Sitka's cruise sector generated $105M in direct spending during 2024

Cruise tourism generated an estimated US$105 million in direct spending in Sitka (Alaska) during 2024, according to a new economic impact study commissioned by the Cruise Lines International Association (CLIA) and prepared by Oxford Economics. The findings were presented to the Sitka Assembly as part of a wider study examining the economic contribution of cruise activity at individual ports.

The study examines cruise-related activity through three economic channels. Direct impacts cover spending by cruise passengers in the destination, while indirect impacts arise from businesses purchasing goods and services required for their operations. Induced impacts reflect additional spending generated when employees supported by those activities spend their wages within the local economy.

According to the report, cruise passengers spent an average of US$136 during visits to Sitka in 2024. Cruise activity directly supported 569 jobs, while a further 185 positions were supported through indirect effects, bringing the total employment impact associated with cruise activity to 754 jobs across Alaska, according to the figures presented to the Assembly.

Sitka Tourism Manager Judson Rusk said the study forms part of a project launched in 2024 to establish a consistent methodology for assessing the economic contribution of cruise tourism at 10 ports in Europe and the Pacific Northwest. The approach is intended to distinguish the initial expenditure generated by cruise visitors from the wider economic effects that move through local supply chains and household spending.

The report also places Sitka's cruise activity within the broader expansion of Alaska's cruise market. Cruise demand in the state increased by 40% between 2019 and 2024, more than twice the rate recorded globally during the same period. Oxford Economics has nevertheless projected a slower pace of growth ahead, indicating that the exceptionally strong expansion of recent years is expected to moderate.

The wider Oxford Economics and CLIA research programme reflects the growing use of port-level economic studies to measure the contribution of cruise tourism beyond passenger numbers. At the US level, the 2024 analysis found that cruise-related activity generated US$75.5 billion in total economic output and supported approximately 333,000 jobs, while Alaska alone recorded US$2.1 billion in total output and 11,400 jobs associated with the cruise industry.

For Sitka, the latest figures underline the role of cruise calls not only as a source of visitor expenditure but also as a contributor to employment and business activity extending beyond the immediate transactions between passengers and local tourism operators.