RDC Testimony:
SB312-Cruise Ship Head Tax

April 5, 2010

Testimony delivered by Deantha Crockett, RDC Projects Coordinator

Thank you Chairman Hoffman, Chairman Stedman and other members of the committee.

For the record, my name is Deantha Crockett, and I am a projects coordinator with the Resource Development Council of Alaska. RDC holds a seat as a founding member on the steering committee of the Alaska Alliance for Cruise Travel (AlaskaACT).

RDC members consist of oil and gas, mining, timber, fishing, and tourism members as well as Native Corporations, local communities, organized labor and industry support firms. RDC is a statewide organization, and indeed the cruise ship head tax is a statewide issue, as reduced numbers in cruise passengers affects communities all throughout the state.

RDC believes that voters did not fully understand the impact of the 2006 ballot initiative that instituted the head tax, along with several other taxes and regulations on the cruise industry in Alaska. While they did not understand it then, certainly they will understand now, as ships have begun to leave Alaska resulting in at least 140,000 less visitors to our state. These visitors spend money in our communities and provide for Alaskan jobs, and their departure has left a wound in the tourism economy.

RDC supports the Legislature in improving the state economy throughout all resource sectors, and certainly a reduction in the cruise ship head tax will enhance the tourism industry and bring jobs back to Alaskans. We strongly encourage you to take fast action and pass a bill this session that improves the visitor industry situation for Alaska.

Thank you for the opportunity to testify today.