Carnival Corporation & plc
commented on the potential impact of
Alaska's Ballot Initiative 2 which has been approved by the state's voters
and is expected to be implemented in 2007.
Although still subject to final certification by the state, the new
taxes include a $50 per passenger head tax which will increase the
government taxes and fees paid by passengers embarking on Alaskan cruises.
At this time, the company cannot estimate the impact these additional
passenger taxes may have on its Alaskan cruise business.
In addition to the head tax, the initiative includes a gaming tax on
any gambling conducted within state waters as well as a state corporate
income tax for cruise lines operating ships in Alaska. Carnival estimates
that the gaming and income taxes may reduce 2007 earnings per share by
approximately $0.03.
The initiative also calls for cruise lines to reveal profits on shore
excursions and any advertising revenues earned from shoreside businesses.
Carnival Corporation & plc brands currently carry approximately 560,000
passengers annually in Alaska aboard 16 cruise ships - eight from Holland
America Line, seven from Princess Cruises and one from Carnival Cruise
Lines.
"We are disappointed that the Ballot Initiative 2 has passed as we
believe this will inhibit the future growth and expansion of Alaska's
tourism business," said Micky Arison, Carnival Corporation & plc chairman
and CEO. "The estimates of the impact of these taxes are being made prior
to our finalizing deployment, legal and other business decisions that will
need to be considered as a result of this initiative," he added.