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Travel Weekly
16-05-2025
- Business
- Travel Weekly
Cruise lines are signaling a fight against Hawaii's tourism tax
A battle may be brewing over a new 11% tax on cruise lines in Hawaii after the cruise industry warned state officials that it considers the legislation a violation of the U.S. Constitution. The state legislature signed off on a bill May 2 that would for the first time tax cruise lines, based on the number of days their ships are docked in Hawaii, with the proceeds then funneled toward environmental causes. The legislation also increases the existing Transient Accommodations Tax applied to short-term rentals and hotels from 10.25% to 11%. The fee will be burdensome to both cruise lines and their passengers, Norwegian Cruise Line Holdings said, with Hawaii's per-passenger port fees and taxes expected to increase from $200 to $350. And several travel advisors and policy experts said they anticipate the tax could be a tourism deterrent. Before the law was voted on, CLIA hinted in written testimony to Hawaiian lawmakers that if the bill passed, the state would face legal action from the cruise industry. But the legislature was steadfast, and Gov. Josh Green celebrated what he called the "green fee," which his office called a "priority piece of legislation for his administration." "The impact of travel to Hawaii will cover our needs as we deal with climate change and superstorms and all of the things that we've known to be true after the wildfires," Green said in a video he shared on social media. "We're grateful. This is a true legacy moment so that we can deal with our environmental needs." The legislation earmarks the funds for natural resource protection, climate-resilient infrastructure, management of park and beach destinations and the mitigation of tourism's environmental impact. CLIA's April 2 letter to the Hawaii House Finance Committee argued that the law would violate the U.S. Constitution's Tonnage Clause, which says states can't tax ship tonnage without congressional approval. It also cited federal law that restricts non-federal parties from imposing taxes and fees on vessels sailing in U.S. waters. "We strongly urge the committee to ensure that taxes and fees proposed under the measure are allowable under federal law and do not expose the state to potential liability or risk of legal challenge," said the letter. "For these reasons, we respectfully request that the committee amend this measure to avoid conflicts with federal law." Peter Walsh, a Florida-based attorney who specializes in maritime law, said that in a potential legal battle, the cruise industry may also argue that the green fee violates the commerce clause of the U.S. Constitution. "Individual states are prohibited from enacting legislation that places an undue burden on interstate or foreign commerce," Walsh said. "We also have to remember that maritime law … historically limited the ability of states to regulate ships engaged in foreign or interstate travel, reserving much of that authority to the federal government." Gauging the impact of the tax CLIA did not provide comment on the passage of the legislation, but an NCLH spokesperson said the tax would negatively impact cruisers, cruise lines and communities in Hawaii. "The added financial burden not only affects our guests but also presents challenges for us as cruise operators -- impacting local businesses and communities that depend on a thriving cruise industry," the spokesperson said. Norwegian Cruise Line is the only cruise line that offers weekly sailings in the Hawaiian Islands, on its Pride of America ship. Jay Johnson, president of Coastline Travel Group, said he doesn't expect the tax to deter people from cruising in Hawaii, but he does think it could keep cruise lines from the destination if their operating expenses grow. "Tourism has become low-hanging fruit for governments to tax because it does not affect local citizens, thus making it easier to pass if a local vote is required," Johnson said. "Raising the tax for local citizens is never popular. But by claiming it won't affect local citizens, only tourists, then it becomes much more palatable for voters to agree to the tax." However, Jonathan Helton, a policy researcher with the Grassroot Institute of Hawaii, a think tank supporting small government, said that cruise passengers are likely to be hit with higher prices due to the tax, which may have an impact. "Obviously, people will still come to Hawaii," he said. "It's beautiful. But at the margins, higher prices are going to encourage people to look elsewhere for a vacation." He sees a better model in charging out-of-state visitors fees to visit certain Hawaiian destinations, such as parks. Walsh said that Hawaii's decision to tax cruise lines could affect locations far beyond the state's borders. "Hawaii's move could set a precedent for other coastal destinations, and it's crucial that both travelers and cruise companies understand the implications," he said. The state's passage of the tax comes shortly after the cruise industry successfully negotiated a decrease to a similar cruise tax proposed in Mexico late last year. Originally planned to be $42 per passenger, the country will now charge $5 per cruiser in its first year, according to the Florida-Caribbean Cruise Association, maxing out at $28 a head in 2028.
