Cruise liners may BOYCOTT Majorca and Ibiza

Cruise liners may BOYCOTT Majorca and Ibiza unless Balearic government changes its mind about two-euro-a day-charge for passengers

Costa and MSC in Majorca Port

  • The Cruise Lines International Association says the new fee is undemocratic 
  • Cruise passengers had been exempt from the new Balearics tourist tax charge 
  • But now the authorities want them to pay two euros for every day on the islands
  • Cruise association has threatened legal action and might leave islands off routes

Cruise liners are threatening to shun Majorca and Ibiza unless the Balearic government changes its mind about charging passengers two euros (£1.78) a day to stay on the islands under the new tourist tax rules.

The association of cruise companies in Europe, the Cruise Lines International Association, says the new fee is undemocratic and could force companies to leave the islands out of its routes.

And it says that unless the Balearics rescinds the decision to slap the tourist tax on all cruise passengers for the first time next year, it might take the issue to court.

The islands’ government has already come under fire for doubling the so-called eco tax for all holidaymakers in the high season of 2018, meaning guests in luxury accommodation will pay a much as four euros (£3.56) a day.

Until now, cruise ship passengers have been exempt from the fee unless they were docked for more than 12 hours.

But from summer 2018, they will pay two euros a day regardless of the duration of the stay and the Balearic government says this move alone will generate revenue of about 1.8 million euros (£1.6million).

 

Cruise ship stays included in Balearics tourist tax proposals

MSC Splendida and me in Majorca.

The Balearic government has proceeded with plans to introduce a daily tourist eco-tax, including charges for passengers on cruise ships in its draft proposals.

The islands’ vice-president and tourism minister, Biel Barceló, told a parliamentary hearing last month that it would apply a tourist tax in 2016 and the government has now drawn up formal proposals.

There is concern among the trade that the tax will drive visitors away from the Balearics.

Stays on cruise ships moored in any of the islands’ ports; hotels; hostels; campsites; and holiday homes will all be taxed, should the proposals be approved.

Those staying on cruise ships will be charged €2 per day in high season, along with those staying in hotels rated above four-star.

Lesser taxes will be applied to those staying in lower grade hotels and most apartments, the tax will be halved in low season and children aged under 14 will be exempt.

“This represents a maximum surcharge of no more than 1.4% of the respective holiday budget,” said Balearic president Francina Armengol.

A decision on the tax will be made by the Commission for Sustainable Tourism, which will be founded if the tax is passed through parliament. This is expected to take place in the second quarter of 2016.

Mr Barceló said: “With the help of these revenues we will be able to maintain and improve the quality of tourism services in the islands.

“We ask our visitors for a small contribution to protect and preserve this little paradise formed by four islands.”

The tax will also be levied to locals who stay in tourist accommodation.

The government said the revenue generated by the tax will be invested in environmental protection, sustainable tourism, the preservation and restoration of cultural heritage, improvement of infrastructure in tourist areas as well as in research, training and development in the tourism sector.

The islands, which attract almost 3.5 million visitors from the UK each year, scrapped a similar tax in 2003 just one year after it was introduced, because it was deterring holidaymakers.

Cruise lines increasingly onboard with overnights

By Tom Stieghorst
Hong Kong fireworksThe emergence of evening port stays as a defining feature for Azamara Club Cruises has focused a spotlight on the growing use of this alternate deployment strategy.

Traditionally, cruise lines have offered few if any overnight stays and generally leave ports of call before sunset. Large-ship lines in particular have made their vessels into evening playgrounds.

“The shipping industry as a whole has built massively beautiful, stunning ships … but oftentimes in many people’s minds the ship became the destination,” said Azamara President and CEO Larry Pimentel.

A number of lines are flipping that playbook, making the actual destination the evening focal point.

“We have to think not outside the box, but outside the ship,” Pimentel said.

Other lines that have embraced overnight stays include Crystal Cruises, Seabourn, Silversea Cruises and Oceania, whose fleet deploys some of the same type of ships that Azamara does.

