Should DCL get an government payment due to Cover-19?

[RAD]

The news is talking about the US government giving bailouts to the cruise industry due to the COVID-19 pandemic. Since DCL is incorporated in London, it's ships are registered in the Bahamas and the Disney Corporation has made tons of money so they receive a government payment?

 

[Club Disney Chandler]

This thread is gonna get real ugly real quick. Time to make some popcorn.

 

[DVC Doc]

Not sure what a bailout would look like given the reasons you stated.

I think the best they could hope for is some sort of executive action on the Passenger Vessel Services Act.

 

[PrincessShmoo]

I think the best they could hope for is some sort of executive action on the Passenger Vessel Services Act.

What sort of action?

 

[MillauFr]

This thread is gonna get real ugly real quick. Time to make some popcorn.

Why would the thread get "ugly". Sure people will disagree but that is one of the best things about the United States. We are allowed to disagree. I hardly call that ugly.

 

[DVC Doc]

What sort of action?

An executive order suspending the PVSA rules regarding foreign flagged ships (stopping at a distant foreign port for one-way cruises, etc.) could seriously help the cruise lines with repositioning ships. If for some reason cruises resumed in the US while other countries remained closed to cruise ships, it could also allow cruise lines to offer closed-loop cruises within the US (Port Canaveral to Key West, for example).

 

[FigmentSpark]

Why would the thread get "ugly". Sure people will disagree but that is one of the best things about the United States. We are allowed to disagree. I hardly call that ugly.

Oi! Any excuse for popcorn! I'm adding caramel to mine.

 

[BartmanLA]

Until and IF there is any progress made on Covid-19 and testing, treatment and vaccines, guessing about what the cruise industry is going to do, any financial assistance the Gov't is going to dish out to any of the hospitality or travel industries is really premature. I think most cruise lines will re-evaluate their financial status and what they will be able to accomplish once the travel restrictions are lifted and then we'll see how much damage that might have been inflicted on them. Until then speculating is just that speculation and isn't really productive at this time.

 

[ofcabbagesandkings]

No. They have used foreign flags to avoid paying U.S. taxes and absolutely should not be bailed out by the U.S. taxpayers. If they are, it better be a loan that has to be paid back in full and with interest, and it better come with strings attached like protections for consumers and workers. In the end, if they have to be U.S flagged, they could travel from one U.S. port to another, which would be good for business in that sense and open up travel options for Americans who don't want to get passports for whatever reason.

 

[Mainsail Minnie]

The news is talking about the US government giving bailouts to the cruise industry due to the COVID-19 pandemic. Since DCL is incorporated in London, it's ships are registered in the Bahamas and the Disney Corporation has made tons of money so they receive a government payment?

Pardon my French, but heck no. The cruise industry has avoided paying U.S. taxes for years by sailing under the flags of tiny 3rd world islands, instead of sailing under the U.S. flag. This means no, they don't get a bailout from Uncle Sam. They can go to the country whose flag they sail under for help if they want, but of course they won't get much as those countries have little to give.

The cruise industry does relatively little for the U.S. economy, anyway. Most workers on the ships are foreigners. There are American workers at the ports, but that's a relatively small group of workers. They do bring tourists to some American ports, particularly in Alaska, but again, the effect of cruise tourism on America is pretty limited in scope outside of a few select areas.

The cruise industry writes big lobbying checks that allow them to avoid regulation, but I don't think that's going to get them a bailout when they don't pay taxes and have relatively little influence on the U.S. economy.

 

[smmco]

Why would the thread get "ugly". Sure people will disagree but that is one of the best things about the United States. We are allowed to disagree. I hardly call that ugly.

You’ve honestly never seen threads get ugly around here?

 

[Intr3pid]

DCL is owned by Disney, and Disney is a US company. DCL profits are a tiny part of their overall profits.

Should Disney get a bailout? Somehow I doubt it will need one.

 

[truck1]

Why would the thread get "ugly". Sure people will disagree but that is one of the best things about the United States. We are allowed to disagree. I hardly call that ugly.

Because people are very passionate on both sides of the equation and can get out of hand quickly.Especially since the inflection isn't in a online forum and things get taken out of context.

I agree everyone has the right to their own opinion and can agree or disagree. Some just take it too far.

 

[PrincessShmoo]

DCL is owned by Disney, and Disney is a US company. DCL profits are a tiny part of their overall profits.

Should Disney get a bailout? Somehow I doubt it will need one.

Yes, Disney is a US company. But they've (like others) have opted to run a division of that company as a foreign entity. Flagged in another country, as noted, for various reasons, including tax/employment issues.

And that's totally their choice, but why should the US bail out the company (division) that's lost a lot of money due to that decision?

 

[FigmentSpark]

As someone mentioned to me today... if Disney has finance issues, they'll just make another Marvel movie. That ought to pay for a ship.

 

[DCLCrazy64622]

No. They have used foreign flags to avoid paying U.S. taxes and absolutely should not be bailed out by the U.S. taxpayers. If they are, it better be a loan that has to be paid back in full and with interest, and it better come with strings attached like protections for consumers and workers. In the end, if they have to be U.S flagged, they could travel from one U.S. port to another, which would be good for business in that sense and open up travel options for Americans who don't want to get passports for whatever reason.

Yep. This!

 

[Intr3pid]

Yes, Disney is a US company. But they've (like others) have opted to run a division of that company as a foreign entity. Flagged in another country, as noted, for various reasons, including tax/employment issues.

And that's totally their choice, but why should the US bail out the company (division) that's lost a lot of money due to that decision?

In 2019, Disney had global revenues of $70bn. Of this number, $51bn (73%) was generated in the US. Of this $51bn, less than $1.5bn came from DCL.

Compare with, say, Apple. Of Apple's global revenues of $260bn, $102bn (39%) was generated in the US.

So, let's ask again. Do we really think DCL needs a bailout? Disney could shutter the division for the whole year, and it wouldn't register a blip on their numbers.

 

[MillauFr]

You’ve honestly never seen threads get ugly around here?

Sure there are some rude posters here that probably hurt someone's feelings. I hardly call that ugly. If anything I wish the mods here would let people go at each other more.

 

[MillauFr]

Some just take it too far.

Agreed. They do take it too far. I usually enjoy when that happens.

 

[lklgoodman]

Are any of the other cruise lines owned by some other company that owns other types of businesses? I think DCL will be able to survive without any govt help since they are owned by Disney. Does Carnival or Royal Caribbean or the other lines have a parent company they can rely on for help?