2017 ANNUAL REPORT
Letters from the
MAYORS
The Fairbanks North Star Borough would like to thank Explore Fairbanks for their continued first class efforts to promote Fairbanks! The “crown jewel” this past year was their leadership, dedication and expert organization skills with many partners to host the Arctic Council Ministerial Meeting and the Week of the Arctic in May 2017. The international spotlight was on our community and Explore Fairbanks was there every step of the way! Thank you for all that you do to showcase the Golden Heart City year round!
DIRECTORS Kory Eberhardt, Chair A Taste of Alaska Lodge
Andy Anger, Chair Elect
University of Alaska Fairbanks Community & Technical College
Matt Divens, Past Chair HAP Alaska-Yukon
Karl W. Kassel, Mayor Fairbanks North Star Borough
Kathy Hedges, Treasurer
The City of Fairbanks continues to be amazed at the great contributions to our community from Explore Fairbanks! In addition to their contributions by marketing the Fairbanks area to tourists, the local economy is boosted by the numerous meetings and conventions that Explore Fairbanks works diligently to hold here each year. From securing the Arctic Council Ministerial Meeting to greeting over 145,000 visitors at the Morris Thompson Cultural and Visitors Center, Explore Fairbanks made another positive impact on Fairbanks in 2017! With the unveiling of their new beautiful website, their substantial online presence and their partnership in producing a new economic development marketing video, Explore Fairbanks continues to represent Fairbanks in the best way possible, highlighting Fairbanks’ unique and beautiful attributes to visitors and residents! Thank you, Explore Fairbanks! Jim Matherly, Mayor City of Fairbanks
Arctic Circle Trading Post
Irene Meyer, Secretary
GoNorth Alaska Travel Center
Deb Hickok, President & CEO Explore Fairbanks
Jason Avery Event Alaska
Patricia Silva
Westmark Fairbanks Hotel & Conference Center
Buzzy Chiu
Premier Alaska Tours
Explore Fairbanks serves a vital role in our community by marketing our natural, visual and cultural wealth to the world. Their efforts are evident by the determination to bring conferences, meetings and tourists from all over the world, into the Interior. What makes these events, activities and experiences all so memorable and successful is the dedication by the Explore Fairbanks staff and volunteers. They have worked to make it easier for overseas guests to visit our community which continues to build the tourism industry and boost our local economy. Bryce Ward, Mayor City of North Pole
Message from the Board
2017 Board of
Bobby Wilken
HooDoo Brewing Company
Ralf Dobrovolny 1st Alaska Tours
Becky Kunkle
Wedgewood Resort, Fountainhead Hotels
Heather Dudick Alaska Railroad
CHAIR
2017 was a great year for tourism thanks to the efforts of Explore Fairbanks. Fairbanks has had three consecutive years of increased bed taxes with a record high $5.3 million in collections. The majority of collections still come from the five month summer season but growth in hotel/motel tax collections are attributed to growth in winter tourism. Winter tourism has been a bright spot in Fairbanks and seems to be getting more and more popular. 2017 also saw the arrival of the Arctic Council Ministerial Meeting and the Week of the Arctic from May 8-12 in Fairbanks. Explore Fairbanks was all hands on deck for this momentous event and because of their efforts Fairbanks is solidified as the gateway to the Arctic. I am thankful to the Explore Fairbanks staff for their hard work and efforts to make Fairbanks a worldwide destination. It was a pleasure to serve on the board for the past year and I am looking forward to what 2018 holds for Fairbanks. Kory Eberhardt A Taste of Alaska Lodge
Explore Fairbanks installed a new welcome banner at the Fairbanks International Airport.
Ashley Bradish
Gold Dredge 8 and Riverboat Discovery
Scot Baer
Golden North Motel
Lei Guo
Skylar Travel
Andrew Gray, Ex Officio
Fairbanks North Star Borough
Jonathan Bagwill, Ex Officio Fairbanks City Council
The mission of Explore Fairbanks is to be an economic driver in the Fairbanks region by marketing to potential visitors and optimizing the visitor experience.
Impacting on a
GLOBAL
and local scale
Alaska State Legislature Honors Explore Fairbanks
At the Annual Banquet in April, Fairbanks North Star Borough Assembly Presiding Officer Kathryn Dodge read a citation from the Alaska State Legislature that honored Explore Fairbanks’ 40th anniversary. The recognition was introduced by Representatives Scott Kawasaki and Steve Thompson for legislative approval on March 22, 2017.
