Port & govt tax. Help me understand it please!

[geocruiser]

Question about taxes. We booked a Canada New England Cruise. The price was 1,759. per person. Govt tax of $251. Total $2,209.50

 

Now I get my statement from my TA and the price is the same in total but this is the break down:

Cruise fare 1,409.

Port Tax $350.

Govt Tax $251.50

Total $2,209.50

 

My question is why the tax is so high? $601.50 seems a bit much pp. What are these taxes?

 

Can you help me understand this?

[MeHeartCruising]

Do both ships start/stop from the same port facility in the same city? Are all the stops the same for the same durations? Are the ships the same size (therefore spreading the fees/taxes amongst the same # of passengers)? I did some research on this and it seems that there is very little regulation over what the various cruise lines put in those buckets or what they call them. Your best bet is to compare the overall total cost to you from each cruise line and make your decision based on that.

[SeaShark]

Question about taxes. We booked a Canada New England Cruise. The price was 1,759. per person. Govt tax of $251. Total $2,209.50

 

Now I get my statement from my TA and the price is the same in total but this is the break down:

Cruise fare 1,409.

Port Tax $350.

Govt Tax $251.50

Total $2,209.50

 

My question is why the tax is so high? $601.50 seems a bit much pp. What are these taxes?

 

Can you help me understand this?

 

Not sure if anyone here could explain "why" taxes and/or port fees are what they are. They are set by the various port authorities and/or taxing entities. Only they can provide a detailed breakdown and/or explanation of "why".

 

I can't speak to why the price seems to be a bit much as I have nothing to compare it to. It does look correct as you quote two sources that seem to be in perfect agreement.

[bakerintn]

Here is my take on these fees:

 

NCL (and other cruise lines) does not pay a commission on the "port fees" and "govt taxes" to TAs. That's also the reason that they do not just include the "daily service charge" in the base cruise fare...

[jdvmd]

These are the taxes and fees charged by the various government and port authorities at the ports where your ship calls, the cruise line passes these fees along to the passengers. These typically cover the cost of docking and use of the port facilities; "parking fees" for your ship if you will. And certain government authorities impose a "head tax" on cruise passengers, which is used to maintain and improve the ports infrastructure.

 

The port taxes are determined by a number of things

 

- Tax charged per passenger by port

- Docking fee ( determined by moorge charge per Pax)

- Fees charged by customs at every port to clear the ship

- Pilot-age (Port Pilot) fees

- In some ports the cost of the line handlers is extra.

 

Bermuda and San Juan are some of the highest. NYC also.

[njhorseman]

Do both ships start/stop from the same port facility in the same city? Are all the stops the same for the same durations? Are the ships the same size (therefore spreading the fees/taxes amongst the same # of passengers)? I did some research on this and it seems that there is very little regulation over what the various cruise lines put in those buckets or what they call them. Your best bet is to compare the overall total cost to you from each cruise line and make your decision based on that.

 

The poster is talking about the same booking on the same cruise. Look at the breakdown carefully. Total price is identical. Government tax identical at $251.

 

Some travel agents break out what is known as non-commissionable fare as a separate line and call it "port taxes"...which is not an accurate description. It's the part of the fare for which the TA is not being paid a commission...it includes port taxes but is not usually exclusively that. Cruise lines are not permitted to separately display this amount and must include it in the fare. It prevents them from quoting deceptively low fares. Travel agents however are permitted to break it out as a separate line.

 

This is an example of why you must compare the bottom line fare when comparing quotes. It's the only price that matters. In this case the bottom line is identical.

[Novastar]

Question about taxes. We booked a Canada New England Cruise. The price was 1,759. per person. Govt tax of $251. Total $2,209.50

 

Now I get my statement from my TA and the price is the same in total but this is the break down:

Cruise fare 1,409.

Port Tax $350.

Govt Tax $251.50

Total $2,209.50

 

My question is why the tax is so high? $601.50 seems a bit much pp. What are these taxes?

 

Can you help me understand this?

 

The fare from NCL includes the port tax of $350 ($1409 + $350 = $1759). That leaves the gov't tax @ $251.50. You don't give your itinerary or the number of days of the cruise/ports. I did the Canada/New England cruise in September 2012. It was 9 days r/t from NYC. Total gov't taxes were $350.26 for 2 people. Port tax was included in our fare. We had no US ports besides NY. All the others were Canadian. Other than that I can't explain it. It must depend on the number and location of the ports.

