- The cruise industry is threatening legal action against Hawaii if they proceed with proposed new taxes on cruise ships and passengers.
- The new laws would involve either a per cabin tax or a per-person fee.
- The Norewegian Cruise Line vice president declares the new laws “unconstitutional”.
Cruise lines are threatening to sue Hawaii lawmakers over two separate cruise bills.
Bills have been passed in both houses that will introduce new taxes against cruise ship visitors to Hawaii.
One suggests that a per-person fee be added and another suggests that an 11% tax per cabin, should be applied which is equivalent to a tax on hotel stays that Hawaii has already implemented.
Attorneys that represent the cruise industry put together a letter that stated if the new laws go ahead, they will sue.
It reads: “We ask that you advise the Governor of these issues and take action to avoid costly and time-consuming litigation that will be forced upon the State and our clients should either of these proposals become law.”
Essentially, the argument of the cruise industry is that the taxes it can place are legally limited to port services.
Daniel Farkas, Norwegian Cruise Line executive vice president and general counsel declares that the taxes would be unconstitutional.
“It’s simply unconstitutional. It has to do with uniformity as to when a vessel pulls into port. It’s simply so that everyone is treated equally.
“What that means is for a family of five, that’s an extra $500 to the price of a ticket. It is going to make the cost of a cruise simply unaffordable.”
Farkas also suggested that NCL could perhaps move on from the region if fees do increase.
“It picks up and moves. It’s got propellers, it’s got rudders, and we can move it wherever we want.”
Adrian Tam, Hawaii State Representative, says: “The Supreme Court also made a 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.”
Currently, NCL is the only line that offers large ship cruises in between the Hawaiian Islands, but most major lines have cruises that stop in at least one Hawaiian port.
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That $500 for a family is likely not $500 spent on shore at local businesses.