Annual Awards Honor Partners
During the 2017 Annual Awards Banquet awards were presented to tourism industry partners for contributions to the economy and community. In honor of the 40th anniversary of Explore Fairbanks, the Fairbanks Tourism Hall of Fame was established to recognize outstanding individuals that have made iconic and significant contributions to the tourism industry in the Fairbanks region through their lifetime of leadership, passion and dedication. The first inductees into the hall of fame were Mary and the late Captain Jim Binkley of Riverboat Discovery; Mary Shields of Alaskan Tails of the Trail with Mary Shields; and Jack and Ede Reisland of Denali Grizzly Bear Resort.
Golden Hearts of the Visitor Industry
The Golden Heart Gala in February celebrated Golden Heart Greeter volunteers and Meeting Ambassadors from the prior year. In 2016, Greeter volunteers collectively donated 1,205 hours of service at various community events. The 24 meetings that came to Fairbanks in 2016 because of the efforts of Golden Heart Meeting Ambassadors contributed more than $8 million in estimated direct attendee spending. The 375 meetings brought to the Fairbanks community by Explore Fairbanks and their partners had a combined estimated direct attendee spending of more than $12.5 million.
Arctic Council Ministerial Meeting and the Week of the Arctic
The first Ministerial Meeting with all eight ministers in attendance, including the US Secretary of State Rex Tillerson and Russian Minister of Foreign Affairs Sergey Lavrov, was held in Fairbanks in May. While in Fairbanks, the ministers jointly signed a binding agreement on Arctic scientific research cooperation as well as the “Fairbanks Declaration”—a nine-page document that addresses climate change effects and other concerns and objectives of the council. The council also celebrated its 20th anniversary and marked the 10th meeting of the council. The meeting in Fairbanks concluded the US Chairmanship of the council. Secretary Tillerson passed the gavel onto Finland’s Minister of Foreign Affairs, Timo Soini, as chair of the next two-year term. The securing of this meeting in Fairbanks demonstrates Explore Fairbanks’ strategy to reinforce Fairbanks’ position as the farthest north city in the United States accessible by air, rail and road.
Fairbanks Visitor Industry 15th Walk for Charity Raised $17,000+
Families, friends and community groups gathered to walk and eat to support local non-profits in May. The 575 walkers raised money for 48 registered local non-profits. The total raised for 2017 was $17,153. All proceeds were distributed to the designated 501(c)(3) charities. Since its inception in 2001, the Fairbanks-area Walk for Charity events have generated a total of $352,000 for local non-profits.
Tourism Works for Fairbanks Job Fair
To address the ever-increasing demand by tourism businesses for year-round local hire, Explore Fairbanks coordinated a job fair in January in conjunction with the Interior Tourism Conference. The event featured eleven employers and welcomed more than 200 attendees from the community. Explore Fairbanks worked closely with the Fairbanks North Star Borough School District and other community partners to generate attendance.
Jumpstarting Third Feasibility Study of a Fairbanks-Based Infrastructure Project
In June, Explore Fairbanks contracted with Johnson Consulting Group to prepare a financial plan and management/operating plan and budget for a proposed convention center and performing arts center in downtown Fairbanks. The consultant group is composed of experts to provide the best local and national expertise in the economics, planning and operation of successful convention and performing arts centers. Johnson Consulting, Inc., in partnership with Ascent, Bettisworth North, LMN Architects and JMB Consulting Group, are conducting the study.
Steady and record-breaking
GROWT H
Third Year of Record-Breaking Hotel/Motel Tax Collections
In 2015, hotel/motel tax collections (combined total of the Fairbanks North Star Borough, including the cities of Fairbanks and North Pole) were more than a 5% increase over 2014 and 2016 was nearly a 9% increase over 2015. The year 2016 broke the $5 million mark in collections for the first time. In 2017, collections continued to 2017 grow with a nearly 3% increase over 2016. 2016
$5,327,009
$5,181,876
2015 2012 2008
$4,674,111
$4,565,715 2010 $4,338,360
2013 $4,603,200
2014
$4,762,691
$4,530,992
2011 $4,291,966
2009 $3,965,660
Growth in Hotel/Motel Tax Collections Attributed to Growth in Winter Tourism
The lion’s share of collections continued to be in the five-month summer period. However, the average change for summer collections from 2008 through 2017 was basically flat (a slight decrease of 0.41%). The winter average collections for the same ten-year period were nearly a 6% increase. In 2008, winter collections accounted for 26% of the total collections; whereas in 2017, winter accounted for 38% of the total collections.
