HomeMy WebLinkAbout02092026 City Council Laydown - Chamber of CommerceDestination Marketing Organization (DMO) Contracts
Skagway
Organization type: An internal Municipality of Skagway-operated department called "Visitor
Department."
Budget:
2025: $1,042,737.41 (Pg. 11 in the BUDGET ORDINANCE published Dec 05, 2024)
2026: $1,141,592.28 (Pg. 07 in the BUDGET ORDINANCE published Dec. 04, 2025)
`Special notes:
• There are two line items in the expenses for "RV PARK" which would not be relevant to
our expenses - those line item amounts are $170,000.00 are $101,122.28 for a total of
$271,122.28. If you take those two line items out of the 2026 budget, their expenses
(that would be comparable expenses to ours) are $870,469.72
• Payroll for 2026 was:
o Expense - Salaries 342,400.00
o Expense - Employee Payroll 84,700.00
• TOTAL: $427,100 (The department consists of 2 full-time staff members.
Additionally, 2-5 seasonal employees assist our visitors from May to
September)
Valdez
Organization type: A nonprofit CVB (Convention & Visitors Bureau) with a city -funded contract
Budget: (Pg. 30 of City of Valdez City Council Meeting Agenda Packet published Nov. 18, 2025)
2022: $446,245
2023: $531,245
2024: $531,245
2025: $546,650
*Special notes:
For 2026, Discover Valdez (VCVB) requested the amount of $562,500. The city council has
requested "A new budget from the VCVB be presented not to exceed the projected Public
Accommodation Tax revenue. Pursuant to this request, $505K appropriated to reserve pending
council direction." Also due to reported instability at VCVB (high number of employee turnover in
key positions led to expensive outsourcing contracts to meet requirements of the contract), the
city council also recommend a creation of a task force "to identify an appropriate model to
stabilize."
• VCVB request: City of Valdez City Council Meeting Agenda Packet / Council Budget
Work Session - Valdez Convention and Visitors Bureau Published Oct. 16, 2025)
• Finalized budget amount: Pg. 10 City of Valdez City Council Meeting Agenda Packet
published Nov. 18, 2025
• Task Force: City of Valdez News Release published Jan 23, 2026
Ketchikan
Organization type: Ketchikan Visitors Bureau is a nonprofit organization with a city contract and
a borough contract
Budget:
City of Ketchikan (City Contract (Pg. 269 for Contract Amount / Pg. 298 Reference to Ketchikan
Visitors Bureau As line Item for Contact, 2026 General Government Operating
and Capital Budget)
• 2025: $100,450
• 2026: $100,450
Gateway of Ketchikan Borough
• 2025: $450,000 (Regular Assembly Meeting Live Stream, item 7g Published August
05,2024)
• 2026: $450,000 (Pg. 18, Ketchikan Gateway Borough • Final Summary Budget • FY
2026, published July 24, 2025)
YEARLY TOTAL: $550,450
Sitka
Organization type: A Chamber of Commerce with a DMO contract with the City
Budget: (Pg. 02, Visit Sitka Annual Workplan & Budget Request, Published March 26, 2024)
2021: $500,200
2022: $458,600
2023: Base: $300,000, Supplemental $275,00 TOTAL: $525,000
2024: Base: $300,000, Supplemental $275,00 TOTAL: $525,000
2025 Requested before Contract was not renewed: $575,000
*Special notes:
In 2025, the Sitka Chamber of Commerce chose not to renew its DMO contract with the City of
Sitka. After operating for several years at a contractual deficit and without additional City funding
support, the organization made the strategic decision to refocus its limited staff capacity on its
core Chamber services.
Kodiak
Organization type: The City of Kodiak funds visitor services and destination marketing
through its Tourism Development Fund and provides annual contributions to
nonprofit partners, including Discover Kodiak and the Kodiak Chamber of
Commerce.
Budget: (Pg. 46, City of Kodiak Adopted FY2026 Operating Budgets, Published July 01, 2025)
2025
• Chamber of Commerce: $150,000
• Discover Kodiak: $150,000
• General Contributions: $7,500
TOTAL: $217,000.00
2026
• Chamber of Commerce: $9,500
• Discover Kodiak: $200,000
• General Contributions: $7,500
TOTAL: $307,500.00
*Special notes:
The city has a line item budget called "Fund 251 - Tourism Development" that includs the above
contracts as well as tourism -focused capital projects and administrative costs with a total budget
of $703,500.00 for 2026
Homer, Soldotna, Kenai
Budgets: All around $150,000
Communities with a high concentration of tourism -driven revenue, such as Seward, Skagway,
Kodiak etc., typically make a proportionally higher public investment in visitor services and
destination marketing than more economically diversified regional service hubs such as
Soldotna and Homer, where tourism represents a smaller share of the overall local economy.
Aka They spend less because their economy is less exposed to visitor fluctuations. These
communities typically fund a much narrower scope of services —primarily visitor center
operations and limited marketing —whereas communities like Seward view DMO services as a
form of economic protection, not just promotion. As a result, our approach relies on a deeper,
more diversified set of marketing and visitor -management expenses that better safeguard
long-term community and economic stability.
**Graph shows average visitation -related sales tax 2018 - 2024 and the share of total City sales
tax revenue.
Average (Excluding 2020 COVID Year)
Tourist
Total Percent
Homer 118,895,014 $ 441,284,104 27%
Kenai 51,976,964 $ 512,337,860 10%
Seward 156,521,780 $ 335,703,750 47%
Soldotna 13,874,373 $ 474,408,295 4%
Markers of DMO Success
Visitation
Source: Seward's Economic Pulse: A Data Story on Seward's Tourism Industry Report provided
by KPEDD)
• Visitor Volume: Seward accounts for about 25% of statewide visitors in the summer and
14% in the winter; 23% overall for the full year
• Total trips: 468,243 with a 28.8% increase over 2024 // Strong volume growth, indicating
successful marketing and/or increased cruise/rail traffic.
• Visitor Days (**the length of stay for every single travelers' trip): 1,154,949 with 13.5%
increase over 2024
Source: Visitor Center Main Building
• 2024 Visitors: 5,979
• 2025 Visitors: 11,119
86% Increase
Indications of Success: Sales Tax + Bed Tax
Source: Alaska SBDC Kenai Peninsula Center
Sales Tax
All information gathered is excluding sales tax from industries that are not naturally related to
visitation (ex. Waste Management, Agriculture/ Forestry, Construction/ Contracting, Education,
Finance)
• Tourist Impact Sales Tax Revenue by year: Shows overall growth
O 2021: $145,641,418
O 2022: $178,860,094
O 2023: $167,499,249
O 2024: $190,756,121
• A $400,000 contract represents just over two -tenths of one percent (0.21 %) of total
sales tax revenue of $190,756,121 (2024 amount).
• For every $1 the City invests in the Chamber contract, it is supporting an economy that
generates about $477 in visitation -driven taxable sales. So a 477:1
revenue -to -investment ratio.
Bed Tax:
Bed tax collected by year // Shows continued growth
O 2021: $713,633.00
O 2022: $804,511.00
O 2023: $840,428..00
O 2024: $873,682.45