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Department of Commerce, Community, & Economic Development
Office of Economic Development
Results Summary | Details | Questions/Comments
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| | Advance successful tourism, film, fisheries, forest products, minerals and small business assistance programs in order to increase economic activity in Alaska and create new employment opportunities for Alaskans.
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| | - Provide policy recommendations and staff support to the Governor and Commissioner on tourism, film, fisheries, forest products, minerals and business development issues.
- Provide a link between Alaska communities (especially rural communities), government, businesses, and industry sectors.
- Compile industry data and provide analysis to the public and industry.
- Support development of potential growth industries and products.
- Monitor changes in Alaska's economic climate and recommend adjustments as necessary.
- Provide technical assistance to industry and to potential entrepreneurs.
- Support export-led development.
- Analyze the economic effect of proposed regulations on small businesses
- Manage the Alaska Regional Development Organizations (ARDORs) program, the Made in Alaska program, the Alaska Manufacturing Extension Partnership (AMEP) and the Alaska Marketplace Program (AMP).
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 End Result: |
Strategies to Achieve End Result
| | A: Economic opportunities for Alaskans are maximized. Details > |
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| A1: Identify areas of potential growth in Alaskan industries. Details > | |
| A2: Increase market value of Alaskan products. Details > | |
| A3: Support expansion of Alaskan industries. Details > | |
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| A:
Result - Economic opportunities for Alaskans are maximized. |
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Target #1: One or more successful tourism development projects or new businesses developed in 4-6 rural Alaska community clusters each year.
Status #1: Met objective of assisting development of 4-6 new tourism projects or businesses by assisting in startup of 4 new business and working with communities in Southeast and Western Alaska on four new projects.
New Tourism Projects in Rural Alaska
| Fiscal Year |
YTD Total |
| FY 2009 |
8
+100%
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| FY 2008 |
4
+33.33%
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| FY 2007 |
3
-57.14%
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| FY 2006 |
7
0%
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| FY 2005 |
0
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Methodology: Count of new projects in rural Alaska.
Analysis of results and challenges: The Developing Alaska Rural Tourism (DART) program was started in FY2009 with a grant from the U.S. Economic Development Administration (EDA) and funding (personnel) from the Alaska Department of Commerce Community & Economic Development. EDA funding was in place during FY2010.
The FY09 Tourism Mentorship Assistance program was instrumental in the startup of at least four new businesses in four rural communities. Four projects included:
(1) development of strategic plan and implemented training in the Village of Klukwan for the Klukwan Cultural and Heritage Center,
(2) developed itinerary for product assessment tours in Prince of Wales Island, Wrangell and Petersburg,
(3) developed project to bring 6 Pack training to Quinhagak and Galena resulting in 6 individuals receiving 6 Pack skippers license,
(4) conducted eco-tourism assessment in Quinhagak (Kanektok River Adventures, an AFN Alaska Market Place recipient)
Related links:
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Target #2: Increased number of jobs resulting from the sale of Made in Alaska manufactured products.
Status #2: January 2009 survey was conducted in an effort to capture and establish a baseline to analyze the number of jobs, if any, created by the program.
Analysis of results and challenges: Analysis: 83% of the 224 participants surveyed have hired 1 to 3 employees; 11.8% have hired 4 to15 employees; and the remaining 2% (5 participants) hire over 15 employees.
Results: This data represent over 20% of the 1098 to 1111 participants in the program.
Challenges: Growing these businesses to support additional Alaskans as employees. Material costs and logistics continue to be a challenge by all participants.
Analysis of results and challenges: It is difficult to determine the number of jobs the Made in Alaska program produces directly. The best way to determine success may be to review the amount of vendors that participate annually in the program. What may also be of interest is the amount of participants that use this kind of support as a primary or secondary source of income.
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Target #3: Increased employment resulting from travel and tourism expenditures in Alaska.