Fairbanks Hosts “Aurora Season” Charters from Japan and Taiwan
Japan Airlines (JAL) operated seven charters from December 25, 2016 to March 2, 2017 and two in August and September. The winter charters were exclusive to Fairbanks while the late summer charters alternated arrivals/departures between Fairbanks and Anchorage. Korean Airlines (KAL) operated two direct charter flights to Fairbanks for the Japanese market in August and September. China Airlines continued their summer aurora charter service from Taipei with two charter flights alternating between Fairbanks and Anchorage in September.
for the visitor industry
Fairbanks Draws Highest Percentage of International Travelers
According to the most recent Alaska Visitors Statistics Program, Fairbanks has the highest percentage of international travelers. In summer 2016, the statewide average of international visitors (excluding Canada) was 9% and the Fairbanks average was 16%. This was the highest proportion of international in the state. Furthermore, that 16% of international visitors in Fairbanks represents an increase of 7% from summer 2011. International visitors spend more money in the community on a per person basis than domestic visitors. Due to state budget restraints, recent numbers are not available for winter visitation but the international percentage in Fairbanks would most likely be the highest in the state and a higher percentage of winter leisure visitors. This higher percentage of international visitors in Fairbanks is primarily due to the successful marketing of and infrastructure development to support the Aurora Season —August 21 through April 21—by Explore Fairbanks and business partners.
Arrivals and Departures Steadily Grow
Fairbanks International Airport (FAI) reported a 3% increase in deplanements over 2016 and a 2% increase in enplanements. In both categories, there has been a 17% growth since 2012. Along the highway, the May to September combined total of both Poker Creek and Alcan border crossings was 102,412—an increase of 6% over the 2016 May to September total of 96,473. Of particular note is the month of September which shows a 14% increase in both crossings over September 2016, and August, where the Alcan crossing was a 26% increase over August 2016. The Alaska Railroad’s Aurora Winter Train offered northbound (Anchorage to Fairbanks) service on January 3rd and southbound (Fairbanks to Anchorage) service on January 4th, marking its first mid-week January service. Extended service included more rail travel from February to March, in particular from March 4-19 with both northbound and southbound services three times a week. Combined northbound and southbound totals for 2017 were 6,486—an 18% increase over the 2016 total of 5,486.
CONT RIBUT ING and
drawing attention to the community
REACHING OUT and STAYING IN TOUCH
Economic Development Video Produced for Borough
Online Presense
During a reception for media credentialed for the Arctic Council Ministerial Meeting, the Fairbanks North Star Borough unveiled its new economic development marketing video produced in partnership with Explore Fairbanks. The four-minute 15-second video highlights the many qualities that define the borough and incorporates images of locals working, playing and giving back in the community.
Decline of State of Alaska’s Reinvestment Impacts All Components of Explore Fairbanks’ Marketing Program
The State of Alaska has greatly diminished its commitment to tourism marketing from $16 million in FY 13 to $1.5 million in FY 17. For the first time in 40 years, there was no printed Alaska Travel Planner, no television advertising, no print advertising, no direct mail, no international program and, for the first time in 27 years, no international contractors. This fiscal year, the legislature approved $3 million primarily in response to the introduction of legislation for an All-Alaska Tourism Improvement District (TID) as advocated by the Alaska Travel Industry Association. Meanwhile, Explore Fairbanks quickly worked to mitigate this loss of the Alaska presence in the marketplace with a variety of tactics, such as taking the leadership in key international markets, increasing contact with travel journalists and outreach to online media. By accelerating internet ad placements and purchasing mail lists as trials, Explore Fairbanks managed to yield only a 1% decrease in inquiries.
Explore Fairbanks Wins Local and International Awards • Fairbanks North Star Borough School District “2017 Partners In Education Award for Outstanding Non-Profit Partner” for providing volunteer time in support of the College and Career Fair and for volunteer leadership on the Career and Technical Education Advisory Committee. • Downtown Association of Fairbanks “Downtown Star Award” in October 2017 for leading and participating in the momentous long-term opportunities for downtown’s revitalization and community growth. • Hotel Sales and Marketing Association International (HSMAI) “2017 Bronze Adrian Award,” awarded in New York City in February 2018, for a website that gives potential visitors a portal into life in the far north and showcases the mobile responsiveness that was one of Explore Fairbanks’ primary design goals.
The www.explorefairbanks.com website hosted 237,821 unique visitors, with the number of returning visitors at 107,173. FACEBOOK: 203,406 TWITTER: 5,865 INSTAGRAM: 6,274
UP
26% UP
14% UP
75%
Visitor Services
Staff at the Morris Thompson Cultural and Visitors Center greeted and served 145,595 visitors.
