Royal Caribbean Reduction Creates Anxiety among Tourism Execs

Royal Caribbean’s announcement that it would reduce the number of ships deployed in Alaska next year from three to two has Alaska tourism officials concerned that other big lines could follow suit.

Royal Caribbean last week said it would not send its Serenade of the Seas to Southeast Alaska ports in 2010, citing the high cost of doing business in Alaska.

Specifically, Royal Caribbean said Alaska has “among the highest tax/cost structure of any destination,” including state and local taxes and fees, and cited the $35 per passenger head tax, the approximately $20 per passenger fee charged by Alaska marine pilots and a $4 per passenger Ocean Ranger tax.

The loss of the Serenade of the Seas alone will mean a reduction of 42,000 visitors and an estimated $55 million loss in revenue annually, the Alaska Cruise Association said.

The 2,100-passenger Serenade of the Seas has 19 departures scheduled for Alaska this summer, with seven-night roundtrip itineraries from Vancouver visiting Icy Strait Point, Skagway and Juneau. Royal Caribbean said it has not decided where it will redeploy the Serenade of the Seas in 2010.