The Treasure America Project is an intensive initiative to promote sound economic policy in the United States and the preservation of the Arctic National Wildlife Refuge, along with the economic benefits it provides in its current, natural state.

The Treasure America Project brings greater awareness to the American public that:

1) America’s economic future does not depend on extracting resources from the ground but on business innovation, resource efficiency and human capital.

2) There are far faster, cheaper, cleaner, less corrupt and more profitable methods to address America’s energy needs than oil drilling in the Arctic National Wildlife Refuge.

A short documentary film will capture the experiences and insights of the Treasure America project team. The short film will be designed as a consensus building tool for politicians, native Alaskans, oil industry companies and teamster unions promoting oil drilling in the Refuge. The film will explore how these special interest groups will benefit through long-term protection of the refuge.

TAP business consultants traveled to the Arctic Circle this summer in response to the 51-49 senate vote last March which allowed a line item in the federal budget bill that could open the Refuge to future oil drilling. The two deciding votes were Hawaii Sens. Daniel Inouye and Daniel Akaka who argued that allowing drilling in the Refuge was in the best interest of native Alaskans in the region. TAP business consultants went to Kaktovik, Alaska, the small native community located closest to the threatened lands of Refuge, to analyze the local economy. The team found that new local entrepreneurship, not oil industry subsidies, was the most effective means to ensure ongoing prosperity in the community.

“Patriotic Americans understand that improved vehicle efficiency will put money into the pockets of average Americans while drilling in the Arctic Refuge will put money into the pockets of the oil industry,” says Andrew Smith, Executive Director of TAP and international economic development consultant. “Drilling in the Refuge further weds native communities and the US government to the whims of the oil industry.”

The Treasure America Project is an initiative of Natural Capitalism Solutions (NCS), a non-profit 501(c)(3) organization promoting innovation, sustainability and economic prosperity world wide. Since the spring of 2005, the Project has worked to address key obstacles to reducing US dependence on oil. The Project team draws on decades of professional experience promoting competitive enterprise development in rural communities in the United States, Latin America, Eastern Europe and Asia.

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For interviews with project leaders or more information on the Treasure America organization please contact Emily Leary, Program Manager at eleary@treasureamerica.org or by phone at 303-941-2795. www.treasureamerica.org

"Despite record-high oil prices, the major energy companies widely viewed as the biggest winners if drilling in the Arctic National Wildlife Refuge (ANWR) is approved are taking a back seat in lobbying Congress to open the area to exploration because of questions about how much fuel is economically recoverable there, according to industry and congressional sources."

(via Environmental Economics Blog)

Introduction

Visitations to the Arctic National Wildlife Refuge are increasing. Growing numbers of visitor groups are passing through Kaktovik on their way to and from the Refuge for rafting or wildlife viewing. Very few tourism dollars remain in the community, however, besides what travelers spend while staying at or flying with the one local tourism operation: the Waldo Arms Hotel and Alaska Flyers bush pilot service. The reason for this lack of tourist spending is obvious to any outsider who has spent time in Kaktovik. High-value tourism experiences are simply not offered to individuals flying in and out of Kaktovik. This is changing, however.

A growing number of local residents are now interested in developing Kaktovik’s position in the Arctic tourism industry by starting small businesses to better serve this market. New businesses in the community, such as local guiding services, will lead to increased spending of tourists, create jobs that do not rely on oil industry politics and improve the experience of travelers visiting the region. Business development, however, is challenging, especially in a small, remote community which is accustomed to 90% of its employment from top-down government and native corporation sponsored projects.

After discussing the challenge and opportunity of tourism industry development with local residents, the TAP team began work with interested residents to talk about the key first steps for starting and growing new businesses. The following document summarizes the most important next steps for tourism business development in Kaktovik as was discussed during a series of seminars and meetings held in June of this year. The critical business development topics covered during the seminars and in this document are: understanding customers, marketing, building partnerships and planning for the impact of tourism development on the community.

Understanding Customers

The first concern of Inupiat residents interested in building profitable guiding services in Kaktovik is how to identify and serve profitable customers given their local surroundings and offerings. Customer segments that fit the guides’ interests and capabilities included hunters, fishermen, subsistence observers (people interested in observing the Inupiat way rather than actually hunting themselves), and wildlife observers. (For a complete list of all ideas, please see Appendix). Given the nature of people’s visits to Kaktovik and the harsh climate, day trips were identified as an initial tourism product. This was also an ideal product for tourists who unexpectedly spent an extra day in Kaktovik due to bad flying weather. The local guides agreed to gather “test” customers through friends and local contacts, and practice taking them out on trips. Based on feedback from these first-time “test” customers, the guides could then tailor their businesses prior to offering them to target customers.

