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

People & Company News

Liberian Registry Appoints Catsiba Manager in Dubai

Fay Catsiba has joined the Liberian International Ship & Corporate Registry (LISCR) as Business Development Manager based in Dubai, U.A.E. Greece-born Fay, who

Cook Joins Horizon Shipbuilding as Operations VP

Horizon Shipbuilding, Inc. announced that Mickey Cook has joined the corporation as the Vice President of Operations for the Bayou La Batre shipyard. Cook, one of the founders of C & G Boatworks,

Mercury Marine Launches Repower Financing

Mercury Marine launched a new repower finance program that aims to make it easier for consumers to get the engine performance they want with flexible financing for a broad range of buyers.

Cruise Ship Trends

Holland America Line's New Ship is ms Koningsdam

Holland America Line revealed the name of its new 99,500-ton cruise ship slated for delivery in February 2016 will be ms Koningsdam. While the name pays homage

L-3 MSI to Equip Third Quantum Class Ship

L-3 Marine Systems International (L-3 MSI) announced today that it has been awarded a contract to provide a range of navigation, lighting and communication systems

Carnival UK Announces Executive Appointments

David Dingle appointed chairman of Carnival UK; David Noyes promoted to chief executive officer Carnival Corporation & plc announced that David Dingle has been

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.1227 sec (8 req/sec)