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| Cruise Lines Were Shut Out of the Stimulus. Here’s Why. | Cruise Lines Were Shut Out of the Stimulus. Here’s Why. |
| (7 days later) | |
| President Trump on March 27 signed into law the $2 trillion stimulus package designed to save millions of jobs and bail out companies devastated by the coronavirus. But when the dust settled, one hard-hit sector of the travel industry was left on the sidelines: the major cruise lines. | President Trump on March 27 signed into law the $2 trillion stimulus package designed to save millions of jobs and bail out companies devastated by the coronavirus. But when the dust settled, one hard-hit sector of the travel industry was left on the sidelines: the major cruise lines. |
| Even politicians who demanded that the industry clean up its environmental record as a condition for receiving taxpayer funds were a little stunned by the news. | Even politicians who demanded that the industry clean up its environmental record as a condition for receiving taxpayer funds were a little stunned by the news. |
| “I have to admit I was surprised,” Senator Richard Blumenthal, Democrat of Connecticut, said in an interview, “given the president’s support for the cruise industry.” | “I have to admit I was surprised,” Senator Richard Blumenthal, Democrat of Connecticut, said in an interview, “given the president’s support for the cruise industry.” |
| So why were the major cruise lines left out? These are the three primary reasons. | So why were the major cruise lines left out? These are the three primary reasons. |
| In the weeks before the bill’s passage both Democrats and Republicans expressed reservations about bailing out the major cruise lines because they are not American corporations and are largely exempt from paying income taxes. | In the weeks before the bill’s passage both Democrats and Republicans expressed reservations about bailing out the major cruise lines because they are not American corporations and are largely exempt from paying income taxes. |
| “Very emphatically and clearly, the intent of Congress is to exclude the cruise line industry from any assistance with this bill,” Mr. Blumenthal said. | “Very emphatically and clearly, the intent of Congress is to exclude the cruise line industry from any assistance with this bill,” Mr. Blumenthal said. |
| Under the law, companies can only qualify for a loan if they are “created or organized in the United States and under the laws of the United States.” | Under the law, companies can only qualify for a loan if they are “created or organized in the United States and under the laws of the United States.” |
| While the major cruise lines are all headquartered in Miami, they are incorporated in foreign countries: Royal Caribbean is registered in Liberia, Norwegian in Bermuda, and Carnival in Panama. | While the major cruise lines are all headquartered in Miami, they are incorporated in foreign countries: Royal Caribbean is registered in Liberia, Norwegian in Bermuda, and Carnival in Panama. |
| “If you literally go to the port of Miami and you actually look at the flag on the stern of the ship, you won’t see a U.S. flag flying in the breeze,” said James Walker, a maritime lawyer. “You’ll see the flag of the Bahamas or the flag of Panama.” | “If you literally go to the port of Miami and you actually look at the flag on the stern of the ship, you won’t see a U.S. flag flying in the breeze,” said James Walker, a maritime lawyer. “You’ll see the flag of the Bahamas or the flag of Panama.” |
| The arrangement allows the major cruise lines to operate under the wage and labor laws of the country they’re registered in, paying employees many times less than what they would in the United States. It also grants them access to a century-old provision in the tax code that largely exempts them from paying federal income taxes. | The arrangement allows the major cruise lines to operate under the wage and labor laws of the country they’re registered in, paying employees many times less than what they would in the United States. It also grants them access to a century-old provision in the tax code that largely exempts them from paying federal income taxes. |
| In 2019, Carnival paid income tax expenses of $71 million on $20.83 billion in revenue. Royal Caribbean paid $36.2 million in taxes on $10.95 billion in revenue. And Norwegian actually showed a tax benefit, money it is owed, of $18.86 million on $6.46 billion in revenue. | In 2019, Carnival paid income tax expenses of $71 million on $20.83 billion in revenue. Royal Caribbean paid $36.2 million in taxes on $10.95 billion in revenue. And Norwegian actually showed a tax benefit, money it is owed, of $18.86 million on $6.46 billion in revenue. |
| The cruise industry defended its tax and employment policies. Bari Golin-Blaugrund, a spokeswoman for the Cruise Lines International Association, a trade group that represents the industry, said that the cruise industry supports more than 421,000 jobs in the United States and that it follows tax rules for international shipping which have decades-long roots in U.S. tax law. | The cruise industry defended its tax and employment policies. Bari Golin-Blaugrund, a spokeswoman for the Cruise Lines International Association, a trade group that represents the industry, said that the cruise industry supports more than 421,000 jobs in the United States and that it follows tax rules for international shipping which have decades-long roots in U.S. tax law. |
| Earlier in March, a group of eight senators published a letter saying that the cruise industry and airlines should only get a bailout if they took more steps to protect the environment. Days later, a coalition of environmental groups sent a letter to Congress asking lawmakers not to bail out the cruise industry, citing a poor environmental record. | Earlier in March, a group of eight senators published a letter saying that the cruise industry and airlines should only get a bailout if they took more steps to protect the environment. Days later, a coalition of environmental groups sent a letter to Congress asking lawmakers not to bail out the cruise industry, citing a poor environmental record. |
| “The cruise sector has a decades-long track record of breaking environmental laws and paying the fines as a matter of doing business,” said Kendra Ulrich of Stand.earth, one of the environmental groups that signed the letter to Congress. | “The cruise sector has a decades-long track record of breaking environmental laws and paying the fines as a matter of doing business,” said Kendra Ulrich of Stand.earth, one of the environmental groups that signed the letter to Congress. |
