Upcoming issues confront tourism

By Steve Hites

We are at the height of the cruise ship season in Alaska. Most of us have our hands full managing or running our businesses, and there isn’t much time to worry about anything that isn’t “life threatening.” But back in 2009, Alaska Alliance for Cruise Travel was formed in a very short time to give individuals, businesses, and communities that favor a healthy cruise industry in Alaska the strength of numbers, and I think we need to consider for a minute some of the things that are happening just over the horizon that could affect the industry.

Emission Control Areas (ECAs) – The Environmental Protection Agency has decreed that all shipping along the U.S. coasts out 200 miles must lower their sulfur emissions by going to distillate fuels, or be fined accordingly. Canada has gone along with this ruling, and it will take effect in 2012. It will raise the price of everything being transported to Alaska. The cost of a cruise will go up as well to cover the much higher cost of distillate fuel. The Federal Government does not have good science behind this: it is an arbitrary decision of the EPA. Alaskans should be outraged about this insanity because it raises the cost of everything that has to be freighted on ocean services in the State.

Alaska Department of Environmental Conservation Issues – We need to keep a very close watch on further attacks by anti-cruise industry activists on the DEC waivers and permits that allow ships to operate in Alaska.

Other Attacks in Other Places – Carnival Cruise Lines is under attack in Charleston, S.C. by a coalition of local activists and community groups that are trying to drive Carnival out of the port. Lawyers for the group are saying that when a ship is docked it becomes a “building”, and thus violates the local building code ordinances: it’s too tall for the code, and blocks the view of the harbor. Both Carnival and the Port Authority in Charleston say this is ridiculous, but being ridiculous has never stopped these groups before. Watch this one very closely.

The Economy and its Effect on Cruise Tourism – A Southeast Alaska anti-cruise activist was quoted recently saying the recession is over, and that the cruise lines are making huge profits. On August 7th Carnival Corp stock stood at $45; the market tanked, and their shares hit $31. The truth is that the global travel industry is bracing for the unknown as the world economy resets itself yet again in the wake of international deleveraging and political turmoil. Alaska has proven to be very resilient: it has become a unique and instantly recognized destination in its own right. Nonetheless, we can’t take anything for granted. We need to go back to basics, and spend our money and efforts generically marketing Alaska so we can hold on to Alaska’s position in this uncertain economy. If we do that, we can grow Alaska into the future.

We have to remember that in these times that try every business, we need to be the Alaska cruise partner version of the colonial “Minutemen” who are always ready, just in case: and, to be honest, we haven’t been out on the Lexington Green doing any close-order drill for quite a while. We can’t let ourselves or our rifles get rusty. Watching the situation back in Charleston, S.C. with the anti-cruise activists swarming to attack Carnival, I think the British will be coming again this winter. Let’s be sure we’re ready for them.

Keep your powder dry.

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