Status #3: In 2002, approximately 37,650 jobs resulted from tourism spending in Alaska. New data expected Spring 2010.
Travel and Tourism-Related Employment
| Year |
YTD Total |
| 2010 |
NA
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| 2009 |
NA
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| 2002 |
37,650
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Analysis of results and challenges: No new economic impact data is available to identify increases in tourism employment related to travel and tourism expenditures in Alaska. Employment data is expected Spring 2010.
Related links:
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| A1:
Strategy - Identify areas of potential growth in Alaskan industries. |
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Target #1: Increase the number of Regional Seafood Development Associations (RSDAs) by 20%.
Measure #1: Measure in ex-vessel value on a price/pound basis.
Analysis of results and challenges: RSDAs were the result of intensive industry and governmental meetings and planning sessions aimed at improving regional seafood marketing opportunities to directly benefit those regions. A total of 12 RSDAs can be created and there are currently 4: Bristol Bay RSDA; Prince William Sound/Copper River RSDA; Rainforest Wild in Southeast; and Aleutia in Alaska Peninsula and Aleutian Islands. Coordinating with interested parties from the regions and meeting the requirements of the legislation aimed at bringing these groups into existence is a major focus of this section.
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Target #2: Provide technical assistance through mentorship in 4-6 rural community clusters each year through Developing Alaska Rural Tourism program.
Status #2: Exceeded goal of providing mentorship services in 4-6 rural community clusters by assisting 9 tourism entrepreneurs in nine communities.
Number of Community Clusters Receiving Technical Assistance
| Fiscal Year |
YTD Total |
| FY 2010 |
9
0%
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| FY 2009 |
9
0%
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| FY 2008 |
9
0%
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| FY 2007 |
9
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Analysis of results and challenges: The Tourism Mentorship Assistance Program (TMAP) was started in FY2007 with a grant from the U.S. Dept. of Agriculture (USDA), Rural Development agency. The FY2009 TMAP program is currently funded through a matching grant from the U.S. Economic Development Administration (EDA). The program is designed to provide 12-18 months of technical advice and assistance to potential entrepreneurs in rural Alaska. Based on the success of the TMAP program, OED is proposing to utilize state funding in FY 2011 to increase the number of participants to 12 per year.
The 9 entrepreneurs are located in 9 communities including Kaktovik, Perryville, Gambell, Nome, Bethel, Ruby, Tanana, Glennallen, and Admiralty Island.
Related links:
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| A2:
Strategy - Increase market value of Alaskan products. |
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Target #1: Increased economic contribution of all travel and tourism expenditures in Alaska.
Status #1: Travel and tourism's economic contribution in Alaska reached $1.5 billion in 2002. New data is expected in Spring 2010.
Economic Contribution of Travel and Tourism in Alaska (billions of dollars)
| Year |
YTD Total |
| 2007 |
NA
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| 2006 |
NA
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| 2002 |
1.5
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Analysis of results and challenges: The $1.5 billion (sales net related imports into the state) contributed 5.2% to Alaska Gross State Product (GSP) and includes direct and indirect effects of all travel and tourism expenditures, but not induced (multiplier effects).
No new data is available to identify increases in economic impact of travel and tourism expenditures in Alaska. Data is expected Spring 2010.
Related links:
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Target #2: Increase the number of Made in Alaska certified products manufactured per year.
Status #2: Evaluation of the program has never been done. To establish a baseline in 2009 a survey was done as a way to measure the program. In addition, new display areas have been added allowing greater exposure of participant’s products.
Analysis of results and challenges: The registration process for “Made in Alaska” manufacturers and vendors is being changed. The new provide data on value of product, number of products, and number of employees. Data will become available during Fiscal Year 2009.
Related links:
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Target #3: 10% annual increase in total value of the Alaska minerals industry.
