Impacts of Nonresident Sportfishing
on the Ketchikan Economy
Prepared for:
Ketchikan Visitors Bureau
February 2010
Impacts of Nonresident Sportfishing
on the Ketchikan Economy
Prepared for:
Ketchikan Visitors Bureau
PREPARED BY:
Juneau Anchorage
February 2010
Table of Contents
Key Findings ............................................................................................................................ 1 Introduction and Methodology .............................................................................................. 3
Introduction ........................................................................................................................... 3 Methodology ......................................................................................................................... 3
Ketchikan Visitor Market Overview ........................................................................................ 5 Visitor Volume and Spending ................................................................................................. 5 Visitor Industry Employment and Payroll ................................................................................. 5 Ketchikan Sportfishing Visitor Profile ....................................................................................... 6
Nonresident Sportfishing Industry Profile ............................................................................. 8 Guided Sportfishing Industry .................................................................................................. 9 Unguided Sportfishing ......................................................................................................... 13 Sportfishing Industry Direct Employment and Payroll ............................................................ 13
Direct Spending .................................................................................................................... 15 Ketchikan Nonresident Sportfishing Spending ...................................................................... 15 Total Direct Spending ........................................................................................................... 16 Industry Spending Patterns ................................................................................................... 18 Prince of Wales Island Nonresident Sportfishing-Related Spending ........................................ 19
Economic Impacts ................................................................................................................. 21 Sportfishing Industry 2009 ................................................................................................... 23 Appendix ............................................................................................................................... 24
Statewide Harvest Area A and B maps ................................................................................... 24
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 1
Key Findings
The purpose of this study is to measure the direct and indirect economic impacts of nonresident sportfishing
visitors on the Ketchikan economy in 2008. In addition to guided and unguided visitors who fished out of
Ketchikan, this study also includes Ketchikan spending and employment impacts from sportfishing-related
businesses that operated on Prince of Wales Island (POW), as well as the impacts of POW nonresident
sportfishing visitors passing through Ketchikan. Data was gathered from multiple sources including previous
McDowell Group studies, Alaska Department of Fish and Game, and a series of interviews with Ketchikan and
Prince of Wales Island sportfishing business owner/operators.
The Ketchikan nonresident sportfishing industry, while seasonal in nature, is a significant contributor to the
Ketchikan economy. Based on the results of this study and a review of the Economic Impacts of the Visitor
Industry in Ketchikan, Summer 2006 the study team estimated that nonresident sportfishing-related direct
spending accounted for roughly 8 to 10 percent of all visitor industry spending in 2008.1
Direct spending by the nonresident sportfishing market impacts many Ketchikan business sectors including
guided fishing operations, transportation (especially floatplane operations), accommodations, restaurants and
lounges, and a variety of retailers including those selling fuel, fishing gear, gifts, souvenirs, and clothing.
Statistics show that the industry contracted somewhat from 2007 to 2008, and based on industry interviews,
suffered more significant declines in 2009. Owner/operators expressed guarded optimism that business
volume would stabilize in 2010, but as of the date of this report, no conclusions could be drawn from
reservation volume to date.
Key findings from the study are presented below. All figures are for 2008 unless otherwise noted.
Size of the Industry
• Ketchikan hosted an estimated 30,400 nonresident sportfishermen, of which two-thirds used the
services of a registered guide.
• An estimated 3,300 unguided nonresident sportfishermen either stayed at a lodge/resort or rented a
boat in Ketchikan.
• There were 87 sportfishing guide businesses with 141 vessels active in the Ketchikan area and 76
businesses with 184 vessels active on POW.
• There were nearly 21,000 half-day and 6,700 full-day Ketchikan guided nonresident sportfishing
trips.
• Ketchikan ranks fourth among major saltwater fishing areas around the state based on the number of
active vessels in 2008. The Cook Inlet area (Kenai/Homer), Sitka, and Prince of Wales Island are the
top three areas.
1 The most recent estimate of the overall impacts of Ketchikan’s visitor industry was in Economic Impacts of the Visitor Industry in Ketchikan, Summer 2006, McDowell Group. The rough estimates are based on a comparison of 2006 study results with the results of this study.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 2
Direct Economic Impacts
• Direct spending in Ketchikan related to the nonresident sportfishing industry was estimated at $15.6
million.
• Estimated direct spending for guided sportfishing in Ketchikan (combined half-day and full-day) was
about $7.3 million and accounted for 46 percent of nonresident sportfish-related spending in
Ketchikan. The Ketchikan unguided, nonresident sportfishing sector, which included lodges that
feature unguided fishing and businesses that rent boats, accounted for 30 percent of estimated
spending at $4.6 million. An additional $3.7 million in Ketchikan spending (24 percent) was
generated by POW sportfishing visitors and the businesses that served them.
• Total direct nonresident sportfishing-related employment was estimated at 340 (mostly seasonal) jobs
with direct payroll of $5.2 million.
• Ketchikan sportfishing industry businesses reported a local hire rate of 87 percent and a local
business-related spending rate of 85 percent.
• POW sportfishing businesses had direct spending of at least $3.5 million in Ketchikan, including $1.1
million for floatplane services, $861,000 for fuel, and $480,000 in payroll.
• POW sportfishing visitors spent at least $200,000 while passing through Ketchikan on their way to or
from their POW guided fishing trips.
Total Economic Impacts
• The total (direct, indirect, and induced) economic impact of nonresident sportfishing was estimated
at $20 million. This included direct spending of $15.5 million with nearly $4.5 million in indirect and
induced impacts.
• Included in the total spending impacts was sportfishing industry-related direct payroll of $5.2 million,
which resulted in an additional $1.5 million in indirect and induced wages.
