Jason Gaffney applauded Gov. Parnell recently for instigating a reduction in statewide cruise taxes. State Rep. Bill Thomas and I opposed the bill, which eliminated nearly all Haines’ future public revenue from the industry.

Alaska’s head tax was average for ports worldwide. Prior to any demonstration of reduced passenger demand, several Carnival and Royal Caribbean ships were shifted away from Alaska, purportedly due to our head tax. It was a ruse. Disney and Celebrity scooped up most of the empty berths under the same tax regime within days of the announced redeployment – eight months before Parnell returned from Miami to push the tax reduction bill.

Alaska will lose $25 million per year while the cruise lines, which raised their prices this year far more than the $25 tax reduction, will see profits increase by millions of dollars. Juneau and Ketchikan will actually receive more in head taxes, but Haines and other small ports will lose significant revenue. Local dock improvements, road repairs, and other projects were being supported by the eliminated regional fund, specifically designed to help impacted communities that see few dockings.

Haines voted 60 percent to 40 percent in 2006 to help pass the statewide water quality/taxation initiative. The cruise industry threatened the initiative would kill tourism throughout Alaska but that wasn’t the intent, and of course it didn’t happen. Yet year by year our vote is eroded because the cruise lines spend millions lobbying legislators and contributing to election campaigns – it’s the best democracy money can buy.

Gershon Cohen

Co-drafter of the Cruise Ship Ballot Initiative

Author