Status #3: The value of the minerals industry decreased from $4,014.9 M in 2007 to $3,129.8 in 2008, a decrease of 22.05%; 2009 results will not be available until this time next year, however, current projections are for a further decrease in the total value of the industry of $230 million due mainly to curtailment in exploration and development expenditures; production values should increase slightly in 2009 (3.17%). The overall average increase in the minerals industry between 2002 and 2009 will be approximately 20.07%.
Methodology: A very rough projection for 2009 can be made at this time.
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Total Value of Alaska Minerals Industry (in billions)
| Year |
Billions $$ |
% Increase |
| 2009 |
2.9
-4.29%
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-7.34%
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| 2008 |
3.03
-24.44%
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-24.6%
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| 2007 |
4.01
+13.5%
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13.65%
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| 2006 |
3.533
+90.62%
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90.6%
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| 2005 |
1.8534
+14.41%
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14.51%
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| 2004 |
1.62
+51.77%
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51.64%
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| 2003 |
1.0674
-0.56%
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-.55%
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| 2002 |
1.0734
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0
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Analysis of results and challenges: The improvement in actual value between 2006 and 2007 was $482.1.1 million, 13.65% over the 2006 value; however, the total value of the industry declined $885.1 million from 2007 to 2008; the total value is projected to decline $230 million in 2009. The average increase in value between 2002 and 2008 has been 24.63% per year, and 20.07% to 2009, primarily reflecting significant commodity price improvements up to 2007, then declining very significantly in 2008, and stabilizing in 2009; however, reductions in exploration and development expenditures in 2009 will affect the total value in the latter year. Metal prices have stabilized and improved moderately in 2009, but exploration and development expenditures will be lower. Exploration expenditures will be lower due to lack of funding for projects reflecting the worldwide economic uncertainty. Development expenditures will be lower due to completion or near-completion of several projects: Rock Creek, Kensington, Nixon Fork and Ft. Know heap leach. The overall value is forecast to decrease by 7.34%% to $2.9 billion between 2008 and 2009.
Challenges are presented to the state in overcoming high profile negative public sentiment, shortage of skilled personnel, and a lack of infrastructure.
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| A3:
Strategy - Support expansion of Alaskan industries. |
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Target #1: 10% annual increase in statewide mineral exploration spending.
Status #1: Exploration for 2008 actually increased $16.0 million from 2007; however, it is expected to decrease $95.1 million between 2008 and 2009.
Methodology: 2009 data is projected.
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Percentage of Expenditures for Mineral Exploration in Alaska
| Year |
In Millions |
% Increase |
| 2009 |
250
-27.56%
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-27.56%
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| 2008 |
345.1
+4.86%
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4.86%
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| 2007 |
329.1
+83.96%
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83.96%
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| 2006 |
178.9
+72.18%
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72.2%
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| 2005 |
103.9
+46.75%
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46.75%
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| 2004 |
70.8
+156.52%
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156.52%
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| 2003 |
27.6
+4.15%
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4.15%
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| 2002 |
26.5
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0
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Analysis of results and challenges: The increase in mineral exploration from 2007 to 2008 exceeded expectations primarily due to enthusiastic efforts at Livengood, continued activity at Pebble, Donlin Creek, Whistler, Bokan Mountain, Palmer, ZaZu and other projects. The increase was 4.86%. The forecast for 2009 indicates a significant decrease due to maturity of the Donlin Creek and Pebble Copper projects; these projects should enter the Development.
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Target #2: 10% annual increase in statewide mineral development expenditures.
Status #2: Development expenditures increased from $318.8 to $361.5 million between 2007 and 2008, 13.39%; expenditures for 2009 are expected to decline to $150 million, -58.5%, due to maturity of development projects.
Methodology: 2008 data is projected.