• Total (direct, indirect, and induced) employment was estimated at slightly more than 400 (mostly
seasonal) jobs.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 3
Introduction and Methodology
Introduction
The purpose of this study is to measure the impact of nonresident sportfishing visitors on the Ketchikan
economy. Research for this study was conducted in the fourth quarter of 2009, a time when sportfishing
industry participants were more available to provide information than during their busy season. The most
recent data on license sales and guided sportfishing activity available from the Alaska Department of Fish and
Game (ADF&G) was for 2008. Therefore, the primary focus of this study is on the 2008 sportfishing season.
To illustrate year-to-year changes, trend data comparing 2007 and 2008 was included where possible.
Over the course of the study, it became clear that most sportfishing industry businesses had suffered a decline
in visitor volume and revenue from 2008 to 2009 due to difficulties in the national economy, as well as new
sportfishing bag limits. Due to the significant shift in the business climate, several questions concerning the
2009 season were included in the sportfishing business owner/operator interviews. A brief review of
comments pertaining to the 2009 season is included at the end of this report.
In addition to guided and unguided visitors who fished Ketchikan’s waters, this study also includes Ketchikan
spending and employment impacts from sportfishing-related businesses that operated on Prince of Wales
Island (POW) in 2008, as well as the impacts of POW nonresident sportfishing visitors passing through
Ketchikan.
Methodology
Because of the complexity of the sportfishing industry in the Ketchikan area, McDowell Group utilized
multiple sources of information in the development of this report. First, previous McDowell Group visitor
studies were summarized to establish an overview of the visitor industry in Ketchikan. The most recent studies
available were the Alaska Travelers Survey, Ketchikan Visitor Profile, 2006 and 2008, and Economic Impacts of the
Visitor Industry in Ketchikan, Summer 2006. The 2008 Ketchikan Visitor Profile included a sample of 230 air
visitors who sportfished in the Ketchikan or POW areas.
Sources of quantifiable data included ADF&G and the Alaska Department of Labor and Workforce
Development (DOLWD). Beginning in 1998, ADF&G required all fresh and saltwater guides to be registered
and to collect information via logbooks on sportfishing participation, effort and harvest by clients. The
Division of Sport Fish Research and Technical Services compiles the data. Records from fishing license sales in
Ketchikan and on POW were acquired from the ADF&G Licensing Division. A review of DOLWD 2007 and
2008 employment data was conducted to assist in estimating employment.
The McDowell Group study team conducted telephone interviews with 20 Ketchikan business
owner/operators that offered guided and/or unguided sportfishing. They represented a mix of business sizes
and types. The operations represented 52 percent of the 141 active charter vessels and a sizable majority of
boat rentals in the Ketchikan area in 2008.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 4
Telephone interviews were also conducted with 10 POW sportfishing businesses. The businesses represent 50
charter vessels (27 percent of the POW fleet) that hosted 3,900 guided and 600 unguided nonresident
sportfishermen (representing about half of the estimated 9,100 nonresidents who sportfished on POW in
2008).
Multipliers used in estimating total economic impacts were derived from a widely used input/output model,
IMPLAN2, along with McDowell Group’s project experience and analysis. IMPLAN multipliers were modified,
in some cases based on McDowell Group experience in measuring multipliers in Alaska rural and urban
economies.
2 Minnesota IMPLAN Group, Inc., IMPLAN Professional version 2.0
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 5
Ketchikan Visitor Market Overview
Before describing nonresident sportfishing impacts, the following section presents a brief review of the most
recent McDowell Group studies on Ketchikan’s visitor industry. This review is intended to provide the reader
with a greater context in which to view the nonresident sportfishing industry.
Visitor Volume and Spending
The vast majority of Ketchikan’s visitor industry volume is comprised of cruise ship passengers. According to
Cruise Line Agencies of Alaska, Ketchikan received 937,400 cruise passengers in 2009, just slightly below the
2008 total of 941,900. The most recent estimate of Ketchikan air visitors was 34,880 in summer 2006 and
ferry visitors were estimated at 15,733 for the same year (these figures do not include business travelers).
In summer 2006, per trip visitor spending in Ketchikan was estimated at $159 per person among cruise
passengers; $408 per person among air visitors; and $278 per person among ferry passengers. The table
below shows total spending by market. In total, visitors spent nearly $150 million in Ketchikan in summer
2006.
Ketchikan Visitor Volume and Spending, Summer 2006
Total Volume Total Spending Cruise passengers 780,158 $124.0 million Air visitors 34,880 15.2 million Ferry visitors 15,773 4.4 million Total visitor volume and spending 830,811 $143.6 million Cruise ship crew members 22,323 5.7 million Total visitor/crew volume and spending 853,134 $149.3 million
Source: Economic Impacts of the Visitor Industry in Ketchikan, Summer 2006, McDowell Group.
Visitor Industry Employment and Payroll
The visitor industry accounted for 1,150 direct jobs and a total of 1,500 (direct and indirect) jobs in summer
2006. In terms of payroll, the industry accounted for $40 million in direct payroll and $50 million in total
payroll in summer 2006. In the context of the overall economy, these total figures represented 14 percent of
all Ketchikan employment, and 12 percent of all Ketchikan payroll in calendar year 2006.
Visitor Industry Employment and Labor Income in Ketchikan, Summer 2006
Direct Total % of Ketchikan Total
Employment1 1,150 1,500 14%
Labor Income $40 million $50 million 12
Source: Economic Impacts of the Visitor Industry in Ketchikan, Summer 2006, McDowell Group. 1 Annual average employment, which includes full-time and part-time employment.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 6
Ketchikan Sportfishing Visitor Profile
In summer 2008 McDowell Group conducted the Alaska Travelers Survey, Ketchikan Visitors Profile which
targeted visitors departing via the Ketchikan International Airport. The airport surveys focused on two groups
of visitors: sportfishing visitors and other pleasure-related visitors. Sportfishing visitors may have fished in the
immediate Ketchikan area or in an outlying area such as Prince of Wales Island.
