From a report in the Anchorage Daily News: (excerpts)
The Alaska cruise ship industry has filed suit in federal court arguing that the state's new tax on cruise passengers is unconstitutional.
Alaska Attorney General Dan Sullivan said the suit was not a surprise.. .
. . . ACA executive director John Binkley said the tax isn't just illegal; it is hurting Alaskans, including the employees of his family's riverboat cruise business in Fairbanks.
"There will be 30 percent less (cruise ship passengers) coming to Southcentral and Interior Alaska next year. . . ." Binkley said.. .
The decline in visitation is due to a couple of cruise lines deciding to send several of their ships elsewhere next year. Some of the cruise lines have blamed the cruise tax, in part, for their decision to divert the ships.
Binkley's family business, Riverboat Discovery, hired 40 fewer seasonal workers this year due to the tourism downturn, mainly blamed on the global recession. He said the company will hire even fewer next year because of the loss of cruise visitors. The employees at risk are teachers, college students and retirees in the Fairbanks area who supplement their income with seasonal work, he said.
I'm surprised this didn't happen much sooner. If the suit is settled in the favor of ACA I wonder if we will all get refunds on the tax we paid since it went into effect.
That's gonna be a nightmare.
From an Alaskan standpoint, there is less tourism revenue for small businesses, and fewer seasonal jobs for those who need them.
From a cruiser point of view, the tax bumps the fares once, and a smaller supply of berths means decreased supply. Assuming the demand for berths does nt decrease to an equal degree (as if!) then fares increase again, according to the laws of supply and demand.
Net result of what some see as unfair taxation: Negative economic impact for Alaskans . . . higher fares for those wishing to book Alaskan cruises.
From an Alaskan standpoint, there is less tourism revenue for small businesses, and fewer seasonal jobs for those who need them.
From a cruiser point of view, the tax bumps the fares once, and a smaller supply of berths means decreased supply. Assuming the demand for berths does nt decrease to an equal degree (as if!) then fares increase again, according to the laws of supply and demand.
Net result of what some see as unfair taxation: Negative economic impact for Alaskans . . . higher fares for those wishing to book Alaskan cruises.
I'm surprised this didn't happen much sooner. If the suit is settled in the favor of ACA I wonder if we will all get refunds on the tax we paid since it went into effect.
That's gonna be a nightmare.
I would go for the refund route. It would not be that difficult. I just hope it would not be in the form of voucher from the cruise line. I paid that tax twice this year and have cruised to Alaska for 5 years in a row.
This season the prices for Alaskan cruises were the lowest they have even been, even after paying the head tax. The economy and an increase of berths combined to cause this. Currently the demand for European cruises has been growing so moving some ships over there makes sense. If there is another event that causes security concerns in Europe, those ships will move back rather quickly.
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ACA Files Suit over Alaskan Head Tax
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