Alaska voters to decide on additional cruise tax

by Tim Larison

Alaska voters will go to the polls on August 22nd to decide if cruise passengers will pay an additional $50 per person state head tax, and also require cruise lines to make some changes in the way they operate in Alaska.

In an interview with Travel Weekly magazine, Gershon Cohen (a co-author of the legislation) said “People see the cruise lines as an outside industry that uses Alaska and doesn’t pay its way.”

On the other side, Carol Fraser owner of the Aspen Hotels of Alaska told Travel Weekly “The cruise line industry accounts for 23,000 jobs in Alaska. They pay taxes, they give money to nonprofits. It’s sad that the cruise lines seem to be the bad guy in our tourism industry. They’re not.”

It’ll be interesting to see how the vote goes. If it passes, it seems the only impact to cruise passengers will be a $50 increase in taxes per person. The cruise lines will see bigger changes, however, and may pass their additional costs onto passengers. For example, if the bill passes cruise lines will have to disclose the markup they charge for shore excursions.

I am a big proponent of booking independent tours on Alaska sailings. I have had great experiences in my cruises to Alaska booking with local operators instead of cruise line excursions. Often private excursions are less in cost, less crowded, and with very knowledgable local guides. If this legislation passes the cruise line tours may become less popular as passengers will see what the cruise line markup is.

Alaska is one of my favorite cruise destinations (I took the picture above at Hubbard Glacier in September 2005). Alaska cruises are becoming more and more popular. Princess has seven ships in Alaska this summer; Holland America has eight. I hope if this legislation passes it will not discourage people from cruising to Alaska.