Using statistical sampling procedures to randomly select flights and passengers throughout the season,
McDowell Group surveyors intercepted a total of 444 visitors departing Ketchikan by air. The sample included
230 who were traveling primarily for sportfishing and 214 who were traveling for other pleasure-related
purposes. (Alaska residents and business-only travelers were excluded from the sample.) The maximum
margin of error for the sportfishing sample is ±6.4 percent, at the 95 percent confidence level. Visitors were
asked where they lived, their trip purpose, travel party size, household income, and if they overnighted in
Ketchikan. Gender was also recorded. The following tables profile Ketchikan’s sportfishing visitors.
• Sportfishing visitors were overwhelmingly from Western states with California and Washington the top
two states. International visitors accounted for just 3 percent of sportfishing participants.
Ketchikan Sportfishing Air Visitors Origin
Origin % of Sportfishing Visitors
West 71%
California 23
Washington 15
Other Western States 33
South 14
Midwest 8
East 5
International 3
• Sportfishing visitors reported an average party size of 4.7 people. Nearly one-quarter of these visitors
were traveling in parties of six or more.
Party Size Ketchikan Air Visitors
% of Sportfishing Visitors
One 15%
Two 24
Three 10
Four 18
Five 10
Six or more 23
Average party size 4.7 people
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 7
• Nearly nine out of ten sportfishing visitors were male. The average age was 51 years old.
Gender and Age of Sportfishing Party Members Ketchikan Air Visitors
% of Sportfishing Visitors
Gender
Male 87%
Female 13
Age
Under 18 5%
18 to 34 11
35 to 44 13
45 to 54 26
55 to 64 24
65 to 74 14
75 and over 7
Average age 51.3 years
• Sportfishing visitors reported high incomes, with 38 percent above $150,000 and another 27 percent
falling between $95,000 and $150,000.
Household Income Ketchikan Air Visitors
% of Sportfishing Visitors
Under $65,000 10%
$65,001 to $80,000 5
$80,001 to $95,000 5
$95,001 to $110,000 10
$110,001 to $125,000 9
$125,001 to $150,000 8
Over $150,000 38
Don’t know 1
Refused 12
Average $130,000
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 8
Nonresident Sportfishing Industry Profile
This section profiles Ketchikan’s sportfishing industry in terms of types of businesses, market segments, and
employment, and visitor participation rates.
Business Models
There is a diverse variety of business models that comprise the Ketchikan sportfishing industry. The list below
provides examples of some of the businesses models typical in the industry.
• A single owner/operator with one boat who manages reservations and accounting, guides the guests,
and cleans the fish.
• Single owner/operator who runs one boat, but manages multiple boats as one business.
• A family operation with one spouse or family member who manages the reservations and accounting
while the other takes care of the vessel and guiding.
• Operations that work exclusively or partially through brokers who wholesale fishing trips to cruise
passengers and other visitors.
• Operations that cater almost exclusively to the half-day cruise passenger market, while others offer
full-day charters.
• Operators that may provide only fishing, leaving the visitor responsible for finding their own
accommodations and meals.
• Businesses that offer sportfishing packages that include accommodations, meals, and fish processing.
• Larger, more complex operations that offer guided or unguided fishing packages that may include
accommodations, meals, bait, tackle, fuel and fish processing. Additional activities may include RV
park rentals and sundry sales. All of these services are also available individually for visitors who chose
to rent their own boats.
• Businesses that provide services to local residents such as sales of fuel, bait, moorage, meals, and the
occasional guided or unguided fishing trip.
Markets
There are four major market segments that contribute to the impacts of the Ketchikan sportfishing industry:
guided sportfishing (fresh and saltwater), unguided sportfishing, POW sportfishing businesses that have staff
and make purchases in Ketchikan, and POW sportfishing visitors who pass through Ketchikan.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 9
Guided Sportfishing Industry
The following analysis of guided nonresident sportfishermen was extracted from data provided by ADF&G
Division of Sport Fish – Research and Technical Services. Information concerning businesses, vessels, and trips,
is segmented by Statewide Harvest Survey (SWHS) areas. The Ketchikan and Prince of Wales areas (A and B)
are further segmented by nonresidents participation and trip length in the next section of this report.
2008 Number of Active Saltwater Businesses, Vessels and Trips by SWHS Area, 2008
SWHS Area Description # of Active Businesses
# of Active Vessels # of Trips
P Cook Inlet (Kenai/Homer) 223 280 13,332
D Sitka 135 222 11,399
B Prince of Wales Island 76 184 8,086
A Ketchikan 87 141 7,220
Q Kodiak 86 114 3,357
E Juneau 72 112 3,942
J Prince William Sound (Valdez/Cordova)
79 93 2,375
C Kake/Petersburg/Wrangell 45 53 1,333
Of the areas reviewed, Prince of Wales Island and Ketchikan were the third and fourth largest based on the
number of active vessels. Ketchikan had half the number of vessels as Cook Inlet area P and about two-thirds
the number of vessels active in Sitka area D.
Area A Ketchikan is comprised of all Alaska waters in the Ketchikan area, including drainages from Portland
Inlet to, but not including, Ernest Sound. Area A also includes Duke, Annette, and Gravina Islands. Area B
Prince of Wales Island, includes all Alaska waters and drainages from Cape Chacon to Sumner Strait, and from
Clarence Island westward, including Forester Island. Maps of area A and B provided by ADF&G are included
in the Appendix of this report.