FAM and Media Tours
The Tourism Department managed 23 FAMs (familiarization tours) with a total of 96 tour operator and travel agent participants. The Communications Department coordinated and hosted 21 media tours for a total of 39 travel media participants.
Tradeshows and Sales Missions
The Tourism Department participated in a total of 19 international and domestic tradeshows and sales missions. Explore Fairbanks led an Alaska Sales Mission to three cities in mainland China—Beijing, Shanghai, Shenzhen—as well as Taipei, Taiwan.
Press Releases
Explore Fairbanks issued 25 press releases, which reached more than 46,500 media contacts.
Statement of
FINANCIAL POSIT ION December 31, 2017 and 2016
Current Assets
Cash Receivables Accounts and grants receivable, less allowance for doubtful accounts of $-0- and $-0Inventory Prepaid expenses Total current assets
Property and Equipment
Less accumulated depreciation Total assets
Current Liabilities
Explore Fairbanks
Accounts payable Payroll liabilities Deferred income Unearned revenues Total current liabilities
2017 STAFF Deb Hickok
Elke Brosin
Dawn Murphy
Helen Renfrew
President and CEO
European Contractor
Director of Finance and Administration
Alanna McBrayer
Director of Meetings and Conventions
Iwalani Lauver
Administrative Coordinator
Sales and Services Associate
Judy Dellinger
Charity Gadapee
Executive and Finance Coordinator
Amy Geiger
Director of Communications
Kasey Gillam
Assistant Director of Communications
Jerry Evans
Public Relations Manager
Brady Gross/Karen Wilken
Internet Marketing Manager
Angie Cerny
Branding and Production Coordinator
Scott McCrea
Director of Visitor Services and Partnership Development
Jesse Pfeffer
Manager of Visitor Services and Partnership Development
Bob Eley Brenna Schaake Sheri Karikomi Julia Parzick Shelly Smith Miriam Stelges Scott Wiser
Visitor Information Specialists
Ed Malen
Susan McMahon Leo & Colleen Zeek
Tyler Chiles
22 Golden Heart Greeter Volunteers
Director of Tourism Tourism Senior Sales Manager Tourism Sales Associate
Visitor Information Volunteers
Net Assets – Unrestricted
Investment in property and equipment Board designated for subsequent years Board designated working capital reserve Undesignated Total net assets
(907) 457-3282 Marketing OfďŹ ces (907) 456-5774 Visitor Information www.explorefairbanks.com
2016
$1,323,394
211,462 70,799 219,617 1,998,068
205,090 94,200 189,508 1,812,192
375,801 269,463 106,338 2,104,406
351,451 231,267 120,184 1,932,377
83,971 81,469 26,421 138,978 330,838
105,411 91,788 158,365 355,564
106,338 120,184 391,928 373,451 593,450 419,400 681,852 663,777 1,773,568 1,576,813 $2,104,406 $1,932,377
Statement of
ACT IVIT IES December 31, 2017 and 2016
Revenues, Gains and Other Support
2017 2016 Hotel/motel contribution from City of Fairbanks $ 2,037,413 $ 2,087,740 1,157,076 1,328,705 Grants from Fairbanks North Star Borough 14,023 12,820 Hotel/motel contribution from City of North Pole Fairbanks International Airport contract 15,000 15,000 Miscellaneous income 5,200 24,537 Program income, including in-kinds: Communications 171,113 134,868 Visitor Services 2,286 1,468 Tourism 117,997 153,562 Meetings and Conventions 14,273 45,512 Partnership Development 161,601 145,449 Total revenues, gains and other support 3,695,981 3,949,660
Expenses
Program expenses, including in-kinds: Communications Visitor Services Tourism Meetings and Conventions Partnership Development General Administration Capitalized facility and equipment Total expenses Increase (decrease) in unrestricted net assets before non-operating activities
101 Dunkel Street, Suite 111 Fairbanks, AK 99701-4806
2017
$1,496,191
1,265,838 458,853 605,740 388,014 217,110 564,243 3,499,798
1,169,470 428,512 645,867 468,844 212,455 606,554 47,000 3,578,703
196,183
370,958
Non-Operating Activities and Operating Transfers Interest income Operating transfers of capitalized property and equipment Total non-operating activities Change in net assets
Net Assets, January 1 Net Assets, December 31
572
270
572
47,000 47,270
196,755
418,227
$ 1,576,813 $ 1,158,585 $1,773,568 $1,576,813