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A tiny Arctic village in Alaska is trying to revive its polar bear tourism industry

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A tiny Arctic village in Alaska is trying to revive its polar bear tourism industry
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A tiny Arctic village in Alaska is trying to revive its polar bear tourism industry

2026-04-24 15:24 Last Updated At:15:30

ANCHORAGE, Alaska (AP) — Late every summer, hulking white bears gather outside a tiny Alaska Native village on the edge of the continent, far above the Arctic Circle, to feast on whale carcasses left behind by hunters and to wait for the deep cold to freeze the sea.

It’s a spectacle that once brought 1,000 or more tourists each year to Kaktovik, the only settlement in the Arctic National Wildlife Refuge, in a phenomenon sometimes called “last chance tourism” — a chance to see magnificent sights and creatures before climate change renders them extinct.

The COVID-19 pandemic and an order from the federal government halting boat tours to see the bears largely ended Kaktovik's polar bear tourism amid concerns that the tiny village was being overrun by outsiders.

But Kaktovik leaders are now hoping to revive it, saying it could be worth millions to the local economy and give residents another source of income — provided the village can set guidelines that protect its way of life and the bears themselves.

“We definitely see the benefit for tourism,” said Charles Lampe, president of the Kaktovik Inupiat Corp, which owns 144 square miles (373 square kilometers) of land. “The thing is, it can’t be run like it was before.”

As far back as the early 1980s, anyone in Kaktovik with a boat and knowledge of the waters could take a few tourists out to watch the bears as they lumbered across the flat, treeless barrier islands just off the coast or tore into the ribs of a bowhead whale left by subsistence hunters.

Tourism in Kaktovik soared in the years after federal officials declared polar bears a threatened species in 2008. The rapid warming of the Arctic is melting the sea ice that the bears use to hunt seals, and scientists have said that most polar bears could be wiped out by the end of the century.

As visitation boomed, the federal government imposed regulations requiring tour operators to have permits and insurance, and that began to squeeze locals out of the industry, Lampe said. Larger out-of-town operators moved in, and before long, crowds of tourists were coming to Kaktovik — a village of about 250 people — during the six-week viewing season.

The town’s two hotels and restaurants lost out on some business when large operators began flying tourists in from Fairbanks or Anchorage for day trips. Locals complained that tourists gawked at them or traipsed through their yards.

Small plane capacity became an issue, with residents sometimes battling tourists to get on flights to or from larger cities for medical appointments, forcing those left stranded in the cities to get expensive hotel rooms for the night.

When the pandemic struck, Kaktovik paused visitation. Then in 2021, the federal government, which manages polar bears, halted boat tours, mostly over concerns about how tourists were affecting bear behavior and overrunning the town.

Alaska Native leaders are now in talks with the U.S. Fish and Wildlife Service to address those concerns and reignite the industry, perhaps as early as 2027. The agency told The Associated Press in a statement that it’s working with Kaktovik “to ensure that any future opportunities are managed in a way that prioritizes visitor safety, resource protection, and community input.”

Among the changes Kaktovik leaders want to see is a limit on how long a boat can sit in the water near the bears. Too long, Lampe said, and the bears get used to humans — making for a dangerous situation when bears wander into town looking for food.

During the height of the tourism boom, it became tougher to haze bears out of town, even with the town’s bear patrol shooting at them with nonlethal rounds. The patrol had to kill about three or four bears per year, compared with maybe one per year before the boom, Lampe said.

“Our safety was at risk,” Lampe said.

In 2023, a 24-year-old woman and her 1-year-old son were killed in a polar bear attack in Wales, in far western Alaska. It was the first fatal polar bear attack in nearly 30 years in Alaska, the only U.S. state home to the species.

Since the boat tours in Kaktovik were halted, the bears once again seem more fearful of humans, Lampe said.

Polar bear tourism coincides with Kaktovik’s subsistence whaling season. When a crew lands a whale, it's usually butchered on a nearby beach. While the community encourages visitors to watch or even help, some were recording or taking pictures without permission, which is considered disrespectful, Lampe said.

Sherry Rupert, CEO of the American Indigenous Tourism Association, suggested that Kaktovik market itself as a two- or three-day experience.

Native communities that are ready for tourists "want them to come and be educated and walk away with a greater understanding of our people and our way of life and our culture,” she said.

Roger and Sonia MacKertich of Australia were looking for the best spot on the planet to view polar bears in the wild when they came to Kaktovik in September 2019. They spent several days in the village, took a walking tour led by an elder and bought souvenirs made by local artists, including a hoodie featuring a polar bear.

For Roger MacKertich, a professional wildlife photographer based in Sydney, the highlight was the boat tours to see bears roaming on the barrier islands or taking a dip in the water. The bears paid them no attention.

