Cruise firms `surprised' new policy released
Officials from two of Bermuda's regular cruise lines yesterday revealed they were "surprised'' to hear the new cruise ship policy had been released.
For both Royal Caribbean Cruise Line and Celebrity Cruises were under the impression that parts of the policy were still under negotiation.
Celebrity president and CEO Richard Sasso told The Royal Gazette : "Yes, I am a little surprised that it's fixed and done although Government did bring us up to date.
"It was not a big surprise but we felt we needed to talk more about the fees themselves.'' RCCL spokeswoman Gloria Jacaruso added: "Government have been direct and open but we were under the impression that we were still negotiating.
"We were surprised that they had released the policy and will be sending a letter to the Tourism Ministry tomorrow.
"I cannot say what the contents of that letter will be.'' The new policy was released on Monday and said cruise lines contracted for the Bermuda run at the start of the 1998 season would pay $4 per berth, per night in port from May to October and $2 per berth per night in September and October. These rates will go up $1 per year.
News that the lines were upset came from local shipping agents.
John S. Darrell president Don MacPherson -- whose company is the agent for RCCL said: "The cruise principle I deal with is still in total shock and dismay about the whole thing.
"They were not aware that the policy would be published. They were not in agreement with it at all and thought they were still in the middle of negotiation -- particularly about the fee which Government intend to levy.'' And Meyer Agencies president Henry Hayward -- whose company acts as agents for Celebrity and Norwegian Cruise Line -- said: "I can say they are not happy about it.'' Norwegian Cruise Lines could not be reached for comment.
Mr. Sasso said Celebrity felt it had invested a considerable amount of money into marketing cruises to Bermuda and already had to pay head tax and other fees so the new levies were "a little too high''.
He noted the fees would represent an extra $12 per bed when the ship was in port -- 20 percent of the departure tax that passengers would have to pick up.
"We were looking at the starting point being lower but still going up a dollar a year so it would be more tolerable to the passenger.'' Cruise line `surprise' Mr. Sasso warned: "Remember these are costs the customer is going to pay.'' But he stressed that he thought Government had been very fair in creating open dialogue and he hoped it would continue.
And Mr. Sasso said he supported the policy which was "well thought out'' and would "complement existing policies and be good for tourism in general''.
Tourism Minister David Dodwell said department representatives had met with cruise ship principles on three occasions and they knew the department had to reach "closure'' on the policy.
He said they knew the department also had to give one year's notice to contracted vessels prior to the start of the 1998 season.
"In my view it's a closed subject -- at least for the next two years. If we constantly kept the policy open then we would never reach closure'' he said.
Stressing he wanted to continue discussions with the principles, he added: "The permit fee is in place. That's our position.''
