One of the industries seeking a bailout amid the coronavirus pandemic is the cruise industry — tourism has crashed as the disaster has unfolded, particularly after the disastrous and well-publicized incidents of cruise passengers being quarantined on their own ships.
But the cruise industry would be an odd choice for a bailout for a simple reason: Most of these companies are not American. Even most of the cruise lines that target American tourists typically register their ships in foreign ports and employ mainly foreign workers, to avoid U.S. tax, labor, and environmental laws.
And indeed, according to CNBC reporter Kayla Tausche, this could make bailing out the industry difficult, because the stimulus programs are not targeted at offshore entities. But the administration has nonetheless reportedly promised that a “bipartisan Senate group” is working on carving out an exception for them.
NEW: Cruise industry not confident it could borrow from any of the existing loan programs bc of offshore registration.
Sr. admin official says bipartisan Senate grp working to ensure they can access one of the facilities–or else will seek a legislative fix in the next package.
— Kayla Tausche (@kaylatausche) March 26, 2020
President Donald Trump also happens to be personal friends with Micky Arison, the chairman of cruise industry giant Carnival Corp. Carnival also helped sponsor Trump’s reality show “The Apprentice” for several years.