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State of the Sitka Economy, 2008 Prepared for: Sitka Economic Development Association Prepared by: McDowell Group, Inc. March 25, 2008.

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Presentation on theme: "State of the Sitka Economy, 2008 Prepared for: Sitka Economic Development Association Prepared by: McDowell Group, Inc. March 25, 2008."— Presentation transcript:

1 State of the Sitka Economy, 2008 Prepared for: Sitka Economic Development Association Prepared by: McDowell Group, Inc. March 25, 2008

2 Presentation Contents I.State of the Sitka Economy II.Southeast Regional Economy III.Visitor Industry Indicators IV.Seafood Industry Profile V.Development Issues and Opportunities

3 I. State of the Sitka Economy

4 Sitkas Balanced Economy Employment by Sector, 2006 Source: ADOLWD

5 Sitka Population Source: ADOLWD

6 Sitka Employment Source: ADOLWD

7 Sitka Payroll ($ Millions) Source: ADOLWD

8 Sitka Gross Business Sales ($ Millions) Source: City of Sitka

9 Sitka Construction Activity Number of New Dwelling Units Source: City of Sitka

10 Number of Lots Absorbed Source: City of Sitka

11 Sitka School Enrollment School years YearEnrollment% Change 20021, , % 20041, , , , , Source: Sitka School District (OASIS Report)

12 2006 Average Monthly Wages AlaskaSitka Government$3,679$3,335 Construction$4,864$3,990 Service-Providing$2,937$2,483 Financial$3,742$3,146 Professional & Business$3,864$2,109 Education & Health$3,087$3,428 Leisure & Hospitality$1,508$1,310 Source: AKDOLWD

13 Recent Changes Sheldon Jackson College closed –Loss of 109 jobs SEARHC cutbacks –Loss of 40 jobs in Sitka, 60 region-wide U.S Forest Service cutbacks –Loss of 5 jobs by 2010 –Last year 6 employees resigned and will not be replaced Opening of Silver Bay Seafoods –170 seasonal jobs created –10 full-time, year-round staff Sitka Community Hospital purchased Moore Clinic Increases in ferry port calls for 2008

14 Sitka Economic Indicator Overview Diverse economy (5 sectors with 10% or more of Sitkas total employment) Population declined 4% (349 residents) from 2006 to 2007 Employment declined by 9 jobs from 2005 to 2006 –A greater decline is expected to be reflected in the 2007 figures Payroll up $3 million Gross business sales continued to grow in 2007 Construction activity is down School enrollment declined 5% (74 students) Employment opportunities in Sitka have declined recently. –Good paying jobs in education, federal government, and healthcare have been lost.

15 II. Southeast Regional Economy

16 Regional Population Trends Source: ADOLWD Average Annual % Change Statewide Total+0.9 Region Total-1.5 Sitka-4.0 Juneau-1.7 Ketchikan-0.3 Wrangell-Petersburg-0.4 Prince of Wales-2.8 Skagway-Hnh-Ang-0.5 Haines-0.8

17 Southeast Alaska Population Trends Change Region Total70,89170,40569,328-1,077 Sitka8,9448,9898, Juneau31,22530,81130, Ketchikan13,13113,20113, Wrangell-Petersburg6,1676,0396, Prince of Wales5,5105,4795, Skagway-Hnh-Ang3,0633,0163, Haines2,2082,2392,25718 Source: ADOLWD

18 Southeast Employment 2007 Employment increased by 50 jobs Changes in: –Leisure and Hospitality +200 jobs –Service Providing +150 jobs –Retail Trade +50 jobs –Local Government +50 jobs –Seafood Processing -50 jobs –Education and Health services -50 jobs –Goods Producing -100 jobs –State Government -100 jobs Source: ADOLWD –Current Employment Statistics Program (CES)

19 Southeast Summary Regional population down 1.5% (1,077 residents) Employment up by 50 jobs –Highest growth in the leisure & hospitality and service providing sectors –Largest decline in the goods producing and state government sectors

20 III. Visitor Industry Indicators

21 Alaska Full-Year Visitor Volume, May 2006-April 2007 By Transportation Market Source: Alaska Visitor Statistics Program (AVSP), McDowell Group, Inc. Total Visitors: 1,881,000

22 Full Year Visitor Volume May 2006 – April 2007 Volume Alaska1,881,000 Southeast1,190,000 Sitka 291,000 Source: AVSP, McDowell Group, Inc.

