Thread: Alaska: Lower Taxes

Governor of Alaska: Lower Taxes, More Marketing

Alaskan State Governor Sean Parnell, speaking in Miami, said the state was committed to environmental compliance, and that tourism represents $3.4 billion to the Alaskan economy and 40,000 jobs.

“Last year the state of the cruise industry in my state wasn’t very good,” said Parnell. “We went to work and turned around not only the perception but the reality.”

Parnell pointed out the cost of operations in Alaska and the head tax, noting that the tax has been lowered by 25 percent in the last year with further incentives for calls in Juneau and Ketchikan.

Priorities are “tourism marketing and a sustainable environmental regime,” according to Parnell.

“Alaska is on the right course,” added Parnell, saying that they were currently working hard on wastewater regulations.

Stein Kruse, president and CEO of Holland America Line, credited the new Alaskan Governor for the changes the state pushed through. “You are seeing our response, bringing passengers back in 2012,” said Kruse. “It shows the partnership that can exist between private industry and government can really work.”

This is a good example of how people can get blamed for things that have no real effect, and then take credit for things they had no control over. The Alaska cruise tax was instituted just as the economy tanked - there's just no way that I believe that $50 added to the cost of an Alaska vacation makes a differrence to anyone. Then the tax is reduced by about the same amount as a couple of cocktails on board the ships just as the economy recovers, and they take credit for increased cruise sales. Alaska is plain and simple a hot destination right now.

Originally Posted by explorenorth

This is a good example of how people can get blamed for things that have no real effect, and then take credit for things they had no control over. The Alaska cruise tax was instituted just as the economy tanked - there's just no way that I believe that $50 added to the cost of an Alaska vacation makes a differrence to anyone. Then the tax is reduced by about the same amount as a couple of cocktails on board the ships just as the economy recovers, and they take credit for increased cruise sales. Alaska is plain and simple a hot destination right now.

You make some valid points. I also think Kruse (HAL CEO) bullied the Alaskan state government officials a little bit.

It's a tough balance for Alaska and I wish the cruise lines would play nice. Either way, the tax is reduced, cruise customers are happier - and we hope they continue to visit Alaska and understand why is so important to keep as pristine as possible.

Thanks so much for your comments - they're always appreciated.

I'm thrilled to see all the new operators in Alaska in 2011 - Disney, Oceania, Inner Sea Discoveries and Alaskan Dream. There are some fabulous new itineraries, mainstream and "off the beaten track", all reinforcing the positive mood.

Originally Posted by explorenorth

I'm thrilled to see all the new operators in Alaska in 2011 - Disney, Oceania, Inner Sea Discoveries and Alaskan Dream. There are some fabulous new itineraries, mainstream and "off the beaten track", all reinforcing the positive mood.

Be on the lookout for out newsletter, publishing next Tuesday, with a featured profile of Inner Sea with some top executives at the company.

We're excited about it.

Cheers!

I'm hoping to be on Inner Sea Discoveries in late May or early June when the weather is the best in Southeast Alaska - but my wife is still holding out for American Safari. We'll see whether her or The Budget wins out!

I agree the a 25% reduction in the tax probably does not have that much effect in Alaska bookings. The 2010 season was down because there were fewer ships. There were fewer ships because the market was very soft in 2009 with too many ships. In 2011 we will have some new players in that market and we will see how the totals look at the end of the season. In the mean time we should be able to monitor how the season is going by how firm the prices are during the season.