75 Fall 2025 Proceedings workload associated with new construction projects taking place on water. The Coast Guard works with the U.S. Army Corps of Engineers to review permit applica- tions as a navigation subject matter expert. In 2024, the Waterways Management Division reviewed upwards of 100 waterfront permits for navigational impacts, and local Coast Guard marine inspectors have seen vessel inspections jump from under 400 in 2017 to well over 800 in 2023. The increase can be seen in the growing number of tour vessels in Southeast Alaska that support cruise ship operations in fields like whale watching, charter fishing, and sightseeing. Nearly 2.2 million passengers arrived in Southeast Alaska by air, ferry, and cruise ship in 2023.7 Cruise pas- senger numbers grew by nearly a half million passengers since 2022, a 42% increase, as the COVID-19 pandemic’s impact on tourism eased. The 2023 season’s 1.67 million cruise ship passengers marked a new regional record, breaking the previous record of 1.33 million passengers set in 2019. In 2023, tourism sector jobs increased by 26% over 2022, as nearly 1,700 new, year-round equivalent jobs were added, and wages grew by $105.5 million, a 44% increase.8 According to early find- ings, 2024 was a very good year for tourism businesses, and by extension the regional economy.9 Tourism businesses reported record revenues and are becoming competitive with other sectors for work- ers. In spring 2024, business leaders from the tourism sec- tor reported a strong economic climate, with 81% calling the business climate good or very good. Nearly half—43%— expected business operations to be even stronger heading into 2025.10 After years of cruise pas- senger volatility due to the pandemic—cruise numbers dipped to just 48 passengers in 2020 and just over 100,000 in 202111—a stable supply of passengers is expected in 2025. This will provide tourism businesses a predictable sup- ply of customers. The City and Borough of Juneau is working with the cruise industry on a strategy to limit the number of passengers, ensur- ing a controlled growth pattern. These strategies, which will begin in 2026, include a five-ship daily limit, daily caps on passengers of 16,000 on weekdays and 12,000 on weekends, and a shortened cruise ship season. These three changes are intended to cap significant overall cruise passenger growth and include an agreement to meet annually to balance the schedule. Despite reaching a record high in tourism jobs, regional businesses continue to struggle with attracting enough workers to meet visitor demand, with business leaders primarily attributing the challenge to housing shortages. In a recent analysis, tourism leaders identi- fied the region’s greatest weakness—and biggest threat to the industry—as the lack of housing, while the great- est opportunity lies in workforce housing development. Meanwhile, the region’s strongest tourism asset remains its natural beauty. Seafood Industry Fishing and fish processing have deep historical roots in the region. A stone fish weir, or tidal fish trap, discov- ered on Prince of Wales Island dates back at least 11,000 years. In the late 1800s, commercial fishing and canneries were the largest economic driver in Southeast Alaska. Today, there are more than 3,600 commercial fishing sea- food processing jobs that typi- cally account for $300 million in earnings for the regional seafood industry. On average, regional fishermen harvest 250 million pounds of seafood annually. However, the sea- food sector maintains a base level of volatility. The regional seafood indus- try is currently experiencing economic challenges marked by historically low salmon prices, rising operational costs, consolidation of processing facilities, and unfavorable global dynamics. While sea- food was the top private sector wage provider in the region in 2021 and 2022, the value of seafood dropped precipitously in 2023, though not for lack of fish. In 2023, regional fishermen caught 325 million pounds of seafood, the largest catch since 2013. Yet, it was one of the lowest catch values on record with a value of $261 million. Fishermen caught 74 million more pounds of seafood in 2023 than the previous year. This includes 78 million more pounds of pink salmon Pink salmon mature and complete their life cycle within two years, resulting in distinct odd-year and even-year populations. In South- east Alaska, this creates larger harvests in odd years and smaller har- vests in even years.