“That’s nearly as good as it gets,” he said.

FILE - The Kaktovik Lagoon and the Brooks Range mountains of the Arctic National Wildlife Refuge are seen in Kaktovik, Alaska, Oct. 15, 2024. (AP Photo/Lindsey Wasson, File)

FILE - The Kaktovik Lagoon and the Brooks Range mountains of the Arctic National Wildlife Refuge are seen in Kaktovik, Alaska, Oct. 15, 2024. (AP Photo/Lindsey Wasson, File)

FILE - A polar bear and a cub search for scraps in a large pile of bowhead whale bones left from the village's subsistence hunting at the end of an unused airstrip near the village of Kaktovik, Alaska, on Oct. 15, 2024. (AP Photo/Lindsey Wasson, File)

FILE - A polar bear and a cub search for scraps in a large pile of bowhead whale bones left from the village's subsistence hunting at the end of an unused airstrip near the village of Kaktovik, Alaska, on Oct. 15, 2024. (AP Photo/Lindsey Wasson, File)

FILE - Charles Lampe, president of the Kaktovik Inupiat Corporation, poses for a portrait outside his home in Kaktovik, Alaska, Wednesday, Oct. 16, 2024. (AP Photo/Lindsey Wasson, File)

FILE - Charles Lampe, president of the Kaktovik Inupiat Corporation, poses for a portrait outside his home in Kaktovik, Alaska, Wednesday, Oct. 16, 2024. (AP Photo/Lindsey Wasson, File)

LONDON--(BUSINESS WIRE)--Apr 24, 2026--

Omdia has significantly raised its semiconductor revenue forecast for 2026 to 62.7%, again reflecting unprecedented growth in DRAM and NAND driven by sustained demand and ongoing supply shortages expected to persist through the year. The DRAM market is forecast to nearly double in value, while the smaller NAND segment could quadruple compared to 2025.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260423414383/en/

Supply constraints in conventional memory IC supply are being exacerbated by the industry’s focus upon High Bandwidth Memory (HBM) production, which delivers lower volumes but commands significantly higher prices. Strong enterprise and data center demand will continue to shape the 2026 market outlook, with meaningful supply relief unlikely until well into 2027.

Enterprises are implementing a major server refresh cycle in 2026, coinciding with exceptional levels of hyperscaler capital expenditure. Organizations are accelerating the retirement of legacy hardware to support more demanding workloads, creating a significant market opportunity given the scale of installed systems. At the same time, there is a clear shift toward higher-value system designs built on next-generation silicon and advanced connectivity. This trend combined with the ongoing components shortage will push average selling prices upward.

Computing and data storage will lead all segments in semiconductor revenue growth, rising 90% year-on-year in 2026 to exceed $700bn. This is due to strong demand for data center servers and other memory–intensive applications, alongside elevated memory IC pricing.

As previously reported, consumer electronics and wireless applications also present a positive outlook for semiconductor revenue growth in 2026. While smartphone unit shipments are expected to remain relatively flat, semiconductor revenues will increase due to higher memory pricing, significantly raising overall bill of materials (BOM) costs. The market will see multiple flagship launches in addition to the usual model updates. This will include a range of a new wave of foldables, and feature-rich models incorporating AI-enabled capabilities such as advanced photography. Meanwhile, smart watches and fitness and wellness wearables are also projected to deliver meaningful revenue growth.

Looking Ahead

“Supporting the progression of AI beyond simple Q&A use cases has exponentially increased demand for memory and processing ICs, fueling semiconductor industry revenues overall,” said Myson Robles-Bruce, Senior Principal Analyst at Omdia. ”However, questions remain around how quickly suppliers can scale capacity and output of supply, and longer term, which applications will generate sufficient return on investment to justify the current levels of capital expenditure in AI.”

Aside from the macroeconomic pressures, such as tariffs, energy costs, and geopolitical tensions, the industry also faces risks associated with the amount of capital being allocated to AI infrastructure. Current semiconductor revenue growth is being driven primarily by higher average selling prices rather than unit shipment volumes. While similar dynamics have been observed in past cycles such as crypto mining and previous memory super cycles, the scale and breadth across the industry are unprecedented.

Omdia will continue to monitor market developments over the coming quarters and refine its 2026 baseline forecast accordingly.

ABOUT OMDIA

Omdia, part of TechTarget, Inc. d/b/a Informa TechTarget (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets grounded in real conversations with industry leaders and hundreds of thousands of data points, make our market intelligence our clients’ strategic advantage. From R&D to ROI, we identify the greatest opportunities and move the industry forward.

Greatest market contributors to semiconductor revenue growth in 2026

Greatest market contributors to semiconductor revenue growth in 2026

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