Given the small community, the seminars stressed both cooperation and competition among the local guides. Some overlap in service offerings is good for seasonally popular activities, but differentiation in business models is critical to the long term branding and success of any individual guide service. Robert Thompson, an existing guide, currently offers rafting trips so other guides such as Bruce Inglangasak and Laurence Kayotuk discussed how to carve out their own niche offerings. During certain seasons the guides agreed to work together when there was simply too much business for one guide to handle.

Since guiding is a service business, the seminar participants agreed that basic customer needs should be addressed carefully. Guides would need to ensure proper clothing for visitors. Guides should instill confidence when they are under pressure or presented with dangerous situations. First aid and CPR certification should be current and advertised to reassure customers. Food allergies and preferences, such as vegetarianism, need to be taken into account as well as sensitivities to tobacco smoking. Visitors to the Arctic plan their trips well in advance, so guides should be prepared to schedule dates with clients far in advance.

Marketing

The second key business skill that the Kaktovik tourism industry must improve is marketing. Currently, Kaktovik is rarely mentioned in most tourism literature on Alaska. The tourist bureaus in Anchorage visited by the TAP team discouraged tourists from visiting the Refuge, stating, “Nothing is up there.” In fact, the Arctic Refuge and the native communities around it are filled with a plethora of unique visitor experiences which are not available anywhere else in the world. No one wants Kaktovik overrun with tourists; however, targeted marketing to specific, high-value tourists is critical to the industry’s success.

Appropriately marketing Kaktovik will be the principle challenge for new guiding services. The TAP team identified the following list of marketing efforts as the most affordable and effective manner for new businesses to market themselves.

1)Web Site – Soon after the initial seminars held with the community, the TAP team donated an initial web site to the growing coalition of Kaktovik ecotourism guides (see www.geocities.com/kaktovikguides). Further maintenance and upkeep of the site will be handed over to the guides; however, visitors to the region already have much more information available to them.

2)Brochures – In addition to the website, the TAP team donated professional services to design a simple brochure for the new guiding businesses. The brochure has been provided to the guides to be posted on bulletin boards throughout the community and throughout Alaska. (at hotels, information kiosks, tourism offices etc).

3)Guide Books – The local guides agreed that they would need to contact publishers of guidebooks dealing with Canada, Alaska and special interest areas such as hunting and fishing.

4)Media Articles – Given the current popularity of Kaktovik in the news regarding industry efforts to expand drilling in the Arctic Refuge, the local guides were eager to talk to reporters about sustainable ecotourism industry development. This media attention is a form of free advertising.

5)ASTAC – The guides were encouraged to get themselves listed in the local phone directory so that they were recognized as guides in the business section.

Partnerships

In today’s business world, more and more businesses seek partnerships with complementary businesses rather then attempting to do all things by themselves. The TAP team actively encouraged the guides of Kaktovik to seek out partnerships among community members as well as outside businesses. The first area that was prioritized for the guides included other guide services in Alaska that were making trips into the Refuge. During the TAP team’s visit to Kaktovik, they encountered several guides and trip participants that had no idea that there were guides or activities available to them in Kaktovik. Most of the Alaskan guides were based out of Fairbanks and Anchorage. Waldo Arms, another potential partner, is uniquely positioned as a flight service and hotel/restaurant for travelers coming into and leaving the Arctic Refuge. If the Kaktovik guides can build a mutually beneficial relationship with the proprietors this hub, they will have easy, ongoing contact with customers and guiding services already coming to the Refuge. Kaktovik guides do not need to invent from scratch, they need to establish new business relationships and build on top of what already exists.

Community Impact

The community of Kaktovik, just like any other small community, is concerned about the impact of the tourism industry to their privacy and way of life. As members of the city and village of Kaktovik, the guides will need to work closely with the community to determine how to best serve the interests and needs of visitors without infringing on the privacy of residents. The participants in the TAP seminars discussed how better tours and tourist brochures could actually direct visitors to areas of interest without having them end up in the backyards of private homes. Additionally, the group discussed how the strategy for Kaktovik is not to attract thousands of new visitors each year but to attract a few hundred more tourists who spend more tourism dollars in the local community. As the tourism industry evolves in the community, the working group concluded that up to 5-10% of the local workforce could transition into tourism related jobs each year.

Overall, the seminar concluded that improved tourism strategy in Kaktovik could have an overwhelmingly positive impact in the community if relevant community members worked together. Tourism could help residents of Kaktovik build independence from the current financial control over the community held by the oil industry.