[MeHeartCruising]

The poster is talking about the same booking on the same cruise. Look at the breakdown carefully. Total price is identical. Government tax identical at $251.

 

Actually, 2 messages have been removed from this thread since I wrote my response above -- probably because they referred to and linked to another cruise web site. In one of the now-missing responses, the OP mentioned comparing the NCL cruise to a similar one from HAL. Hence my comment above, which is now rendered somewhat confusing. You and I agree, it is only the final, total price that matters and that should be used for comparison.

[geocruiser]

Actually, 2 messages have been removed from this thread since I wrote my response above -- probably because they referred to and linked to another cruise web site. In one of the now-missing responses, the OP mentioned comparing the NCL cruise to a similar one from HAL. Hence my comment above, which is now rendered somewhat confusing. You and I agree, it is only the final, total price that matters and that should be used for comparison.

 

I thought a post was missing. What I really want to know is what is why the full taxes are not listed as Govt and Port tax on NCL web site. It just lists the port tax and the Govt tax is in the cruise fare, hence I didn't know about it until my TA sent the bill. HAL rep told me there is just the one tax of appox. $254.

I will call my TA in the AM and ask her. The price is the price it is, so I am not try to pay less. I just want to know what the two taxes are.

[njhorseman]

I thought a post was missing. What I really want to know is what is why the full taxes are not listed as Govt and Port tax on NCL web site. It just lists the port tax and the Govt tax is in the cruise fare, hence I didn't know about it until my TA sent the bill. HAL rep told me there is just the one tax of appox. $254.

I will call my TA in the AM and ask her. The price is the price it is, so I am not try to pay less. I just want to know what the two taxes are.

 

Please read post #6. I've explained what the mysterious line is...non-commissionable fare...which travel agencies often mislabel as port taxes. I also explained that cruise lines are not permitted to display fares that way as it would lead to them quoting deceptively low prices. Unfortunately travel agencies are not restrained by the same rules and some still use this archaic and misleading way of breaking up the fare.

 

Also read post #5, which outlines some of components of the taxes. Every cruise line has its own formula for allocating these items to come up with a per passenger charge, so no two cruise lines will come up with an identical charge for taxes...which in any event would not be the same for any two ships unless those ships were identical in size and capacity and owned by the same cruise line because each cruise line has its own separate contract with a port, which spells out the charges. The charges are not just a simple head tax, nor are they a percentage of the fare.

[geocruiser]

Please read post #6. I've explained what the mysterious line is...non-commissionable fare...which travel agencies often mislabel as port taxes. I also explained that cruise lines are not permitted to display fares that way as it would lead to them quoting deceptively low prices. Unfortunately travel agencies are not restrained by the same rules and some still use this archaic and misleading way of breaking up the fare.

 

On my invoice I see the port tax, which was llisted as part of the fare. Then there is another tax (govt) listed by its self.. I understand what you are saying that the port tax is the non commissionable fare. So what taxes are in the Govt tax?

[njhorseman]

On my invoice I see the port tax, which was llisted as part of the fare. Then there is another tax (govt) listed by its self.. I understand what you are saying that the port tax is the non commissionable fare. So what taxes are in the Govt tax?

 

I added some information to my post after you replied...and also referred you to post #5, which outlines some of the components of the various taxes and fees. No one here can say exactly what goes into the calculation, nor can your travel agent (I used to own a travel agency, so I'm pretty confident about that ;) ).

[geocruiser]

I added some information to my post after you replied...and also referred you to post #5, which outlines some of the components of the various taxes and fees. No one here can say exactly what goes into the calculation, nor can your travel agent (I used to own a travel agency, so I'm pretty confident about that ;) ).

 

Thanks for the info. What made me question this was I looked at a invoice from my TA for a RCCL cruise and there was only one tax on the invoice and my NCL invoice from the same TA had two taxes on it.

[njhorseman]

Thanks for the info. What made me question this was I looked at a invoice from my TA for a RCCL cruise and there was only one tax on the invoice and my NCL invoice from the same TA had two taxes on it.

 

It's possible that Royal Caribbean doesn't provide the breakdown to the travel agency in amanner that would allow them to display it on their invoice, but NCL does.

 

Believe me, it's in the Royal Caribbean fare too...it's just not separately stated.

