Are Cruise Lines Part of the Stimulus Package Find Out Now

Cruise lines were not directly included in the major federal stimulus packages like the CARES Act or the American Rescue Plan. While the travel industry received indirect support through broader business loans and payroll protection programs, cruise companies largely had to rely on private financing and restructuring to survive the pandemic downturn.

Key Takeaways

• Cruise lines were included in early stimulus packages like the CARES Act.
• Direct aid was limited compared to airlines and other travel sectors.
• Loans and grants helped major cruise operators avoid bankruptcy.
• Smaller lines struggled to access funds due to strict eligibility rules.
• Future stimulus may prioritize sustainability and crew welfare in funding.
• Monitor government updates for new cruise-related relief programs.

The Big Question: Are Cruise Lines Part of the Stimulus Package?

The cruise industry has long been a symbol of leisure, luxury, and global travel. From the Caribbean to the Mediterranean, millions of vacationers board massive ships every year to escape the daily grind. However, when the global pandemic struck in 2020, the cruise industry faced one of its most severe downturns in history. Ports closed, ships were docked, and thousands of employees were furloughed. As governments around the world scrambled to stabilize economies, stimulus packages became the lifeline for struggling sectors—but where did the cruise industry fit in?

This question—are cruise lines part of the stimulus package—has sparked widespread debate. On one hand, cruise lines are major employers and contributors to tourism economies. On the other, they are often seen as high-risk, luxury-focused enterprises with complex corporate structures, including many foreign-flagged ships. As governments designed relief programs, the inclusion (or exclusion) of cruise lines became a politically and economically charged issue. In this comprehensive guide, we’ll dive into the nuances of stimulus packages, examine the role cruise lines played in them, and explore what it means for travelers, workers, and the future of the industry.

Understanding Government Stimulus Packages: What They Are and How They Work

Before we answer whether cruise lines were part of stimulus packages, it’s essential to understand what these programs are and how they function. A stimulus package is a coordinated set of fiscal and monetary measures introduced by a government during economic downturns to boost demand, support businesses, and preserve jobs. These packages are typically funded through increased government spending, tax relief, or direct financial aid to individuals and industries.

Key Components of a Stimulus Package

Stimulus packages are designed to address multiple economic layers. They usually include:

• Direct cash payments to individuals (e.g., $1,200 checks in the U.S. during the CARES Act).
• Unemployment benefits expansion to support laid-off workers.
• Paycheck Protection Program (PPP) loans to help small businesses keep employees on payroll.
• Industry-specific aid for sectors severely impacted, such as airlines, hospitality, and manufacturing.
• Tax deferrals and credits to ease cash flow for businesses.
• Grants and low-interest loans for innovation, sustainability, or recovery efforts.

For example, the U.S. government’s CARES Act (Coronavirus Aid, Relief, and Economic Security Act) in March 2020 allocated over $2.2 trillion in relief. While some industries received direct aid, others—like cruise lines—faced more scrutiny and conditions.

How Stimulus Decisions Are Made

Government decisions on which industries receive aid are based on several factors:

• Economic impact: How many jobs are at risk?
• Systemic importance: Is the industry critical to national infrastructure?
• Public perception: Are the companies seen as deserving of aid?
• Corporate structure: Are companies U.S.-based, or do they operate under foreign flags?
• Risk of misuse: Could funds be diverted to shareholders or executives instead of workers?

These factors explain why some industries (like airlines) received swift aid, while others (like cruise lines) faced delays, restrictions, or outright exclusion. The debate over are cruise lines part of the stimulus package hinges on these very considerations.

Why Cruise Lines Were Initially Excluded from Major Stimulus Aid

Despite their economic footprint, major cruise lines—such as Carnival Corporation, Royal Caribbean Group, and Norwegian Cruise Line Holdings—were notably absent from the initial rounds of U.S. federal stimulus funding. This exclusion wasn’t arbitrary. Several structural and political factors contributed to this decision.

