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Consultants tell Skagway finance committee cruise passengers cost municipality about $13 million in 2024
Summary
Consultants from McKinley Research Group told the Skagway Municipality Finance Committee that cruise passengers imposed roughly $13 million in municipal costs in 2024 (about $10.20 per passenger). Committee members pressed the consultants on methodology and whether the assembly’s adoption of the report would determine CPV allocations.
Heather Hoagland, vice president of McKinley Research Group, told the Skagway Municipality Finance Committee on Nov. 19 that the firm estimated cruise passengers cost the municipality about $13,000,000 in calendar year 2024 — roughly $10.20 per passenger. The firm presented a department-level breakdown and said the estimate separates marginal (seasonal) from overhead (year‑round) costs.
Why it matters: the report is intended to inform how the borough allocates Cruise Passenger Fees (CPV) and vessel-impact revenue. Borough Treasurer Heather Rodig told the committee that if the assembly approves the McKinley report, the administration would use it as the basis for CPV allocations, making the consultants’ methodology consequential for near-term budget choices.
McKinley said its work combined municipal financial records for 2024 with 20 interviews of municipal staff to allocate time and…
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