A list of nonresident license sales by vendor was obtained from the ADF&G Licensing Division and was
grouped by Ketchikan and POW businesses. These lists were used to estimate the total number of
nonresident licenses sold in each area. These estimates were used as a proxy for the total number of
nonresident sportfishermen in each area. Even though a few visitors may have purchased multiple licenses,
duplicate licenses, or may have purchased their license elsewhere in the state before they arrived in area A or
B, this methodology provides a reasonably accurate count of the total number of nonresident sportfishermen.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 10
Saltwater Businesses and Vessels
ADF&G data shows there were 87 fishing guide businesses operating 141 boats in the Ketchikan area in
2008. This represented a decline of 4 percent in businesses and 8 percent in vessels from the previous year.
POW businesses and boats were relatively stable from 2007 to 2008 with a 1 percent decline in businesses
and a 1 percent increase in vessels.
Sportfishing Guide Businesses and Vessels 2007-2008
2007 2008 % Change
Ketchikan
Businesses 91 87 -4%
Vessels 154 141 -8
Prince of Wales Island
Businesses 77 76 -1%
Vessels 182 184 +1
Source: Alaska Department of Fish and Game, Division of Sport Fish – Research and Technical Services. Note: The Ketchikan area is defined as Statewide Harvest Area (SWHA) area A, and POW is area B. Counts are based on ports of offloading and are unduplicated.
Estimated Nonresident Sportfishing Volume
According to ADF&G sportfish license vendor data, there were an estimated 30,400 nonresident licenses sold
in Ketchikan and 9,500 sold on POW in 2008. These estimates include all license types as well as guided and
unguided fishermen. Using guide logbook data, ADF&G estimates the unduplicated number of nonresident
guided sport fishermen was about 20,000 in Ketchikan and about 9,100 on POW in 2008.
This data suggests the vast majority of nonresidents who purchased sportfishing licenses on POW fished with
a guide, and two-thirds of nonresidents who purchased a license in Ketchikan fished with a guide, in 2008.
For further analysis ADF&G logbook data was segmented by guided half-day and full-day saltwater trips, and
guided freshwater trips.
Ketchikan and POW License Sales and Guided Sportfishermen, 2008
POW Ketchikan
Estimated total nonresident license sales 9,500 30,400
Estimated nonresident guided sportfishermen 9,100 20,000
Source: Alaska Department of Fish and Game, Division of Sport Fish – Research and Technical Services and Alaska Department of Fish and Game, Licensing Division.
Guided Saltwater Fishing Trips
HALF-DAY GUIDED TRIPS
Half-day Ketchikan guided trips declined by 8 percent between 2007 and 2008, from 5,710 trips to 5,244
trips. The number of nonresidents on those trips declined by 10 percent, from 23,357 to 20,972. There were
an average of four guests per trip in 2008. A majority of these half-day trips were taken by cruise visitors.
POW half-day trips declined by 10 percent, from 2,769 trips to 2,479 trips. The number of nonresidents on
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 11
those trips declined by 12 percent, from 9,801 to 8,596. There were an average of 3.5 guests per trip in
2008. Most of the half-day trips by visitors to POW were likely taken by package visitors on the first or last day
of their visit.
Guided Nonresident, Half-Day Saltwater Fishing Trips, 2007-2008
2007 2008 % Change
Ketchikan area
Half-day trips 5,710 5,244 -8%
Nonresidents 23,357 20,972 -10
Prince of Wales Island
Half-day trips 2,769 2,479 -10%
Nonresidents 9,801 8,596 -12
Source: Alaska Department of Fish and Game, Division of Sport Fish – Research and Technical Services. The Ketchikan area is defined as Statewide Harvest Area (SWHA) area A, and POW is area B. Counts are based on ports of offloading and are unduplicated. Note: Half-day trips were defined as trips with a duration of less than five hours. Counts are based on ports of offloading and are unduplicated.
FULL-DAY GUIDED TRIPS
Ketchikan area full-day guided fishing trips declined by 11 percent from 2007 to 2008, from 2,215 to 1,976.
There were 11 percent fewer nonresident anglers in 2008. There were 3.2 guests per trip in 2008. Full-day
guided trips on POW increased by 3 percent over the same time period, from 5,455 to 5,607. The number of
nonresidents on those trips declined by 2 percent, from 20,185 to 19,824. The were an average of 3.5 guests
per trip in 2008.
Guided Nonresident, Full-Day Saltwater Fishing Trips, 2007-2008
2007 2008 % Change
Ketchikan area
Full-day trips 2,215 1,976 -11%
Nonresidents 7,528 6,669 -11
Prince of Wales Island
Full-day trips 5,455 5,607 +3%
Nonresidents 20,185 19,824 -2
Source: Alaska Department of Fish and Game, Division of Sport Fish – Research and Technical Services. The Ketchikan area is defined as Statewide Harvest Area (SWHA) area A, and POW is area B. Counts are based on ports of offloading and are unduplicated. Note: Full-day trips were defined as trips with a duration of five hours or more. Counts are based on ports of offloading and are unduplicated.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 12
Guided Freshwater Fishing
When compared to the volume of guided saltwater trips, the number of guided freshwater trips taken by
nonresidents was small. In 2007, 931 nonresidents participated in 251 guided trips. In 2008, the number of
trips declined by 31 percent to 173, and participants declined by 41 percent to 548. There were an average
of 3.2 guests per trip in 2008.
Ketchikan Area Guided Freshwater Fishing, 2007-2008
2007 2008 % change
Businesses 6 6 -%
Trips 251 173 -31
Nonresident participants 931 548 -41
Source: Alaska Department of Fish and Game, Division of Sport Fish – Research and Technical Services.
The number of trips and nonresident visitors participating in local guided freshwater fishing on the Ketchikan
road system increased slightly in 2008. The number of fly-out trips declined by 78 percent from 2007 to
2008. Guided fly-out trips are relatively expensive due to the cost of chartering an airplane on top of paying
for guide services. One freshwater guide stated that “the economy was becoming an issue in 2008 and high-
end trips were the first to go.”
