yakutat community and economic indicators

YAKUTAT COMMUNITY
AND ECONOMIC INDICATORS
prepared for
City and Borough of Yakutat
prepared by
Sheinberg Associates
June 2012
Yakutat Community and Economic Indicators
Table of Contents
INTRODUCTION ...............................................................................................................1
ECONOMIC STRENGTHS AND WEAKNESSES .............................................................................1
Strengths, Assets and Competitive Advantages ............................................................. 1
Weaknesses and Challenges ........................................................................................... 2
DEMOGRAPHICS ..............................................................................................................4
GENERAL ECONOMIC CONDITIONS .......................................................................................5
TOP ECONOMIC SECTORS ...................................................................................................7
Top Employers ................................................................................................................ 8
GOVERNMENT ................................................................................................................9
COMMERCIAL FISHING AND SEAFOOD PROCESSING ...................................................................9
Seafood Processing ....................................................................................................... 11
VISITOR INDUSTRY ......................................................................................................... 12
Sports Fishing in Yakutat ............................................................................................... 12
Yakutat Passenger Transportation................................................................................ 14
TOTAL RESIDENT INCOME ................................................................................................ 15
Mailbox Economy.......................................................................................................... 15
Subsistence ................................................................................................................... 16
MUNICIPAL GOVERNMENT TRENDS .................................................................................... 16
COST OF LIVING ............................................................................................................. 17
Housing ......................................................................................................................... 18
Energy ........................................................................................................................... 19
Electricity Use................................................................................................................ 20
INTRODUCTION
The City and Borough of Yakutat asked Sheinberg Associates to assist it with three related tasks
in 2012 to help the Assembly set strategic direction for the community.
1. Prepare updated Community and Economic Indicators report;
2. Develop a Tool to Track and easily review ongoing Capital Improvement Projects; and
3. Facilitate one or more Strategic Planning and Direction-Setting sessions.
This Community and Economic Indicators Report is the first deliverable for this project.
ECONOMIC STRENGTHS AND WEAKNESSES
Strengths, Assets and Competitive Advantages
1. A fishing community since its inception, Yakutat has a rich and healthy seafood economy.
Despite its small size it is the 53rd top 100 U.S. port based on seafood volume.
2. When all types of government employment are combined this is Yakutat’s top economic
sector, accounting for more than a third of all wages. Government generally provides
steady year round employment, which supplements Yakutat’s other top sectors that are
more seasonal: commercial fishing and seafood processing and tourism.
3. Yakutat is attractive to high-end independent travelers due to its world-class sports fishing
and other unique attributes such as surfing. Despite the recent decline in tourism to the
area due to the global recession, tourism is likely to increase again over the next couple
years.
4. Yakutat is served twice daily by the Alaska Airlines jet, and is the smallest community in
Alaska to receive this high level of service.
5. Yakutat has one of the strongest subsistence economies of Alaska’s coastal areas. The
region is rich with abundant food resources.
6. Diversified Personal Income: There are a number of self-employed individuals in Yakutat.
Approximately 11% of all personal income coming to Yakutat is from self-employment (31%
of all employment related income is through self-employment). Yakutat’ “Mailbox
Economy” is also significant, with 35% of the community’s total income coming from
sources that include retirement, dividends, interest and rent.
7. Yakutat has opportunities for alternative energy in bio-mass, tidal and wave energy as well
solar and wind, which could provide some relief to high power and heating costs if
developed.
8. Yakutat has a successful history of grant-writing and obtaining project funding.
June 2012 - Yakutat Community and Economic Indicators
page 1
9. The dynamic forelands environment and complex glacial system is unique generating high
level academic and research interest. Portions of two national parks and the largest
national forest are within the Borough.
10. There is a vibrant Tlingit culture.
Weaknesses and Challenges
1. The community has lost 18% of its population over the last decade.
2. Yakutat is the most remote community in the State; the closest neighboring community is
150 air miles away (Haines, via Canada). Yakutat is approximately 225 miles northwest of
Juneau and 220 miles southeast of Cordova. All commerce and access must occur via air or
sea, which is expensive. 1
3. If the Hubbard Glacier causes a washout of the Situk River system the fisheries here could
be lost for many years.
4. Fishing and processing jobs are a key economic sector, leaving the Yakutat economy
vulnerable to pricing and harvest fluctuations that are outside of local control.
5. Ongoing conflict between commercial and sports fishermen in the Tsiu River area is
damaging.
6. Yakutat’s diesel based power rates of $.49 per kWh (small commercial rate for May 2012)
make it difficult to attract new businesses.
7. The economy is seasonal. The number of those employed in Yakutat’ increases 67% in the
summer.
8. While overall employment is up over the decade, employment and payroll have declined
since 2006.
9. Wages are low compared to other places.
10. Almost three-quarters of schoolchildren (73%) qualify for free lunch (less than $36,222 for
family of four). The number getting free lunches has increased significantly in recent years,
pointing to an increase in families at or near poverty levels.
