While Anchorage was significantly affected by the pandemic, a surge of independent travelers boosted the economy in 2021. More robust growth occurred in 2022 with the return of normal demand sources. Furthermore, the conversion of hotels to permanent housing has reduced the hotel supply in Anchorage and contributes to recent trends.
Declining oil and gas prices since 2014 have largely resulted in an economic retrogression in Alaska. Aside from the oil and gas industry, the tourism industry is one of the largest private-sector groups of employers in the state and accounts for one of every eight jobs. Therefore, the impact of the COVID-19 pandemic has been detrimental to the local economy. While the widespread availability of a vaccine has ignited hope, tourism recovery faces some obstacles in 2021.