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Looks like I am the contrarian and agree with Trump who is not doing a good job of rationalizing his intent to help them out.
Forget about the cruise lines and instead focus on the economic impact on states and port municipalities.
Alaska
Tourism is the second largest employer in Alaska. Cruise ships are the source of most tourism, depositing thousands of passengers a day in season, May- September. Passengers pay port taxes and fee, the highest in the world. They take tours, engage in all sorts of soft adventures, sports , food and buy a ton of crap ( most made in Asia).
Florida
Miami, Fort Lauderdale and to a lesser extent, Tampa and Port Canaveral are huge port cities for Caribbean cruises. They too impose Port Taxes. The feed bags are locally sourced. Commercial airlines, hotels, local transportation and dining are all intertwined with the cruising industry.
Other
NY, NJ, Texas, NO, Long Beach and Seattle are also in this mix.
All three, Carnival Corp brands, Royal Caribbean brands and Norwegian are based in the US. Their ships, leased or owned, are flagged in countries without taxes, Bermuda, Panama etc. The majority of onboard crews are international and send their incomes home to Philippines, Indonesia, Ukraine, various Caribbean countries etc. The crews that are American pay income tax on their incomes.
All cruise ships that embark from US ports are continuously inspected and outcomes are public information. Unlike resorts, cruise ships are required to report illnesses to the CDC.
Last edited by middle-aged mom; 03-22-2020 at 05:26 PM..
Either way, it’s probably the same thing which prompts so many US companies to incorporate in Delaware - it’s cheap! If you ran the books at a cruise ship company, you’d do exactly the same thing.
That said, naw, there’s better places to spend bailout money, if that’s what we really want to do at all. I’d say it’s less likely that cruise line bailouts would boomerang back into our economy, since the point of it is often to go elsewhere, and buy some liquor and excursions in Mexico or wherever. I have had a blast on my cruises, but it’s not bailout-worthy, be those ships flagged here or not.
Bailouts should ONLY go to US companies who were hindered from doing business by the US government.
Furthermore, there should be strict restrictions on what the money can be used for - such as maintaining employees and operational costs.
Now this is something I hope Trump can enforce. He's expressed that he isn't into those buy backs...but is it lip service.
We shall see.
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