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Following the statements made by the parent company of Carnival, Holland America and Princess about the plans to reduce the cruise services in 2010, discussions for further decrease in the following year are now in discussions. Micky Arison, the Carnival Corporation Chairman and CEO told Wall Street analysts that the reason for more pull outs will be the increasing cost of operating in the state. He announced on a conference call during the discussions of the third quarter earnings that “It is likely we are going to do more of (the capacity cutting) in ‘11… The amount of cost that they’ve put on to the industry during this short season is astronomical, and it will continue to negatively affect Alaska”.

Other destinations such as Europe is becoming more attractive to a lot of cruise lines as compared to Alaska which increases its taxes, fees and regulations to all cruise lines that visits and stops on Alaska’s ports. Arison then follows by telling the analysts “The brand will decide to put the ship where there is the best return and the most profitable returns… They have to put it in the context that they already have seven ships in Europe or they already have two ships in Australia, but they will model it out, and if it pays to pull a ship from Alaska and put it in Europe or … the Far East they will do that.” He also adds that even though Disney Cruise Line has decided to include Alaska to one of its destinations, the cruise line will not be servicing the area for long due to high operating expenses in the state.

A lawsuit was filed before this comments were made against Alaska’s newly added $50 tax on passengers visiting the state. This lawsuit was made by an association that represents the nine major cruise lines that visits Alaska during the summer season.

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