Why are the major lines pulling ships from Alaska?

This just in from USA Today  Cruise Log!!!

As we await word from Princess and Holland America on what exactly they are going to cut in Alaska, a little primer.

Alaska is celebrating its 50th anniversary of statehood this year. But we can imagine there wasn’t much celebrating when Carnival Corp. Chairman Micky Arison said this week he’s pulling ships in 2010 (and maybe 2011 too).

RELATED ITEM: Carnival to reduce Alaska fleet

Carnival has 17 ships in Alaska this year, when you add together the Princess, Holland America and Carnival brands. With competitors (Royal Caribbean, NCL, et al), there are 28 big ships scheduled to cruise in Alaska in 2009 – it doesn’t take a math whiz to figure out Carnival Corp. is the Big Kahuna (Princess and Holland America also run the most extensive land operations). Royal Caribbean earlier said it’s pulling one of its three ships – Serenade of the Seas – in 2010.

Citing slow bookings, Arison blamed a $50 head tax on cruise passengers approved by the state legislature in 2006. That tax passed after the Alaska populace voted yes on a ballot sponsored by the Responsible Cruising for Alaska Coalition (a citizens group). The money is supposed to offset costs at the ports for essential services used by visitors. But Ketchikan officials just approved using $500,000 from their portion of the fund for a proposed performing arts center (we can’t imagine Arison was happy about that). Arison called the tax “unconstitutional.” He wants to meet with politicians to convince them to reconsider.

Meanwhile, Princess told USA TODAY yesterday that its capacity would be reduced 16% next year, with a loud hint the reduction would come on the Gulf route.

My opinion: Gulf itineraries may be a harder sell than the Inside Passage, especially in tough economic times, because you have to fly into Anchorage and out of Vancouver or the reverse, meaning your air ticket may cost more than if you did a round-trip fare (which you can do on Inside Passage itineraries). Princess has its two biggest ships in Alaska – Diamond and Sapphire – on the Gulf route this year. Expect that to change in 2010.

A spokeswoman for Holland America said they’d have an announcement shortly as they work out a plan to reduce capacity in 2010. She made clear the line would still have itineraries from Seattle, Vancouver round-trip, and between Vancouver and Seward (Anchorage).

Will Alaska cruising become a thing of the past? If the fees and rates continue increasing only the few “Luxury Cruisers” will be able to afford the trip and more will cruise to other locations such as the Caribbean, Europe and Hawaii.

Alaska still remains one of the wonders of the world, it is a shame that the people  running the state are closing the door to more tourism and therefore more revenues in the long run.

Keep safe, be healthy and happy traveling!!!