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Tuesday, May 10, 2005

Alaska cruise passenger tax a non-starter, for now

Alaskans continue to gnash their teeth over whether they love the cruise industry, or hate it. Maybe "hate" is too strong a word, but at the very least there may be some tough love coming along. The current litmus test is whether to implement a state cruise passenger head tax of about $50 per person.

The Alaska House has rejected the measure, but it's still planned to be a ballot initiative in 2006.

Cruise industry lobbying groups have fought the measure tooth and nail, even challenging efforts to place the question on the ballot. The logic is that Alaskan cruises are already more expensive than cruises elsewhere, like the Caribbean and New England, which is true, and that even small tax-driven price increases could drive cruisers away from Alaska and toward the alternatives, which may or may not be true.

Those in Alaska who are pro-cruise-tax figure that travelers won't even notice another $50, and that only a statewide measure can work well. A lesson was learned by all when the port of Haines implemented a tax on its own, and cruise lines bailed out.

Juneau Empire: House vote trounces statewide cruise ship tax

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