The Independent
25-03-2025
- The Independent
7 of the best cruises to travel America in 2025 and 2026
From beaches to Broadway, lush landscapes to landmarks, there is a lot to discover in America – and much of it can be best explored from a cruise. Many passengers travel to the ports of Miami or Port Canaveral to embark on a Caribbean voyage but what you should consider is exploring the Pacific and Atlantic coasts of the continent. You can enjoy the cultural and culinary delights of US wine country on the west coast or head towards central America – and even through the Panama Canal. Excursions range from dazzling cities such as New York to sailing under landmarks, including the Golden Gate Bridge in San Francisco. There are also destinations such as the states of Alaska and Hawaii, which provide unrivalled experiences for cruise passengers with awe-inspiring nature and landscapes. It is not just ocean-going vessels that let you explore the US. River cruises are a popular way to get more immersed in local culture state by state, discovering rich history on the riverbanks and beyond. Here is our pick of the top cruises to explore the US. MSC Cruises: Bahamas and the Caribbean New York – Port Canaveral, Orlando – Ocean Cay MSC Marine Reserve,Bahamas – Nassau, Bahamas – New York Start spreading the news... on this roundtrip cruise from New York with MSC Cruises. Departing from New York aboard MSC Meraviglia and sailing alongside the Statue of Liberty, you could arrange a pre-cruise excursion to tour Manhattan and other sites of the Big Apple or wait until you disembark at the end of the cruise and even catch a Broadway show. Sandwiched in between on this seven-night sailing is a stop in Port Canaveral, where you could see rockets at the Kennedy Space Center or even take a quick trip to Disney World. You will welcome a rest day on MSC's Ocean Cay Marine Reserve in the Bahamas after all that. Onboard, MSC Meraviglia has its own water park and LED dome ceiling in the indoor promenade for must-see light shows. Departs 4 May 2025; from £456pp Book now Celebrity Cruises: Hawaii Cruise Honolulu, Hawaii – Hilo, Hawaii – Kailua Kona, Hawaii – Vancouver, British Columbia Visit the beautiful beaches and lush mountain's of America's 50th state, Hawaii. This nine-night sailing with Celebrity Cruises explores the various islands of Hawaii. It starts in the capital, Honolulu, where passengers can experience the tropical rainforest on a short two-mile hike along the Manoa Falls Trail or visit the 200-acre Lyon Arboretum, which has one of the largest collections of palm trees in the world. You will also be dazzled by the Rainbow Falls waterfall in Hilo and go diving in the snorkelling haven of Kealakekua Bay, home to the Captain Cook Monument. Onboard, passengers can relax in Celebrity Edge's two main pool areas and in the rooftop garden and inside Eden, a glass-enclosed sensory-themed room and entertainment space. Don't miss the chance to have a drink or eat in the Magic Carpet, a raised platform that moves up and down the side of the ship. Departs 7 May 2025; from £819pp Book now American Cruise Lines: Hudson River New York – Sleepy Hollow – West Point – Kingston – Catskill – Albany New York tends to be an embarkation or disembarkation port for ocean-going ships but a river cruise is an ideal way to explore the iconic city. A Hudson River cruise will take you along the key points of the 315-mile stretch of water so you can view landmarks up close such as the Statue of Liberty. Excursions on this seven-night American Cruise Lines sailing include a visit to Franklin D Roosevelt's childhood home in Kingston, where he hosted Winston Churchill and Queen Elizabeth II. You will also stop in the town of Sleepy Hollow, made famous by the great American writer Washington Irving, and take part in a guided exploration of the World Trade Center 9/11 Memorial and Reflective Pools. Departs 1 July 2025; from $5,910 (£4,561) Book now From giant glaciers to endless mountain ranges and wildlife, Alaska is a unique US destination that is best explored by