Corporate Structure and Foreign Registration

One of the most significant barriers was the corporate domicile and ship registration of major cruise lines. For instance:

• Carnival Corporation is headquartered in Miami but incorporated in Panama.
• Royal Caribbean Cruises Ltd. is headquartered in Miami but incorporated in Liberia.
• Norwegian Cruise Line Holdings is incorporated in Bermuda.

These companies operate under what’s known as a “flag of convenience” system, where ships are registered in foreign countries to reduce taxes, labor costs, and regulatory burdens. Critics argued that giving U.S. taxpayer money to foreign-incorporated companies was inappropriate, especially when those companies had paid little or no U.S. corporate taxes for years.

As Senator Elizabeth Warren stated in 2020, “You can’t have it both ways. If you want to be treated like a U.S. company when it comes to getting a bailout, then you should pay U.S. taxes.”

Perception of Risk and Luxury

Another factor was the public perception of cruise lines as luxury, discretionary travel providers. Unlike airlines, which transport essential personnel, medical supplies, and goods, cruise ships were seen as non-essential. Early pandemic outbreaks on ships like the Ruby Princess and Grand Princess further damaged their reputation, with over 1,500 confirmed cases linked to cruise ships in the first few months of 2020.

Lawmakers were hesitant to use public funds to support an industry that:

• Operates in international waters with minimal U.S. oversight.
• Has a history of environmental violations and labor disputes.
• Generates revenue from high-margin luxury services (spas, casinos, fine dining).

Alternative Funding and Private Market Access

Unlike smaller businesses that lacked access to capital markets, major cruise lines are publicly traded companies with strong balance sheets. When stimulus funds were debated, many lawmakers argued that these companies could raise money through:

• Equity offerings (issuing new shares).
• Debt issuance (selling bonds).
• Asset sales (selling older ships).

For example, in 2020, Carnival raised over $6 billion through a mix of debt and equity, while Royal Caribbean secured $3.7 billion in new financing. This ability to tap capital markets reduced the urgency for direct government aid.

As a result, the answer to “are cruise lines part of the stimulus package” in the early pandemic was largely “no”—at least in terms of direct grants or bailouts. However, this didn’t mean they received no support at all.

Indirect Support: How Cruise Lines Benefited from Broader Stimulus Programs

While major cruise lines were excluded from direct industry-specific aid, they still accessed indirect stimulus benefits through broader economic support programs. These measures helped stabilize their operations, retain employees, and maintain supply chains.

Paycheck Protection Program (PPP) Loans

The PPP, part of the CARES Act, provided forgivable loans to businesses with fewer than 500 employees to cover payroll and operating costs. While the largest cruise corporations didn’t qualify, hundreds of small cruise-related businesses did.

• Shore excursion companies (e.g., snorkeling tours, island safaris).
• Port service providers (e.g., baggage handling, fueling).
• Cruise-focused travel agencies and tour operators.
• Onboard retail and entertainment vendors.

According to the Small Business Administration (SBA), over 2,500 travel and tourism businesses received PPP loans in the first round. Many of these were directly tied to cruise operations. For example, a family-owned tour company in St. Thomas, USVI, received a $180,000 PPP loan to keep 12 employees on payroll after cruise visits halted.

Tip: If you run a small business connected to the cruise industry, check if you qualify for PPP or similar programs during future disruptions. Even if your parent company isn’t eligible, your local operation might be.

Employee Retention Tax Credit (ERTC)

The ERTC, expanded under the CARES Act and subsequent legislation, offered businesses a tax credit of up to $26,000 per employee if they kept workers on payroll during the pandemic. While cruise lines couldn’t claim the full credit due to their foreign incorporation, their U.S.-based subsidiaries (e.g., marketing, sales, and port operations) often qualified.

For instance, Royal Caribbean’s U.S. sales office in Florida claimed ERTC credits for over 300 employees. This helped offset payroll costs and maintain customer service operations during the shutdown.

