After Avoiding US Taxes, Cruise Lines Won't Get Help From US Taxpayers

While the travel sector - and especially cruise lines - have been one of the hardest-hit industries by the novel coronavirus outbreak, cruise operators will see little relief from the $2 trillion economic stimulus package lawmakers passed on Friday. Josh HawleyJoshua (Josh) David Hawley7 things to know about the coronavirus stimulus packageFive sticking points to a T coronavirus dealThe Hill's Morning Report, 000,000,000,000: GOP unveils historic U.S. rescue effortMORE (R-Mo.) for cruise ship companies to become based in the United States, Trump said, I like the concept.

However, major cruise operators have based their companies overseas as a way of avoiding paying federal income taxes and some US regulations.

The hundreds of thousands of cruise industry jobs supported in the USA vary from tour operators to port workers and beyond, according to Golin-Blaugrund.

For example, Carnival Corp. Royal Caribbean is incorporated in Liberia and Norwegian Cruise Lines is headquartered in Bermuda.

Cruise companies paid an average tax rate of less than 1%, well below the mandated 21% corporate tax rate in the U.S.

Some of Carnival's Princess ships were also believed to have been partly responsible for the initial spread of the coronavirus into the U.S.

The package limits aid to USA -incorporated companies with a majority of workers based in the US, two criteria that effectively exclude the major cruise ship operators such as Carnival (NYSE:CCL), Norwegian (NYSE:NCLH) and Royal Caribbean (NYSE:RCL).

According to the Cruise Lines International Association, the cruise industry annually contributes almost $53 billion to the USA economy. "We are grateful that they will receive support as a result of this bill". Bamco Inc. NY owned approximately 0.08% of Royal Caribbean Cruises worth $22,583,000 at the end of the most recent reporting period.

We dont need a bailout in terms of giving us money. "Getting a loan guarantee would be helpful". On average, analysts forecast that Royal Caribbean Cruises Ltd will post 4.92 earnings per share for the current fiscal year.

"It's very tough to make a loan to a company when they are based in a different country, but with that being said, they have thousands and thousands of people that work there". "So we are going to work very hard on the cruise line business, and we are going to try and work something out".

Trump has suggested cruise companies might switch their corporate registrations stateside in order to qualify for aid under the stimulus bill.

"I do like the concept of perhaps coming in and registering here, coming into the United States", Trump said. And pay your taxes, Hawley tweeted Thursday afternoon.

Due to the protracted emergency situation for the global pandemic of Covid-19 and the further introduction of containment measures - such as ports closure and restrictions on the movement of people - which do not actually allow to operate, Costa Cruises has made a decision to extend the voluntary suspension of its cruises until April 30, 2020.

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