| She noted that Princess Cruise Lines, a Carnival Corporation subsidiary, was fined $40 million in 2016 for illegally dumping oil-contaminated waste into the sea, and then covering it up. The company was fined $20 million this year while on probation for discharging plastic into waters around the Bahamas and falsifying records. | She noted that Princess Cruise Lines, a Carnival Corporation subsidiary, was fined $40 million in 2016 for illegally dumping oil-contaminated waste into the sea, and then covering it up. The company was fined $20 million this year while on probation for discharging plastic into waters around the Bahamas and falsifying records. |
| In an email, Roger Frizzell, a spokesman for Carnival Corporation, wrote that actions were taken to address the issues that led to the recent fines, including additional oversight, training and equipment to prevent oil spillage, which he said has not happened again on any ship in the fleet. Mr. Frizzell added that the company has undertaken a significant push to “dramatically reduce” and remove single-use plastics on board all of its ships since the 2016 fine. | In an email, Roger Frizzell, a spokesman for Carnival Corporation, wrote that actions were taken to address the issues that led to the recent fines, including additional oversight, training and equipment to prevent oil spillage, which he said has not happened again on any ship in the fleet. Mr. Frizzell added that the company has undertaken a significant push to “dramatically reduce” and remove single-use plastics on board all of its ships since the 2016 fine. |
| Ms. Golin-Blaugrund, of the Cruise Line Industry Association, said the cruise industry is committed to responsible tourism, and its environmental policies and practices often exceed those required by law. | Ms. Golin-Blaugrund, of the Cruise Line Industry Association, said the cruise industry is committed to responsible tourism, and its environmental policies and practices often exceed those required by law. |
| First there was the Diamond Princess. | First there was the Diamond Princess. |
| The world watched as the ship sat quarantined off the coast of Japan and the coronavirus ripped through the cabin — infecting so many passengers that at the time it became the largest concentration of coronavirus cases outside China. The response from the cruise line was widely seen as rife with mistakes. | The world watched as the ship sat quarantined off the coast of Japan and the coronavirus ripped through the cabin — infecting so many passengers that at the time it became the largest concentration of coronavirus cases outside China. The response from the cruise line was widely seen as rife with mistakes. |
| Updated June 22, 2020 | |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| What followed was a series of actions by the industry that drew criticism, just as members of Congress were drafting the bill. As more ships were hobbled by the coronavirus, the cruise industry was slow to respond and to put in place precautions that would protect passengers — at times seeming to have an ad hoc approach to coronavirus responses on board ships. | What followed was a series of actions by the industry that drew criticism, just as members of Congress were drafting the bill. As more ships were hobbled by the coronavirus, the cruise industry was slow to respond and to put in place precautions that would protect passengers — at times seeming to have an ad hoc approach to coronavirus responses on board ships. |
| It was a public-relations nightmare, and eventually the State Department stepped in and warned Americans, especially those with underlying health issues, not to board cruise ships. After the warning, the major cruise lines suspended U.S. operations for 30 days. | It was a public-relations nightmare, and eventually the State Department stepped in and warned Americans, especially those with underlying health issues, not to board cruise ships. After the warning, the major cruise lines suspended U.S. operations for 30 days. |
| The optics for the industry are not great at the moment, said James Hardiman, the managing director of leisure equity research for Wedbush Securities, who follows the industry. | The optics for the industry are not great at the moment, said James Hardiman, the managing director of leisure equity research for Wedbush Securities, who follows the industry. |
| “I think if the U.S. public turns on the television and they see a bunch of people getting back on a cruise ship anytime soon, I think the public reaction to that is going to be very much akin to the public reaction when you saw a bunch of spring breakers getting drunk and ignoring the new reality,” he said. | “I think if the U.S. public turns on the television and they see a bunch of people getting back on a cruise ship anytime soon, I think the public reaction to that is going to be very much akin to the public reaction when you saw a bunch of spring breakers getting drunk and ignoring the new reality,” he said. |
| The perception that going on a cruise is synonymous with bad or irresponsible behavior, he said, “is going to be a real problem for the industry.” | The perception that going on a cruise is synonymous with bad or irresponsible behavior, he said, “is going to be a real problem for the industry.” |
| But cruise industry officials defended their actions. Mr. Frizzell wrote in an email that Carnival Corporation responded quickly to news of the outbreak in Asia — well before other industries. He added that Carnival enacted a raft of changes in response to the virus including restricting passengers who had traveled to China, instituting temperature checks and health screenings, and canceling cruises to infected areas. | But cruise industry officials defended their actions. Mr. Frizzell wrote in an email that Carnival Corporation responded quickly to news of the outbreak in Asia — well before other industries. He added that Carnival enacted a raft of changes in response to the virus including restricting passengers who had traveled to China, instituting temperature checks and health screenings, and canceling cruises to infected areas. |
| Susan Beachy contributed research. | Susan Beachy contributed research. |
| Follow NY Times Travel on Twitter, Instagram and Facebook. Get weekly updates from our Travel Dispatch newsletter, with tips on traveling smarter, destination coverage and photos from all over the world. | Follow NY Times Travel on Twitter, Instagram and Facebook. Get weekly updates from our Travel Dispatch newsletter, with tips on traveling smarter, destination coverage and photos from all over the world. |