Cruise company stocks tumbled last week after U.S. Commerce Secretary Howard Lutnick said during a Fox News Live media interview that the Trump Administration is apparently looking into imposing federal taxes on foreign-flagged cruise ships visiting U.S. ports. He said it’s seeking to “abolish the Internal Revenue Service and let all the outsiders pay,” and used foreign-flagged ships as an example. “You ever see a cruise ship with an American flag on their back? They have flags of, like, Liberia or Panama. None of them pay taxes, none of them,” he said.
On Sunday, Cruise Lines International Association (CLIA), the cruise industry’s trade association, sent Travel Agent this latest statement:
“Cruise lines pay substantial taxes and fees in the U.S.—to the tune of nearly $2.5 billion, which represents 65 percent of the total taxes cruise lines pay worldwide, even though only a very small percentage of operations occur in U.S. waters. Foreign-flagged ships that visit the U.S. are treated the same for taxation purposes as U.S.-flagged ships visiting foreign ports, which provides consistent reciprocal treatment across international shipping."
The statement continues: "This reciprocity has been enshrined in U.S. tax law with bipartisan support since 1921, which is consistent with the Administration’s 'Fair and Reciprocal Plan' for trade that prioritizes reciprocity to achieve a level playing field. In addition to taxes paid by the industry, cruises generate meaningful economic contributions to the U.S. economy each year—$65 billion in 2023, which supported 290,000 U.S. jobs.”
Past, Present and Future
Looking to the past, the S.S. United States—a cherished symbol of the 1950s “Golden Age,” when many luxurious liners sailed the world’s oceans—is taking its final journey. The iconic ship is now being towed from its dock in Philadelphia, PA, to Mobile, AL, where over the next year, it will be prepared as the world’s largest artificial reef. Ultimately, the ship will be sunk off Destin-Fort Walton Beach, FL.
This month, American Cruise Lines (ACL) christened the 100-passenger American Legend, its newest U.S.-flagged coastal catamaran. The event unfolded at Key West’s famed Mallory Square while the ship was docked during an eight-day “Florida Gulf Coast & Keys” itinerary, operated round-trip from St. Petersburg, FL. Separately, check out our one-on-one interview published today with Charles B. Robertson, ACL’s president and CEO. He shares his insight about trends, new vessels, new itineraries and what’s on the horizon.
Seeking more sales from a new region, Japanese cruise line Mitsui Ocean Cruises is now selling its cruise vacations in North America. Recently joining that line's fleet is the 458-guest Mitsui Ocean Fuji, best known to advisors as the former Seabourn Odyssey. As a first step in the line's expansion into both the U.S. and Canadian markets, Architects of Travel will create a sales and marketing campaign to reach travel advisors.
More Cruise News
Royal Caribbean International’s third humongous, Icon-class ship will be named Legend of the Seas. Starting in November 2026, the 7,000-passenger vessel will sail year-round from Port Everglades (Greater Fort Lauderdale), FL on six-night "Western Caribbean" and eight-night "Southern Caribbean" vacations, including visits to Royal Caribbean’s Perfect Day at CocoCay in the Bahamas. Prior to that, starting in August 2026, it will sail seven-night western Mediterranean cruises from Barcelona.
Foodie-focused Oceania Cruises has expanded its signature "Culinary Discovery Tours" with 12 new gourmet, chef-led excursions for 2025. New excursions are available in Amsterdam, Netherlands; Belfast, Northern Ireland; Invergordon, Scotland; Valencia, Spain; and Valletta, Malta. In Asia, guests have new options in Kobe and Shimizu, Japan, as well as Kochi, India, and Busan, South Korea. And in Canada, culinary buffs can opt for the new tours in Halifax, Nova Scotia; Quebec City, Quebec; and Victoria, B.C.
Norwegian Cruise Line has launched a new "Kids Sail Free" promotion, which is running until March 7, 2025. Always Croatia has added the newly renovated, 36-passenger San Antonio to its fleet; it will begin service in May along the Croatian coastline.
Trade Tip of the Week!
As Wave Season is in full swing, over the next few months we'll share tips from travel agency executives from host agencies, franchise organization and consortia, as well as individual travel advisors and travel suppliers. The goal is to keep advisors on target in making the most of the Wave promotions.
So, here's one tip from Natalie Loza, vice president of sales, Dream Vacations and CruiseOne:
"When presenting a price to a customer, break down the total cost per person by the number of days of the trip. This helps people calculate the overall value they are getting. It's also a great technique to use when trying to upsell someone to another category room. For instance, for only $75 per person per day you can have a suite that will provide you with extra amenities, a larger stateroom and an overall better experience."
Separately, in another trade development, MeetMeOnBoard, a Cruise Planners franchisee, has a new partnership with Vacaya, an all-LGBTQ+ cruise, luxury resort, and tour operator. Now those taking Vacaya’s charter cruises can use the MeetMeOnBoard app to connect and build community.
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