Tourism

The final cruise ship of the season, the Norwegian Jewel, leaves Juneau on Thursday evening. It concludes a nearly 200-day cruise ship season for the capital city. 

It’s one of the latest departure dates of a ship in Juneau — termination dust has covered the mountains surrounding Gastineau Channel for weeks. It also marks an end to a tumultuous tourism season dominated by a contentious ballot proposition and a surprise port announcement. 

During a panel at the Alaska Travel Industry Association conference on Wednesday, Juneau’s Visitor Industry Director Alix Pierce said Juneau is at an inflection point with tourism. 

“The best that we can do as policy people who are trying to manage these issues is try to figure out what direction sentiment is moving in, and at what point negative sentiments start to kind of boil over,” she said. “I think it’s fair to say that Juneau’s in one of those places right now.”

In this municipal election, Juneau voters rejected a ballot proposition that would have banned all large cruise ships on Saturdays starting next year. Just a day after election results were finalized, Goldbelt, Inc. and Royal Caribbean revealed plans to develop a new cruise ship port on Douglas Island.

This was the first season major in which cruise lines agreed to observe a five-ship daily limit. The final tally of passengers who came through Juneau this year hasn’t been released yet, but Pierce said the number should land between 1.6 and 1.7 million passengers. 

Next year’s passenger numbers will be about the same. But, things are slated to change in 2026. That’s because the city negotiated with cruise lines to cap the number of daily passengers that come off cruise ships: 16,000 people on most days and 12,000 people on Saturdays. Right now, Juneau can see up to 21,000 visitors on its busiest days. 

In 2026, ships will also cease visiting Juneau in April and in October, according to Pierce. This year the first ship arrived April 9. 

At the conference, Pierce said the city isn’t done working on future negotiations and ways to ease the impacts of tourism in the future. 

“With these limits in place, and with all of this work and all of these recommendations that that we’ve made, we’re constantly trying to figure out how to best manage our community,” she said. 

Pierce said the city also plans to ramp up public outreach on what residents want to see change in Juneau’s tourism landscape. More information about the season will be shared once the city is done conducting its annual survey on the public’s opinion on tourism. 

The first ship of the 2025 season is slated to arrive on Monday, April 14.

The City of Ketchikan commissioned a study by McKinley Research Group to look at how much tourism is costing the city.

“So your total costs to the City of Ketchikan related to cruise passenger volume in the city for 2023 was about $8 million,” Raniyah Bakr, a McKinley economist, told the Ketchikan City Council at their October 17 meeting.

That $8 million breaks down to about $5.43 per tourist.

According to a memo from City Manager Delilah Walsh, the study aims to hone in on the specific areas where cruise passengers cost the city the most. That way, they can better focus on where to spend the tourism revenue and negotiate with cruise lines in the future.

The research broke down the costs by city departments. The Ports & Harbors department and emergency services bore the financial brunt of the nearly 1.5 million cruise passengers that passed through the city in 2023. McKinley estimated the total cost to Ports & Harbors to be roughly $3.8 million followed by fire/EMS and police, at $1.3 million and $1 million, respectively.

According to the report, a big part of that cost to Ports & Harbors is Berth IV, one of Ketchikan’s four cruise ship docks. All the docks are city-owned except Berth IV, which the city leases from Ketchikan Dock Company. The city pays the private company a flat, year-round lease of $1.8 million a year for use of the berth, even though, as the report points out, the cruise docks go largely unused in the off-season. Ketchikan Dock Company charges additional fees when passenger volume exceeds 820,000. According to the report, the city paid $2.3 million in 2023 for using Berth IV.

McKinley first submitted the report to the city back in September.

McKinley arrived at these numbers by factoring in two specific types of costs. One is what they call “marginal costs,” which are the costs that wouldn’t exist if there were no cruise passengers– things like hiring seasonal crossing guards or janitorial contracts. The other is “overhead costs,” or the toll that cruise passengers put on city services not specifically geared towards them, things like medical supplies and overtime pay for the city’s emergency medical personnel dealing with more calls. As Bakr put it, this calculation largely focuses on “services rendered rather than actual spending.”

Walsh said the city doesn’t hire extra employees for the summer months. Fire and police department employees just work overtime.

“We just spend a lot on overtime in the season. Let’s say we schedule three ambulance shifts normally. We’ll schedule five during the season because of the call volume. So we’re not hiring more individuals, but we do have a lot of overtime because of it,” Walsh said, adding that those departments are already understaffed. “What national standards are, we’re probably short three EMTs in spite of the cruise season, just based on our number of calls.”

For the $8 million in costs, McKinley said the city doubled that in revenue, bringing in more than $16 million from cruisers. Nearly 90% of that was port fees.

