Carnival Comments on Potential Impact of Alaska Cruise Tax Initiative

Thursday, August 24, 2006
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.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

BHP Bullish on Caval Ridge's Prospects

Yesterday BHP Billiton Coal President, Dean Dalla Valle, was joined by the Hon. Tony Abbott MP, Prime Minister of Australia, and joint venture partner Mitsubishi in a ceremony to open the US$3.

Vice Presidents Rejig at Caterpillar Inc

Following the previous announcement regarding two group presidents’ retirements and new responsibilities for another group president, Caterpillar Inc. (NYSE: CAT)

Keppel Logistics Expands in Australia

Keppel Logistics Pte Ltd, a wholly owned subsidiary of Keppel Telecommunications & Transportation Ltd (Keppel T&T), has expanded its logistics capabilities down

Cruise Ship Trends

Kiel's 2014 Cruise Shipping Season Ends

Expanded terminal capacities created at Berth 1 This year’s cruise shipping season in Kiel closes on the evening of October 18 when the AIDAcara sets sail for the Canary Islands.

Cruise Ship Passenger Isolated Due to Ebola Risk

A Texas hospital employee who may have handled lab specimens from an Ebola victim has entered voluntary isolation on board a Carnival cruise ship in the Caribbean.

APM Completes $2m Refit Ahead of Schedule

Atlantic Pacific Marine has completed the $2 million refit of the Crystal Symphony three days ahead of schedule. A team of 130 men worked around the clock while

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1469 sec (7 req/sec)