cruise ship. A cruise can get you closer to more intimate parts of Alaska that are harder to reach by foot such as the region's Inside Passage. Sailing aboard Discovery Princess, which has 1,400 large balcony cabins to gaze at the scenery, this cruise visits the Alaskan capital Juneau and spends a day cruising beside the awe-inspiring Endicott Arm fjord. Discovery Princess is a great ship to marvel at the scenery from. The Royal-class ship boasts more than 1,400 balcony cabins, with its Sky Suites offering 270-degree views that are described as the largest balconies at sea. There are lots of chances to get immersed in the local culture, with excursions including dogsledding beside glaciers, visits to national parks, lumberjack axe throwing, salmon fishing and gold panning. Back on board, passengers can take part in a specialty immersive multi-sensory dining experience and the ship also has a The Catch by Rudi restaurant, where you can sample dishes from the catch of the day. Departs 17 August 2025; from £1,072pp Book now Viking: America's Great River St Paul, Minnesota – Red Wing, Minnesota – La Crosse, Minnesota – Dubuque, Iowa – Quad Cities, Iowa – Burlington, Iowa – Hannibal, Missouri –St Louis – Memphis, Tennessee – Greenville, Mississippi – Vicksburg, Mississippi – Natchez, Mississippi – Baton Rouge, Louisiana – New Orleans, Louisiana A river cruise can get you closer to American culture and there is plenty of history to get immersed in along the Mississippi River. Also known as America's Great River and running 3,341 miles from Lake Itasca in Minnesota to the Gulf of Mexico, passengers will discover different cultures each day and there are lots of bird-spotting opportunities. This 15-day Viking river cruise starts beside the 19th- and early 20th-century mansions of St Paul, Minnesota , before heading to historic hotpots, such as author Mark Twain's childhood home in Hannibal, Missouri, before you can catch the blues while sailing through Memphis, Tennessee. Passengers can discover a key Civil War battleground in Vicksburg before visiting Mississippi's oldest city, Natchez, where more than 200 perfectly preserved homes from the 18th century still line its avenues. Departs 4 July 2025; from £10,595pp Book now Holland America Line: Panama Canal and Sea of Cortez Miami, Florida – Cartagena, Colombia Panama Canal – Puntarenas, Costa Rica – Acajutla, El Salvador – Puerto Quetzal, Guatemala – Huatulco, Mexico – Puerto Vallarta, Mexico – Cabo San Lucas, Mexico – San Diego, California – Cabo San Lucas, Mexico – Pichilingue (La Paz), Mexico – Guaymas, Mexico – Topolobampo, Mexico – Mazatlan, Mexico – Puerto Vallarta, Mexico – Ensenada, Mexico – San Diego, California Cruise through the historic Panama Canal from the Atlantic to the Pacific on this 27-day cruise that takes in the Spanish fortifications of Limón Bay at one end and the glittering skyline of Panama City on the other. Departing from Miami with Holland America Line, you will also discover central American hotspots in Colombia, Costa Rica where you will see unique architecture, beautiful beach fronts and nature en route to San Diego. Sailing aboard MS Zuiderdam, passengers can relax in its two swimming pools and show their skills on the pickleball court. Departs 31 January 2026; from £4,418pp Book now Norwegian Cruise Line: Pacific Coast San Diego, California – Ensenada, Mexico – Santa Barbara, California – San Francisco, California – Astoria, Oregon – Vancouver, British Columbia Explore the landscapes of the Pacific coast, taking in the Californian wine country – where you will have plenty of chances to raise a glass. Get your cameras ready for when this nine-night cruise sails under the iconic Golden Gate Bridge, plus an overnight stay in San Francisco will give you lots of time to discover landmarks such as Alcatraz Island. Sailing aboard Norwegian Jade, passengers can enjoy three swimming pools and a spiralling waterslide as well as a choice of 11 bars and lounges, including 24-hour pub O'Sheehan's Neighborhood Bar & Grill. Departs 11 April 2026; from £966pp.