11. Approximately 20% of housing stock is in poor condition.
June 2012 - Yakutat Community and Economic Indicators
page 2
OVERVIEW: YAKUTAT BOROUGH COMMUNITY AND ECONOMIC INDICATORS
DEMOGRAPHICS
Population 2
Net In-Migration 3
Median Age 4
Births
K-12 School District Enrollment 5
Number of Permanent Fund Dividend Applications 6
Number Dwelling Units (Borough-wide) 7
Of total, number seasonally
occupied dwelling units
Number of Dwelling Units in Yakutat CDP
Number Residential Electric Customers 8
GENERAL ECONOMIC CONDITIONS
Total Labor Force9
Total Payroll (includes self-employed) 10
Total Private Sector Payroll
Average Wage 11
Unemployment Rate 12
Student Free Lunch Eligibility (% of students)
(2006 & 2012) 13
TOTAL RESIDENT INCOME IN YAKUTAT BOROUGH 14
Borough Income from Mailbox (% of total income 15 )
Borough Income from Wage & Salary (w adjustments &
supplements)
Borough Income from Proprietors & Self-employment
TOP ECONOMIC SECTORS 16
Government 18
Government earnings as a % of all earnings
Total Government Payroll
Government Employment
Commercial Fishing & Seafood
Seafood earnings as a % of total earnings 19
Seafood (processing + comm. fishing) earnings 20
Fishermen and Crew (Yakutat Residents) 21
Seafood Processing Jobs 22
Yakutat Pounds Landed (comm. pounds) 23
Estimated Gross Earnings (Ex-Vessel Value)24
State Shared Fisheries Business & Landing Taxes 25
Number commercial vessels homeported 26
June 2012 - Yakutat Community and Economic Indicators
2010
662
-7
39.7
9
117
628
450
2000
808
-74
37.2
8
167
698
499
131
178
383
271
2010
300
$15.2 million
$9.9 million
$33,422
11.0%
385
232
2006
311
$16.4 million
$12.1 million
$32,659
9.6%
-26%
-0.5%
17%
% CHANGE
-4%
-7%
-18%
2%
1.4%
73%
50%
23%
2009 YAKUTAT
35%
2009 JUNEAU
32%
2009 ALASKA
31%
54%
64%
60%
11%
4%
17
2010
2006
Top Industry
35%
26%
$5.4 million
$4.3 million
142
142
Second Industry
23%
19%
$3.5 million
$3.1 million
177
170
82
92
3.2 million
2.0 million
$4.3 million
$212,917
111
$2.6 million
$171,676
109
% CHANGE
-18%
-91%
7%
13%
-30%
-10%
-10%
9%
% CHANGE
9%
26%
0%
4%
12%
4%
-11%
61%
66%
24%
2%
page 3
Tourism Sector
Tourism Wages as a % of all earnings 27
Total Tourism Wages 28
Bed, Rental Vehicle & Sales Tax 29
Sports Fishing Anglers 30
Total Sports Fish Harvested
MUNICIPAL GOVERNMENT TRENDS
Full True Value (real & personal prop. values) 31
Property Tax Revenue 32
YAKUTAT PASSENGER TRANSPORTATION
Total Passenger Arrivals
Alaska Airline Passenger Arrivals 33
AMHS Passengers Arrivals 34
Air Freight Arrival (in pounds) 35
Third Industry
19%
23%
$2.8 million
$3.7 million
$766,519
$913,967
7,119
7,304
41,456
38,585
2010
2000
$69.7 million $44.6 million
$ 402,753
$227,656
2010
2006
10,131
11,431
9,828
11,247
303
184
852,593
1,186,983
-4%
-24%
-16%
-3%
7%
% CHANGE
56%
77%
% CHANGE
-11%
-13%
65%
-28%
DEMOGRAPHICS
In 2011, Yakutat had 656 residents. Aside from a few unusual years, the population of Yakutat
has been slowly declining since 1997—the peak year for population and employment in the
borough. Since 1997, the borough population has declined by 20 percent.
Much of this decline is associated with the descent and ultimate closure of the Icy Bay logging
camp—located outside of the Yakutat community—in late 1990’s and early 2000’s.36 In
contrast to the significant population decline of the Borough, the population of the Yakutat
Census Designated Place (which excludes Icy Bay) only dropped 3% since 2000.
Yakutat Borough Population, 1990-2011
662
656
2010
2011
686
2008
744
677
712
2006
2007
708
731
2004
2005
732
712
750
808
729
799
775
727
707
2003
600
680
650
722
700
705
750
770
800
822
850
550
500
450
2009
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
400
Source: US Census 2010 and ADOLWD
June 2012 - Yakutat Community and Economic Indicators
page 4
In the last decade, the number of Yakutat births ranged from one to ten (with nine between
2010 and 2011), while deaths ranged between one and six. Between 2008 and 2010, 13 more
people moved from Yakutat to elsewhere in Alaska than those who moved to Yakutat (65
moved to Yakutat, 78 moved away). More migration (both in and out) happens between
Yakutat and Juneau, than with any other community. Anchorage and Bristol Bay are other top
in/out migration destinations. Based on available data, most in/out migration appears to occur
within Alaska. 37
The age makeup of Yakutat is changing. Those 55 and older represented more than a quarter of
the population (26%) in 2010, up from 14% in 2000. However—unlike the rest of Southeast
Alaska—the Yakutat median age actually decreased slightly between 2005 and 2010 (from 39.9
to 39.7). Residents between the ages of 30 and 54 accounted for nearly half the population of
the Yakutat Borough (48%) in 2000—that proportion fell to just over a third (36%) in 2010.
Change in Population Distribution by Age, 2000-2010
2000
50%
2010
48%
40%
36%
30%
20%
26%
23%
19%
10%
19%
15%
14%
0%
0-14
15-30
30-54
55+
Source: ADOLWD, US Census analysis by Sheinberg Associates.
In Yakutat, Alaska Natives/American Indians comprise half of the population. This is significantly
higher than state average (19%) or Southeast Alaska regional average (22%).
GENERAL ECONOMIC CONDITIONS
Yakutat’s economic history over the last three decades or so has been similar to the story of
most of Southeast Alaska. Until the mid-1990’s, Southeast Alaska had enjoyed nearly a century
of growth. At this point, the regional timber industry began to decline and significant regional
timber mill closures eliminated a major source of year round employment substantially
affecting the economic health of the region including Yakutat.