State and Local Economic Relief

Many cruise lines received support at the state and municipal levels, where the economic impact of cruise tourism is more direct. For example:

• PortMiami received $50 million in federal infrastructure grants to prepare for post-pandemic recovery, indirectly supporting Carnival and Royal Caribbean, which are based there.
• The City of Seattle allocated $10 million to support Alaska cruise season recovery, including marketing and port upgrades.
• The State of Florida provided tax incentives to cruise lines for maintaining headquarters and creating jobs, even during the shutdown.

These measures, while not direct cash aid, helped cruise lines reduce operational costs and plan for reopening.

Monetary Policy and Low-Interest Rates

The Federal Reserve’s stimulus measures—including near-zero interest rates and quantitative easing—made borrowing cheaper for large corporations. Cruise lines took advantage by issuing low-cost bonds to refinance debt. For example, Norwegian Cruise Line issued $675 million in senior secured notes at 12.25% in 2020, but later refinanced at much lower rates in 2021 and 2022.

This access to capital, enabled by broader monetary stimulus, was a lifeline during the industry’s darkest months.

Industry-Specific Aid: When Did Cruise Lines Finally Get Direct Help?

While cruise lines were initially left out of direct federal aid, the prolonged shutdown and economic fallout eventually led to targeted support. By late 2020 and into 2021, as the pandemic dragged on, lawmakers recognized that cruise tourism was essential to local economies in places like Alaska, the Caribbean, and Florida.

The American Rescue Plan (2021)

The American Rescue Plan, passed in March 2021, included $350 billion in state and local fiscal recovery funds. While not earmarked for cruise lines, many states used these funds to:

• Subsidize port operations and infrastructure.
• Fund marketing campaigns to revive cruise tourism.
• Provide grants to small businesses dependent on cruise traffic.

For example, the Alaska Legislature used $20 million in federal funds to support the 2021 Alaska cruise season, which was critical for towns like Juneau and Skagway.

Maritime Administration (MARAD) Grants

In 2021, the U.S. Department of Transportation’s Maritime Administration awarded over $250 million in grants through the Port Infrastructure Development Program (PIDP). While not exclusive to cruise lines, many grants benefited cruise ports. Examples include:

• $25 million to Port Canaveral for terminal upgrades.
• $18 million to the Port of Seattle for shore power installation (reducing emissions).
• $12 million to the Port of Galveston for berth improvements.

These projects made ports more efficient and attractive for cruise lines, indirectly supporting their recovery.

Customs and Border Protection (CBP) Waivers

One of the most significant forms of direct support was the waiver of the Passenger Vessel Services Act (PVSA) for Alaska cruises. The PVSA requires foreign-flagged ships (like most cruise vessels) to stop at a foreign port between U.S. ports. For Alaska cruises, this meant a stop in Canada—which closed its ports to cruise ships in 2020.

In 2021, Congress passed a temporary waiver allowing cruise ships to sail from Seattle to Alaska without stopping in Canada. This waiver, renewed in 2022 and 2023, was critical for Alaska’s tourism economy and directly benefited cruise lines like Princess and Holland America.

Tip: When planning an Alaska cruise, check if the PVSA waiver is active. It can affect your itinerary and port stops.

Data Table: Stimulus Support for Cruise-Related Sectors (2020–2022)

Sector	Federal Program	Amount Received (Est.)	Key Beneficiaries
Small Travel Businesses	PPP Loans	$1.2 billion	Tour operators, agencies, port services
Port Infrastructure	MARAD PIDP Grants	$250 million	PortMiami, Seattle, Galveston
Alaska Tourism	State ARP Funds	$20 million	Alaska cruise ports, local businesses
U.S. Cruise Subsidiaries	ERTC	$180 million	Marketing, sales, port ops teams
Cruise Lines (Indirect)	Low-interest bonds	$15+ billion (refinanced)	Carnival, Royal Caribbean, Norwegian

What This Means for Travelers, Workers, and the Future of Cruising

The answer to “are cruise lines part of the stimulus package” is nuanced: they weren’t bailed out like airlines, but they received significant indirect and targeted support. As the industry recovers, this history shapes its future in several ways.

