America World City Renews Call for U.S. Flag After Carnival Triumph Incident
Cruise Line & Cruise Ship Carnival Cruise Line Theresa Norton February 18, 2013
World City America Inc. President Stephanie Gallagher, who is seeking $1.4 billion in federal loan guarantees to finance a 265,000-ton ship with three hotel towers, is using the Carnival Triumph incident as another reason to reinvigorate the U.S. maritime flag.
“American passengers account for over 90 percent of the revenues earned by over 150 foreign-flag cruise ships sailing out of U.S. ports,” she said. “It’s a $40 billion-a-year industry that competes unfairly with American hotels, resorts, casinos and convention facilities. ‘Unfairly’ because it is exempt from U.S. safety, environmental and labor regulations. It does not pay U.S. corporate taxes on its profits, and it is not required to hire American officers or crew. As a result, the cruise industry is among the top ten contributors to our trade deficit along with countries like Japan, China, Mexico and Germany.”
Gallagher, who has been seeking public support in her efforts for months now, previously calling on President Barack Obama and Republican Presidential Candidate Mitt Romney to champion her cause during the presidential campaign. She started her lobbying effort after the U.S. Maritime Administration (MARAD) in May rejected the latest efforts by her company for the loan guarantees, saying it no longer finances overnight passenger vessels.
America World City is envisioned as a 1,268-foot-long “mother ship” with a marina built into its hull and four 400-passenger day cruisers that would shuttle passengers to and from destinations within a 50-mile radius. This city-at-sea was promoted decades ago by cruise visionary and pioneer Knut Kloster.
Gallagher points out that American courts don’t rule on passenger or crew grievances because ships have a flag of convenience from Liberia, Panama or the Bahamas (Carnival Triumph is flagged in the Bahamas). “It is true that millions of American passengers have taken a cruise on one of the foreign-built, foreign-owned and foreign-flagged cruise ships without incident,” she said. “But is that any reason to turn a blind eye to the possibility of a major disaster, one that will not be handled by U.S. authorities or U.S. courts?” Isn’t it time to ask why these ships are not flying the American flag, are not hiring American officers and crew, and are not paying taxes on their multi-billion dollar annual U.S.-sourced profits? Why are they allowed to compete unfairly with Marriott, Westin, Hilton, Radisson, Harrah's, Wynn Resorts, Las Vegas Sands, Universal Studios, and other U.S. hospitality properties?
“We are pioneers in the cruise industry, determined to help the United States capture a share of this $40 billion-a-year, U.S.-driven market for the American economy and American workers,” Gallagher said. “We’ve been at it 20 years and have spent $60 million of our own money...not the public’s. We invite President Obama, our elected and appointed officials, the reporters covering the Carnival Triumph saga, and especially all cruise-goers, and potential cruise-goers, to visit our website and get the facts.”
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