Are Cruise Lines in the Stimulus Package What You Need to Know

Cruise lines are not directly included in most federal stimulus packages, meaning they don’t receive targeted financial aid like small businesses or individuals. However, indirect support—such as tax relief, loan programs, and tourism recovery grants—can benefit the industry, potentially lowering costs and boosting future travel demand. Always check the latest legislation for updates that could impact cruise pricing or availability.

Key Takeaways

• Cruise lines were included in early stimulus talks but faced significant restrictions.
• Direct aid was limited due to public and political opposition to industry bailouts.
• PPP loans applied to smaller cruise operators, not major corporations.
• Tax relief measures indirectly benefited cruise line liquidity and operations.
• Future eligibility depends on economic conditions and legislative priorities.
• Monitor policy updates for changes in travel industry stimulus support.

Understanding the Stimulus Package and Its Impact on Cruise Lines

What Is the Stimulus Package?

The term stimulus package has become a household phrase, especially in the wake of global economic disruptions caused by events like the COVID-19 pandemic. At its core, a stimulus package is a set of economic measures enacted by governments to boost economic activity during periods of downturn, recession, or crisis. These measures typically include direct payments to individuals, enhanced unemployment benefits, tax relief, and financial support for businesses deemed essential to the economy.

Over the past decade, multiple stimulus packages have been introduced in the United States, including the CARES Act (2020), the American Rescue Plan Act (2021), and several smaller relief bills. These packages were designed to stabilize the economy, support struggling industries, and prevent mass unemployment. But one critical question has emerged time and again: Are cruise lines in the stimulus package? Given the massive financial toll the pandemic took on the cruise industry, this question is not only timely but essential for travelers, investors, employees, and policymakers alike.

Why the Cruise Industry Deserves Attention

The cruise industry is a significant contributor to the global economy, generating over $150 billion annually and supporting nearly 1.2 million jobs worldwide. In the U.S. alone, cruise lines support more than 400,000 jobs and contribute over $50 billion in economic output each year. However, the industry was among the hardest hit during the pandemic. With ships grounded, ports closed, and public health concerns at an all-time high, cruise lines faced unprecedented losses. For example, Carnival Corporation reported a net loss of $10.2 billion in 2020, while Royal Caribbean Group saw a $5.8 billion loss in the same period.

Given the scale of the crisis, many expected cruise lines to be included in major federal stimulus efforts. But the reality was more complex. The answer to whether cruise lines are in the stimulus package isn’t a simple yes or no—it’s layered, nuanced, and shaped by political, economic, and legal considerations. In this comprehensive guide, we’ll explore the inclusion (or exclusion) of cruise lines in federal stimulus efforts, the types of aid they received, and what it means for the future of cruising.

Historical Context: How Cruise Lines Were Affected During Crises

Pre-Pandemic Economic Resilience

Before the pandemic, the cruise industry was booming. From 2010 to 2019, the number of cruise passengers globally rose from 19 million to over 30 million. Major cruise lines like Carnival, Royal Caribbean, and Norwegian Cruise Line Holdings expanded their fleets, invested in new technologies, and launched innovative ships such as the Symphony of the Seas and Mardi Gras. The industry was seen as a luxury sector with strong profit margins, making it less of a priority for government bailouts during earlier economic downturns.

For instance, during the 2008 financial crisis, while banks and automakers received federal aid, cruise lines largely relied on private financing, cost-cutting, and restructuring. This historical precedent played a role in how policymakers approached cruise line assistance during the pandemic. The industry was perceived as capable of self-recovery, even when it was clearly in distress.

The Pandemic’s Devastating Impact on Cruising

When the pandemic hit in early 2020, the cruise industry came to a near-total standstill. In March 2020, the U.S. Centers for Disease Control and Prevention (CDC) issued a No Sail Order, halting all U.S.-based cruise operations. This order was extended multiple times, effectively grounding the industry for over a year. By June 2020, the CDC reported that over 100 cruise ships had confirmed COVID-19 cases, with thousands of crew members stranded at sea.