The economic prosperity in the Yakutat Borough peaked in 1997. In 1997, 119 jobs in the
Yakutat Borough were forestry and logging related employment. By 1998, that number had
decreased to 58 and by 2002 the average employment for that industry was four due to the
June 2012 - Yakutat Community and Economic Indicators
page 5
closure of the Icy Bay logging camp about 70 miles northwest of Yakutat and reduced timber
harvest in the Yakutat community.
The chart on the next page shows standard Alaska Department of Labor wages and
employment in the City and Borough of Yakutat between 1993 and 2010, and wages that have
been inflation-adjusted to 2010 dollars.38 This chart shows that over the last decade wages to
the community have been flat but the spending power of those wages has not kept up with
inflation. Using inflation adjusted dollars, between 2000 and 2010 the average wage actually
fell by eight percent.
Yakutat Borough Employment and Wages, 1993 to 2010
Employment (number of jobs)
Wages
Inflation adjusted Wages
25,000,000
500
19,000,000
17,000,000
15,000,000
300
13,000,000
11,000,000
200
9,000,000
Total Wages
21,000,000
400
7,000,000
5,000,000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
100
1993
Total Employment
23,000,000
Source: ADOLWD; Anchorage Alaska Consumer Price Index (CPI)
Yakutat wages are among the lowest in Alaska; the average annual wage in Yakutat Borough is
the fifth lowest among Alaska’s 29 boroughs and census areas. The average annual Alaska wage
is 46% higher than the average Yakutat wage.
Yakutat’s average 2011 unemployment rate was 10.7%, higher than the state average of 7.6%
for 2011, and the national rate of 8.9%. On average of 32 persons per month were looking for
work in Yakutat in 2011 (ranging from 23 to 41, depending on the month). 39
Like many places in Southeast Alaska today, another trait of the Yakutat economy is its
seasonality. In September 2010, the month with peak employment, employment was 410; in
November, when employment is at its lowest just two months later, there were 245
employees, a reduction of 40%. This is not surprising in that two of Yakutat’s top three sectors
are seasonal: seafood and tourism.
June 2012 - Yakutat Community and Economic Indicators
page 6
TOP ECONOMIC SECTORS
The three major sectors of the Yakutat economy are Government, Seafood (seafood
processing, commercial fishing), and Tourism. Earnings from these three sectors account for
77% of all work related income. Retail is the fourth largest Yakutat sector.
The chart below and the table on the following page combine standard wage and employment
data from the Alaska Department of Labor and Workforce Development (ADOLWD) with US
Census Non-employer data, in order to account for self-employment. Approximately 31% of all
earned income was from self-employment in 2009, with 138 Yakutat resident’s reported selfemployment income to the IRS. (This type of analysis is especially important in Yakutat due to
the high number of self-employed commercial fishermen).
Yakutat Borough Annual Income (Wages & Self-Employment)
by Industry, 2009-2010
State
Government
5%
Tourism (includes
transportation)
19%
Retail
5%
Membership
Organizations
3%
Federal
Government
11%
Local and Tribal
Government
19%
Finance & Business
4%
Hunting and forestry
2%
Other (ADOL):
Construction,
Forestry, Health
3%
Commercial
Fishing and
Seafood
Processing
23%
Other(Census): Retail,
Education,
Recreation, other
6%
Source: Sheinberg Associates using ADOLWD (2010); US Census Non-employer data (2009)
June 2012 - Yakutat Community and Economic Indicators
page 7
Yakutat Borough Annual Work-Related Income and Employment
(Employment & self-employment combined) by Industry, 2009-2010
INDUSTRY
Commercial Fishing and Seafood Processing
Local Government
Tourism (includes transportation)*
Federal Government
Retail*
State Government
Finance & Business
Membership Organizations
Hunting and forestry*
Construction*
Non-disclosed Census: Trade, Education,
Recreation, other
Non-disclosed ADOL: Forestry, Construction, Fish
Processing, Health
Total
WORK-RELATED
INCOME
$3,502,006
$2,902,913
$2,843,633
$1,752,998
$725,894
$711,384
$649,397
$464,134
$288,000
$161,000
$966,000
PERCENT
OF TOTAL
23%
19%
19%
11%
5%
5%
4%
3%
2%
1%
6%
EMPLOYMENT
115
94
83
33
38
15
21
15
7
4
21
PERCENT
OF TOTAL
$304,225
2%
7
2%
$15,271,584
100%
453
100%
25%
21%
18%
7%
8%
3%
5%
3%
2%
1%
5%
*Total jobs and wages are slightly higher in this category. Some of the amounts in this category are classified, and full totals could not
be calculated. Overall totals are accurate.
Sources: ADOLWD Employment and Wage Data 2010; US Census 2009 Non-employer Statistics; ADOL Seafood Processing Workforce
and Wages by Borough 2009.
Note: Data in some categories was not disclosed due to the small amount of employments/employers and confidentiality
requirements.
Top Employers 40
Yakutat’s top employer for 2010 was the Yakutat Tlingit Tribe, while the top private employer
was Yakutat Seafoods. Yakutat Borough’s top ten employers are:
Top 10 Yakutat Borough Employers, 2010 (Residents Only)
1. Yakutat Tlingit Tribe
2. City and Borough of Yakutat
3. Yakutat School District
4. Yakutat Seafoods
5. Mallotts General Store
6. State of AK
7. AK Commercial Co.
8. Glacier Bear Lodge
9. Yakutat Tlingit Tribe Non-profit
10. Alaska Airlines
Source: Alaska Local and Regional Information (ALARI)
June 2012 - Yakutat Community and Economic Indicators
page 8
GOVERNMENT
Government is Yakutat’s largest economic sector, accounting to just over a third of all work
related earnings and jobs in 2010. These are typically year-round family-wage jobs that are a
critical stabilizing factor in the local economy. There were 142 government employees in the
Yakutat Borough in 2010. Between 2006 and 2010, the proportion of total local work related
earnings represented by government grew significantly—from 26% to 35%.
