Tax Scares Ships Away - Cruise Line Fans: Cruise Forum, Reviews and Chat From Real Cruisers

canarymoon · 03-25-2009, 08:23 AM

Since the state of Alaska announced their $50 per passenger head tax for cruises to Alaska, Royal Caribbean pulled one ship from the Alaskan market. They will be sailing only two ships to the region, instead of three in 2010.

In yesterday's quarterly earnings conference call, Carnival Cruise Line talked about the effect that Alaska's head tax is having on bookings and on CCL's 2010 Alaskan itineraries, and possibly also in 2011.

The CCL chairman said that bookings for cruises to Alaska for those cruises which include the extra tax are "down in the double digit percentage range."

Consequently, CCL is reducing the number of sailings to Alaska across three brands - Carnival, Princess, and HAL for 2010 - and cuts are possible for 2011 as well.

canarymoon · 03-25-2009, 08:41 AM

So - in this case, at least - it appears that increasing taxes in a questionable economic environment may not have been the best way to encourage growth. . . .

Blizzard · 03-25-2009, 08:56 AM

I am very much against Alaska's imposition of the $50 head tax. This particular tax was not intended to encourage growth. Some may have even voted for it to discourage more people from visiting.

RCL is pulling one ship for Alaska so that it can add a ship to Europe. It is no surprise that bookings are better in Europe right now

As for CCL brands, The Carnival Sprit will move to Seattle in 2010. It will lower the cost of pax getting to the ship. Many have been flying into Seattle and busing up to Vancouver. HAL and Princess may shorten their seasons by a couple weeks but they will have the same number of ships. In the last few years they have been stretching the season anyway.

Even with the head tax Alaska cruising is probably the cheapest it has ever been. The last time prices were this low was in 1995 and those dollars were worth more.

canarymoon · 03-25-2009, 09:05 AM

So, you are saying Alaska WANTS to reduce the number of cruise passenger visits? If so, they are making all the right moves to do that.

Carnival did say that they would soon be announcing a 'reduction in capacity' in response to the downturn in alaskan booking, which they attribute to the head tax.

apparently, the tax is in effect for cruises after a cerrtain date, and those particular bookings are down noticably from those sailing prior to that adate.

That's what the company seemed to be saying in their conference call, at least.

Blizzard · 03-25-2009, 09:54 PM

I am not saying that the intention of the tax was to decrease visitors but I believe that some of those that voted for it had that intent in mind.

Over the last few years the cruise lines have been stretching the season. starting earlier and ending later. Those dates in early May and September have always been discounted to fill. By bringing the ships in later and leaving earlier they are not losing much.

canarymoon · 03-27-2009, 10:52 AM

From an article in the Anchorage Daily News:

Several cruise lines plan to slash their Alaska itineraries in 2010 with the net result that communities from Anchorage to Fairbanks could see a 25 percent reduction in cruise ship visitors.

Due to the combined cuts, roughly 100,000 fewer cruise passengers will spend time in Southcentral Alaska . . .

canarymoon · 03-27-2009, 10:54 AM

Carnival (2010)::
• Princess is cancelling one of its four Gulf of Alaska cruise itineraries, a ship called the Star Princess that carries a maximum of 48,000 passengers to Southcentral per season.

• Holland America plans to turn its seven-day cruise to Seward into a 14-day round trip that will not allow time in port for passengers to take an extended land tour. That equates to a loss of 15,000 visitors to Southcentral.

• Carnival is turning its Gulf of Alaska cruise into a Southeast Alaska cruise, for a loss of about 40,000 passengers to Southcentral.

Royal Caribbean:
Royal Caribbean announced it would shift one cruise ship out of Alaska waters next year, for a loss of about 42,000 visitors to Southeast Alaska.

cruisin' chick · 03-27-2009, 09:13 PM

The Star Princess will be deployed to Europe in 2010.

Maybe some residents may be wanting less visitors to Alaska, but I would imagine those who depend on tourism may feel differently.

explorenorth · 04-02-2009, 10:45 PM

Quote:

Originally Posted by cruisin' chick

Maybe some residents may be wanting less visitors to Alaska, but I would imagine those who depend on tourism may feel differently.

One of the things that bugs Alaskans, and the #1 reason the tax passed IMO, is that the vast majority of people who make a living from the ships that come to Alaska don't live in Alaska, they just come up for the season. I live just north of Skagway, AK and was driver/guide for cruisetours for 17 years until retiring 2 years ago.

With the reduction coming in 2010, it's pretty clear that we will never again see the rates for Alaska cruises that we're seeing for this coming season.

canarymoon · 04-17-2009, 10:39 AM

Royal Caribbean has announced that they arae pulling the Serenade of the Seas from the Alaskan market beginning next year.

The cruise line cited the "rising passenger taxes and regulation in the region" as reasons for reducing the number of RCL ships that sail to the area from three to two.

The Serenade will sail year round from San Juan, instead of summering in Alaska.