23 Southeast Cruise Passenger Volume

24 Sitka Cruise Ship Visitors

25 Deplaning Passengers, Sitka Airport* Source: Bureau of Transportation Statistics * includes residents and non-residents

26 Disembarking Ferry Passengers* Source: AMHS * includes residents and non-residents

27 Sitka Passenger Volume, % Change Cruise Visitors267,000233, % Air Passengers70,33469, % Ferry Passengers13,40014, %

28 Sitka Hotel Bed Tax Receipts Source: City of Sitka

29 Visitor Traffic Summary Alaska visitor volume 1,881,000 –51% visit by cruise ship –44% visit by air –5% visit by highway/ferry Southeast cruise passenger volume continued to grow –Over 1 million visitors in 2007 Sitka visitor volume declined –Cruise visitors down 12.4% –Deplaning air passengers down 1.4% –Disembarking ferry passengers up 8.4%

30 IV. Seafood Industry Profile

31 Major SE Fisheries 2007 Ex-vessel Value

32 SE Regional Ex-Vessel Values SalmonNon-SalmonTotal 2002$ 48,508,934$ 80,470,869$ 128,979, $ 55,136,780$ 87,979,986$ 143,116, $ 76,890,456$ 99,209,693$ 176,100, $ 80,861,977$ 105,074,198$ 185,936, $ 95,008,717$ 114,935,387$ 209,944,105 Source: COAR

33 Southeast Land-based Seafood (Production, 2006) PoundsValue Ex-vessel: Salmon172,552,615$91,210,751 Non-salmon55,284,243$110,596,941 Total227,836,857$201,807,693 First Wholesale: Salmon131,214,5634$220,028,636 Non-Salmon50,320,383$147,810,251 Total181,534,917$367,838,886 Source: COAR

34 Sitka Land-based Processor (Production, 2006) PoundsValue Ex-vessel: Salmon27,731,996$24,902,084 Non-salmon13,513,073$33,693,816 Total41,245,069$58,595,899 First Wholesale: Salmon22,234,856$48,508,479 Non-Salmon11,518,109$44,410,580 Total33,752,965$92,919,058 Source: COAR

35 SE Ex-Vessel Prices Per Pound King$2.53$3.37$3.06 Sockeye$1.05$1.09$0.89 Coho$0.95$1.41$1.09 Pink$0.12$0.12$0.19 Chum$0.30$0.35$0.35 Halibut$3.11$3.80$4.41 Sablefish$2.30$2.55$2.75 Source: ADF&G/NOAA

36 Sitka Fishermen Statistics permits fished 455 fishermen Landed 28.4 million pounds Ex-vessel value of $37.6 million Source: CFEC

37 Sitka Fishermen Ex-Vessel Earnings Ex-Vessel Earnings 2002$ 22,874, $ 27,117, $ 33,920, $ 33,425, $ 37,645,735 Source: CFEC

38 Sitka Seafood in 2007 Sitka ranks as the 6 th largest port in the U.S. based on value and 19 th based on volume Chum salmon harvest volume down Pink salmon harvest volume up Herring harvest volume up in 2007, and a record quota has been set for the 2008 harvest King salmon harvests down in 2007 Coho harvests down in 2007 Processing capacity in Sitka has increased

39 Seafood Summary Salmon accounted for 52% of the SE total ex-vessel value Halibut and sablefish accounted for 34% of the regions total ex-vessel value Salmon ex-vessel prices down for all species except pink salmon Halibut and sablefish ex-vessel price increase continued

40 V. Sitka Development Issues and Opportunities

41 Development Issues Major community development issues are: –Control: What do we have control over in regard to development? –Choice: What do we choose to support or discourage? –Current Sitka Players: Most economic development is done by those already here Assessment: –Ask the experts to identify opportunities and barriers Surveys and focused discussion groups

42 Development Opportunities Seafood Industry Marine Services Tourism Government (in all its forms) Real Estate

43 Prepared for: Sitka Economic Development Association Prepared by: McDowell Group, Inc. March 25, 2008 State of the Sitka Economy, 2008

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