Next Steps

The seminar participants outlined next steps in launching new tourism businesses. In addition to publicizing their new web site and distributing their marketing brochure locally, the guides will need to invest time in acquiring the appropriate licenses, insurance, etc. to start new businesses. Below is a list of the prioritized next steps for immediate attention.

1) Obtain business license from state of Alaska: http://www.dced.state.ak.us/occ/buslic.htm
The Treasure America Project left behind two $50 donations with the Mayor of Kaktovik, Lon Sonsalla, to be given to the next two guides who obtain official business licenses.
2) Obtain guide license from the state of Alaska: http://www.commerce.state.ak.us/occ/pgui.htm
3) Obtain Insurance
4) Obtain Fish and Game permit:
http://www.admin.adfg.state.ak.us/license/
5) Review and contribute to Web Site created by TAP team
6) Practice guiding by leading “dry-run” trips
7) Review and contribute to brochure created by TAP team
8) Apply or sign-up as guides in ASTAC (Alaskan Phone Directory)
9) Communicate their services locally and to other guide services
10) Participate in First-Aid training

Conclusion

Entrepreneurship in any setting is hard work. On a remote island in the arctic, entrepreneurship is even more challenging. The global economy, however, continues to bring down the cost of communication, learning and travel. Tourism businesses, as well as numerous other ventures, now have the ability to thrive in extremely remote locations such as Kaktovik.

Far too often, small, remote, subsistence communities such as Kaktovik look to the outside for their prosperity. Kaktovik received subsidies from the US government when the “DEW line” (early warning radar system) was developed. Then, as the oil industry expanded across the North Slope, Kaktovik became dependent on oil industry funds. Now, Kaktovik has an opportunity to put its economic future into its own hands. Small businesses which serve targeted customer segments, market well, build partnerships and maintain strong relationships with the community, have the ability to thrive.

Full Appendix Viewable on PDF Document

The second part of the video is an expose on the current lack of tourism infrastucture in the Arctic Refuge. Despite heavy interest, there is virtually no information or support for those who want to ventrue to Northern Alaska. Even guidebooks are virtually empty. If Northern Alaskans had this kind of economic development to turn to, then they would no longer need to depened solely on oil revenue. Is it possible that oil development advocates are purposely discouraging tourism?

Finally, the video will give you a glimpse of what the refuge really looks like, what it feels like to be there. It will be up to you, then, to decide if it really is a vast, white nothingness, or something much greater.

A team of economic development advisors concerned with the long-term prosperity of native communities in Northern Alaska is visiting with residents of Kaktovik during the summer of 2005. These experts come to Alaska as part of the “Treasure America Project,” a bi-partisan, not-for-profit effort to inform economic and energy policy in the United States.

This memo outlines the proposed activities that the Treasure America Project team hopes to facilitate on behalf of community and government leaders in Kaktovik.

The Treasure America Project team is experienced advising community leaders and government officials internationally to develop long-term strategies for sustainable economic development. The team is accustomed to working with regions that receive financial gains from commodity industries such as oil in the short-term, but in the medium-term often feel like the overall prosperity of the community has declined. The project team is volunteering its services to the residents of Kaktovik during the summer of 2005 to inform important choices facing the community regarding oil industry expansion and alternative economic activities such as tourism.

The project team proposes working with residents and political leaders of Kaktovik through two unique seminars:

1) “Treasure Kaktovik: Community Round Table” – During this two hour afternoon session the Treasure America team seeks to understand long-term economic, social and environmental objectives of the community. This session is an opportunity to introduce the Treasure America Project to Kaktovik residents while hearing about the successes and failures of past community development efforts.
(Proposed time/date: 7:00-9:00pm, Wednesday, June 22, 2005)

2) “Treasure Kaktovik: Economic Development Strategy Session” – During this three hour afternoon session the Treasure America team will present case studies from within and outside Alaska of how small communities have successfully and unsuccessfully diversified their economies. Participants will work with project facilitators to create a twenty-year vision for the island of Kaktovik. The Treasure America Project Team will take the results of the seminar and prepare a “Draft Strategy for the Long-term Prosperity of Kaktovik” which will be distributed to all seminar participants and government officials involved with the project. This document is not meant to serve as an official government policy or plan of action for the community. Instead, it will serve as a guiding document for community leaders eager to develop new economic, social and environmental initiatives on the island.
(Proposed time/date: 2:30-5:30pm, Sunday, July 3, 2005)

Who Should Attend:

All Kaktovik residents concerned with the long-term prosperity of the community are invited to attend these two important Treasure America events. The seminars are designed to be highly participatory and a mutual learning experience for everyone involve.

