Cruise stocks sink after missing out on economic-relief bill

Cruise stocks sink after missing out on economic-relief bill

That means they don't pay a lot of USA taxes.

Trump said though its very hard to consider making them eligible for loans, he noted they do employ many people and promote economic activity.

The possible exclusion of cruise companies in the bill came as a shock to some considering U.S. President Donald Trump expressed his desire in previous interviews to help the pillars of the hard-hit travel industry, including cruise lines, airlines and hotels.

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

Some of the first extensive outbreaks of Covid-19 occurred on cruise ships, forcing them to quarantine at ports and the United States to scramble to repatriate American passengers. They do pay state income taxes and port fees, according to The Wall Street Journal.

Only one day before Royal Caribbean made the decision to suspend operations, the company's Vice President of Government Relations, Russell Benford said bookings for cruises had remained robust up to that point.

"It's very hard to make a loan to a company when they are based in a different country", Trump said.

On the issue of the U.S. financing bill, Royal Caribbean reporters addressed a news release on March 23 stating that the company "had entered into a $ 2.2 billion loan facility of 364 days, further enhancing the company's liquidity position".

The Cruise Lines International Association, the industry's trade group, acknowledged they would be left high and dry.

"We are also working with our crew to sort out the issues this decision presents for them".

"As it relates to the rescue package, cruise lines are not lobbying for a bailout".

In addition, Royal Caribbean said it has "over $3.6 billion of liquidity comprised of cash deposits and its existing undrawn revolving credit facilities" and had already committed financing for all of its new ships on order. Jackie Speier (D-Hillsborough) and John Garamendi (D-Walnut Grove) wrote to House Speaker Nancy Pelosi (D-San Francisco) and Majority Leader Steny Hoyer (D-Md.) On Monday, urging the strong terms to be included in the package before crossing lines offered some help.

While the major cruise ship companies are not headquartered in the USA, travelers getting ready to take a cruise spend large sums flying to port cities, staying at local hotels and eating at restaurants.

"Providing U.S. taxpayer dollars to massive foreign cruise ship corporations that pollute our environment, take advantage of tax loopholes, and flag ships in foreign countries would allow the cruise industry to return to business as usual, which is unacceptable", according to the letter from Friends of the Earth, and Greenpeace.

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