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Value of Development Expenditures in Alaska
| Year |
Millions $$ |
% Increase |
| 2009 |
150
-58.51%
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-58.51%
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| 2008 |
361.5
+13.39%
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13.39%
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| 2007 |
318.8
-35.69%
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-35.7%
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| 2006 |
495.7
+42.48%
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42.5%
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| 2005 |
347.9
+66.38%
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66.4%
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| 2004 |
209.1
+433.42%
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433.42%
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| 2003 |
39.2
+14.96%
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14.96%
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| 2002 |
34.1
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0
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Analysis of results and challenges: Development investment increased $42.7 million between 2007 and 2008 due to the continued, but subdued, expenditures at Kensington, heap leach construction at Ft. Knox, construction at Rock Creek, and development efforts at Chuitna Coal. Development expenditures continued to be strong. NovaGold Resources continued construction at Rock Creek to November, but curtailed expenditures at that time. Legal challenges continue to delay construction efforts at Kensington and Chuitna Coal. For 2009, the value of development is expected to decrease significantly due to curtailment of construction at Rock Creek and Kensington. The heap leach project at Ft. Knox will continue, but will be the only major project in Alaska during 2009. Other project expenditures are expected but are minimal due to delays in permitting and legal challenges.
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Target #3: Increase the number of certified Made in Alaska vendors by 3% per year.
Status #3: 2009 has shown a decrease in participants of the program by -4.64%. This maybe due to the economic conditions around the world.
Number of Certified Vendors
| Year |
# of Certified Vendors |
% Increase |
| 2009 |
1047
-4.64%
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-4.64%
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| 2008 |
1098
+1.48%
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1.48%
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| 2007 |
1082
-3.91%
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-3.91%
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| 2006 |
1126
+0.9%
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0.9%
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| 2005 |
1116
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Analysis of results and challenges: Analysis of results and challenges: Although the amount of vendors fell in 2009, the January 2009 survey performed by OED showed
Analysis: 44% of the 224 Alaskans are in high favor of this type of marketing support from the State. Overall, 83% of the 224 favor the program.
Results: On average, the program has been supported by 1,093 participants over the past five years.
Challenges: Continue to identifying businesses that are not operated as a hobby, and have the potential to grow. Continue helping Alaska’s small businesses with financial and logistical problems that impede growth. Most of the participants would like more exposure of the program and more support by the local retailers.
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Target #4: Local dollars leverage to State dollars 4:1.
Status #4: Local dollars continue to average 4:1 and more through the ARDOR program.
Leveraged Dollars (In Hundreds of Thousands)
| Fiscal Year |
State Grant |
Other Funding |
Leverage Rate |
| FY 2009 |
$6.19993
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$34.72966
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5.6
+8.32%
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| FY 2008 |
$6.19995
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$32.06903
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5.17
-17.01%
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| FY 2007 |
$6.19995
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$38.59601
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6.23
-4.01%
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| FY 2006 |
$5.83816
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$37.86936
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6.49
-7.42%
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| FY 2005 |
$5.53224
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$38.76867
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7.01
+80.67%
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| FY 2004 |
$5.2473
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$20.34537
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3.88
-34.46%
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| FY 2003 |
$5.22990
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$30.95474
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5.92
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Analysis of results and challenges: Because the ARDORS are local organizations, local businesses and governments can more accurately assess the impact an ARDOR may have in creating and sustaining economic activity within their respective regions. If the ARDOR is deemed successful, businesses and governments are more likely to fund the ARDOR. However, the drop in local support between FY07 and FY08 may be an indicator of the retrenching of the economy, not necessarily a failure of the program.
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Target #5: Meet with four Regional Seafood Development Associations (RSDAs) and two Alaska Regional Development Organizations (ARDORs) annually.
Status #5: Not available.
Analysis of results and challenges: These meetings proved to be helpful in documenting the current challenges facing the fishing industry in rural communities. The Division is presently involved in several activities aimed at reducing the impacts to the industry by helping to identify federal grant monies, prioritizing transportation projects and communicating about available funds for energy efficiency outcomes.
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Current as of Oct 28 2009 12:58:29 |
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