Local and Tribal government accounted for 19% of all work related income in the Yakutat
Borough in 2010 with the top three employers being Yakutat Tlingit Tribe, the City and Borough
of Yakutat, and the Yakutat School District.
The federal government accounted for 11% of all work related income in the Yakutat Borough
in 2010. The top federal employer is the US Forest Service, followed by the Transportation
Security Administration, and NOAA. The State of Alaska is responsible for just five percent of
total employment income in Yakutat. The two State offices located in Yakutat include Alaska
Department of Fish and Game, and the Alaska Department of Transportation and Public
Facilities.
COMMERCIAL FISHING AND SEAFOOD PROCESSING
Yakutat is now, and has historically been, a fishing community. Seafood related employment
represents the most important private sector industry in Yakutat. Seafood wages—seafood
processing wages plus commercial fishermen earnings—represent nearly a quarter (23%) of all
local job related income. To compare, regionally, seafood earnings account for 13% of all
wages. The largest private sector employer in the Yakutat Borough is Yakutat Seafoods.
With such a high local dependence on commercial fishing, Yakutat is especially impacted by the
annual changes to seafood values and abundance. Over the past two decades, there have been
several cycles of high and low earnings years in the seafood industry. Earnings from recent
years are significantly below the historical highs of previous decades (the 1980s and 1990s), but
they represent a significant recovery from the early 2000’s.41 Between 2006 and 2010, most
fisheries indicators were up in Yakutat, including the number of Yakutat commercial fishermen;
total commercial seafood pounds landed, along with the ex-vessel value of that catch. The
number of local seafood processors was up along with total seafood processing wages; pounds
processed; and total value of seafood processed. The total sports fishing harvest was up as
well.
June 2012 - Yakutat Community and Economic Indicators
page 9
Yakutat Commercial Fishing & Seafood Statistics, 2000-2010
Yakutat (unique) permit holders
1
162
Yakutat Fishermen (who fished)
1
126
126
125
137
139
137
140
12%
46
45
45
53
29
52
37
-18%
172
171
170
190
168
189
177
4%
1,805,955
NA
2,006,779
2,352,615
2,167,409
2,225,685
3,236,462
61%
$1,372,739
NA
$2,559,788
$3,218,027
$3,266,486
$2,374,205
$4,261,390
66%
139
115
109
110
118
109
111
2%
$137,327
$35,973
$152,850
$200,086
$244,777
$237,966
$169,470
11%
240
114
92
130
97
97
82
-11%
52
48
58
93
64
64
52
-10%
$1,653,036
$987,877
$936,947
$1,321,407
$1,243,194
$1,233,339
$1,440,006
54%
NA
78
78
89
68
81
NA
4%
NA
$1,987,000
$2,185,000
$2,808,000
$2,295,000
$2,062,000
NA
4%
NA (100+)
73rd
50th
49th
64th
58th
53rd
+3 places
2
Total Yakutat Residents who Fished
1, 2
1
Yakutat Pounds Landed (comm pounds)
Total Ex-vessel Value
1
Commercial Vessels Home Ported in Yakutat
3
State Shared Business & Landing Fish Taxes to
8
CBY
5
Seafood Processing jobs
Yakutat Residents
5
5
Seafood Processing wages
Individual Yakutat Fishermen Tax Returns
Self-employment commercial fisheries
9
wages
7
US Port rank (based on volume)
9
2006
163
2007
159
2008
163
2009
156
2010
153
CHANGE
2006-2010
-6%
2005
161
Yakutat Crew
2000
Sources: 1. Commercial fishing permit activity, estimated harvest and earnings by permit holders are from AK Commercial Fishery Entry Commission (CFEC) at:
http://www.cfec.state.ak.us/gpbycen/2010/mnu.htm 2. Crew numbers are from ADF&G 2010 Crew license list, as reported to CFEC. 3. Vessel home port
numbers are from CFEC – online at http://www.cfec.state.ak.us/plook/ 4. 2010 Population figures used to calculate percentage of resident skippers who fished
plus crew is from DCCED AK Community Information Database online at: http://www.dced.state.ak.us/dca/commdb/CF_COMDB.htm 5. Processor
Employment and Wages Data from ADOL http://labor.alaska.gov/research/seafood/statewide/AKSFPBorca.pdf 6. Processor 1st wholesale value by Census
Area 2009 provided by Alaska Seafood Marketing Institute 7. National rank and NOAA total landings and value for selected ports is from NOAA Fisheries Office of Science & Technology:http://www.st.nmfs.noaa.gov/st1/commercial/index.html 8. Shared fish taxes from 2010 Dept of Revenue Shared Taxes report
www.tax.alaska.gov/programs/sourcebook/index.aspx 9. Self-employment wages and numbers of fishers from U.S. Census Nonemployer Statistics (the US
Census coordinates this information with Internal Revenue Service tax return data.
June 2012 - Yakutat Community and Economic Indicators
page 10
In terms of fisheries taxes, Yakutat receives a share of the State’s fishery business tax
based on how much processing occurs in the Borough—$390,043 in FY11; Yakutat has a
fish tax ($35,665 in 2010), and a fish landing tax (21,052 in FY11). Each of these taxes
were higher than in 2006.
