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Home > Economic Development > Skagway Economy
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Efforts to strengthen the year round economy are based on stabilizing and expanding the
sectors of the economy that currently provide year round jobs and diversifying into new areas.
Efforts in particular include establishing a small business resource center which will assist in the
development of the entrepreneurial capital of those in Skagway and those wanting to relocate to
Skagway.
Efforts by the Skagway Development Corporation to establish the links and infrastructure that
will expand trade and transshipment opportunities into the Yukon, West Coast, Pacific Rim, and
Europe. SDC is working closely with the Yukon government to increase the freight capacity of
Whitehorse International Airport (2 hours by road from Skagway) as well as to establish this link
as a means of shipping fresh/chilled fish, fish-products, and other value-added products from
northern Southeast Alaska directly to European markets.
sectors of the economy that currently provide year round jobs and diversifying into new areas.
Efforts in particular include establishing a small business resource center which will assist in the
development of the entrepreneurial capital of those in Skagway and those wanting to relocate to
Skagway.
Efforts by the Skagway Development Corporation to establish the links and infrastructure that
will expand trade and transshipment opportunities into the Yukon, West Coast, Pacific Rim, and
Europe. SDC is working closely with the Yukon government to increase the freight capacity of
Whitehorse International Airport (2 hours by road from Skagway) as well as to establish this link
as a means of shipping fresh/chilled fish, fish-products, and other value-added products from
northern Southeast Alaska directly to European markets.
Transportation
With road, marine and air access Skagway is well positioned in its location to be the major
transshipment hub for the Southeast Alaska and the Yukon Territory, Canada. With new efforts
to expand these links Skagway now offers opportunities to the West Coast, Pacific Rim, South
Asia, and Europe.
Skagway is one of three communities in Southeast Alaska with road access to the Lower 48
states and to Canada: a distinct advantage for any business that requires access to outside
markets. The Klondike Highway meets the Alaska Highway 100 miles away and it is maintained
and open year round.
A weekly barge service carries goods into and out of Skagway and the Yukon to Seattle. The
AML barge facility as well as two docks capable of holding three large cruise ships or four
cargo vessels provide the basis for Skagway's freight capacity.
Three air taxi companies provide regular, year round air service between Skagway and Juneau
(45 Minutes). The Alaska Marine Highway System (AMHS) provides vehicular and passenger
ferry transport, year round between Skagway and most of the Southeast communities and
onward to Prince Rupert (British Columbia) and Bellingham, Washington. Service in the
summer is 7 days per week whist in the winter months service continues at a reduced rate of 5
times per week. During the summer tourist season (May-Sept.) there are regular daily fast ferry
connections to Haines and Juneau.
With road, marine and air access Skagway is well positioned in its location to be the major
transshipment hub for the Southeast Alaska and the Yukon Territory, Canada. With new efforts
to expand these links Skagway now offers opportunities to the West Coast, Pacific Rim, South
Asia, and Europe.
Skagway is one of three communities in Southeast Alaska with road access to the Lower 48
states and to Canada: a distinct advantage for any business that requires access to outside
markets. The Klondike Highway meets the Alaska Highway 100 miles away and it is maintained
and open year round.
A weekly barge service carries goods into and out of Skagway and the Yukon to Seattle. The
AML barge facility as well as two docks capable of holding three large cruise ships or four
cargo vessels provide the basis for Skagway's freight capacity.
Three air taxi companies provide regular, year round air service between Skagway and Juneau
(45 Minutes). The Alaska Marine Highway System (AMHS) provides vehicular and passenger
ferry transport, year round between Skagway and most of the Southeast communities and
onward to Prince Rupert (British Columbia) and Bellingham, Washington. Service in the
summer is 7 days per week whist in the winter months service continues at a reduced rate of 5
times per week. During the summer tourist season (May-Sept.) there are regular daily fast ferry
connections to Haines and Juneau.
| The busy White Pass Railroad Dock where over 50% of Skagway's cruise passengers disembark. Photo: Tom Matys |
Waterfront and Industrial Land
The Port of Skagway is a deep water and ice-free port that serves as a year round
transshipment and transportation hub between Alaska and Canada. Port commerce and activity
still supports the Skagway economy. Inbound are general cargo, petroleum products, and
700-800,000 cruise ship passengers, while outbound are general cargo, and in the past
mineral ore concentrate and logs. Skagway's bulk ore terminal is currently being looked at for
coal shipments from the Yukon to Asian markets. Skagway's port houses three major docks (5
large cruise ship capacity), bulk cargo terminal, AMHS ferry terminal, barge ramp and storage
facility, and a small boat harbor which currently holds 140 boats up to 40' in length.
