Juneau Empire

Web posted August 11, 2006

Measure 2 won't hurt cruise ship industry

Letter to the editor

Here's some background regarding Ballot Measure 2 that the cruise industry would apparently like us to overlook: When booking a cruise to any destination, every passenger's fare includes "government taxes and fees" ranging from less than $50 to more than $150. Have these fees slowed the cruise industry's growth? Are passengers staying home because "fees and taxes" are too high? Judge for yourself.

One of the major cruise lines operating in Alaska just spent $947 million to build a ship that carries 3,664 passengers. Since 1999, the same company has built 10 ships, each carrying 2,500 to 3,100 passengers and has a total fleet of 22 ships - all but one built since 1990. Another cruise line serving Alaska operates 13 ships, all but one launched since 2000, with seven launched in 2002 alone. This line's former primary competitor (both are now owned by still another line) operates 14 ships, three of them launched within three months of each other in 2004. The parent line has 23 ships of its own.

Still another line operating in Alaska has 13 ships, nine of them built since 2000, and two more will be launched in 2007.

Now the cruise industry is spending millions to convince people that Ballot Measure 2 is bad for cruising and is bad for Alaska. Yet it won't put a noticeable ding in the profits that allow cruise lines to build several giant ships a year because customers pay the fees. Furthermore, the measure won't add $50 to a cruiser's bill. In fact, cruisers to Alaska could even pay lower fees because this fee replaces other fees.

Why should cruise lines operating in Alaska waters be given an exemption from the kinds of taxes and requirements that pertain to businesses operating on Alaska soil (including foreign companies)? Alaskans (including Alaska businesses) have nothing to fear from this initiative and a great deal to gain from it.

Christy D. Long
Juneau