Royal Caribbean's Rhapsody of the Seas
docked at Canada Place in Vancouver, BC.
Photo © Aaron Saunders
The Vancouver Sun reports overall cruise traffic fell by a third, with only 27 ships performing 177 voyages. In 2009, those numbers were markedly different: 35 ships completing a total of 256 voyages. The article goes on to pin the blame squarely on the financial crisis that has gripped much of the world.
Contrary to the article, however, the recession has very little to do with the drop in vessel and passenger traffic.
The introduction of the Passenger Head Tax by the State of Alaska in 2006 sealed the fate of the 2009-10 cruise ship season long before it began. At $46 per passenger, cruise lines found the new tax tough to stomach. That it was accompanied by almost cripplingly expensive environmental regulations didn't help matters, and the major players in Alaska started to seriously revisit their summer fleet deployment plans.
Holland America Line CEO Stein Kruse tried to succinctly describe the situation to Alaska State Governor Sean Parnell. Under the new regulations, Holland America isn't even able to take on potable (drinking) water in some Alaskan ports because the copper content in the water - even before it reaches the ship - is more than what the line is legally allowed to discharge.
"That's how crazy it's gotten", Kruse stated in March of this year.
While the tax was substantially reduced earlier this year, other factors have been at play. The European cruise market has seen unprecedented expansion in the last three years and continues to command top dollar fares on both Baltic and Mediterranean itineraries. Passenger interest has also remained exceptionally high, even during the peak summer months when prices are traditionally much higher for airfare and hotels.
The Caribbean, which had seen a marked decline in summer voyages, has also experienced something of a rebound as passengers look for warm destination options closer to home, even during the notoriously fickle hurricane season which runs from June to November. Other Atlantic-based destinations have also seen an increase in demand, and include Bermuda and Canada & New England voyages, the majority of which are served from New York ports.
The cruise lines responded the way any fiscally responsible company would: they moved their product accordingly.
As we wrote last month, the 2011 Alaska cruise season is looking up. Disney Cruise Line and Oceania Cruises are slated to visit the region for the very first time, and upscale line Crystal Cruises will operate their first Alaska voyages since the line left after the 2005 season. Carnival, Celebrity, Holland America, Norwegian Cruise Line, Princess, Regent, Royal Caribbean, and Silversea Cruises all return for another season, and are poised to provide the most unique combination of itineraries since 2005.
The 2010 Alaska season may have been a wake-up call, but next year's deployment suggests it might not be too late for the State to turn things around.
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