The small boat harbor is currently undergoing the second phase of a multi-phase upgrade and
expansion project. The first phase included the construction of a new seawall which was
completed in May 2005. Phase Two is the development of an inter-modal transportation facility
in conjunction with a sea walk . This will create a less congested and more aesthetic approach
from the Railroad Dock to the city center. Construction commenced in March 2006 and is
scheduled for completion by April 2007. Phase Three includes the construction of a partial wave
barrier (to protect the small boat harbor) and future phases are planned for further harbor
expansion. This expansion will increase the vessel capacity of the boat harbor as well as
provide the infrastructure to enhance the commercial capabilities of the uplands around the
small boat harbor. These new opportunities may include a marine repair facility, ice plant, cold
storage, fish processing plant, and any other waterfront related activity.
There are over 150 acres of industrial and waterfront land available for development in
Skagway. All of this land is within 1.5 miles of the waterfront itself and is easily accessed by
road and power. The City of Skagway is interested in providing what incentives it can for the
development of these lands. For more information, contact SDC .
The Port of Skagway is a deep water and ice-free port that serves as a year round
transshipment and transportation hub between Alaska and Canada. Port commerce and activity
still supports the Skagway economy. Inbound are general cargo, petroleum products, and
700-800,000 cruise ship passengers, while outbound are general cargo, and in the past
mineral ore concentrate and logs. Skagway's bulk ore terminal is currently being looked at for
coal shipments from the Yukon to Asian markets. Skagway's port houses three major docks (5
large cruise ship capacity), bulk cargo terminal, AMHS ferry terminal, barge ramp and storage
facility, and a small boat harbor which currently holds 140 boats up to 40' in length.
The small boat harbor is currently undergoing the second phase of a multi-phase upgrade and
expansion project. The first phase included the construction of a new seawall which was
completed in May 2005. Phase Two is the development of an inter-modal transportation facility
in conjunction with a sea walk . This will create a less congested and more aesthetic approach
from the Railroad Dock to the city center. Construction commenced in March 2006 and is
scheduled for completion by April 2007. Phase Three includes the construction of a partial wave
barrier (to protect the small boat harbor) and future phases are planned for further harbor
expansion. This expansion will increase the vessel capacity of the boat harbor as well as
provide the infrastructure to enhance the commercial capabilities of the uplands around the
small boat harbor. These new opportunities may include a marine repair facility, ice plant, cold
storage, fish processing plant, and any other waterfront related activity.
There are over 150 acres of industrial and waterfront land available for development in
Skagway. All of this land is within 1.5 miles of the waterfront itself and is easily accessed by
road and power. The City of Skagway is interested in providing what incentives it can for the
development of these lands. For more information, contact SDC .
| Looking west over Skagway's waterfront |
| From the Ore Dock looking across at the state ferry and another cruise ship. Photo: Dave Moore |
Tourism
Tourism is the mainstay of the Skagway economy. This sector provides the majority of the
income for the residents and out-of-area businesses that operate in Skagway for the summer
tourist season, May through September. It is during these 5 months that Skagway sees over
1,000,000 visitors who contribute over $100,000,000 in taxable revenue. This revenue
generated provides over $4,000,000 in City revenue, through a 4% city sales tax.
Although summer tourism is healthy, the City and SDC are looking at expanding the tourism
sector to include a winter segment. Skagway has first class cross country ski trails within 45
minutes of the city. These trails are maintained and groomed and feature the Buckwheat Ski
Classic in March each year. There is also spectacular backcountry snowshoeing and ice
climbing. For those with a mechanical mind there are unlimited miles of snow machining in
pristine country to be explored. In all of these activities the number of participants is low and
therefore a true wilderness experience is available to all.
Skagway's amazing history has been the focus of tourism for much of the last 100 years. An
area that has been overlooked is its incredible natural beauty and wilderness. With ecosystems
ranging from the marine to the alpine the accompanying range of experiences is vast. From
whales to mountaintops: the adventures available to all are as immense as the landscape.
