NEWS: NEW Proposed Hawaii Tax Could Cause MAJOR Price Increases for Cruises

Are you planning on taking a cruise soon?

Disney Wish at Castaway Cay

Cruising can be such a fun and relaxing vacation (and totally different from visiting theme parks like Disney World and Universal Orlando). Whether you choose to go on a cruise with Disney Cruise Line (and there are PLENTY of ships to choose from with more on the way) or another carrier, there’s a proposed Hawaiian tax you might need to know about because it could make your vacation more expensive.

According to Hawaii News Now, the state of Hawaii has passed bills in both houses that will place a per-person fee on cruise ship passengers or add an 11 percent tax on ship cabins, similar to fees already paid by hotels and vacation rentals. Attorneys for the cruise industry have sent a letter to Hawaii’s attorney general and lawmakers threatening a lawsuit if these taxes go into effect.

Hawaii

Norwegian Cruise Line executive vice president and general counsel Daniel Farkas said that maritime law, as covered in the U.S. Constitution, prohibits these kind of taxes beyond what it costs for space and services while a ship is in harbor. He said, “It’s simply unconstitutional. It’s black and white. It has to do with uniformity as to when a vessel pulls into port. It’s simply so that everyone is treated equally.”

©Norwegian Cruise Lines

However, Hawaii House Tourism Committee Chair Rep. Adrian Tam said, “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.”

Naturally, the increased cost could be passed on to passengers, although Farkas suggests that if the tax is put in place, cruise lines might stop visiting Hawaii. Tam disagreed, though, stating that the proposed taxes are affordable and will go towards protecting Hawaii’s environment.

Temple in Oahu

The next step to determine how much more the state will tax cruises will involve negotiations between Hawaii’s House and Senate in conference committee.

Stay tuned to DFB for more.