By Tom Morphet
For years, residents opposed to large-scale tourism development in
Haines said they didn’t want the town to become "another Skagway," a place
jammed in summer and empty during the winter.
But for much of this winter, Haines will have just one restaurant open
for dinner, exactly as many as Skagway.
Restaurateurs in local weeks have cited the expense of heating their
establishments during slow winter months as a major factor for shuttering their
businesses.
Scott Sundberg, manager of the Fort Seward Lodge, closed the restaurant
Nov. 12 until at least February, when his first heli-ski clients show up. The bar will be
open, with a limited menu, after Dec. 20.
The two heating systems in the old Fort Seward building "were
built around old fuel prices," Sundberg said. "That doesn’t work anymore.
It’s a break-even or loss situation, mostly loss." Besides taking a family
vacation, he’ll be making heating system improvements he figures are the only way he
can afford to stay open during winter.
"Hopefully, with the heating upgrades, we’ll be able to make
some money" when pre-booked ski clients show up.
Christy Tengs Fowler said electricity and fuel costs were
"huge" in her decision to close the Pioneer Bar and Bamboo Room for dinner hours
during winter. "We used to heat with propane but we switched over to oil because it
was cheaper, but oil got more and more to the point that it doesn’t even
matter."
Owners of old buildings like hers face a big challenge, she said.
"It would be ideal if you could get enough money to reinsulate and redirect cooking
heat to heat the building, but it would take such a huge investment. I don’t know who
has that kind of money in this town."
Increased oil prices have a compounding effect on her business, she
said. "Freight goes higher and it affects everything, including the money people have
to go out to eat. It gets harder and harder all the time."
Chilkat Bakery owner Miki Atkins also cited heating cost in the
decision to close her restaurant completely until March.
Lighthouse restaurant manager Song Nash said he’s not sure what to
expect as proprietor of the only dinner restaurant in town.
"We’ve never been the only restaurant open. We’re not
excited about that. It’s always good to have options for people. Hopefully it’s
not a trend that means there’s not much business to be had."
Echoing a remark by Tengs Fowler, Nash said his establishment typically
loses money during winter months. "There’s just not the volume that goes
through."
But providing a service to the public and keeping jobs for year-round
staff are important to the business, he said. "I don’t think it’s about the
money factor. From the standpoint of the owner, it’s to provide service to the
community. Most people don’t give us credit for recognizing the importance of serving
our patrons during the difficult months."
Nash compared the restaurant to an Alaska Highway gas station open
during winter. "Yeah, you’re the only gas station; however, there’s not a
lot of money to be made. (But) it’s an essential part of the season to have an
establishment open."
Heating oil was selling for $3.47 per gallon this week, about 27 cents
per gallon more than a year ago. At $3.87, the local price of unleaded gasoline also is up
about 30 cents from a year ago.
The Haines Borough has exempted residents from paying local sales tax
on heating fuel purchases during winter months in recent years, but that practice may be
cut back this winter. Mayor Fred Shields said the exemption may be limited to only a month
this winter due to a drop in sales tax revenues from projections.
Shields said he couldn’t see a situation where the government
could help businesses defray heating fuel costs. "Gosh, I don’t think so, and
I’m not even sure it’s appropriate."
The residential tax exemption on heating fuel will be discussed at the
borough assembly meeting Nov. 20.