 

That's why everyone should be required to play by the same rules. It gets confusing to sometimes see the fare broken down like that and sometimes not.

 

The only number that should matter to the passenger booking a cruise is the bottom line, not the pieces it can be sliced and diced into.

[geocruiser]

It's possible that Royal Caribbean doesn't provide the breakdown to the travel agency in amanner that would allow them to display it on their invoice, but NCL does.

 

Believe me, it's in the Royal Caribbean fare too...it's just not separately stated.

 

That's why everyone should be required to play by the same rules. It gets confusing to sometimes see the fare broken down like that and sometimes not.

 

The only number that should matter to the passenger booking a cruise is the bottom line, not the pieces it can be sliced and diced into.

 

I agree. What got me was all the tax! $601 in taxes! After many cruises this is the only time that is I remember looking at it.

By the way, it is a Canada & New England cruise and it has great ports, for a 14 night round trip from Boston. I have not seen another cruise line have so many different ports of call for this type of cruise. It goes to four ports that we have not been to before!

 

Thanks for your help and info.

[danimalct]

You are not paying $601 in taxes, you are paying $251 in taxes. The $350 is fees, like a cost of doing business. These fees are paid to the ports, which most are operated as authorities and/or by private companies or a combination. These fees are laid out above in a post and pay for the costs of maintaining and operating the ports. NCL only makes $1409 from your cruise. One reason they break it out is that they only pay a commission to the travel agent on the $1409 part, not on the taxes and fees.

[Va. Plumber]

We were in Grand Cayman a couple of years ago on the Dawn. There were about five ships in port. Our tour guide said the Caymani government collects $75,000 to 80,000.00 per ship.

[smeyer418]

We were in Grand Cayman a couple of years ago on the Dawn. There were about five ships in port. Our tour guide said the Caymani government collects $75,000 to 80,000.00 per ship.

if there are 4,000 people on the cruise that is only $20 pp.

 

Its hard to find out exactly how the cruise lines calculate these. Some of the cruise lines consider this proprietary information.

Port charges are generally not taxes but useage charges related to directly to docking as NJ Horseman says these include, pilotage, wharfage, dockage, and probably an additional hundred or so charges but rarely a tax itself. The taxes charge represents actual charges including things like customs fees and taxes(there is a 1/4 of 1% tax on cruise fares in the US)...and the fees homeland security charges as well.

Non commission-able fare allows includes expendables like fuel as well(the cruise lines don't like paying commission on these items) Many travel agent computers don't list them correctly but just call them port tax for their programmers simplicity.

[geocruiser]

You are not paying $601 in taxes, you are paying $251 in taxes. The $350 is fees, like a cost of doing business. These fees are paid to the ports, which most are operated as authorities and/or by private companies or a combination. These fees are laid out above in a post and pay for the costs of maintaining and operating the ports. NCL only makes $1409 from your cruise. One reason they break it out is that they only pay a commission to the travel agent on the $1409 part, not on the taxes and fees.

 

The reason why I called it a tax is because it is listed as a tax on my invoice.

I was going by what I have on the invoice. I would like to know why it is list as a tax and not a fee.

I guses the invoice doesn't state what it really is.

[NGAMTNS2CSEA]

Question about taxes. We booked a Canada New England Cruise. The price was 1,759. per person. Govt tax of $251. Total $2,209.50

 

Now I get my statement from my TA and the price is the same in total but this is the break down:

Cruise fare 1,409.

Port Tax $350.

Govt Tax $251.50

Total $2,209.50

 

My question is why the tax is so high? $601.50 seems a bit much pp. What are these taxes?

 

Can you help me understand this?

port evergladges charges for warfage and docking fees [according to their tarriff section] - dockage are $.02336 per ton and $9.29 per passenger so on a 140 ton ship with 3700 passengers would be charged $32939 for the ship and $33476 for each passenger disembarking and $33476 for each embarking passenger so it costs $101003 to bring in the ship. plus harbormaster fees, line handler fees, water hookup and per ton fees if used, harbor pilot and maybe others. so a good saturday/ sunday winter there would generate well over a million dolllars for the port. wouldn't you think we'd be more welcomed?????? can never get a good answer from cruise lines of how much of these and directly passed along as charged government taxes and fees. Port canaveral passenger charge is $6.43, Tampa $6.00 and Miami leads with $10.38. All verifiable just go to port site and look for tarriff section and wade through warfage items.