In the list of top 100 U.S. ports based on volume for 2010, Yakutat was 53rd.
Seafood Processing
Canneries and land-based seafood processors in Yakutat in 2010 included Alsek Fish,
Captains Select Seafoods, Mystic Salmon, Yakutat Fisherman, and Yakutat Seafoods.
Nearly five million pounds of seafood was processed at those facilities in 2010, with a
wholesale value of $22.6 million, representing a 44% increase in net weight, and a near
doubling of wholesale value over 2009.
Seafood Production at Shorebased Plants
in the Yakutat Borough, 2000 through 2010
YEAR
2010
2009
2008
2007
2006
2005
2004
2002
2001
2000
Change 2005-2010
PROCESSOR COUNT
4
5
5
6
5
5
2
3
3
3
-20%
NET WEIGHT
4,951,930
3,507,595
4,274,792
4,954,834
4,221,196
3,433,652
Confidential
3,403,309
3,653,061
5,474,116
44%
WHOLESALE VALUE
$22,602,613
$11,383,943
$19,980,730
$20,851,020
$14,222,824
$10,439,995
Confidential
$7,530,398
$8,302,992
$12,824,254
117%
Source: ADF&G COAR Production database; Run 4/27/2012 Note: Borough is based on the port reported
on the Intent to Operate. Yakutat Borough includes YAK (Yakutat). Wholesale value is reported in nominal
dollars. Information is masked as confidential where fewer than 3 processors are reflected in the data.
In 2010, there were 82 total seafood-processing workers in Yakutat who earned $1.44
million. This represents a 15% decrease in number of worker from 2009, but a 17%
increase in earnings. Processor workforce and wages fell after 2000. Between 2000 and
2006, the number workers declined by 62%, and wages fell by 43%.
Unlike many other communities, seafood processing jobs in Yakutat are largely held by
Yakutat residents. Over the past five years, two-thirds of all Yakutat processing jobs
held by Yakutat residents, compared to one-third of all seafood processing jobs
regionally. 42
June 2012 - Yakutat Community and Economic Indicators
page 11
Yakutat Seafood Processing Workforce 2005-2010
YEAR
2010
2009
2008
2007
2006
2005
2000
Change 2000-2010
Change 2000-2006
PROCESSING WORKERS
82
97
97
130
92
114
240
-66%
-62%
PROCESSING WAGES
$1,440,006
$1,233,339
$1,243,194
$1,321,407
$936,947
$987,877
$1,653,036
-13%
-43%
Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section.
Note: Worker count does not differentiate between part-time, full-time, or temporary employment.
VISITOR INDUSTRY
Tourism related employment represents the third most important economic sector in
Yakutat. Visitor industry related wages—leisure, hospitality, recreation,
accommodation, and transportation—represent 19% of all local wages. To compare,
regionally, visitor industry earnings account for 10% of all wages.
The Yakutat area offers abundant recreation and opportunities for visitors. Much of the
tourism in Yakutat is related to the areas sports fishing due to Yakutat’s renowned
freshwater stream fishing. In the Yakutat Borough there are 41 businesses that provide
lodging of some type, of these 27 are in the community and 14 are elsewhere within the
Borough. There are 12 U.S. Forest Service cabins. Yakutat has also become a draw to
surfers, due to its location on the outer coast and world-class surfing conditions.
Alaska’s first surf shop opened in Yakutat in 1999. Cruise ships travel along the coast
and into Yakutat and Disenchantment Bay, but do not stop and passengers do not
disembark in Yakutat Borough.
Sports Fishing in Yakutat
Sports fishing, as noted, is popular with visitors to Yakutat, generating Borough revenue
and contributing to sales to businesses and sales taxes. Sportfishing in Yakutat occurs
throughout the Borough, from Cape Fairweather to Cape Suckling. A wide variety of
sport fishing opportunities exist in the Yakutat area. All five species of salmon are
available in both fresh and salt water. Resident trout and Dolly Varden are present in
many stream and lake systems. Yakutat Bay and the inner islands provide a wide variety
of marine fish species such as halibut, salmon, rockfish, lingcod, and smelt.
June 2012 - Yakutat Community and Economic Indicators
page 12
Yakutat Sportfish Anglers and Days Fished, 2000-2010
YEAR
2010
2009
2008
2007
2006
2005
2000
Change 2000-2010
Change 2005-2010
ANGLERS
7,119
5,527
7,171
7,979
7,304
7,374
5,592
27%
-3%
DAYS FISHED
34,565
26,832
34,348
45,366
43,634
37,923
30,209
14%
-9%
AVG. DAYS
PER ANGLER
4.9
4.9
4.8
5.7
6.0
5.1
5.4
-10%
-6%
Source: Alaska Sport Fishing Survey. Survey Area H. All waters of Alaska, including drainages, from but not including,
Cape Suckling to and including Cape Fairweather.
http://www.adfg.alaska.gov/sf/sportfishingsurvey/index.cfm?ADFG=area.home
In 2010, 7,119 anglers participated in Yakutat sports fishing, each spending an average
of five days fishing in the area. The number of those sports fishing in Yakutat rose until
its peak in 2007, when it declined through 2009. Most tourism in the region experienced
similar declines due to the global recession.
