cruise ships.
“For us, the big thing is the border, and then that I don’t know how much you will be able to help us with,” said Smith.
Lieutenant Governor Meyer said during his closing statements that he and the Governor are working on an agreement with the Canadian government to open the border between Skagway and Whitehorse.
Meyer also said he’s going to push for added flexibility in the grant program that would allow for more businesses to qualify. Additionally, Meyer was clear that the Governor’s plan will have to go through the state legislature before any money is made available.
“It’s ultimately going to be up to the legislature to decide because of their appropriating body. So we need to work on them as well. But, but we want to do a grant program with a lot of flexibility,” said Meyer.
In addition to legislative approval, the US Treasury will issue guidance on the relief package which could affect how the monies are spent. The Alaska House of Representatives seeks to send a bill to the State Senate next week.
