Cruise Industry to Sue Alaska over Head Tax

According to an NBC affiliate in Alaska, the cruise lines have had enough and a lawsuit against Alaska’s $50-per-passenger head tax is imminent.

Of the $50, $46 of it goes to maintaining the infrastructure of the cruise ports and the other $4 goes to the Alaska Ocean Ranger program that helps combat ocean pollution in the area.

Both sides are ready to fight. Alaska says “”There has been a lot of criticism of (the head tax) — none of it valid, none of it has gone through… the Legislature believes that the thing is working.”

But so far three ships have already canceled stops in Alaska. Tourism experts say the itinerary changes from Princess, Norwegian, and Royal Caribbean will mean a reduction of 140,000 tourists. But not all cruise lines are canceling — Disney recently added stops in Alaska.

It’s a tough call on Alaska’s part – since cruise lines also won’t come if the infrastructure isn’t there, such as what’s happening in the Cayman Islands right now.

What do you think? Should Alaska stop taxing per-cruise passenger? Are the cruise-lines overreacting?

Source: KTUU, Alaska

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