Cruise companies paid an average tax rate of less than 1%, well below the mandated 21% corporate tax rate in the U.S. Most of the workers on their ships are from the Philippines, Indonesia, and India.
With respect to the package's $500 billion fund allocated for major employers, the bill states that to be eligible for financial aid, companies must be certified as "created or organized in the United States or under the laws of the United States" and have "significant operations in" and a majority of employees based in the U.S.
Cruise lines support more than 421,000 jobs in the United States and contribute approximately $ 53 billion annually to the USA economy, according to Cruise Line Industry Assn. Royal Caribbean is incorporated in Liberia, Carnival in Panama, and Norwegian Cruise Line in Bermuda, though they are officially headquartered in the U.S.
"It's very hard to make a loan to a company when they are based in a different country", Trump said.
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.
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".
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Many salons and spas have already closed, Henry said, but the order encompasses any that were still operating. Other businesses can stay open, said Henry, as long as they can maintain proper social distancing.
"We are also working with our crew to sort out the issues this decision presents for them".
NASSAU, The Bahamas-Royal Caribbean Cruises said in a statement, it has made the decision to extend the suspension of its cruises globally, as a result of the coronavirus COVID-19 pandemic, announcing at the same time that it aims to return to service May 12.
In addition, Royal Caribbean said it has "over $ 3.6 billion in liquidity consisting of cash deposits and its existing uncovered revolving credit facilities" and had already committed funding for all of its new vessels to order.
However, some cruise lines might not even need a bailout to survive. 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 that strong conditions be included in the package before any aid is offered to cruise lines.
The cruise companies are taking steps to improve their balance sheets. The cruise line business is very important.