Yakutat Sportfish Harvest (number of fish kept)
Estimates by Species, 2000-2010
50,000
King
Sockeye
40,000
Pink and Chum
Coho
30,000
Rockfish
Lingcod
20,000
Halibut
10,000
Dolly Varden
Other
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Alaska Sport Fishing Survey. Survey Area H. All waters of Alaska, including drainages, from but not including,
Cape Suckling to and including Cape Fairweather. http://www.adfg.alaska.gov/sf/sportfishingsurvey/
Over the last decade, the five species of salmon represented slightly more than threequarters (77%) of the sports fishing harvest in the region, with Coho alone representing
nearly half (48%) of the total harvest during that ten year period. Rockfish harvests
June 2012 - Yakutat Community and Economic Indicators
page 13
have changed the most over the past decade—representing nine percent of the total
sports fishing harvest in 2010—up from just two percent of the total harvest in 2000. In
terms of total harvest (number of fish) the peak year for sports fishing in Yakutat was
2003.
Yakutat Passenger Transportation
Another component of the Yakutat visitor industry is evidenced by the three main forms
of passenger transportation: Alaska Airlines jet service, small plane service, and Alaska
Marine Highway System (AMHS) service.
Alaska Airlines is the only passenger airlines with scheduled stops in Yakutat. Alaska
Airlines serves Yakutat with two daily flights, one northbound and one southbound.
Yakutat is the smallest community with this level service. In 2010, 9,828 passengers
arrived in Yakutat via Alaska Airlines. This represents a decrease of 17% from 2005, but
up three percent from the previous year.
Arriving Alaska Air Passengers, Freight, and Mail, 2005-2010
YEAR
2005
2006
2007
2008
2009
2010
Change 2005-2010
Change 2009-2010
POUNDS OF
FREIGHT
1,191,858
1,186,983
1,217,265
1,172,777
918,768
852,593
-28%
-7%
POUNDS OF
MAIL
313,786
288,936
298,489
271,701
251,516
232,022
-26%
-8%
TOTAL ARRIVING
PASSENGERS
11,820
11,247
11,225
10,776
9,587
9,828
-17%
3%
Source: Bureau of Transportation.
Yakutat Coastal Airlines (YCA) and Alsek Air Service also provide passenger charter
service to Yakutat and within the area. Freight and mail also come to and from Yakutat
via Alaska Central Express (ACE), which provides scheduled cargo flights, passenger and
cargo charters. (Passenger charters figures from Alsek, YCA and ACE are not included in
the above table.)
Alaska Marine Highway ferry service to Yakutat began in Yakutat in 1998. Yakutat is
unique in that it is served only on the cross-gulf route.
June 2012 - Yakutat Community and Economic Indicators
page 14
294
2011
250
303
276
300
2010
Arriving Ferry Passengers, 1997-2010
161
2009
184
162
148
2004
2008
140
2007
2006
2005
73
2002
52
1999
2001
30
1998
2000
0
0
1997
50
66
104
100
2003
150
158
200
Source: AMHS Annual Traffic Volume Reports
TOTAL RESIDENT INCOME
Mailbox Economy43
In Yakutat, job and self-employment income accounts for only about 65% of total
personal income. The 35% mailbox income to Yakutat comes primarily from dividends,
interest and retirement payments.
Total Personal Income: City and Borough of Yakutat, 2009
Earnings by
Place of Work
(adjusted)
65%
"Mailbox"
income
(retirement,
dividends,
interest, rent)
35%
June 2012 - Yakutat Community and Economic Indicators
page 15
Subsistence
While not part of the local cash economy, subsistence activities are critically important
to the overall Yakutat economy, lifestyle and culture. Data on subsistence shows
documented by Yakutat Tlingit Tribe and ADF&G shows subsistence use in Yakutat to be
one of the highest for any community along the Gulf of Alaska coast. Nearly all (91%)
subsistence foods harvested in the Yakutat Borough are seafood. According to NOAA:
Of the subsistence resource total, 54 percent was salmon, 19 percent was nonsalmon fish, 4 percent was land mammals, 8 percent was marine mammals, 1
percent was birds and eggs, 10 percent was marine invertebrates, and 4 percent
was vegetation. 44
Yakutat residents use a stretch of about 200 miles of coastline, most of it within the
Borough, for subsistence. Three comprehensive studies of subsistence use in Yakutat
from 2000, 1987 and 1984, tracked this (Yakutat Tlingit Tribe and Subsistence Division of
the Alaska Department of Fish and Game, 2000; Subsistence Division of the Alaska
Department of Fish and Game, 1987 and 1984).
These studies found:
• Over 95% of Yakutat households use/receive subsistence resources.
• Average household harvests for 2000, 1987 and 1984 are (respectively) 1,045,
1,385, and 1,107 pounds.
• Total estimated per capita subsistence harvest has remained virtually the same
over the last two decades at 385 pounds per capita for 2000.
• The total estimated salmon harvest for household use by residents of Yakutat
was 16,081 fish in 2000.
• If these subsistence resources had been purchased at a grocery store, at an
average of even $3 a pound, the value to each household in 2010 (using 2000
subsistence harvest numbers, and 270 households) the value would be $846,450
annually.
MUNICIPAL GOVERNMENT TRENDS
Total Yakutat taxes peaked in 2008—due, in-part, to a one-year severance tax on timber
harvest—but 2008 was also the top year for sales tax receipts in Yakutat. Yakutat is the
only community in Southeast Alaska with a local fish tax, and it applies to salmon rather
than to fish in general (and thus does not apply to groundfish).