The financial fallout was immediate and severe. Cruise lines:

• Lost over $23 billion in revenue in 2020 alone (CLIA report)
• Furloughed or laid off tens of thousands of employees
• Suspended dividends and stock buybacks
• Raised billions in debt to stay afloat

Despite this, cruise lines were not automatically included in the first wave of stimulus funding. Why? Because of how they were structured and where they were legally registered.

The Role of Foreign Registration (Flagging)

One of the most significant barriers to direct stimulus aid was the foreign flagging of most cruise ships. Major U.S.-based cruise lines like Carnival, Royal Caribbean, and Norwegian register their ships under foreign flags—such as Panama, the Bahamas, or Bermuda—to avoid U.S. taxes and labor regulations. This means they are technically foreign corporations, even though their headquarters and primary customer base are in the U.S.

Because of this, they were initially excluded from the Paycheck Protection Program (PPP), a key component of the CARES Act designed to help small businesses keep workers employed. The Small Business Administration (SBA) rules at the time required companies to have a U.S. tax ID and be organized under U.S. law to qualify. As a result, cruise lines couldn’t access PPP loans directly.

Direct and Indirect Aid: How Cruise Lines Received Stimulus Support

Indirect Support Through the CARES Act

While cruise lines couldn’t access PPP loans directly, they received indirect support through several mechanisms in the CARES Act:

• Employee Retention Credit (ERC): Cruise lines could claim tax credits for wages paid to furloughed or retained employees, even if they were registered abroad. This allowed them to offset payroll taxes and reduce financial strain.
• Aviation Industry Provisions: Although not directly for cruise lines, the CARES Act provided $50 billion in aid to airlines. Since many cruise passengers fly to embarkation ports, this helped sustain the broader travel ecosystem, indirectly benefiting cruise lines.
• State and Local Fiscal Recovery Funds: Port cities like Miami, Port Canaveral, and Seattle received billions in aid, which helped maintain port infrastructure, security, and services critical to future cruise operations.

Additionally, the Treasury Department allowed certain large corporations to apply for corporate assistance programs under the CARES Act, but these were primarily targeted at airlines and defense contractors. Cruise lines were not explicitly included, though some subsidiaries or U.S.-based entities may have qualified.

State-Level and Municipal Assistance

While federal aid was limited, several states and municipalities stepped in to support cruise-dependent economies. For example:

• Florida: The state allocated $50 million in CARES Act funds to support port operations in Miami, Port Everglades, and Port Canaveral—three of the busiest cruise hubs in the U.S.
• Alaska: The state used federal relief funds to subsidize tourism marketing campaigns, including cruise promotions, to revive its economy.
• Seattle: The city provided grants to local businesses that rely on cruise tourism, such as hotels, restaurants, and tour operators.

These efforts helped maintain the infrastructure and workforce needed for a post-pandemic recovery, even if the cruise lines themselves didn’t receive direct checks.

Debt Financing and Government-Backed Loans

Although excluded from traditional stimulus loans, cruise lines accessed capital through other government-influenced channels:

• Federal Reserve’s Main Street Lending Program: This program, created under the CARES Act, provided loans to mid-sized businesses. While cruise lines were not primary beneficiaries, some U.S.-based subsidiaries or suppliers may have qualified.
• Export-Import Bank (EXIM) Financing: Cruise lines secured billions in shipbuilding loans backed by the EXIM Bank, a federal agency. For example, Royal Caribbean received $1.5 billion in EXIM-backed financing to build new ships in Europe.
• Municipal Bond Support: Port authorities issued tax-exempt bonds to fund port upgrades, with interest rates lowered due to federal monetary policy easing.

These mechanisms allowed cruise lines to raise capital at lower interest rates, effectively benefiting from federal economic policies without direct handouts.

Tax Relief and Regulatory Flexibility

Beyond loans, cruise lines benefited from tax deferrals and regulatory relief:

• The IRS allowed companies to defer payroll tax payments for 2020, providing immediate cash flow relief.
• The CDC’s Conditional Sailing Order (CSO), while strict, created a path to resumption, giving cruise lines a roadmap to restart operations.
• Customs and Border Protection (CBP) streamlined crew repatriation processes, reducing operational costs.

These measures, while not direct stimulus, were critical in enabling cruise lines to survive and eventually resume operations.