Councilmember Jai Mahtani, who also runs a retail business near the cruise docks, disparaged McKinley’s report. He said he believed the cost to the city was far more than $8 million.

“I’m frustrated because this data is inaccurate – just doesn’t apply, just doesn’t. I think we need to be very careful how we go about using this data,” said Mahtani.

He didn’t elaborate on specific figures in the data he thought were inaccurate.

Councilmember Mark Flora also expressed concern but with a different aspect of the report. Specifically, Flora pointed to the largest cruise-related expense: the port. Flora said the funding for the port was coming out of the city’s general fund, which he says means that “the residents of Ketchikan are subsidizing port operations.”

“We have general fund money funding that port — and by the way, gang, that’s not allowed,” said the councilman. According to Flora, sales tax isn’t factored into port revenue and Ketchikan’s port can’t sustain itself.

“I hope we’re not looking for ways to sustain what’s going on here, because we’re actually asking residents to support expenses directly attributable to visitors,” Flora said, banging his fist on the dais.

City Manager Walsh said she sees where Flora is coming from but said it’s not what the data in this study is pointing to. She said the costs shown in the study are not related to port infrastructure but rather what happens when passengers step off the port.

“The functioning of the port, the infrastructure of the port, that’s a whole separate cost versus what it costs for a person to get off the ship and impact us, because it’s going to be a cost, no matter what, for a ship to dock,” said Walsh.

Raniyah Bakr, the McKinley economist, also mentioned how Ward Cove fits into the equation. Bakr said the cruise port at Ward Cove is responsible for 25% of total passenger numbers. According to the report, Ward Cove recieved about 368,000 passengers in 2023 and about half of them traveled to downtown Ketchikan. Ward Cove, however, is owned by a private company called the Ward Cove Group and partially funded by Norwegian Cruise Lines. The report factored in the costs to the city presented by these additional passengers but Bakr said she didn’t know the tax structure between the City and the Ward Cove Group or if Ketchikan received revenue from Ward Cove.

Walsh noted that Ward Cove passengers do impact Ketchikan’s infrastructure and overall costs.

Ketchikan’s newly elected mayor Bob Sivertsen referenced the head tax, a fee that is paid per passenger and factored out to about $5 per person in the report, and said that Ward Cove port receives the full $5 per passenger while the Ketchikan city and borough had to split the $5 fee in half. “We should be getting credit for that, because the impact is in the community,” Sivertsen said of the Ward Cove Group’s profit. However, Sivertsen also said that the island’s cruise docks were largely a “conduit to get the revenue, get the people into the town, so we can get the sales tax and the economy from the passengers as they come into the community.”

The city will continue to look at the cost of tourism. McKinley Research Group said they planned a survey of Ketchikan residents to look into the intangible costs, like how it affects locals’ quality of life.

McKinley also acknowledged in the report other intangible costs to the city that they were unable to calculate, like the fact that city and state engineers “often struggle to upgrade municipal infrastructure because construction season largely overlaps with the cruise season” or that municipal employees are often “unable to take vacations during the season.” The report also cited cruise passengers using restrooms at local museums without paying admission, which staff must maintain, and commercial charter and tourism boats “blocking the loading zone at the harbor, resulting in lost moorage revenues from other potential users.”

Ketchikan City Council voted unanimously to accept the report and directed staff to come back with a recommendation on how best to use the data.

Juneau city officials say they are still “extremely unhappy” with a cruise line and a local Alaska Native corporation after they announced plans to develop a new cruise ship port on Douglas Island last week. 

Laura Hodges Bethge is the president of Celebrity Cruises, which is owned by Royal Caribbean Group. On Tuesday at the Alaska Travel Industry Association conference in Juneau, she said the proposed partnership between Goldbelt, Inc. and Royal Caribbean will help address congestion in downtown Juneau. 

“This project is an example of how we work with destinations to help disperse visitors across the geography,” she said during a speech. “We’ve just begun conversations with Mayor Weldon and other local stakeholders and residents, and we deeply value the input. We know we have a lot of steps to take to move this project forward, and we look forward to doing it with all of you.”

Goldbelt owns nearly 2,000 acres of land along the north coastline of Douglas Island, roughly between False Outer Point and Point Hilda on the island’s west side. The proposed two-ship port could be located anywhere along that coastline. 

After the speech, Juneau Mayor Beth Weldon said she wanted an apology for what she believes was a poorly-timed announcement. It came just a day after the city’s municipal election results were finalized. Juneau voters rejected a ballot proposition that would have banned all large cruise ships on Saturdays starting next year.