June 2012 - Yakutat Community and Economic Indicators
page 16
Yakutat Borough Taxes, 1996-2011
Other
$1,600,000
$1,400,000
Fish Tax
$1,200,000
$1,000,000
Bed and
Vehicle
Rental Tax
Combined
Real and
Personal
Property Tax
$800,000
$600,000
$400,000
$200,000
Sales Tax
YEAR
2011
2010
2009
2000
Change 2001-2011
Change 2010-2011
Top Year
BED & VEHICLE RENTAL
TAX COMBINED
$129,195
$116,288
$165,053
$42,364
56%
11%
2006
BOROUGH REAL & PERSONAL
FISH TAX
PROPERTY TAX
$35,665
$402,302
$24,747
$402,753
$27,967
$400,831
$28,748
$227,656
99%
51%
44%
0%
2011
2010
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
$0
SALES TAX
$668,760
$650,231
$742,752
$541,116
4%
3%
2008
TOTAL
$1,235,922
$1,194,019
$1,336,603
$839,884
23%
4%
2008
Source: Alaska Taxable, DCCED
COST OF LIVING
Comprehensive cost of living surveys are not generally conducted in Yakutat; however,
the 2008 Alaska Geographic Differential Study, conducted by the McDowell Group
included a Yakutat cost of living analysis in a group with several smaller Southeast
towns. 45 According to the findings of this study:
• Food costs in Yakutat are 22% higher than Anchorage;
• Transportation is 19% more expensive;
• Clothing is 21% more expensive;
• Household furnishing and appliances were 34% higher.
• Housing is considerably less expensive—just two-thirds the cost of housing in
Anchorage.
June 2012 - Yakutat Community and Economic Indicators
page 17
Since housing represents a third of the total cost of living expenditures, the overall cost
of living in Yakutat—according to this study—was just two percent higher compared to
the base City of Anchorage.
Housing
There are 450 housing units in the Yakutat Borough, 40% of which (270) are occupied.46
All of the occupied housing units are within the Yakutat Census Designated Place
(CDP)—which encompasses the populated areas of the Yakutat Borough. Of the 180
vacant units, 131 are used for seasonal and/or recreational use.
An issue facing Yakutat is the condition of the housing stock. In 2004, 20% of the
housing in town was “poor or very poor”, while 57% was in “good” condition and 23%
was considered “fair”.47 In 2010, anecdotal evidence suggests that while several higher
end homes have been built, there is still about 20% of the housing stock in “poor or very
poor” condition. 48
The amount of housing stock in the Yakutat Borough as a whole declined by 10%
between 2000 and 2010 (499 units to 450 units); however, the number of housing units
in the Yakutat CDP declined by just one unit (less than one percent). The decline in
housing units for the Borough is likely associated with the decline of Icy Bay logging
camp. According to the Office of the State Assessor, the locally assessed value of all
property in Yakutat in 2011 was $44.5 million. This was a 9.6% increase over 2010, but
the tax roll had been mostly flat for the four previous years. The state’s full and true
value (FTV) assessment for Yakutat in 2011 was $69.5 million; it has been slowly
growing.
Locally Assessed Property Value, 2000-2011
$50,000,000
$44,476,440
40,566,513
40,167,917
40,388,301
40,133,391
$35,248,583
$34,747,808
35,100,508
34,726,108
35,773,985
33,207,570
29,086,980
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
$10,000,000
Source: Alaska Taxable, DCCED
June 2012 - Yakutat Community and Economic Indicators
page 18
Energy
High energy prices pose a challenge to economic development. Yakutat relies on diesel
generation to meet its energy needs. Electricity costs are high due to the cost of both
diesel fuel and its transshipment. While residential electricity costs are partially offset by
the Power Cost Equalization program, commercial and industrial users face higher rates.
In May of 2012, for example, the small commercial rate in Yakutat was $0.49 per kWh. 49
For the same amount of electricity, a Juneau small business owner pays $0.13 per kWh;
although a small commercial customer in Tenakee Springs (another community
powered only by diesel) pays $0.75 per kWh.
Small Commercial kWh Rate May 2012
$0.75
Tenakee Springs
IPEC Communities: Hoonah, Kake, Chilkat Valley,
Angoon, and Klukwan.
$0.61
$0.49
Yakutat
$0.44
Cordova
$0.13
Juneau
$-
$0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80
Note: These rates are based on 1,500 kWh use by a small commercial business during the month of May 2012. Rates
vary month to month, due to changing fuel surcharges.
Sources: Inside Passage Electrical Cooperative (IPEC); City of Tenakee Springs; Yakutat Power; AEL&P; Cordova Electric
Cooperative
Fuel is delivered to Yakutat via barge year-round and stored in bulk at the Delta Western
tank farm. Fuel is delivered by truck to Yakutat Power, local businesses and residents. In
the long term, fuel prices are expected to remain high and continue to apply increased
economic pressure on this remote community. 50
In May of 2012, the residential electricity cost in Yakutat was 51 cents per kWh, a 93%
increase (nearly doubling) from 27 cents in FY02 1. This price increase followed national
fuel cost trends. Fuel prices lowered temporarily in 2009 due to the global recession,
which caused demand for energy to shrink.
1
For 2012, 26.7 cents/kWh is the published rate, and the remaining 24.8 cents/kWh is the fuel surcharge.
June 2012 - Yakutat Community and Economic Indicators
page 19
Yakutat Residential Electricity Rate, 2002-2012
(Average Monthly based on monthly usage of 500 kWh, no PCE)
$0.51
FY 07
$0.53
FY 06
$0.47
$0.41
FY 03
$0.32
FY 02
$0.42
$0.10
$0.29
$0.20
$0.27
$0.30
$0.36
$0.40
$0.53
$0.50
$0.44
$0.60
FY 11
May
2012
$FY 04
FY 05
FY 08
FY 09
FY10
Note: This rate is based on 500 kWh use by a residential user. Rates vary month to month, due to
changing fuel surcharges. These rates are pre-PCE.
Source: Alaska Energy Authority; Yakutat Power
Electricity Use
In 2011, Yakutat Power generated 6.68 million kWh of electrical power. Generally, peak
electricity use occurs in September and the lowest demand varies between February,
March and November, depending on the year.
