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Sportfishing plays crucial role in local economy
Article published on Tuesday, January 27th, 2009
By HARRY DODGE
Mirror Writer

Despite its remote location, Kodiak claims a healthy share of the state’s sportfishing income. Last year, 475,534 resident and nonresident licensed anglers spent nearly $1.4 billion on licenses and trip-related expenses in Alaska, according to a recently published economic-impact study of sportfishing in Alaska.

The study, conducted for the Alaska Department of Fish and Game by Southwick Associates Inc., indicates the economic activity generated by sportfishing supported 15,879 jobs, provided $545 million of income and resulted in $123 million in state/local tax revenues.

Kodiak is a popular sportfishing destination for residents and nonresidents. The number of businesses catering to sportfishermen has grown steadily over the past several years, and the local economy has reaped direct benefits from this segment of tourism.

“Twenty-one years ago, the Kodiak charter boat fleet consisted of just a couple boats,” said longtime charter operator Larry Shaker.

The Kodiak Island Convention and Visitors Bureau currently lists 30 charter boat operators as organization members. City revenues reported by the charter boat sector increased almost 100 percent over the past 10 years.

Charter boat owner Tim Tripp has seen an increase in small boats entering the charter business, mostly over the past four years. He noted that the increase in larger charter boats is a slower process.

Sport fish guides are required to submit logbooks of fishing activity to the Alaska Department of Fish and Game. An average of 140 saltwater logbooks are issued, and of these 70-75 operators actively participate in the fishery.

The number of logbooks issued by ADF&G has remained steady for the past two years.

“There has been some turnover, but no net increase in the number of operators,” said Fish and Game biologist Donn Tracy.

In 2008 Fish and Game issued 100 freshwater logbooks and got returns from 60 unique operators. Many guides participate in both salt and freshwater fisheries, and some get multiple logbooks, depending on the number of company boats.

Mack’s and Cy’s sporting goods stores attribute 25-40 percent of their business to sportfishing-related sales.

The poor salmon runs of 2008 had a slight dampening effect on non-resident license sales, but resident anglers remained made up for the difference. Fish and Game records indicate license sales in Kodiak remained steady over the past several years.

Cy Hoen, owner of Cy’s Sporting Goods, said the recent increase in fly-fishing enthusiasts, who tend to spend more money on their hobby, is helping sales.

“Kodiak is a little off the beaten path,” said Hoen. “The tourists coming to Kodiak are quality folks. They benefit the whole community. There are a lot of return customers, too, who keep coming back year after year.”

The number of remote lodges and bed and breakfasts on Kodiak also increased in recent years. The Kodiak Island Convention and Visitors Bureau lists 37 B&Bs and 29 remote lodges as organization members. Many B&Bs attribute up to half their bookings to visitors coming primarily to fish, while lodges rely more heavily on sportfishing.

The trickle-down effect of sport fish tourist dollars throughout the rest of the community is more difficult to trace, but restaurants, bars, grocers, air charter companies, taxis and various retailers benefit to some degree from sport fish tourism.

Fishery enhancement

The Sport Fish Division of Fish and Game is charged with enhancing Kodiak sportfishing opportunities. Enhancement projects include planting king salmon in Monashka, Olds and American rivers, and land-locked coho salmon and rainbow trout in 20 road-system lakes.

Some of these projects date back to 1953, making them some of the longest-running enhancement programs in the state, Tracy said.

Hatchery operations at Pillar Creek are run cooperatively with the Kodiak Regional Aquacultural Association.

Through these enhancement efforts, the Kodiak road system offers Kodiak visitors and residents a variety of fishing options without the added expense of an air-taxi flight.

The Sport Fish Division is primarily funded through the sale of fishing licenses and king salmon stamps combined with an excise tax on sales of fishing equipment and supplies through the Dingle/Johnson Act.

While sportfishing is a significant part of Kodiak tourism, it is not without its share of challenges.

Allocation conflicts with the commercial halibut fleet has raised the possibility of catch restrictions for charter boat operators. The North Pacific Fishery Management Council is working on a catch-sharing plan for the commercial and sport fisheries.

Meanwhile, a proposed moratorium on new charter boats entering the halibut sport fishery in Kodiak waters has encouraged registration by boat owners who want to avoid being shut out of the fishery.

Kodiak salmon runs have generally been strong in recent years, but weak returns in 2008 hurt sportfishing in some areas. Poor chinook returns to Karluk and Ayakulik rivers led to non-retention restrictions, and weak sockeye returns to Buskin Lake and Red Lake resulted in sport fishing closures.

Commercial fishing still king

Commercial fishing still reigns supreme in terms of economic impact in Kodiak. The seafood industry is the state’s largest private sector employer, and Kodiak ranks no. 3 in the U.S. in terms of value of fish caught, according to a recent report prepared by the Marine Conservation Alliance.

Borough records show seafood processing contributed 25 percent of the wage and salary jobs in the borough in 2005. More than 500 commercial fishing vessels are homeported in the City of Kodiak, with several dozen more in small communities around the island.

Tourism dynamics on Kodiak have begun to shift in recent years with the growing popularity of wildlife viewing. Sportfishermen numbers remain stable and still account for the majority of Kodiak tourism. Yet, the growth of “eco-tourism” accounts for much of the net increase in summer visitors coming to Kodiak. Some remote lodges now concentrate more on wildlife viewing than sportfishing, and charter boats are expanding services to include bird and whale watching trips in response to the increasing demand.

Looking to the future, the current world economic meltdown is clouding Kodiak’s tourism outlook. Many lodges, B&Bs and charter boat operators report slower than normal bookings for the coming summer.

Most operators remain upbeat, however, hoping things will pick up.

“Even in hard times, people are still going to buy a hook and fishing pole,” Hoen said.

Mirror writer Harry Dodge can be reached at hdodge@kodiakdailymirror.com.

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