Inter-Island Ferry Generates Significant Economic Activity in Southern Southeast AlaskaIFA Related Spending in Ketchikan is at least $11 Million Annually
March 08, 2014
“We have always known that the IFA plays a significant socio-economic role in southern Southeast Alaska,” explains Dennis Watson, General Manager of the Inter-Island Ferry Authority. “However, it has not always been easy to convey this message. This publication concisely describes and calculates the economic and social impacts of daily ferry service between Prince of Wales Island and Ketchikan.” Some other highlights of the study include the following: • Jobs and Earnings: Hundreds of jobs, and millions in workforce earnings on Prince of Wales Island (POW) are dependent on the IFA - primarily in the seafood industry. This is especially significant, considering the unemployment rate for that area was 14.1% last year. • Tourism: Visitors coming to Prince of Wales Island on the ferry spend about $5.8 million on the island annually. • Seafood: In a typical year, IFA transports three million pounds of high value seafood, with an associated harvest value of $15 million. The business model to move this product depends on the daily, reliable, affordable service the IFA provides. The State of Alaska receives hundreds of thousands in tax revenue from this cargo. • Children and Senior Citizens: By using the ferry, students, senior citizens, and younger children have saved a combined $14.6 million over the price of flying since 2002. • Students: In 2013 students from 13 Alaska school districts made 3,700 trips on the IFA. Being able to participate in high school activities and sports travel is especially important for rural d students. The system saves school districts more than $300,000 per year in travel costs. • Ketchikan Spending: Prince of Wales residents who ride the ferry spend millions in Ketchikan each year. Last year POW IFA riders spent $10 million on goods and services (not counting the millions spent in the health care sector). The IFA itself spent $1 million more in Ketchikan. • Access to Medical Care: Prince of Wales residents rely on the IFA for affordable access to medical care. Medical trips accounted for 3,000 to 4,500 ferry trips last year. These “medical tourists” spend millions in Ketchikan hospitals each year. Since service began in 2002, the Inter-Island Ferry Authority (IFA) has transported 625,000 passengers and nearly 150,000 vehicles between Ketchikan and Hollis. Marine transportation is vital to Southeast Alaska and especially to Prince of Wales Island, which is the fourth largest island in the US, with its communities isolated. The need to establish the Inter- Island Ferry Authority (IFA) became evident in 1993 when the State’s ferry service to Prince of Wales declined to just one-and-a-half trips per week. The infrequent service, inconsistent scheduling, and frequent 2 AM departure times created economic challenges for island businesses and residents. The IFA was developed as a community led effort, and continues to be run by a coalition of six municipalities. Craig, Klawock, Thorne Bay, Coffman Cove, Wrangell, and Hydaburg operate the IFA under Alaska’s Municipal Port Authority Act (AS 29.35.600), meaning that the IFA is technically a subdivision of the State, and therefore eligible for State funding. Much more information is available in the 12-page publication, The Inter-Island Ferry Authority By The Numbers, compiled by Sheinberg Associates.
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