Large-deck cruising is big business in Southeast Alaska, especially Juneau. But, while the cruise industry may be big, many of the local businesses that depend on cruise ship passengers are locally owned shops with owners and operators struggling to survive after COVID-19 torpedoed the last two seasons.<\/p>\n
After a very successful summer in 2019, COVID-19 and the accompanying no sail order completely canceled the 2020 season. A short and significantly scaled back 2021 season happened after months of negotiation and an act of Congress, but its shortened length and lighter passenger load meant that Juneau received about 10% of the visitors that would arrive in a typical year. <\/p>\n
That one-two punch has shuttered some local businesses left many others fighting to survive.<\/p>\n
Business owners shared stories of losing houses, selling business assets, and taking money out of retirement savings to scrape by and hold out for a return to a full season of cruising and the one million-plus passengers that can visit Juneau in a typical year.<\/p>\n
“The best way to describe it is that we are hanging by the thinnest thread at Alaska Knifeworks,” said David Summers, who owns the shop. “We absolutely will not survive without a strong, robust cruise industry.”<\/p>\n
Summers said that he sold off two business interests and had to find other work over the last year to keep his main business afloat so he can operate next season.<\/p>\n
Despite his efforts, he still lost his house.<\/p>\n
“I am in survival mode,” Summers told the Empire in a Monday morning phone interview.<\/p>\n
He’s far from alone.<\/p>\n
Midgi Moore, Juneau Food Tours’ CEO, described the spring of 2020 when she had to withdraw money from retirement savings to refund deposits for people who had pre-booked tours with her company.<\/p>\n
“I had to do it. I was worried I would get an ulcer,” she said, explaining that, like most tour businesses, she uses the early deposits to make the investments needed to start the season. In 2020, she had already spent the money to stock up for what she expected to be her best year ever.<\/p>\n
[Cruise critics reflect on shortened season]<\/a><\/ins><\/p>\n For Serene Hutchinson, general manager of Juneau Tours & Whale Watch, it was even more personal.<\/p>\n “I had to lay off my husband,” Hutchinson said, adding that for the first time, she could not offer summer jobs to her college-age children, who didn’t come home for the summer.<\/p>\n Hutchinson said that her business had to send out over $1 million in refunds in 2020 and could not operate any of their eight whale watching boats or 25 buses. She added that she still had to spend money to maintain and insure her fleet of unused vehicles.<\/p>\n Hutchinson said she took a job at Barlett Regional Hospital, working in the behavioral health department, to make ends meet — a job she kept even as her business started operating again in 2021.<\/p>\n When business did resume this year, it was on a much smaller scale.<\/p>\n “It was lovely but not sustainable,” Hutchinson said, adding that she has worked every day since April to keep balls in the air.<\/p>\n Still, she says she’s grateful that she’s been able to hang on when many businesses closed or could not operate at all in 2021.<\/p>\n Summers was more direct about the short cruise season.<\/p>\n “Emotionally speaking it felt good,” he said. “But, it was a complete financial loser at that level.”<\/p>\n More than dollars and cents<\/p>\n According to Jeff Rogers, finance director for the City and Borough of Juneau, tourism generates about $10 million in sales tax for the city each year.<\/p>\n He said that money comes from cruise ship passengers, seasonal employees, independent travelers and locals who have more money in their pockets thanks to seasonal work.<\/p>\n Rogers said the city lost $10 million in sales tax in 2020 when cruise ships could not sail and many local businesses did not operate.<\/p>\n “Cruise ship tax revenue and tourism is a big part of our economy,” Rogers said.<\/p>\n [City seeks to tax onboard purchases]<\/a><\/ins><\/p>\n Local business owners say city revenues are only part of the picture.<\/p>\n “Take the legs out of the cruise industry and you tank real estate,” Summers said. “Even the people who are critical of the industry are beholden to the industry because of the sales tax.”<\/p>\n Laura Martinson, the owner of Caribou Crossing downtown, said that the short cruise season put her business in a worse place because of the expense of bringing in inventory, hiring employees and paying for daycare.<\/p>\n But, she said her shop represents over 60 small, Alaskan artists and she wanted to see them survive the year and still be in business when the passengers return.<\/p>\n Martinson said the artists have missed the “bread and butter” cruise season and holiday and summer shows. What’s more, they are dealing with supply chain disruptions that make it difficult to work.<\/p>\n Martinson said she also needed to provide work to dedicated employees she feared she could lose to another employer.<\/p>\n “It hurt people more than it helped,” Martinson said. “There’s a perception that if a ship is in the channel, all must be OK. That’s a false narrative. At the end of the day, everyone has held their breath as long as they can. We are all squeezed.”<\/p>\n Like Martinson, Moore said that her food tour business relies on other local businesses for success—in her case, local restaurants.<\/p>\n “I was delighted to see the ships back, but if local restaurants can’t get staff or operate at capacity, I can’t bring a tour there. We all work together.”<\/p>\n