186 



Tourism provides approximately 2.500 direct iobs 7^ From 1990-94, tourism exploded, with 

 visitor spending more than doubling to $160 million," and total regional tourism jobs expanding 

 by nearly 40%, to 3,674 jobs 24 Over the same period, annual visitors to Ketchikan rose by 55%, 

 annual hotel gross sales rose 33%,25 and visitor spending increased by 88% to $32 million. 



These industries depend on a healthy Tongass old-growth forest— fishing for healthy 

 watersheds and tourism for wild lands, unspoiled landscapes, and fish and wildlife. 

 Large-scale clearcutting under the KPC contract threatens jobs in these industries, as 

 well as the subsistence economy, community use areas, and the healthy fish and 

 wildlife habitat that is basic to Alaska 's quality of life. It also threatens long-term 

 timber jobs and precludes the development of a sustainable timber industry based on 

 the free market 



Timber is the fourth-largest industry . In 1995, the timber industry (including private, Native 

 Corporation logging) provided 2,002 direct jobs, and Tongass timber accounted for 1,216 direct 

 jobs Region-wide, KPC provides around 1,000 jobs (counting loggers and another sawmill it 

 leases in Metlakatla) KPC directly provides just 3% of the region 'sjobs and 5% of all direct, 

 indirect and induced employment 



Recent Alaska Delegation claims of massive job losses have little to do with reality. The 



Delegation claims 4,000 jobs will be lost if KPC closes ^6 But in 1995, the entire Southeast 

 Alaska timber industry , including all direct, indirect, and induced employment on Tongass 

 National Forest, State, and private Native Corporation lands produced 3,463 jobs— how could 

 4,000 be lost'' Independent timber sales and Native Corporation logging will continue Using 

 standard Forest Service multipliers, the 600 jobs at KPC's Ketchikan mills would support an 

 additional 438 indirect and induced jobs for a total of 1,038 jobs or 13% of Ketchikan's jobs 



Please see Attachment 3, The Potential Economic Consequences of a Reduction in Timber 

 Supply from the Tongass National Forest— 1996 Revised Report , prepared by ECONorthwest, 

 Eugene, OR This report demonstrates that a reduced timber supply would have a minor impact 

 on the regional economy, that timber was not the driving force behind the economy, and that "the 

 growth industries are tourism, Fishing, and trade, all of which may benefit from reduced 

 logging."" 



^'Economic Development Center, University of Alaska Southeast Ketchikan Campus, Ketchikan Gateway Borough 



Economic Indicators . June 1995 



^^US Forest Service, Alaska Regional Economist. Southeast Alaska Economy, February 1995 (number listed is 



2.330. presumable referring lo 1994). 



^'Planned testimony of Alaska Commisioner of Commerce Willie Hensley before Senate Energy Commitee, S 



1054, August 9, 1995 at 4 Heanng was downgraded lo a workshop due to opposition to the bill 



"Id 



^ Ketchikan Gateway Borough Economic Indicators. 1994 al v 



^'Letter to the Editor of the New York Times, June 25, 1996 



" The Polenlial Economic Consequences of a Reduction in TimberSuppIv from the Tongass National Forest-1996 



Revised Report . Eugene. OR: ECONorthwest at i. Summary of report attached. 



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