Norwegian Cruise Line (NCL) recently sent a letter to guests warning them of significant increases in costs for sailing in Spanish waters or departing from Spanish ports.
This measure affects all boutique purchases and will result in Value Added Tax (VAT) being added to the onboard price. All food and beverage purchases, including unlimited open bar and specialty dining packages, are also subject to his VAT.
What does that mean? Even those who spent hundreds of dollars or euros on an all-inclusive drink and meal package will be given a bill at the end of the cruise.
Spanish VAT will be added to your NCL invoice
Norwegian Cruise Line has announced that guests who board one of its ships from a Spanish port, including its wildly popular Barcelona cruises and cruises sailing through Spanish waters, will have value added tax added to their bill at the end of their cruise.
All purchases in the onboard shop are subject to 21% VAT and all drinks and food purchases are subject to 10% VAT.
This notification was sent to guests and travel partners outlining changes to onboard costs. Guests who choose the popular Free at Sea package, which includes an all-inclusive drinks package, will pay an additional tax on every drink they purchase while in a Spanish port or while sailing in Spanish territorial waters. Become.
This prevents an inclusive experience and raises questions about how NCL plans to sell packages like this in the future.
The value-added tax that Norwegian Cruise Line is passing on to guests is based on a new law passed by the Spanish government that requires guests who board a ship in Spain to pay the same taxes as guests who spend their vacation ashore. It is intended to guarantee.
A letter from a Norwegian says: “Please note that due to local tax regulations, eligible retail items purchased onboard ships departing from Spain and calling at European port cities will be subject to 21% Spanish Value Added Tax.
In addition, on certain voyages departing from European itineraries in Spain or near Spanish waters, 10% VAT applies to all food and beverage purchases on board, including purchases with unlimited open bar or specialty dining packages. will be done. ”
Cruise tourism is a large part of Spain’s tourism industry, and these new regulations represent an important turning point in the way the tourism industry operates in Spain. This is an issue that impacts the passenger experience on Norwegian Cruise Line, and the cruise industry’s broader relationship with one of Europe’s major tourist destinations.
Relationship between Spain and cruise tourism
Barcelona, along with Civitavecchia, southampton, has emerged as one of the hubs of the European cruise industry over the past two decades. The city has become one of the largest homeports in the Mediterranean, attracting 2.7 million cruise passengers in the 2022/2023 season. However, this surge in tourism also comes with challenges.
Cruise lines have operated in European waters for many years with minimal regulatory intervention. However, authorities have recently begun enacting new laws that will directly impact the European cruise industry. These laws do more than just impose new taxes. It also affects how, where, and when cruise ships can enter port.
Spain is reviewing its relationship with the cruise industry and imposing new taxes on cruise passengers, while Barcelona is scrutinizing the environmental and social impacts of cruise tourism. The city has earned the dubious reputation of being Europe’s most polluted cruise port. It urges ships to be prohibited from anchoring at the north pier. Starting October 22, 2023.
Spain’s reaction to the cruise industry is not surprising in itself. Apart from Barcelona, Palma de Mallorca in the Balearic Islands and Tenerife in the Canary Islands are also among the 10 European cities most affected by cruise ship exhaust pollution three times. .
Not just Barcelona; Since the cruise industry restarted in earnest in Europe in 2022, Several cities have banned cruise ships. While others have set limits; How many ships and passengers can it fit?.
Will the cruise industry respond?
Spain’s recently enacted tax laws demonstrate the increased need for the cruise industry to comply with local regulations and social issues.
While regulatory changes can be understood from several perspectives, the economic impact on the cruise sector is often underestimated. In 2019 alone, more than 10 million cruise passengers arrived at Spanish ports, supporting more than 31,000 jobs and contributing €1.48 billion to the economy.
Questions about Spain’s continued attractiveness for cruise lines and whether they might divert ships to more tolerant ports and countries as cruise lines face increasing complaints from guests over new taxes is occurring.