Alaskan cruise tax to cost Carnival $24 million

Saturday, 29 Aug, 2006 0

Will a new $50 head tax on cruise passengers in Alaska curtail visitors?

It may be too soon to tell but Carnival Cruise Lines told Wall Street it would cut back its earnings by $24 million.

Carnival Corporation brands operate 16 of the 27 major cruise ships in Alaska, where voters decided by a 52-48 margin to add a $50 cruise passenger fee next year.

Carnival carries about 560,000 passengers annually to Alaska, said the Miami Herald. 

“We believe this will inhibit the future growth and expansion of Alaska’s tourism business,” Carnival Chairman and CEO Micky Arison said in a statement.

It’s still now known whether ship operators will pass on the new cost to passengers.

Report by David Wilkening



 

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