Charter service sales are down 25 to 60 percent in

Sushihunter

Active Member
http://www.kodiakdailymirror.com/?pid=19&id=7685

Charter service sales are down 25 to 60 percent in Kodiak

Article published on Wednesday, June 17th, 2009
By BRADLEY ZINT
Mirror Writer

During a nationwide recession, charter services of all types throughout Kodiak are reporting significant drops in sales, ranging from 25 to as much as 60 percent less this year.

But the trend, based solely on anecdotal evidence from early reports this summer season, is not just an anomaly affecting remote Kodiak Island — already known for its hefty transportation prices via plane or the state ferry — but also in coastal Mainland Alaska like Homer and Seward.

Janet Buckingham, executive director of the Kodiak Island Convention and Visitors Bureau, said, based on her conversations so far with charter services, sales were down 25 to 30 percent so far. But she remained optimistic.

“It appears that bookings are coming in late, but they’re still coming in,” Buckingham said. “The captains who have returning clients, who have a very, very well-established clientele, are reporting that they’re absolutely on par on what they had last year.”

She compared Kodiak to trends affecting the whole country.

“It’s matching the national trend of people who aren’t canceling day trips, but they’re canceling multi-day trips,” Buckingham said. “The higher-end trips — that’s where people are hurting a little bit more.”

Higher-end in Kodiak for many customers means remote wilderness lodges, where many out-of-state clients pay three transportation costs: Getting to Alaska, getting to Kodiak, then flying to remote parts of the Kodiak Archipelago.

But she said while Kodiak’s wilderness lodges may be taking the biggest hit, lodges in town are still struggling to find space for the construction crews in town for this year’s many projects.

She also said many Kodiakans are finding other ways to supplement their business.

One of them is Shawn Gornall, owner of Ultimate Island Adventures. His company, now in its fifth year, does ATV excursions, boat charters and guided fly-fishing.

“I’m down about 60 percent. I don’t see any relief in sight,” Gornall said. “There’s not really any phone calls recently, no e-mails. It’s pretty slow.”

His said his game plan is to meet with another captain, combine clients and cut costs as best he can to make ends meet. He said he’s willing to help out other crews as well.

He attributed the tough year to the nationwide recession, that reflects trends he heard about from clients as early as February.

“People are really nervous,” Gornall said. “We had some clients who said they lost over 55 percent of their retirement. They said they had lost a considerable amount of money and have to cut back on their vacations.”

He also said, flights to Kodiak were too expensive this year.

“No one wants to pay $400 when they can go to Seward or Homer. Until that is corrected, people are going to be shy coming here,” he said. “My clients have said, ‘It’s half of our vacation just getting to Kodiak.’ That’s a huge deal.”

Gornall also said clients have misconceptions about Kodiak’s fishing regulations compared to Southeast Alaska, a region vastly more affected with an influx of cruise-ship tourists than Kodiak. While charter boats can only retain one halibut in the Southeast, as many as 30 percent of his clients think Kodiak has the same one-halibut rule.

“Everybody thinks Kodiak is under the same limits … people don’t really know what the rules are here. It’s still two halibut a day, per person, for anyone who takes a charter boat, as well as sport fish.”

August Aga, of Kodiak Kingfisher, also said his business is down at least 50 percent compared to last year, though his repeat customers are still coming back for more. He said more Europeans are coming to fish in Kodiak this year, but locally, his increased amount of advertising hasn’t seemed to pay off yet.

“We’re like totally closed here. It’s not looking good, that’s for sure,” Aga said. “But we have to keep thinking positive … we’ll just wait and see what happens.”

In addition to the recession, he said he heard while dining in Glennallenn that motor homes are a hot trend this year. He said many are apparently driving up the Alaska Highway.

CJ Christiansen, manager of the Ocean View Lodge in Old Harbor, said while business seems to be down about 40 percent this year, “The people who could afford to do it are the ones who are still coming. The ones when it’s their big trip of the year are not the clients coming back this year.”

At least one company seems to be seeing some benefit in the situation: Can’t Get Enough Fishing and its owner, Dale Stratton. His company provides ATV excursions, river fishing and sightseeing for long expeditions, ranging from 10- to 14-hour trips.

“It’s not as good as last year, but I’m really not complaining,” Stratton said. “It could be better, but I know when they shut the Buskin River down that it’s going to push people, the drop-in people, from the ferries.”

He said with many of the easily accessible rivers off the road system shut down or with limited catches, he sees his ATV excursions as a relatively inexpensive option for clients who want to go fishing without having to pay hefty flight costs to remote places.


Mainland perspectives

Tough times seem to be affecting the whole state, even the Kenai Peninsula’s Homer and Seward.

“Homer’s fishing has been down from 40 to 60 percent,” said Paula Frisinger, halibut derby coordinator for the Homer Chamber of Commerce. “People are here, but it seems like they’re not spending anything. You see a lot more Alaskans coming down and using their own boats.”

She said many privately owned boats seem to be pulling into town from Cook Inlet, places like Anchorage, Wasilla and Eagle River. Some charter boats have stayed off the water this year, but the main companies are still going, she added.

For Homer, she said the first week in June is normally busy, but this year was slow.

“You see quite a few of the charters have gone to half days to try to get the business. Everybody’s hurting,” Frisinger said.

Some charters in Homer also are offering incentives like discounts on full-day trips.

“Everybody’s trying to do something to try and drum it up,” she said.

Laura Cluberton, public relations and programs coordinator with the Seward Chamber of Commerce & Conference and Visitors Bureau, said some bookings are down this month as well. She heard the grim news in April and May, but remains optimistic.

“Gauging on halibut tournament tickets, it’s not going too badly, so that’s a good thing,” Cluberton said. “Some of the bigger charters that are pretty well-established are going pretty well for July and August.”

She said mid-June was too early to predict how charter businesses were faring, but said good weather has helped them so far.

She also said Seward is still getting a steady stream of cruise ships, as many as four or five a day — a rate she said was good compared to previous years.

Both cities are trying to keep things in a positive, upbeat light.

“I think it’s going to pick up, Frisinger said. “This weekend was really good. There was a lot of action … it’s all in time. It’ll be what it is.”

Mirror writer Bradley Zint can be reached at bzint@kodiakdailymirror.com.

Jim's Fishing Charters
www.JimsFishing.com
http://ca.youtube.com/user/Sushihunter250
 
Back
Top