371 



Finally, other basic industries, particularly seafood and tourism, would be 

 affected in the form of higher costs, less selection, the loss of industrial 

 support goods and services, decreased ability of local government to provide 

 services and facilities and outmigration of seasonal and part-time labor force 

 critical to both industries. Nonresident hires would increase. 



Now that Alaska has had some experience in the effects of recessions it is 

 possible to quantify and qualify the impacts of economic decline. Therefore, 

 the data developed in the Sitka case is simply the application of known effects 

 of economic decline in Alaska applied to the possible Sitka case. But the 

 difference between the Alaska recession of 1986-88 and the Sitka case is one of 

 scale. The decline certain to be caused in Sitka by an APC closure would have 

 twice to three times the proportional impact which the Alaska recession had 

 on Anchorage. Declines of the potential Sitka magnitude may have unknown 

 impacts in addition to those quantified and qualified in this report, since no 

 Alaska commuruty has experienced so severe an economic contraction in 

 recent times. 



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