Summit participants push repeal of cruise tax

[SeaDawg]

Summit participants push repeal of cruise tax

Participants of a tourism summit are calling for a $50 head tax on cruise ship passengers to be repealed.

Tourism industry leaders at the Juneau summit also agreed to work on creating a group to work on a repeal.

One of the participants, Steve Hites of Skagway, is urging incoming Gov. Sean Parnell to establish a task force on tourism.

Hites says Parnell should put the tourism task force and the head tax on the table for legislative discussion.

Rep. Bert Stedman, a Sitka Republican, told participants there doesn't appear to be much support in the legislature for repeal of the tax.

But he added that if the tourism slowdown affects Anchorage and Fairbanks this summer, then support may build.

Similar tourism summits are planned for Anchorage and Fairbanks.

[Yukon]

These are the same people who have fought the tax right from the start. Maybe it'll work this time but I doubt it.

[mountainhouse]

I'd heard when we were in AK, that this tax replaced a number of local taxes. The person implied the burden on the cruise industry was unchanged. Any truth, all or part, to that?

[Yukon]

Originally Posted by mountainhouse

I'd heard when we were in AK, that this tax replaced a number of local taxes. The person implied the burden on the cruise industry was unchanged. Any truth, all or part, to that?

That's not true - while there was some tax shifting, the cost to you, the cruiser, is higher, and the nuisance factor to the cruiseline of such things as having an environmental monitor onboard is very real.

[SeaDawg]

Originally Posted by mountainhouse

I'd heard when we were in AK, that this tax replaced a number of local taxes. The person implied the burden on the cruise industry was unchanged. Any truth, all or part, to that?

The $50 so called "cruise ship tax" is paid by the cruise passenger. That cost is passed on to the consumer but it does have a small effect on the demand for an Alaskan cruise.

However, $4 of that tax is assessed to pay for state-employed marine engineers (Ocean Rangers) licensed by the Coast Guard to come aboard cruise ships and observe health, safety, and wastewater treatment and discharge operations. Also included in the 2006 bill was a provision that allows for civil lawsuits to be filed against an owner or operator of a cruise ship for an alleged violation of any permit condition, provision of environmental statutes or performance of duties. That is where the tax really hits the cruise lines.

[mountainhouse]

I wondered if it covered the Ocean Rangers. Met one on our cruise last month. Nice guy. Lots of compliments on Pacific Princess, which was nice to know.

My understanding is that with the $50 implemented, individual ports are no longer able to levy their own fees. So I was wondering if the $50 is offset by lower port fees.

Didn't know about the environmental change. Lawsuits certainly put teeth in the law. I wonder if this is related at all to the Exxon Valdez. I understood Exxon is still fighting several lawsuits on that.

[bottom-dragger]

I wonder if this is related at all to the Exxon Valdez.

http://www.usdoj.gov/opa/pr/1999/July/316enr.htm

[Chilkoot]

Originally Posted by bottom-dragger

http://www.usdoj.gov/opa/pr/1999/July/316enr.htm

Thanks for posting this.

[mountainhouse]

Originally Posted by mountainhouse

My understanding is that with the $50 implemented, individual ports are no longer able to levy their own fees. So I was wondering if the $50 is offset by lower port fees.

I understand what you're saying Seadawg and Yukon. But weather a cost is per passenger or per ship, it impacts the overall fare. I'm just trying to understand if some other fees are lower as a result of this $50 fee. If so, maybe the effect is overall less than $50pp.

[Yukon]

Originally Posted by mountainhouse

...maybe the effect is overall less than $50pp.

Yes, it is - I think $34 was the net after the tax shifting.

[mountainhouse]

Definitely still a big increase. Tnx, Yukon!

[Yukon]

Originally Posted by mountainhouse

My understanding is that with the $50 implemented, individual ports are no longer able to levy their own fees.

A clarification - at some ports, notably Skagway, the port facilities are privately owned so there was no change. I believe the fee for use of the Skagway docks (the railway owns them) is $8.50 pp (!).

[SeaDawg]

Governor doesn't support head tax repeal

Gov. Sean Parnell would be reluctant to support a repeal or reduction of the state's $50 head tax on cruise passengers, he told reporters at a Wednesday meeting in Juneau.

Parnell's statement follows a tourism summit held in Juneau on Friday, at which attendees called for the head tax's reduction or repeal. Many in the industry blame it for driving cruise business away.

"The $50 head tax is a major issue, along with everything in it," said Rick Erickson, operations manager for Ketchikan-based Cruise Line Agencies of Alaska, which provides shoreline support for cruises. "The bottom line is we've priced ourselves out of the market."

The head tax, approved in a 2006 ballot initiative, pays for infrastructure projects that support cruise operations.

[Lookingforfacts]

Originally Posted by Yukon

Yes, it is - I think $34 was the net after the tax shifting.

Originally Posted by mountainhouse

Definitely still a big increase. Tnx, Yukon!

Assume the cruise lines announced a big sale on Alaskan cruises. Click on the link and discover the price reduction is $34. Do you think that will motivate many bookings?

Assume the cruise lines suggest customers book today, before a price increase. Click on the link and discover the pending increase is $34. Do you think many people will jump?

No doubt increases in plane fare, particularly open jaw airfare for cruise tours, is a lot higher then $34. Little doubt airfare is having a greater impact.

Overcapacity is another issue.

No reason why the cruise industry and cruise passengers shouldn't be paying their share of the costs.

[mountainhouse]

Originally Posted by Lookingforfacts

Assume the cruise lines suggest customers book today, before a price increase. Click on the link and discover the pending increase is $34. Do you think many people will jump?

No question, cruisers should pay their share. However, every dollar has an impact. $34 definitely has an impact. Don't look at this as a single decision. Instead it's a decision thousands of folks will make. Every dollar you increase it, some number of people will be pushed over their budget. For example, let's say it's a fare of $790 vs $824. I think, for some number of people, $824 might be a deal breaker. Maybe not me or you, but some number of people.