“We’re very displeased with what their actions have been thus far, and they have to prove to the community that what they’re trying to do is best for the community, because at this point, we don’t see any benefit to the community,” Weldon said.

The city’s Visitor Industry Director Alix Pierce echoed Weldon’s frustration. 

“As far as I’m concerned, having two meetings where we tell them how disappointed we are, and they evade and give excuses, is not really working together,” Pierce said. 

Hodges Bethge declined an interview after her speech. A Royal Caribbean Group spokesperson shared a statement instead.

“We formally apologize to the City and Borough of Juneau that we did not communicate with their team earlier on the planned port project,” the statement reads. 

According to Goldbelt, the companies hope to finish financial estimates and concept designs for the project by next spring and complete the project during the 2027 cruise season.

Juneau voters rejected a ballot proposition that would have banned all large cruise ships on Saturdays in this year’s municipal election.

But supporters say it’s not the end of the local grassroots effort to address the impacts of tourism growth. And now, plans for a new cruise ship dock on Douglas Island are complicating things.

This year’s municipal election season was packed with candidate forums and campaign signs. You couldn’t scroll on social media without seeing an ad.

Most of the time, they all centered around the most contentious issue on the ballot — whether Juneau should ban large cruise ships on Saturdays? Final election results showed just over 60% of registered voters were against the idea.

“It’s too hard a line just to say no ships on Saturdays,” said Juneau voter Heather Ramseth on Election Day. “I think trying to be more nuanced about our approach is important, and continuing to have conversations, even though it’s hard.”

Karla Hart is a longtime activist against tourism growth and one of the community members behind the initiative.

“I think that the fact that 40% voted yes is very telling,” she said.

She thinks most people in Juneau want to see real change to slow down the expansion of tourism, but she wasn’t surprised the initiative failed. That’s because of how much money the opposition group, Protect Juneau’s Future, threw at its campaign.

According to a campaign finance report from late September, the group raised nearly $500,000. On the flip side, Ship Free Saturdays only raised $380.

“We didn’t advertise, because it was clear that we were never going to win a campaign on advertising,” Hart said.

One of the loudest voices against the initiative was McHugh Pierre. He’s the president and CEO of Goldbelt Incorporated, an Alaska Native corporation based in Juneau, and was the chair of Protect Juneau’s Future. One of the group’s bigger donors was Royal Caribbean Group. The cruise line also sent a letter to the city threatening a lawsuit if the initiative passed.

Then, just a day after the election results were certified, Goldbelt and the cruise line announced a partnership to develop a new cruise ship port on the backside of Douglas Island.

“This is the very beginning,” Pierre said in an interview after the announcement. “There’s a lot of communication that needs to happen now and a lot of feedback, but what’s really important is that we wanted to start the conversation. We’re excited for the long-term prospects of opening up this area for our use and for the community’s use.”

City officials said they were blindsided by the announcement.

“I’ve heard, personally from McHugh Pierre, that this is the beginning of the dialogue. But you don’t start a dialogue with the press release the day after a contentious election is certified,” said Alix Pierce, Juneau’s tourism manager.

Pierce said the timing erodes the trust people have in the city to fairly manage tourism.

“It makes the city look like we were somehow in on it, and I can assure the public that we were not,” she said. “I’m just so incredibly disappointed in the approach that they took and the way that this was handled.”

Hart was also taken aback by the news.

“I think it’s indication that Goldbelt and Royal Caribbean are entirely tone-deaf on what’s going on — it just is entirely tone-deaf,” she said.

According to City Attorney Emily Wright, a proposition similar to Ship Free Saturdays can’t be on the ballot again for at least one year after the election is certified, which rules out a repeat initiative next year.

But Hart said she and other advocates plan to continue to make noise by attending city meetings about tourism, speaking with Assembly members about future ideas and speaking out against the proposed Douglas port.

Pierce said the city also wants to ramp up public outreach on what residents want to see change in Juneau’s tourism landscape.

Goldbelt Incorporated and Royal Caribbean Group announced a partnership on Wednesday to develop a new cruise ship port on the backside of Douglas Island. 

 Juneau city officials, including Mayor Beth Weldon, said they felt blindsided by the news. 

“Royal Caribbean’s announcement of a dock on the backside of Douglas Island is a slap in the face — we are very unhappy with both Royal Caribbean and Goldbelt,” she said. “They didn’t give us the courtesy of talking to us first. We know nothing of their plans.”

The Alaska Native corporation’s president and CEO McHugh Pierre said Wednesday the companies are optimistic about having the project completed during the 2027 cruise season. 

“This is the very beginning,” he said. “There’s a lot of communication that needs to happen now and a lot of feedback, and we don’t have plans, but what’s really important is that we wanted to start the conversation.”

