The argument for bringing in a cruise line to Yorktown is that it brings in tourism dollars - and yes this will boost tourism. But when making a sound business decision many factors should be considered. Is your business partner reliable, ethical, transparent? Does your partner treat its people well? Does it treat your local businesses well? Does your partner obey the law? Is your partner a good steward of the environment? Does your partner pay its fair share of taxes in the United States? Does your business partner care about your local culture or just its bottom line?
When one looks at the cruise industry in general and Princess Cruises and its parent company Carnival corporation specifically, there is a strong case that can be made that they will not be a good business partner for Yorktown. In previous posts we learned about Princess’s lack of transparency and environmental impacts. We know that Princess Cruise was found guilty of seven felony charges for dumping waste and trying to cover it up. They also pled guilty to two probation violations.
You can tell a lot about an industry by seeing how they treat their employees. What Happens Behind the Scenes on a Cruise Ship states, “Depending on the country, crew members work 12-15 hour days and get paid a much lower rate than the standard minimum wage.” and “There can be anywhere from two to four people in one room.” The article 5 Dirty Secrets from The Cruise Industry states, “Base salaries can range from $1,000 to $1,500 a month. For more invisible jobs, such as in laundry or the warehouse, that number dips to $600.”
But there is more. According to the article, The Economics of Cruise Ships, “Under an obscure, 99-year-old section of the US tax code, cruise companies are able to register their ships with countries that have more lenient laws than the US - an act called flying a “flag of convenience” - and avoid paying into the US tax system.” It also states that, “According to annual report filings, the major cruise lines pay an average tax rate of 0.8%.” The industry exploits US infrastructure but does not give back its fair share. BTW the Federal corporate tax rate is 21%.
The cruise industry’s record on business practices with local communities is also unfavorable. The article, How the Cruise Industry Disregards Pollution, Low Wages and Disease, talks about the industry practice to set up merchants that pay profits back to the cruise line (which again, they do not pay taxes on), and excursions are often booked with 3rd party companies (also to maximize cruise profits). It also discusses cruise lines practice to pressure local governments. Local economies can become dependent on the cruise industry and then lose control as cruise lines implement their profit motivated practices. For these reasons and more, bringing the cruise industry to Yorktown is a bad business decision.
Here is some additional info on the unacceptable practices of the cruise industry, a record of criminal offenses, and impacts due to cruise ship pollution. The more we learn about the cruise industry, the more concerned we get.
- An unethical way to travel
- Cruises leave wave of bitter merchants
- How the Cruise Industry Hurts the Local Economy and Culture
- The real problem with the cruise industry
- Sidestepping labor regulations & avoiding taxes
- No Taxes – The Cruise Lines’ Dirty Little Secret
- The economics of cruise ships
- How Cruise Ships Avoid Taxes
- What Happens Behind the Scenes on a Cruise Ship
- 5 Dirty Secrets from The Cruise Industry
- A History of Environmental Violations
- Princess Cruises Pays $40 Million Fine for Illegal Dumping
- Princess Cruises scores an “F” for transparency
- Pollution and Environmental Violations and Fines
- Sinking the Climate
- The 10 costliest offenses
- Air violations issued to eight cruise ships
So, should Yorktown go into business with the cruise industry? Preserve Yorktown says NO and we ask you to help us Stop Princess!
If you would like to keep informed about efforts to stop Princess Cruises, visit www.PreserveYorktown.org or email PreserveYorktown@gmail.com.
Preserve Yorktown!