Ketchikan Area Guided Freshwater Fishing Trips, 2007-2008
2007 2008 % Change
Local trips* 143 149 +5%
Fly-out trips 108 24 -78
Total trips 251 173 -31%
Source: Alaska Department of Fish and Game, Division of Sport Fish – Research and Technical Services. *Ward Cove Creek, Ward Lake, and White River are all accessible from the Ketchikan road system.
Overall, the volume of guided freshwater fishing trips on POW was more than double that reported in area A.
While the number of businesses engaging in freshwater fishing on POW increased from 13 to 16 between
2007 and 2008, the number of trips declined 13 percent and the number of nonresident participants
declined by 19 percent. There were an average of 2.9 guests per trip in 2008.
POW Guided Freshwater Fishing, 2007-2008
2007 2008 % Change
Businesses 13 16 +23%
Trips 496 433 -13
Nonresident participants 1,542 1,250 -19
Source: Alaska Department of Fish and Game, Division of Sport Fish – Research and Technical Services.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 13
Unguided Sportfishing
Quantifying the impacts of all nonresidents who participated in unguided sporfishing in the Ketchikan area is
beyond the scope of this study. However, the study team was able to estimate the impacts of two segments
of unguided fishermen that contribute significantly to the Ketchikan economy: those who visit lodges and
other accommodation providers that feature unguided fishing packages, and those who rent boats for self-
guided fishing (“bare-boat” rentals). It is likely that these two market segments represent a majority of
spending by unguided, nonresident sportfishing.
There are typically two types of unguided boats: 14- to 18-foot open skiffs and 20- to 23-foot covered boats
with center steering consoles and larger engines. Five Ketchikan area businesses that either rented bare-boats
or offered unguided packages were interviewed for this study, including the three largest businesses in this
market segment. The study team feels that these interviews represent a sizeable majority of unguided fishing
package sales and bare-boat rentals in Ketchikan, and are representative of this segment of the market. In
order to preserve the confidentially of individual businesses, this study examines the unguided lodge/package
and bare-boat rental segments as a whole.
Combined, the business owner/operators interviewed represented a total of 92 unguided boats in 2008 and
provided about 1,650 boat-use days to nonresident anglers. For purposes of this study, it is assumed an
average of two people per boat; therefore these boat-use days represent an estimated 3,300 nonresident
anglers. Unguided sportfishermen spent an average of about 4.5 nights while in Ketchikan.
Sportfishing Industry Direct Employment and Payroll
Employment
There were an estimated 340 direct jobs related to the nonresident sportfishing industry in Ketchikan in
2008. For the most part these jobs were seasonal; they include a mix of part-time and full-time employment.
As stated earlier in this report, there are a variety of business types in the sportfishing industry. Some
businesses are operated by a single person, while others may also employ staff for administrative support,
sales and marketing, meal preparation, housekeeping, maintenance, and fish processing. Due to the
complexity of business types and because not every sportfish industry business was interviewed for this study,
a ratio was developed to identify the level of employment per vessel for those businesses interviewed. The
ratio was based on data from multiple business types and sizes and is considered reasonably representative of
the industry as a whole.
In 2008, there was an average of 1.7 employees per guided vessel during peak season (May-September).
With 141 guided vessels in the Ketchikan area, this results in direct employment of about 240 full-time and
part-time people. Based on owner/operator interview data, there were also at least an additional 45 people
employed with businesses that cater to unguided fishermen.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 14
There were 20 Ketchikan-based jobs related to POW sportfishing operations in 2008. Several remote POW
operations are based out of Ketchikan. These operations employ administrative, sales and marketing, and
maintenance personnel. Some staff were based in Ketchikan in the off-season and on POW during the fishing
season.
Using an estimated average of 15 jobs per million dollars in sales3 for retail businesses, the study team
estimates that total direct retail spending of about $2.5 million4 by nonresident sportfishing participants
accounted for about 35 retail sector jobs in Ketchikan in 2008.
Estimated Sportfishing-Related Ketchikan Employment, 2008
Guided sportfishing employment 240
Unguided sportfishing employment 45
POW businesses Ketchikan-based employees 20
Retail sector employment 35
Total 340
Source: Ketchikan and POW business owner/operator interviews and McDowell Group estimates. Note: figures have been rounded
During the interviews, business owner/operators were asked about their level of local employment.
Owner/operators reported an average Ketchikan resident hire rate of 87 percent. In general, smaller
operations reported higher rates of local hire than larger operations.
Payroll
Businesses owners were asked how much they spent on payroll in 2008. In some cases, the owner’s wages
are the profit left over at the end of the season rather than a regular paycheck. Payroll averaged about
$15,250 per Ketchikan employee (combined average for year-round and seasonal employees). In addition to
payroll, many sportfishing industry participants receive significant income in the form of cash tips.
The vast majority of employees in this industry work a four to five month season. Wages for those employed
in the industry year-round are likely to be much higher. Multiplying employment and average wage results in
an estimated payroll of $5.2 million for Ketchikan-based sportfishing industry employees.
Estimated Payroll for Ketchikan-Based Employment, 2008
Estimated Employment
Average Payroll Estimated Total Payroll
340 $15,250 $5,185,000
Source: Ketchikan and POW business owner/operator interviews and McDowell Group estimates. Note: figures have been rounded
3 IMPLAN estimate. 4 The $2.5 million is the amount of total direct nonresident sportfishing-related spending that was allocated to the retail sector.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 15
Direct Spending
Ketchikan Nonresident Sportfishing Spending
Data Sources
In order to identify nonresident spending related to sportfishing, the study team reviewed several sources of
data.