Tourism is the mainstay of the Skagway economy. This sector provides the majority of the
income for the residents and out-of-area businesses that operate in Skagway for the summer
tourist season, May through September. It is during these 5 months that Skagway sees over
1,000,000 visitors who contribute over $100,000,000 in taxable revenue. This revenue
generated provides over $4,000,000 in City revenue, through a 4% city sales tax.
Although summer tourism is healthy, the City and SDC are looking at expanding the tourism
sector to include a winter segment. Skagway has first class cross country ski trails within 45
minutes of the city. These trails are maintained and groomed and feature the Buckwheat Ski
Classic in March each year. There is also spectacular backcountry snowshoeing and ice
climbing. For those with a mechanical mind there are unlimited miles of snow machining in
pristine country to be explored. In all of these activities the number of participants is low and
therefore a true wilderness experience is available to all.
Skagway's amazing history has been the focus of tourism for much of the last 100 years. An
area that has been overlooked is its incredible natural beauty and wilderness. With ecosystems
ranging from the marine to the alpine the accompanying range of experiences is vast. From
whales to mountaintops: the adventures available to all are as immense as the landscape.
| Broadway - Skagway's retail district |
Public Sector
The public sector in Skagway is represented by all levels of government. The federal
government employees are represented by the US Postal Service and the National Park
Service. The state's Dept of Transportation has employees with the Alaska Marine Highway
System and the road maintenance crews. The City of Skagway and the Skagway School
District are the local government employers and together are the largest public employer in
town.
Skagway's seasonal tourist economy has an interesting dynamic on public versus private
employment when observed on an annual basis. From May to September the private sector
dominates the employment arena with around 80% of the jobs. This is due to the influx of
seasonal businesses and their employees who make up the bulk of Skagway's private sector. In
the months from October to April there is a dramatic decrease in the number of private sector
jobs resulting in a drop to only 60 -70% of the jobs.
This greater dependence on the public sector during the winter is a stabilizing factor in
Skagway's otherwise dynamic economy.
The public sector in Skagway is represented by all levels of government. The federal
government employees are represented by the US Postal Service and the National Park
Service. The state's Dept of Transportation has employees with the Alaska Marine Highway
System and the road maintenance crews. The City of Skagway and the Skagway School
District are the local government employers and together are the largest public employer in
town.
Skagway's seasonal tourist economy has an interesting dynamic on public versus private
employment when observed on an annual basis. From May to September the private sector
dominates the employment arena with around 80% of the jobs. This is due to the influx of
seasonal businesses and their employees who make up the bulk of Skagway's private sector. In
the months from October to April there is a dramatic decrease in the number of private sector
jobs resulting in a drop to only 60 -70% of the jobs.
This greater dependence on the public sector during the winter is a stabilizing factor in
Skagway's otherwise dynamic economy.
| An aerial view of Skagway looking north |
Manufacturing
Skagway has a rich history of small time producers who are mainly concentrated in the
craftsman/artisan segment of manufacturing. The artist community in Skagway has many very
talented people who work in many different mediums. There are ivory carvers, wood and stone
sculptors, glass bead makers, jewellers, painters, quilters, hand painted silk scarves and ties,
photographers, native carvers, stained glass makers, and more. This artistic presence allows
for a large amount of "Made in Skagway" products to be sold in town particularly during the
tourist season.
Writers, including two published poets, songwriters and musicians with a number of CD
releases between them and other people with creative energy find Skagway a wonderful
community and place to create. The energy here is conducive to stimulation and yet the privacy
to continue one's work is ever present. The benefit of producing art works in Skagway is the
direct placement of the product in the market allowing the producer greater control over what is
produced and how it is sold.
Skagway has a rich history of small time producers who are mainly concentrated in the
craftsman/artisan segment of manufacturing. The artist community in Skagway has many very
talented people who work in many different mediums. There are ivory carvers, wood and stone
sculptors, glass bead makers, jewellers, painters, quilters, hand painted silk scarves and ties,
photographers, native carvers, stained glass makers, and more. This artistic presence allows
for a large amount of "Made in Skagway" products to be sold in town particularly during the
tourist season.
Writers, including two published poets, songwriters and musicians with a number of CD
releases between them and other people with creative energy find Skagway a wonderful
community and place to create. The energy here is conducive to stimulation and yet the privacy
to continue one's work is ever present. The benefit of producing art works in Skagway is the
direct placement of the product in the market allowing the producer greater control over what is
produced and how it is sold.
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The Skagway Economy
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