Cruise Season Impacted by Tariffs, Tax Hikes & Tolls

By Elke Porter | WBN News Vancouver | May 9, 2025

Vancouver’s cruise ship season, from March to October, is a vital economic force, generating over $1.1 billion annually. In 2025, ships like Disney Wonder, Holland America’s Koningsdam, and Royal Caribbean’s Anthem of the Seas will dock at Canada Place, each visit injecting $3 million through passenger spending (averaging $450 per person) and cruise line investments of $660 million in local goods.

Supporting 9,500 jobs, the industry is the port’s second-largest employer. Victoria reaps $56 million in passenger spending and $84 million in port fees, while Prince Rupert benefits from 60,000 visitors.However, new financial pressures loom.

U.S. tariffs, including a 25% duty on Canadian imports, have sparked a trade dispute, with Alaska’s Sen. Dan Sullivan proposing a Jones Act waiver on March 11, 2025, to bypass Canadian ports like Vancouver, potentially costing millions in revenue.

The Jones Act states that foreign-flagged ships cannot transport passengers or goods directly between two U.S. ports without stopping at a foreign port (e.g., Vancouver or Victoria for cruises between Seattle and Alaska). An exception is the U.S.-flagged Norwegian Cruise Line’s Pride of America, which can sail directly between Hawaiian ports.

The Jones Act can be waived by the U.S. government in emergencies (e.g., during the COVID-19 pandemic or natural disasters like hurricanes) to allow foreign vessels to transport goods or passengers between U.S. ports.

This stems from B.C. Premier David Eby’s plan to toll U.S. trucks transiting to Alaska. Meanwhile, rising global port taxes add costs for passengers. Starting mid-2025, Mexico will impose a $42 tax per cruise passenger in ports like Cozumel and Puerto Vallarta, a 213% increase over Caribbean averages, to address over-tourism. Greece will charge €20 for visits to Santorini and Mykonos during peak season.

Additionally, from January 8, 2025, U.S., Canadian, and Australian travelers need a UK Electronic Travel Authorization (ETA), a two-year electronic visa required for all, including infants, as noted by Carnival’s John Heald.

Despite these challenges, Vancouver’s 1.2 million passengers and 300-plus ship calls in 2025, alongside new cruise lines like Virgin Voyages, signal resilience. The industry’s ability to navigate trade tensions and rising costs will shape its economic impact in this vibrant cruise hub.

#Vancouver Cruise #Cruise Industry #Travel Economy #Tariff Impact
#Cruise Travel #Canada Tourism #WBN News Vancouver #Elke Porter

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