We would like to bring you up to date on various issues that have recently come to light regarding the cruise line industry. You will notice the article dated February 1st in the New York Times concerning the Paradox of Corporate Taxes. While our government is currently looking to solve the problem of lack of income, this article discusses the taxes paid by major corporations. The article starts off with the following concerning Carnival Cruise Lines:
Published: February 1, 2011 in the New York Times by David Leonhardt
"The Carnival Corporation wouldnt have much of a business without help from various branches of the government. The United States Coast Guard keeps the seas safe for Carnivals cruise ships. Customs officers make it possible for Carnival cruises to travel to other countries. State and local governments have built roads and bridges leading up to the ports where Carnivals ships dock.
But Carnivals biggest government benefit of all may be the price it pays for many of those services. Over the last five years, the company has paid total corporate taxes federal, state, local and foreign equal to only 1.1 percent of its cumulative $11.3 billion in profits. Thanks to an obscure loophole in the tax code, Carnival can legally avoid most taxes."
As the above points out, major cities around the country have invested millions in the cruise line industry. However, since the first of the year, there has been what appears to be a trend by the cruise lines to abandon various ports that service the U.S. markets. In just reviewing the articles posted on our website atwww.internationalcruisevictims.org, you will find the following items:
Article posted on January 6, 2011 - Philadelphia cruise ship terminal operation to end
"The Delaware River Port Authority voted Wednesday to end its operation of the terminal, citing declining demand. The number of ships departing from the terminal at Philadelphia's Navy Yard has declined from a high of 36 in 2006. Only two cruises are scheduled for 2011."
Article Posted on January 14th 2011 - Two ships moving from Port of Los Angeles as Mexican cruises slump in popularity
"Royal Caribbean said its 3,100-passenger Mariner of the Seas, after a Mexican Rivera voyage that begins Sunday, will leave the Port of L.A. for South America and Europe, ending up in Galveston, Texas. Norwegian Cruise Lines will pull its 2,348-passenger Norwegian Star out of the port in May 2011."
Article posted January 15, 2011 - Carnival to relocate last San Diego cruise ship
"The relocation of the cruise ship Carnival Spirit to Australia will cost the Port of San Diego and nearby businesses an estimated $54 million, officials said today."
Article posted March 9, 2011 - Carnival leaving Mobile, Alabama without cruise ships
Article posted March 15, 2011 - The Barbados-based Caribbean Tourism Organization (CTO) has expressed concern over the loss of cruise business from the southern Caribbean
"The CTO said Royal Caribbean International has announced plans to reposition its ship, Serenade of the Seas, from the Caribbean to Europe in the summer of 2012."
Why does there appear to be a major shift in cruise ships out of the various markets including the Caribbean? All of these ports have made major investments in corporations that pay hardly any taxes, and yet it appears profit for the cruise lines comes first. There are significant shifts in cruise ships to other parts of the world. It is ICVs hope that new laws requiring the industry to take action regarding cruise crime are not to blame for this shift.
Kendall Carver, Chairman
Jamie Barnett, President
For more information about the International Crime Victims Association, please visit www.internationalcruisevictims.org or contact the following: