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Survival Mode: We’re in Bad Shape for Business in 2021

Survival Mode: We’re in Bad Shape for Business in 2021

Survival mode is the dire condition a local city in the state is currently in. There have been squandered opportunities as well as high costs. Mostly, historically low oil production that leaves the city at the bottom of this year’s state competitiveness rankings. In fact, last year, there was a weak demand during the pandemic that pushed oil prices to historic lows. Yet even as the prices have rebounded this year, the oil production has not. In fact, this is the sixth time in 14 years the state has finished last.

Survival Mode and Struggles

Moreover, these are tough times in Skagway, Alaska, population 1,183. “In fact, we are in hardcore survival mode,” Mayor Andrew Cremata said.

Tourists: a Thing of the Past

Typically in a normal summer, the Southeast Alaska town would, in fact, be teeming with tourists from the cruise ships sailing the Inside Passage. Moreover, the residents could, in fact, drive 15 miles up the Yukon Highway into the country to run their most basic errands, or they could then hop on a state-run ferry to the next over.

Good News for the Cruise Ship Industry

The cruise ships have just started running again this year. In fact, Cremata is hoping Skagway will start to see 100,000 passengers this year. They had 1.1 million in 2019. However, the border to the country in North America does remain closed to non-essential traffic, plus the ferries which are part of the Alaska Marine Highway System. It is plagued by budget cuts.

Survival Mode: Families Have Limited Options due to Travel Restrictions

“In fact, just getting your family down to go see a dentist or doctor, when that becomes such a burden, problem or overly expensive, there is a point where people have just had it period and need to move away,” Cremata said.

For 14 years, Alaska has finished at the sixth bottom-state. Unfortunately, the state had previously achieved this dubious distinction in the first four years between 2007 and 2010, of hitting bottom once again in 2018.

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