New taxes choke summer Alaska cruise market
The inevitable has happened to Alaska cruising: a sharp drop of nearly 20 percent in summer cruises, according to data compiled by the Alaska Department of Revenue.
The decline was widely predicted more than a year ago when several lines such as royal Caribbean and Princess announced plans to pull their ships from the region, citing growing fees, taxes and regulations. Industry officials said the state’s new rules made it hard to make money on cruises.
"The brand will decide to put the ship where there is the best return and the most profitable returns," said Carnival Corp. CEO Micky Arison.
Among the new fees for which Arison and other industry executives had voiced the most objections was a $46-a-person head tax on cruisers established after a state-wide referendum in 2006.
The Anchorage Daily News reports industry officials are forecasting the overall decline in cruise passengers for 2010 to be roughly 15 percent..
And the spillover impact on the rest of the tourism industry?
—Alaska Railroad passenger loads are down nearly 12 percent so far this year.
—Anchorage officials forecast hotels will be down nearly 8 percent.
—Even rental car tax collections are off by nearly 3 percent, the Daily News reports.
By David Wilkening
The inevitable has happened to Alaska cruising: a sharp drop of nearly 20 percent in summer cruises, according to data compiled by the Alaska Department of Revenue.
The decline was widely predicted more than a year ago when several lines such as royal Caribbean and Princess announced plans to pull their ships from the region, citing growing fees, taxes and regulations. Industry officials said the state’s new rules made it hard to make money on cruises.
"The brand will decide to put the ship where there is the best return and the most profitable returns," said Carnival Corp. CEO Micky Arison.
Among the new fees for which Arison and other industry executives had voiced the most objections was a $46-a-person head tax on cruisers established after a state-wide referendum in 2006.
The Anchorage Daily News reports industry officials are forecasting the overall decline in cruise passengers for 2010 to be roughly 15 percent..
And the spillover impact on the rest of the tourism industry?
—Alaska Railroad passenger loads are down nearly 12 percent so far this year.
—Anchorage officials forecast hotels will be down nearly 8 percent.
—Even rental car tax collections are off by nearly 3 percent, the Daily News reports.
By David Wilkening
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