An initial review of Ketchikan Gateway Borough (KGB) gross sales and tax collection summary statements
yielded inconclusive data. When filing sales tax returns, Ketchikan businesses decide under which North
American Industry Classification System (NAICS) code they report sales. There are four categories in the KGB
records (transportation marine/charters, fishing lodges, hotels, and retail) related to nonresident spending
that are also related to sportfishing. While each of these categories contains sales related to the sportfishing
industry, none solely reflects nonresident sportfishing spending.
Due to the seasonal nature of Ketchikan’s sportfishing industry many businesses participate in different types
of activities in the off-season. For example, a company may offer guided sportfishing in the summer and
provide snow removal services in the winter. However, sales and taxes collected are filed under one NAICS
code, making it difficult to identify sales and taxes related to each business type. Due to confidentiality
restrictions, the KGB is unable to reveal gross sales or taxes collected by business, nor provide the names of
businesses reporting sales in each category.
The study team therefore decided the best methodology to identify direct spending by nonresident
sportfishermen was to estimate the number of participants, length of stay, and average expenditures. The
next section of this report estimates total Ketchikan area spending related to nonresident sportfishing and
summarizes the estimated impacts of each market segment.
This report excludes nonresident expenditures for sportfish licenses or King salmon stamps. It is beyond the
scope of this project to determine which combination of licenses and King salmon stamps visitors purchased.
Nonresident license costs range from $20 to $145 and King salmon stamps from $10 to $100. However,
assuming that each of the estimated 30,400 visitors purchased the minimum one day fishing license would
indicate license sales of $608,000.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 16
Total Direct Spending
Total direct nonresident sportfishing-related spending in Ketchikan is estimated at $15.6 million for 2008.
The majority of expenditures ($11.9 million) were made by visitors who sportfished in the Ketchikan area. An
additional $3.7 million in Ketchikan spending was generated by POW sportfishing visitors and the businesses
that served them.
Total Sportfishing-Related Ketchikan Expenditures, 2008
Type of Expenditure Spending
Ketchikan sportfishing $11,893,000
POW sportfishing-related 3,732,000
Total $15,632,000
Source: Ketchikan business owner/operator interviews and McDowell Group estimates. Note: figures have been rounded
Ketchikan Nonresident Sportfishermen
The study team was able to estimate spending for all Ketchikan guided sportfishermen and for a significant
portion of unguided fishermen. This study includes only spending related to the days nonresidents actually
engaged in sportfishing. An example would be a visitor who spent 14 days in Alaska, seven of the days in
Ketchikan. They participated in guided fishing for three full days and one half-day. The estimates in this study
would only include spending for the three and one-half days the participant was engaged in sportfishing.
In order to protect the confidentially of the businesses that generously provided information for this study,
business types have been grouped, and average spending per participant is reflective of the group rather
than any specific business type.
The table below does not include spending estimates for unguided nonresidents who did not purchase a
fishing package or rent a boat. This group would include nonresidents who fished from the shores of lakes,
rivers, or the ocean, and those fishing with friends and relatives. While visitors in these two categories may
engage in spending for transportation, fishing tackle, bait, accommodations, meals, beverages, gifts,
clothing, and souvenirs, the level of overall spending is likely small compared to spending for other market
segments.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 17
This analysis estimates that nonresidents who participated in sportfishing in Ketchikan had direct
expenditures of at least $11.9 million in 2008. The methodology for estimating spending for each sector is
described in the text following the table.
Estimated Nonresident Sportfishing Spending in Ketchikan, 2008
Type of Fishing Average Daily Spending per
Participant
# of Participant
Days
Estimated Spending
% of Estimated Spending
Unguided (lodges and bare-boat rentals) $310 14,850 $4,631,000 39%
Half-day guided saltwater 170 20,972 3,565,000 30
Full-day guided saltwater 530 6,669 3,535,000 30
Guided freshwater 295 548 162,000 1
Total $11,893,000 100%
Source: Ketchikan business owner/operator interviews and McDowell Group estimates. Note: figures have been rounded.
UNGUIDED FISHING
Unguided fishermen represented the highest percentage of estimated spending for nonresident sportfishing
at $4.6 million, 39 percent of total spending. This group includes lodges and resorts that offer unguided
sportfishing and operations that rent bare-boats. The average rate of $310 per person, per day reflects
spending for accommodations, boats, fuel, tackle, bait, meals, beverages, transportation, gifts, clothing and
souvenirs. Estimates were based on two people per room, and per boat. Generally, operators such as lodges
that offer unguided fishing provide the boat, fuel, tackle, bait, accommodations, meals, and sometimes fish
processing for a package price. Bare-boat rentals generally include normal operating and safety equipment
and one tank of fuel. The renter must provide all fishing-related gear (as well as their own accommodations
and meals). The estimated 14,850 participation days was derived from an estimated 3,300 fishermen staying
an average of 4.5 nights each.
HALF-DAY GUIDED SALTWATER FISHING
Estimated average spending for cruise and non-cruise half-day fishermen combined was $170 per day. With
20,972 half-day trips in 2008, spending in this category was estimated at nearly $3.6 million. Expenditures
for half-day guided fishing trips included cruise passengers who engaged in sportfishing. Spending for this
group was limited to the value of the half-day fishing excursion. Other spending by these visitors while in
port such as meals, gifts, clothing, souvenirs, tours, and attractions were not included because these
expenditures were not directly related to sportfishing. Also included in this category were overnight visitors
who chose to take a half-day fishing excursion as well as a significant number of resort/lodge package
fishermen who fished at least one half-day as part of a package (their full days are counted in the next
category). Per day spending for noncruise half-day fishermen reflects expenditures for accommodations,
fishing, meals, beverages, transportation, gifts, clothing, and souvenirs. For reasons of confidentiality, average
spending rates for the two groups were combined. This resulted in an estimated average spending per
person, per day of $170.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 18
FULL-DAY GUIDED SALTWATER FISHING
Based on published rates and interviews conducted for this study, the average rate for a full day of guided
sportfishing in 2008 was estimated at about $320 per person. This market segment was estimated to spend
approximately $80 per person, per day for accommodations (double occupancy) and an additional $130 per
person, per day on meals, beverages, transportation, gifts, clothing, souvenirs, bait, fish boxes, fish
processing, and tips. In total, spending was estimated at $530 per person, per day, for full-day fishermen.
