Is Your Next Alaska Cruise Worth an Extra $50?

cruiseduo · August 23, 2006

Don't know the results, but this was voted on yesterday, August 22, 2006.

Alaska residents are headed to the polls today for a vote that could affect your next cruise vacation. A proposed tax of $46 (plus a $4 berth charge) for every cruise passenger who visits the state is on the ballot; if approved, a family of four could end up dropping an extra $200 on their vacation -- before they even pack their bags.

The idea of a hefty head tax isn't a new one. For the past decade or so, Alaskans have lobbied for the initiative, but it usually fizzles out before the primary elections. The most recent petition, however, netted 174 more than the required 23,285 signatures to put Ballot Measure 2 -- more commonly known as the "cruise ship tax" -- in front of voters.

The monies collected would be used to improve port and harbor facilities, and support environmental programs.

With the Alaska cruise season lasting a lengthy five months (May through September, with June through August at its peak), cruise lines and businesses are concerned that the tax might dissuade people from visiting Alaska, or from spending onboard and ashore.

John Shively, the vice president of government and community relations for Holland America (and a committee member with NorthWest CruiseShip Association, which represents cruise lines throughout the Pacific Northwest), tells us that while it's possible some folks simply won't cruise Alaska, what's also a concern is that those that do will most likely spend less ashore. Shively tells us that based on the results of a poll conducted by Washington D.C.-based Cromer Group, if a $50 tax is enacted, 75 percent of potential passengers would reduce or eliminate shore excursions, potentially spending less money at Alaska restaurants, gift shops and cultural centers as well.

As for the cruise lines, the initiative "is very punitive," Shively says. "The costs are both direct and indirect ... standards we already meet will be made more bureaucratic." The head tax is just one of the many provisions on the eight-page proposal, including taxes on gambling revenues in Alaska waters and ports, corporate taxes for tour companies, and convoluted disclosure policies.

Shively also points out that there's already a $14 head tax in Alaska -- $7 in Juneau and $7 in Ketchikan -- and that this initiative, if passed, would bring the additional cost per person to $64.

JoeyandDavid · August 23, 2006

The way the cruise lines and others "hide" fees ..

A casual cruiser probably would even notice...

Alaska isn't a inexpensive cruise to Begin with....mho

cruiseduo · August 23, 2006

Alaskans back cruise passenger tax in early returns

By DAN JOLING, Associated Press Writer

Published: August 22, 2006

Last Modified: August 23, 2006 at 12:48 AM

ANCHORAGE, Alaska (AP) - Alaska voters were close to handing multinational tourism companies a defeat Tuesday, ignoring a $2 million advertising campaign to approve a $50 head tax on cruise ship passengers.

With 70 percent of precincts reporting, yes votes on Ballot Measure 2 led by nearly 6,800 votes, 52.7 percent to 47.3 percent.

The measure would impose an excise tax of $46 per passenger per voyage. Another $4 fee would be charged to independently monitor cruise ship pollution controls.

The measure would tax a third of the ships' gambling proceeds, require cruise lines to pay corporate income taxes and require they get state pollution discharge permits for the ships' wastewater.

The measure also would require ships disclose the commissions they make from onshore businesses, a requirement that is already on the books in state law but is not enforced.

Gershon Cohen of Haines, one of two primary sponsors of Ballot Measure 2, said the measure, plus a campaign reform initiative, showed that Alaskans wanted change.

"We are bucking a trend that has been running our state and the rest of our country a long time. That is, (that) big money wins elections," he said.

Fellow sponsor Joe Geldhof of Juneau said Alaskans saw through a slick advertising campaign.

"It made them question who was paying for this and who was running this campaign, and when they figured it out, it turned people off," Geldhof said.

Voters overwhelmingly approved a measure to impose campaign contribution limits with more than 74 percent of the vote.

New campaign limits will lower the amount individuals can contribute to candidates, from $1,000 to $500. It also will reduce donations to political parties from $10,000 to $5,000 and political action committee contributions from $2,000 to $1,000.

One of the sponsors, state Rep. Harry Crawford, D-Anchorage, said the measure restores what had been the best campaign finance law in the country.

"It will keep us all a lot more honest," he said.

rogue · August 23, 2006

The $50-a-person head tax is not so bad, but the part about taxing the cruise lines gambling revenues is the part that I think will really hurt. The cruise lines will obviously pass this cost onto the cruisers, but these will come as direct increases to the cruise fare. The head tax will likely be put under the government costs on your bill, and the cruise fare will stay the same. Even people who do not gamble, will be paying more for their cruise because of the tax on the gambling revenues.

These taxes will probably not cut down the number of people cruising to Alaska, but it may make people think a little on what they actually buy there. IMHO in all likelihood, there will be little if any reprecussions to Alaskan cruising.

schatje · August 23, 2006

My thought is if Alaska gets it passed what is to stop all the other ports in US from doing the same? That would hinder a New England cruise stopping at several US ports. I hope people will consider the big picture and not be motivated by greed.