Cruise Association Sues Alaska

[rogue]

ANCHORAGE, Alaska, Sept 18 (Reuters) - An association representing major

cruise lines operating in Alaska on Friday filed a lawsuit against the

state of Alaska seeking to overturn the state's passenger head tax, a

levy the cruise companies claim is unconstitutional and has stifled

business.

The lawsuit, filed in U.S. District Court in Anchorage, argues that $46

of the state's $50-per-passenger head tax violates the U.S. constitution

because it unduly interferes with maritime and interstate commerce.

"We feel the entry fee, as implemented, is illegal. Alaskans are being

hurt by the tax and the court system is really the best venue to resolve

the issue," said John Binkley, president of the Alaska Cruise Association.

The association represents nine member companies, including Carnival

Corp (CCL.N), Royal Caribbean Cruises Ltd (RCL.N), Norwegian Cruise Line

and others.

The tax was imposed as part of a wide-ranging cruise ship initiative

passed by Alaska voters in 2006 that also included new environmental

regulations.

Cruise companies and operators of various tourism companies that cater

to cruise passengers have complained that the $50 tax, on top of an

economic recession, is driving customers away.

Sponsors of the 2006 initiative dismissed the idea that an extra $50 per

ticket was significantly affecting the volume of cruise business.

"It's just a ludicrous argument that $50 has any bearing on the decision

to take a $3,000 cruise vacation," said Chip Thoma, a Juneau activist

and founder of an organization called Responsible Cruising in Alaska.

Alaska has attracted about 1 million cruise passengers each summer in

recent years. However, some cruise lines earlier this year announced

that they are moving ships out of the Alaska trade next summer, likely

resulting in a 140,000-person drop in total passengers visiting the

state in 2010. Companies have also deeply discounted their Alaska

cruises to fill ships, officials have said

[bowlcoach]

I have always said the last 2 years this tax has been implemented that it would come back to haunt Alaska and the cruise trade there. I wonder why the cruise assoc. waited so long to file suit? I guess they needed to see that their passenger count dropped for their Alaska cruises.

I know many cruisers love Alaska, but I've seen it once, and that's enough. Too many other places in the world I need to see. (My Bucket List).

[SloInDown]

Think of Alaska in terms of , one in a long line of nightclubs. Now imagine the $50.00 as a cover charge initiated by one club only..Regardless of how much money you have in your pocket; which nightclub would be the last one visited? Sorry Alaska---you lose!

[lindasuelucas]

don't care for the taxes either. why did they wait??? do you really think it's going to change?? i doubt it.

[rogue]

I, for one, find it hard to believe that the $50 tax made one little bit of difference. Sure the number of cruisers have dropped, but that's not surprising due to the economy. Air fare to the northwest is not cheap. The thing that the cruise industry doesn't like is the fact that Alaska is also taxing their gambling income. That, along with a small decrease in the number of passengers is the reason for the suit. $50 dollars when your already paying over $2000 dollars is peanuts. With the price that Alaskan cruises went for this year, the $50 meant nothing in my opinion.

[BSCorvette]

Think of Alaska in terms of , one in a long line of nightclubs. Now imagine the $50.00 as a cover charge initiated by one club only..Regardless of how much money you have in your pocket; which nightclub would be the last one visited? Sorry Alaska---you lose!

I agree... I don't even like paying TicketMaster charges!!!