This estimate was applied to all full-day fishermen whether they were on an all-inclusive package trip or
purchased charter fishing separately from accommodations, meals, etc. With 6,669 full-day fishermen, total
expenditures for this group are estimated at slightly more than $3.5 million.
GUIDED FRESHWATER FISHING
Guided freshwater fishing represented a small portion of overall sportfishing-related spending at $162,000.
The average daily rate reflects those who fished on guided tours to local streams (on the road system) and
those who participated in more expensive fly-out trips. A total of 548 participants (full and half day) spent an
average of just under $300 per trip, per day.
Industry Spending Patterns
Ketchikan-Based Sportfishing Business Expenditures
Ketchikan sportfishing-related business owner/operators were asked to estimate the percentage of their total
spending on goods, services, and labor that was spent locally. Responses were tallied and weighted based on
business size (client volume). Overall, business owner/operators reported that 85 percent of their spending
occurred in Ketchikan.
Nearly one-third of Ketchikan expenditures were for payroll, 29 percent for boats and equipment, 24 percent
for fuel, and 15 percent for other business-related expenses.
Ketchikan Sportfishing Business Expenditures by Percentage, 2008
% of Total Expenditures
Payroll 32%
Boats and equipment 29
Fuel 24
Other spending 15
Total 100%
Source: Ketchikan business owner/operator interviews and McDowell Group estimates. Note: figures have been rounded.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 19
Prince of Wales Island Nonresident Sportfishing-Related Spending
Telephone interviews were conducted with 10 Prince of Wales Island sportfishing businesses (including the
three largest operations on the Island). The businesses represent 50 charter vessels (27 percent of the POW
fleet) that hosted 3,900 guided and 600 unguided nonresident sportfishermen in 2008 (representing about
half of the estimated 9,100 nonresidents who sportfished on POW that year). The POW owner/operator
interviews revealed that POW sportfishing-related spending in Ketchikan totaled nearly $3.8 million in 2008.
This report includes only the estimated Ketchikan spending and employment for those POW businesses that
were interviewed for this study; therefore, the $3.7 million in spending is a conservative estimate of POW
sportfishing-related business spending in Ketchikan. Most of the operations that were not interviewed are
small and likely spent more locally (on POW) than larger operations with Ketchikan offices. The most likely
items that these smaller businesses would purchase in Ketchikan would include floatplane services, groceries,
equipment, and supplies.
Total POW Sportfishing-Related Ketchikan Expenditures, 2008
Spending
POW businesses $3,533,000
Visitor spending 199,000
Total $3,732,000
Source: POW business owner/operator interviews. Note: figures have been rounded.
POW BUSINESS SPENDING IN KETCHIKAN
The POW businesses interviewed reported total direct spending in Ketchikan of $3.5 million in 2008. The
most significant expenditures were for floatplanes at $1.1 million, followed by fuel at $861,000. Combined,
the 10 operations employed approximately 200 people in 2008. About 10 percent were Ketchikan residents
who received payroll and benefits valued at nearly $500,000. Other expenditures included goods and
services such as groceries, parts and equipment, hardware, tools, tackle, and beverages.
POW Sportfishing Businesses Ketchikan Expenditures, 2008
Floatplanes $1,121,000
Fuel 861,000
Payroll 480,000
Other expenditures 1,071,000
Total $3,533,000
Source: POW business owner/operator interviews and McDowell Group estimates. Note: figures have been rounded.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 20
POW SPORTFISHING VISITOR SPENDING IN KETCHIKAN
Of the 4,500 nonresident fishermen represented by the business interviews, about 40 percent spent at least
one night in Ketchikan either on their way to or from POW. These POW sportfishing visitors spent
approximately $200,000 while passing through Ketchikan in 2008. Based on double occupancy, this
represented about 900 room nights in Ketchikan in 2008. At an average 2008 summer rate of about $161,
these POW visitors had direct spending of about $145,000 for Ketchikan accommodations. It was estimated
that this group also spent $30 per person for transportation, meals, beverages, gifts, clothing, and souvenirs
while in Ketchikan.
Not included in this study are expenditures by POW sportfishermen who passed through Ketchikan
International Airport (KIA) but did not spend a night in Ketchikan. It is likely that most of the estimated 9,500
nonresidents who sportfished on POW passed through the airport and made some expenditures while there.
POW Sportfishing Visitor Estimated Ketchikan Expenditures, 2008
Average per Person Spending
# of Visitors
Total Spending
Accommodations (double occupancy) $80 1,800 $145,000
Other expenditures 30 1,800 54,000
Total $199,000
Source: POW business owner/operator interviews and McDowell Group estimates. Note: figures have been rounded.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 21
Economic Impacts
There are three types of economic impacts from nonresident sportfishing-related spending:
• Direct impacts: Include nonresident spending for fishing packages, boat rental, tackle,
accommodations, meals, beverages, transportation, gifts, clothing and souvenirs. Also included are
POW business expenditures in Ketchikan in direct support of nonresident sporfishing on the Island.
These include expenditures for fuel, floatplanes, payroll for Ketchikan based staff, groceries, parts,
and equipment, as well as other goods and services.
• Indirect impacts: Jobs and income in businesses providing goods and services to the Ketchikan
sportfishing industry. For example, vendors who conduct business with a charter operator in turn buy
fuel and other supplies, rent office space, and purchase services from other local providers in support
of their day-to-day business operations. This spending creates additional jobs and income in the
Ketchikan Gateway Borough.