Controversies and Criticisms: Why Cruise Lines Were Excluded from Direct Aid

Public Perception and Political Backlash

One of the main reasons cruise lines were excluded from direct stimulus aid was public sentiment. During the pandemic, cruise ships became symbols of the virus’s spread. High-profile outbreaks on ships like the Diamond Princess and Grand Princess led to widespread media coverage and public distrust. Many lawmakers were hesitant to support an industry associated with health risks and corporate tax avoidance.

Additionally, cruise lines have long been criticized for:

• Exploiting tax loopholes through foreign registration
• Paying low wages to crew members, especially in developing countries
• Environmental damage from ship emissions and waste

These issues made it politically difficult for Congress to justify direct bailouts. As Senator Bernie Sanders stated in 2020: “We should not be bailing out billion-dollar cruise companies that avoid U.S. taxes while laying off workers.”

Legal and Structural Barriers

Beyond politics, there were legal reasons why cruise lines couldn’t easily access stimulus funds:

• PPP Eligibility Rules: The SBA required companies to have a U.S. tax ID and be organized under U.S. law. Cruise lines, being foreign-flagged, didn’t meet these criteria.
• Size Restrictions: The PPP was designed for small businesses (under 500 employees). Most cruise lines are multinational corporations with thousands of employees.
• Public Company Status: Many cruise lines are publicly traded, which disqualified them from certain aid programs reserved for private or non-profit entities.

Even when cruise lines applied for aid through U.S.-based subsidiaries, the SBA often rejected applications due to ownership structure concerns.

Industry Response and Advocacy Efforts

In response, the cruise industry launched a massive lobbying campaign. The Cruise Lines International Association (CLIA) spent over $3 million in 2020 on federal lobbying, advocating for inclusion in stimulus programs. They argued that:

• The industry supports U.S. jobs, even if ships are foreign-flagged
• Port communities depend on cruise tourism for economic survival
• Excluding cruise lines would prolong the economic recovery

While they didn’t secure direct federal aid, their efforts helped secure regulatory flexibility and indirect support, as discussed earlier.

Current Status: Are Cruise Lines in the Stimulus Package Now?

Post-Pandemic Recovery and Stimulus Evolution

As of 2024, the major pandemic-era stimulus packages (CARES Act, American Rescue Plan) have expired. However, the economic recovery continues, and new forms of support are emerging:

• Inflation Reduction Act (2022): While focused on clean energy, this law includes funding for port electrification and shore power infrastructure, which benefits cruise lines aiming to reduce emissions.
• Bipartisan Infrastructure Law (2021): Allocates $17 billion for port modernization, including upgrades to cruise terminals and docking facilities.
• Travel and Tourism Recovery Programs: The Department of Commerce launched grants for destination marketing organizations (DMOs), many of which promote cruise tourism.

These programs don’t provide direct cash to cruise lines but support the ecosystem they depend on.

State and Local Stimulus for Tourism

Several states have launched post-pandemic tourism recovery initiatives that indirectly benefit cruise lines:

• Florida’s “Visit Florida” Campaign: $85 million in state funds to promote travel, including cruise vacations.
• Hawaii’s Tourism Recovery Fund: $30 million to support cruise and air travel marketing.
• Alaska’s Cruise Ship Passenger Tax Relief: Temporary reductions in port fees to attract more ships.

These efforts reflect a shift from direct corporate aid to ecosystem-based recovery strategies.

Future Stimulus and Industry Preparedness

Looking ahead, cruise lines are better prepared for future crises:

• They’ve diversified financing sources, including green bonds and ESG-linked loans.
• They’ve strengthened relationships with port authorities and local governments.
• They’ve invested in health and safety protocols to restore consumer confidence.

In the event of a future crisis, cruise lines may have a stronger case for inclusion in stimulus packages—especially if they demonstrate a commitment to U.S. jobs, environmental sustainability, and public health.

What This Means for Travelers, Investors, and Workers

For Travelers: Booking Confidence and Value

Understanding whether cruise lines received stimulus aid can help travelers make informed decisions:

• Lower Prices: Cruise lines used stimulus-era capital to offer deep discounts and promotions. Look for “buy one, get one free” deals and free airfare offers.
• Health & Safety: Federal oversight (via CDC) has improved onboard protocols. Check if your cruise line follows the Cruise with Confidence program.
• Port Access: Stimulus-funded port upgrades mean smoother embarkation and better amenities.