As the beneficiary of the Alaska Native Claims Settlement Act, Goldbelt owns about 1,800 acres of land along the north coastline of Douglas, roughly between False Outer Point and Point Hilda on the island’s west side. 

“This is our traditional land. We’re here to stay, and we’re excited for the long-term prospects of opening up this area for our use and for the community’s use,” he said. 

Pierre said the location of the port could be anywhere along that coastline. The hope is for the port to be electrified and accommodate two cruise ships at a time. 

Along with the port, the companies hope to develop employee housing, floatplane and whale watching docks, helicopter pads and recreate a Lingít village for passengers to visit, among other business opportunities. 

They also hope to shuttle tourists on boats from Douglas to Mendenhall Glacier. In a joint press release, the companies say that will help reduce downtown bus traffic and congestion and that the project is aimed at “enhancing the local and visitor experience.”

Deputy City Manager Robert Barr said the city will begin figuring out next steps immediately, like how the project fits with the city’s current agreements with cruise lines and what hurdles the project must go through to get city approval to break ground. This year major cruise lines entered into an agreement with the city to observe a five-ship daily limit. Barr said he does not know for certain if the limit would apply to the project area.

“There are still a lot of unknowns, and the public can expect that we are going to work on their behalf to responsibly manage the visitor industry in a way that works for the whole community and not just one section of it,” Barr said. 

Pierre said he is looking forward to working with the city to move the project forward. 

“Goldbelt is trying to communicate with people at the appropriate time,” he said. “We don’t have any plans yet, so I don’t know why they’re upset, but that’s on them. It’s not on me.”

The project has been in the works for the past three months, according to Pierre. But rumors of Goldbelt’s plan to develop the west and north sides of Douglas have been circulating for decades.

Goldbelt already owns popular tourist attractions like the Goldbelt Tram downtown and has invested millions of dollars into a gondola project at Eaglecrest Ski Area. The gondola project is still underway, but Eaglecrest officials say once complete, it will help boost summer visitation at the ski area. 

Pierre was also one of the loudest voices to speak out against a ballot proposition in this fall’s municipal election that asked voters whether or not Juneau should ban all large cruise ships on Saturdays starting next year. 

The proposition ultimately failed, according to the final results of the elections which were released on Tuesday — just a day before the announcement of the North Douglas project. Pierre said the election did not factor into the timing of the announcement. 

However, Karla Hart, the community member behind the initiative and a longtime activist against tourism growth in Juneau, disagreed. She said she was disappointed with the news of the planned development. 

“I think it’s indication that Goldbelt and Royal Caribbean are entirely tone-deaf on what’s going on — it just is entirely tone-deaf,” she said. 

The plan also comes as Huna Totem Corp., an Alaska Native village corporation based in Hoonah, attempts to build a new cruise ship dock in downtown Juneau along the Gastineau Channel. Huna Totem also proposed a waterfront development plan at the site called Aak’w Landing. 

Both the dock and waterfront development plan still have a long way to go before breaking ground. The Assembly needs to approve a lease of the city-owned tidelands before Huna Totem can build it. 

Pierre said he doesn’t have a clear timeline for when more information will be released about the North Douglas development. But, the companies hope to finish financial estimates and concept designs by next spring. 

“The fact is that we’re announcing this to make sure that people know that it’s happening and it’s not happening in secret,” he said. “That we can talk about it and that it’s an opportunity for everybody to share potential needs. And I think we’re on the right track to do that.”

The Haines Assembly has passed its first cruise passenger fee. The tourism director says the move will help the adventure capital be ready for expenditures related to tourism.

The Haines Borough Assembly unanimously approved a new tariff on cruise ship passengers. The revenue passenger fee will start next year.

Reba Hylton is tourism director for Haines. She said the town, which will host roughly 100,000 cruise ship passengers this year, has never had a passenger fee.

“No, we didn’t have a fee at all,” she said. “So that was kind of like a big, big red flag to me when knowing that the existing cruise ship dock needed some maintenance. And you know, you want to know how you’re going to fix things, or how you’re going to make things better. And when there’s no pot of money specifically targeted to do that, for me, bringing forward a port fee was a must.”

The fee will start out at $9 per passenger in 2025 and increase to $12 in 2027 and then $13 in 2029. The Assembly has not defined exactly what the funds will be used for, but legally, the money must go towards improvements that benefit passengers, such as a floating dock or other infrastructure need.

Hylton said the discussion regarding the tariff first started about six months ago.

“It’s been to several different committees: the Tourism Advisory Board, and Ports and Harbor, Finance and Commerce,” she said. “So it’s had a lot of vetting and discussion, and now it’s in place. So it was a lot of work.”