Researched and Written By

Researched and Written By Aaron Saunders

Thursday, April 15, 2010

One Step Forward...

Alaska may be blessed with some of the most beautiful scenery on the North American continent, but it certainly is having a run of bad luck with the cruise industry: in 2006, a controversial head tax was approved for cruise ships sailing in Alaskan waters.  Cruise lines responded by moving ships elsewhere, though the impact of that will be felt hardest this season. 

Then, a reprieve: Alaska State Governor Sean Parnell attended SeaTrade Miami, an annual shipping conference, and came away vowing to reduce the head tax in an effort to entice the lines back to his beautiful state.

Yesterday, the Alaska State Senate approved a preliminary bill that would reduce the tax by $11.50 per person.  Like everything else in this saga though, the opposition came out swinging - even though the bill still has yet to be passed by the House.

Aside from the usual grumbling about whether this form of appeasement was in the best interests of the public and the State, a new fork in the road has sprung up as a result of one of the clauses contained in the new ruling: cruise ships calling in Ketchikan or Juneau will have their head tax reduced even further.

 In 2006, smaller port communities in Alaska couldn't wave farewell fast enough. Now, Alaska's two largest ports stand to face the wrath of smaller port towns like Haines and Sitka, both of which face declining passenger numbers and along with it, dwindling revenues from the so-called Head Tax.

The State still expressed concerns the cruise lines will stick to their word.  The cruise lines, presumably, aren't holding their breath - though it is admirable that both groups, initially very far apart in terms of what they'd like to see accomplished, have come to the table so quickly to hammer out a deal. 

Still there are those - including Chip Thoma with Responsible Cruising Alaska - who feel that other economic factors, like the recession, are responsible for the State's declining visitor numbers.

Regardless of who's right or wrong, it made us wonder: what good is a Head Tax if there are no heads to tax? 

We will keep you updated on this developing story as it unfolds.  We'd like nothing more than to see cruising in Alaska return to its former glory so more passengers may experience all this beautiful state has to offer.

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