Yakutat Power has 425 customers; of which 277 (65%) are residential, 88 (21%) are
commercial, 26 (6%) are community facilities, and 34 (8%) are state and federal facilities
(year 2011). Despite comprising only one-fifth of total customer numbers, commercial
customers purchased more than half (56%) of all kWh sold in 2011. Residents
consumed 24% of electricity sold.
2011 Yakutat Power Statistics
CUSTOMER TYPE
Residential
Commercial
Community Facilities
Federal/State Facilities
Total kWh Sold
NUMBER CUSTOMERS
(AVERAGE ANNUAL)
277
88
26
34
425
ANNUAL KWH SOLD
1,442,604
3,387,105
436,601
742,784
6,009,094
ANNUAL
BILLINGS
$739,005
$1,526,067
$202,007
$337,087
$2,804,166
Source: Yakutat Power
June 2012 - Yakutat Community and Economic Indicators
page 20
ENDNOTES
1
Gustavus is the closest neighbor without having to pass through Canada – 160 air miles away.
2
2010 US Census
3
Alaska Department of Labor, Components of Population Change for Alaska Regions, Boroughs and Census Areas,
2000-2011
4
2010 US Census
5
Alaska Department of Education and Early Development
6
Permanent Fund Dividend Division
7
2010 US Census
8
Yakutat Power
9
Alaska Department of Labor
10
Alaska Department of Labor; Nonemployer Statistics (US Census). This analysis combines 2009 & 2010 data.
11
Alaska Department of Labor
12
Alaska Department of Labor
13
Alaska Department of Education and Early Development
14
In this income analysis, all income is considered, including non-employment related income.
15
US Bureau of Economic Analysis
16
In this sector analysis, percentages are based on the combination of wages and workplace earnings
(earnings not connected to employment are not part of this analysis).
17
Some data in column combine 2010 data with the latest year available for self-employment data, 2009.
18
Alaska Department of Labor; Nonemployer Statistics (US Census).
19
Alaska Department of Labor; Nonemployer Statistics (US Census).
20
Alaska Department of Labor; Nonemployer Statistics (US Census).
21
22
Commercial Fisheries Entry Commission
Alaska Department of Labor and Workforce Development, Fishing and Seafood Industry Data
23
Commercial Fisheries Entry Commission
24
Commercial Fisheries Entry Commission
25
FY2010 and FY 2006 State Shared Taxes and Fees Annual Report
26
Commercial Fisheries Entry Commission
27
Alaska Department of Labor; Nonemployer Statistics (US Census).
28
Alaska Department of Labor; Nonemployer Statistics (US Census).
29
FY 2010 & FY 2006 Alaska Taxable
30
Alaska Department of Fish and Game. Alaska Sport Fishing Survey
31
FY 2010 and 2006 Alaska Taxable
32
FY 2010 & FY 2006 Alaska Taxable
33
US Bureau of Transportation Statistics
June 2012 - Yakutat Community and Economic Indicators
page 21
34
Alaska Marine Highway System
35
US Bureau of Transportation Statistics
36
Timber harvest at Icy Bay began in the late 1960s on State of Alaska lands through State timber sales
planned and administered by the Division of Forestry and as result of the University of Alaska settlement
that transferred timber rights to the University. Additionally, timber harvest has occurred on land owned
by the Alaska Mental Health Trust. Most operations had ended by 2000.
37
Alaska Department of Labor.
38
The data source is the Alaska Department of Labor. Employment on measures the average annual
number of monthly full-time and part-time workers by place-of-work. All employment for which wages
and salaries are paid are counted; however, self-employment earnings (including those for commercial
fishermen) are not included. No differentiation is made between full-time and part-time jobs. Inflation
Adjusted Wages were calculated using the Anchorage Alaska Consumer Price Index (CPI). Yakutat does
not have a CPI, and thus the Anchorage CPI is used as a proxy. Wages for each year were adjusted to
2010 numbers. Inflation is calculated using the following formula: 2010 Anchorage CPI divided by year X
Anchorage CPI. This number is multiplied by the year X wages.
39
Alaska Department of Labor, www.akdoltest.ayera.net/labforce/index.cfm
40
Alaska Local and Regional Information (ALARI). ALARI’s Top Ten list only includes Yakutat residents,
nonresident employment—such as fish processing—is excluded by this list.
41
Alaska Department of Labor Trends, June 2009.
42
Alaska Department of Labor and Workforce Development, Research and Analysis Section.
43
Source: Bureau of Economic Analysis. Personal income is the income that a person receives from all
sources. Income comes from three main sources: (1) wages and salary from jobs, (2) proprietors and selfemployment income, and (3) what’s technically termed “unearned income,” from sources such as
retirement, dividends, interest, rent, social security, SSI, public assistance or welfare payments etc. This is
also known as “Mailbox” Income. This refers to the economy beyond the simple “economic base” and the
purchasing power not directly tied to current production in the area.
44
Alaska Groundfish Fisheries Programmatic SEIS, 2004. NOAA. Page 3.9-1
45
In this study, Yakutat was grouped with Elfin Cove, Gustavus, Hoonah, Pelican, Skagway, and Tenakee
Springs.
46
2010 US Census.
47
2004 Sheinberg Associates Survey
48
City and Borough of Yakutat Comprehensive Plan, April 2010. Sheinberg Associates.
49
This rate is based on 1,500 kWh use by a small commercial business during the month of May 2012.
Rates vary month to month, due to changing fuel surcharges.
50
Wave Energy Conversion Feasibility Study: Yakutat
June 2012 - Yakutat Community and Economic Indicators
page 22