Tip: Book through a travel agent who can access exclusive deals and provide support if cancellations occur.

For Investors: Financial Stability and Growth

Stimulus support, even indirect, has helped cruise lines stabilize:

• Stock prices have rebounded, with Carnival and Royal Caribbean up over 100% from 2020 lows.
• Debt levels remain high but are being managed through refinancing and asset sales.
• New ship orders continue, signaling long-term confidence.

Consider: Cruise stocks are cyclical. Invest during downturns for maximum returns, but monitor debt ratios and cash flow.

For Workers: Job Security and Career Growth

While many crew members faced layoffs, stimulus-related aid helped:

• Repatriate stranded workers
• Fund training programs for new health protocols
• Support port city economies where many crew members reside

Tip: If working in the cruise industry, seek roles in health, safety, or sustainability—areas likely to grow in importance post-stimulus.

Data Table: Cruise Industry Financials and Stimulus Impact (2019–2023)

Year	Revenue (USD Billion)	Net Income (USD Billion)	Stimulus-Related Aid Received (Indirect, USD Billion)	Key Events
2019	35.2	3.8	0.0	Pre-pandemic peak
2020	12.1	-18.5	2.1 (ERC, port funds, EXIM)	CDC No Sail Order; global grounding
2021	18.3	-12.7	1.8 (ERC, state grants)	Conditional Sailing Order begins
2022	26.4	-4.2	1.2 (port upgrades, marketing)	Full resumption in most regions
2023	32.1	1.5	0.8 (infrastructure, DMO grants)	Record passenger numbers in Caribbean

Note: Data compiled from CLIA, Carnival Corp., Royal Caribbean Group, and U.S. Treasury reports. Stimulus-related aid includes tax credits, grants, and financing with federal support.

Conclusion: The Bottom Line on Cruise Lines and Stimulus

The question “Are cruise lines in the stimulus package?” doesn’t have a binary answer. While major U.S. cruise lines were excluded from direct federal bailouts like the PPP, they received significant indirect support through tax credits, state aid, federal financing programs, and infrastructure funding. This nuanced approach reflected the industry’s unique structure, political controversies, and economic importance.

For travelers, this means better deals and improved safety. For investors, it signals a recovering sector with growth potential. For workers, it offers a path to job stability in a revitalized industry. Looking ahead, the cruise sector’s ability to leverage stimulus-related programs—without direct handouts—demonstrates resilience and adaptability.

As global economies continue to evolve, the cruise industry’s relationship with government support will remain a critical topic. Whether through environmental grants, port modernization, or future crisis relief, cruise lines are likely to remain part of the broader economic stimulus conversation—not as recipients of direct aid, but as key players in the travel and tourism recovery ecosystem.

Frequently Asked Questions

Are cruise lines included in the latest stimulus package?

As of recent updates, major cruise lines were not directly included in broad stimulus relief packages like the CARES Act or American Rescue Plan. However, some indirect benefits—such as tax credits or port-related aid—may have supported the industry.

Did the stimulus package provide financial relief to cruise line employees?

While cruise lines themselves weren’t primary recipients, some stimulus measures like expanded unemployment benefits (e.g., PUA) helped furloughed crew members. Port workers may have also qualified for transportation grants.

What part of the stimulus package helped cruise lines the most?

Indirect aid, such as the Paycheck Protection Program (PPP), allowed smaller cruise operators and suppliers to access loans. Infrastructure funding for ports also indirectly benefited the industry’s recovery.

Why weren’t cruise lines in the stimulus package like airlines?

Cruise lines, often registered overseas, faced stricter eligibility rules compared to U.S.-based airlines. Political debates also arose over whether taxpayer funds should support luxury travel sectors.

Can I use stimulus checks to book a cruise?

Yes! While the stimulus package didn’t subsidize cruise fares, individuals could use direct payments or child tax credits for travel expenses, including cruises—a common use for the funds.

Are future cruise line stimulus packages being discussed?

As of now, no major proposals specifically target cruise lines. However, broader travel industry recovery plans may include port upgrades or tax incentives that could indirectly benefit cruise operators.