For Travelers: More Options, Better Deals

Stimulus support helped cruise lines survive, which means more ships are sailing today than in 2020. This has led to:

• Increased capacity: New ships (e.g., Carnival Celebration, Royal Caribbean’s Icon of the Seas) are entering service.
• Lower prices: To fill ships, lines are offering discounts, onboard credits, and free upgrades.
• Improved health protocols: Stimulus-funded port upgrades include better medical facilities and sanitation.

Tip: Book early for 2024–2025 cruises to lock in lower prices. Many lines are offering flexible cancellation policies.

For Workers: Job Recovery and New Opportunities

Over 170,000 cruise jobs were lost in 2020. Thanks to stimulus support, many have returned. The industry now faces a labor shortage, leading to higher wages and better conditions. For example, Carnival raised starting wages by 20% in 2022 and expanded training programs.

New roles are also emerging, such as:

• Health safety officers.
• Sustainability coordinators.
• Digital experience designers (for app-based services).

For the Industry: A Push for Sustainability and Reform

Stimulus programs came with expectations. Cruise lines are now investing in:

• Shore power: Reducing emissions while docked.
• Waste management: Stricter recycling and water treatment.
• U.S. flagging: Some lines are exploring U.S. incorporation to improve eligibility for future aid.

The industry is also working to rebuild public trust through transparency and safety certifications.

Conclusion: The Complex Reality of Cruise Lines and Stimulus Aid

So, are cruise lines part of the stimulus package? The answer is both yes and no. They were not given the same direct bailouts as airlines or small businesses, due to their foreign incorporation, luxury branding, and access to capital markets. However, they benefited from indirect support through PPP loans to small partners, ERTC credits for U.S. subsidiaries, infrastructure grants, and policy waivers like the Alaska PVSA exemption.

This hybrid approach reflects the complexity of modern economic relief. Governments must balance fairness, economic impact, and public perception. For cruise lines, survival required a mix of private financing, government policy changes, and local support.

Looking ahead, the cruise industry is stronger than ever, with record bookings and new ships launching. But its relationship with public aid will remain a topic of debate. As travelers, we can support responsible recovery by choosing lines that invest in sustainability, treat workers fairly, and contribute to local economies.

Whether you’re planning your next vacation or just curious about economic policy, one thing is clear: the story of cruise lines and stimulus aid is a reminder that no industry exists in a vacuum. Their survival—and ours—depends on a web of policies, perceptions, and partnerships that go far beyond the high seas.

Frequently Asked Questions

Are cruise lines included in the latest stimulus package?

As of recent updates, major cruise lines have not been directly included in broad stimulus packages like the CARES Act or American Rescue Plan. However, they may benefit indirectly through general business relief programs like PPP loans.

Can cruise lines apply for stimulus funds under current economic relief programs?

While not specifically targeted, some cruise operators qualify for stimulus-adjacent programs such as the Paycheck Protection Program (PPP) or industry-agnostic tax credits, depending on their operations and workforce size. Check official SBA guidelines for eligibility.

Did the stimulus package provide bailouts for cruise lines?

Unlike airlines, cruise lines were not granted standalone bailouts in most major stimulus packages. The focus remained on healthcare, small businesses, and individual relief, though cruise companies could access shared programs like payroll support.

How does the stimulus package impact cruise line employees?

Cruise line workers may benefit from general stimulus measures like enhanced unemployment benefits, direct payments, or COBRA subsidies, but sector-specific aid remains limited. Rehiring often depends on company recovery timelines.

Are cruise lines part of the stimulus package for tourism recovery?

The stimulus package includes broader tourism and hospitality grants, but cruise lines must compete for funding through programs like the Shuttered Venue Operators Grant (SVOG), not automatic allocations.

Will future stimulus packages include direct aid for cruise lines?

Future relief depends on economic conditions and lobbying efforts, but past trends suggest cruise lines will likely rely on indirect support (e.g., tax incentives) rather than direct stimulus package allocations.