Passengers sailing on Hawaiian cruises could soon be in for higher vacation prices.
If you’re planning a future cruise to Hawaii, you may need to revisit your budget. The state is considering new taxes on cruise ship passengers, including a per-passenger fee or an 11% tax, similar to taxes paid by hotel guests and vacation rentals.
Lawmakers recently passed bills that would require cruise ship passengers to pay either a per-person fee or an 11% tax on ship cabins, like the TAT paid by hotels and vacation rentals.
The effort has drawn threats of legal action from the cruise line industry, with executives stating they may stop cruising to Hawaii if their customers have to pay more. However, lawmakers say they’re only proposing that cruise ship passengers pay the same taxes as other visitors.
Expanding on the threat of legal action, Daniel Farkas, Norwegian Cruise Line executive vice president and general counsel, says maritime law prohibits taxes beyond what it costs to provide space and services in the harbor.
But House Tourism Committee Chair Rep. Adrian Tam says cruise ships are currently being treated better than other tourist facilities, stating, “The Supreme Court also made it very clear that we cannot give preferential treatment. All we’re asking for them is to pay their fair share. It should be a no-brainer. They are benefiting from Hawaii’s natural beauty.”
Norwegian Cruise Line executives meeting with lawmakers argued that passengers on its Pride of America already pay about $200 in port fees and excise taxes during an interisland cruise, and the proposed taxes could add $100 per day to that total, which could make the cost of cruising unaffordable for many. Farkas said, “What that means is for a family of five, such as mine, that’s an extra $500 to the price of a ticket, and it is going to make very, very quickly the cost of a cruise simply unaffordable.”
Lawmakers have pushed back on those claims, saying the proposed taxes are affordable and will be invested in protecting Hawaii’s environment, ultimately benefiting cruise lines.
The final decision on any changes to taxes on cruise line tourists will be made in negotiations between the House and Senate in conference committee. We’ll be on the lookout for any updates, so stay tuned to AllEars for the latest news.
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Does this change your plans for any future Hawaiian cruise vacations? Let us know in the comments.
Port taxes per passenger are more than enough. I would just spend my time in the Caribbean.
Yes, we had planned to vacation in Hawaii and cruise from island to island, but this new tax will make their jobs easier vacation costs way too expensive. Guess we will have to find a new place to vaction.
Yes I would not take a cruise to Hawaii. It is outrageous and ridiculous to charge 11% a day for hotel tax. We are in a cruise ship not a hotel Nd not even expend the night.
Would skip Hawaii
As much as I want to take the island cruise, I will not pay this kind of additional fee. Everyone with 3 brain cells know that the Hawaiian government is very corrupt. They do not take care of their people with taxes and revenues as they say. They make plenty of revenue off of the thousands of people who visit their islands on these ships. If they want more…it’s gonna be less from me.
The tourist who stay in hotels do not pay 200 in port fees so , if cruise have to pay same fees will other who fly in have to pay 200 port fees?
Most families choose cruising because it’s affordable. Meals are included, no rental car costs. You can do your own excursions or take taxis or busses to the beaches and save money. Children’s programs are included. It’s a great deal. For that family of 5 mentioned, that’s an extra 2500 on top, NOT affordable. No I wouldn’t choose an extra 500 per ticket regardless of how many people I’m traveling with. It would be much cheaper to sail to St Lucia,or other volcanic Carribean ports or even Europe. Hawaiian sounds nice, but it’s not THAT special.