• Induced impacts: Jobs and income created as a result of industry employees spending their payroll
dollars in the local economy.
Indirect and induced economic impacts, often described as multiplier effects, are important components of
the overall economic impact of the sportfishing industry in Ketchikan. In general, however, multiplier effects
for Alaska are limited, as few goods are actually produced in the state.
A model was constructed using IMPLAN multipliers for the following sectors: charter fishing boat operations,
hotel/motel, other accommodations, food and drinking establishments, miscellaneous retail businesses, and
other amusements and recreation. Multipliers were weighted based on estimated expenditures for each
sector.
Spending Impacts
The total estimated economic impact of nonresident sportfishing-related spending in the Ketchikan Gateway
borough was $20 million in 2008, with total estimated seasonal-equivalent employment of slightly more than
400 jobs and total estimated payroll of $6.7 million.
Economic Impacts of Nonresident Sportfishing-Related Spending in Ketchikan Gateway Borough, FY 2008
Direct Indirect & Induced
Total Impact
Employment 340 70 410 Labor income (payroll & benefits) $5,180,000 $1,534,000 $6,714,000 Total spending impact (includes labor income) $15,632,000 $4,446,000 $19,908,000
Source: McDowell Group estimates.
Readers are cautioned to keep in mind that the 410 jobs are for the most part seasonal in nature, and the
indirect and induced impacts would reflect the seasonal nature of this industry. While the study did not
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 22
gather data on seasonal versus year-round employment, it is estimated that perhaps 5 to 15 percent of
industry employment is year-round.
Estimated Spending on Accommodations
The accommodations segment of the visitor industry benefits significantly from the nonresident sportfishing
industry. These visitors spent an estimated 23,867 nights in Ketchikan in 2008. Assuming double occupancy,
this represents approximately 11,935 room nights. Based on an average 2008 accommodation rate of about
$161 for double occupancy, nonresident sportfishing visitors generated an estimated $1.9 million in
accommodations revenue.
Estimated Sportfishing Visitor Expenditures for Ketchikan Accommodations, 2008
Visitor Type Visitor Nights Room nights* Total Spending
Unguided visitors 14,850 7,425 $1,195,000
Full-day guided visitors 7,217 3,610 581,000
POW sportfishing visitors 1,800 900 145,000
Total 23,867 11,935 $1,922,000
Source: Ketchikan business owner/operator interviews and McDowell Group estimates. Note: figures have been rounded. *Based on double occupancy.
Taxes
Sportfishing-related spending may be subject to the City’s 4 percent sales tax, the Borough’s 2 percent sales
tax, or both. Spending on accommodations may be subject to the City’s 3 percent bed tax, the Borough’s 4
percent bed tax, or both.
It was not possible to calculate precisely total sales and bed tax revenue collected from nonresident
sportfishing because some of the spending may have been subject to Borough taxes only, and sales by
location is unknown. However, total sales taxes collected from nonresident sportfishermen were likely in the
range of one-half million to $1 million and bed taxes collected in the range of $75,000 to $125,000.
Ketchikan Sales and Bed Tax Rates, 2008
City Borough
Sales tax 6% 2%
Bed tax 7 4
Source: Ketchikan Gateway Borough.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 23
Sportfishing Industry 2009
Business owners and operators were asked if their 2009 visitor volume and total revenues were higher, lower,
or about the same as 2008. Responses were tallied and weighted based on market share.
Ketchikan
Nearly all owners reported a decline in client volume in 2009, with an average decline of 19 percent, while
revenues were down an average of 15 percent. All but one business reported serving fewer clients in 2009.
Ketchikan Sportfishing Business Revenue and Clients, 2009
Avg. % Change 2008 to 2009
Revenue -15%
Guests -19
Source: Ketchikan business owner/operator interviews.
Those who reported declines were asked what they thought were the main reasons. Almost unanimously
owners stated that the severe downturn in the national economy was the most significant factor and that
visitor concerns over sportfish bag limits were also a factor. When referring to the difficult economic
conditions one owner stated “We have had a group of 18 coming to our facility for 10 years; they called and
said they just could not afford it in 2009. They are construction workers from California and they stated they
were basically unemployed.” For the most part, bag limit issues did not affect the unguided nonresident
market or the half-day cruise market as much as the full-day guided markets. In general, these businesses
reported smaller declines than operations offering full-day guided services.
Prince of Wales Island
Sportfishing businesses on POW reported much greater declines than Ketchikan businesses. Owners reported
an average decline of 30 percent in guests and 32 percent in revenue. As a group, the larger operations on
the Island reported greater declines than smaller operations. Owners stated that the severe downturn in the
national economy was the most significant factor. According to one lodge operator, “Even people who had
money were reluctant to spend it in 2009.” Owner/operators also stated that visitor concerns over sportfish
bag limits had resulted in cancellations. One owner mentioned that he has delayed the opening date of his
season because of bag limit issues: “I used to open in early June, last year I opened June 24. In early June, my
guests can only keep one king, one halibut, and one ling. They just don’t see the cost of a package in early
June as a value anymore”.
POW Sportfishing Business Revenue and Clients, 2009
Avg. % Change 2008 to 2009
Revenue -32%
Guests -30
Source: POW business owner/operator interviews.
Impacts of Nonresident Sportfishing on the Ketchikan Economy McDowell Group, Inc. • Page 24
Appendix
Statewide Harvest Area A and B maps
The following maps were provided courtesy of the Alaska Department of Fish and Game.
Jennings, G. B., K. Sundet, and A. E. Bingham. In prep. Estimates of participation, catch, and harvest in Alaska
sport fisheries during 2008. Alaska Department of Fish and Game, Fishery Data Series, Anchorage.
Ketchikan
Hyder
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Revillagigedo Channel
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WinstanleyLakes
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Craig
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