By offering more overnight stays in port, cruise lines risk declines in some key sources of onboard revenue, such as casinos, duty-free shops, bars and alternative restaurants.

Almost all the lines pursuing the strategy are upscale, small-ship brands with inclusive amenity policies and worldwide itineraries with a preponderance of longer voyages.

Crystal Cruises, for example, is offering a 14-day Asian cruise next January that overnights both before it departs Singapore and after it terminates in Hong Kong, as well as a mid-cruise overnight in Ho Chi Minh City, Vietnam.

Overnights have practical benefits in addition to giving guests more sightseeing time.

“When you overnight the day you arrive at port, the number of bags that miss the cruise drops to zero,” said Thomas Mazloum, Crystal’s senior vice president for operations.

Crystal is offering some epic holiday port stays, including a 2016 New Year’s Eve overnight in Sydney, Australia, that includes chartered catamarans to see a fireworks display.

Another line that is increasing the number of overnight stays it offers is Silversea Cruises, which for 2014-15 has increased to two days each its overnights in Livorno and Sorrento, Italy; Bordeaux, France; and Leith, the port for Edinburgh, Scotland.

Silversea has also increased late-night departures in cities with desirable night-life scenes, including St. Tropez, Ibiza, Monaco, Portofino, St. Barts and Amsterdam, spokesman Brad Ball said.

Likewise, Oceania Cruises and Regent Seven Seas Cruises have a list of nearly two dozen ports where they conduct overnights, including stays of more than one night in Jerusalem, St. Petersburg, Shanghai and Yangon, Myanmar.

Pimentel said that because several cruise lines have acquired some of the former Renaissance Cruises R-class ships, it is hard to compete by claiming unique hardware. And some competitors have more luxurious vessels.

“I am not naive about the fact that the ships are 13 to 14 years old,” Pimentel conceded. “I do not have new tonnage.“

But as long as he can offer a unique experience, Pimentel said, people will seek it out.

That also is the thinking behind Costa Cruises’ neoCollection, a portfolio of older, smaller ships that Costa is promoting as “slow cruising.”

Many neoCollection itineraries are exclusive to the line’s smaller “neo” ships, which can sail to destinations inaccessible to larger vessels. Itineraries are designed with longer stopovers at each port — often overnight and part of the next day — to allow maximum time on shore.
Museo Picasso
Ships in the collection include the Costa neoRiviera (624 cabins) and Costa neoRomantica (789 cabins).

Pimentel acknowledged that other cruise lines are offering some overnights but said no one else offers at least one on every voyage. “Nobody hits as much of this as we do,” he said.
Building a collection of evening tours has taken time, Pimentel said, because tour operators weren’t accustomed to having ships in port so late.

Azamazing Evenings, Azamara’s first evening product announced last year, included special events such as an operatic recital at a castle in Tuscany.

Each cruise had one such evening, which was included in the base fare and was designed to accommodate all 694 passengers who can be accommodated at dual capacity on an Azamara ship.

Now, beginning with the summer season in Europe, Azamara will roll out Nights and Cool Places. Unlike Azamazing Evenings, they will be fee-extra and are designed for a couple dozen guests at a time.
They will also take place after guests have dined on the ship, making the prices more affordable.

Examples include a visit to the Picasso Museum in Malaga, and a tram ride to a peak for a private concert and to view the laser light show in Hong Kong harbor.

A second program, called Insider Access, will take guests to private homes for immersion experiences or connect them to locals in ways that conventional tours do not.

Prices will start at $120 to $150 and run up to $800 for insider programs with elite personalities.

“There’s a lot of human effort that goes into making this happen,” Pimentel said.

He said that with relatively few slots in each night tour, he expects them to sell out at first. “We will add more because communities have more than one cool thing,” Pimentel said.

One factor that restricts cruise lines at night is that port labor agreements sometimes limit the availability of workers, or make them more expensive. Crystal’s Mazloum said that can make it challenging when a ship overnights pre-cruise and guests arrive after-hours.

By staying in port more days, ships also incur more port charges for dock space, security and services, although that is partly or wholly offset by fuel savings because the ship is not moving, cruise executives said.