Once the date, time, location and attendance to the events is solidified, the Treasure America Project team will look forward to telephone introductions with each seminar participant prior to arriving in Kaktovik. These conversatiosn will allow the Treasure America Project team to customize the seminar events to the specific needs and interests of the community.

Contact and Next Steps

All parties interested in this unique opportunity for Kaktovik should be in touch with the seminar coordinator, Holly Colman at Email: hcoleman@treasureamerica.org or Tel: (415) 359-5786. Holly is also available to answer any additional questions regarding the seminar and the Treasure America Project team.

We look forward to meeting all members of the Kaktovik community and contributing to the long term prosperity of the region.

Best Regards,

The Treasure America Project Team

Hunter Lovins, NCS’ President, is a globally renowned leader in development, energy policy and national security issues. Co-founder and co-CEO of the Rocky Mountain Institute for 20 years, she has received numerous international awards and recognitions, including TIME magazine Hero of the Planet in 2000. She has authored hundreds of articles and books, including co-authoring Natural Capitalism–Creating the Next Industrial Revolution. Ms. Lovins is dedicated to providing institutional guidance to the Treasure America Project Team.

More info at www.natcapsolutions.org

As the owner of a four-wheel-drive SUV, she enjoys the interior space and the access to the great outdoors which the vehicle provides her. However, Emily realizes that the latest hybrid vehicle technology will allow her to continue having the convenience of an SUV without degrading the pristine nature of America’s far north.

Description of responsibilities:
Work with the Treasure America Fundraising/Sponsorship team to raise immediate funds to support project activities.
Develop grant requests and make introductory phone calls with target donors

Qualifications:
Dedicated to raising funds to support intelligent energy, environmental and economic development policy
Fundraising experience with individual donors, foundations and corporations
Excellent writing, networking and teamwork skills
Part-time or full-time availability from present through June timeframe.

· Regional / Sector Program Managers (2+ positions available)
· Documentary Film Maker
· Fundraising/Development Volunteer
· Summer Internship Opportunities

Full-time project staff will receive minimal stipends based on total project funding.

Please contact the Project Coordinator, Andrew Smith (Tel: 415-812-7357, email: asmith@treasureamerica.org), with inquiries.

We are thrilled with the growing momentum of this project and look forward to welcoming dedicated, energetic, professional and passionate individuals to our team!

Neither native Alaskans nor American citizens need to sacrifice financial welfare for environmental conservation. By focusing our national energy strategy on the development of efficient technologies and alternative energy sources, American corporations will create abundant jobs and wealth without causing environmental degradation. For native peoples, reduced oil drilling in northern Alaska allows these cultures to regain control of their future and diversify their economy into sustainable economic activities.

Oil-based economies breed corruption, fluctuate based on global prices, cause massive gaps between rich and poor and create institutional resistance to innovative new energy technologies. Although select groups benefit financially from drilling in the short-term, the majority of America does not.

The opportunity to protect the homeland from oil dependency is ours, but there is work to be done. We need to prioritize better, faster, cheaper ways to reduce foreign oil dependence than drilling in the Refuge. Americans need to come together and help proponents of drilling (Alaskan oil industry workers and oil service companies) to transition toward more sustainable and profitable business models.

Secretary of the Interior Gale Norton described the Arctic National Wildlife Refuge as a "vast, white nothingness." She was absolutely correct. The Refuge is a barren place as fog rolls in from the Beaufort Sea. If you get off the airplane, however, the prehistoric ways of the refuge come alive. The Refuge is what we dreamed about as children as we read books about buffalo migrations, the great explorers and dinosaurs.

The refuge is a national treasure, although most of us will never understand all it has to offer. Luckily, with intelligent economic development strategy, it can easily be preserved.

Born in Montana and currently living in Santa Monica, California, Karl has a unique perspective on land conservation and resource efficiency. In Montana, he learned about the politics of natural resource extraction. In Southern California, while sitting in traffic each day, he recognizes that places like Montana or Alaska should not be sacrificed based on bad energy policy.

Nick’s interest in media led him to the Treasure America Project. He was fascinated that the few beneficiaries of oil drilling in Alaska (those receiving direct short term financial benefits) had convinced so many Americans that increased oil drilling was a good way to address America’s overdependence on oil. He is dedicated to ensuring that Alaskan Citizens and Americans understand the true economics of ongoing oil dependence. He looks forward to building bi-partisan consensus around ways to transition oil industry proponents into more sustainable economic activities.