Antarctic cruise tourism: a taxing issue?

Abstract

Antarctic tourism numbers have expanded greatly over the last quarter century. With the additional interest generated by the recent International Polar Year, tourism numbers are expected to increase into the foreseeable future. At the same time, negative anthropogenic effects upon the silent continent are becoming more apparent. Tourism is one of the contributors to the human footprint in Antarctica, and its potential to exacerbate that footprint is compounded by the laissez-faire approach to tourism policy and limited tourism policy framework established by the continent’s decision-makers, the Antarctic Treaty Consultative Parties. This raises issues about what interventions may be undertaken to help reduce the burdens imposed on the Antarctic environment, a critical component of the global ecosystem. Because it is both practically unfeasible to ban Antarctic tourism, and would be extremely difficult to limit tourist numbers via extant Antarctic Treaty System regulations and measures, one possibility is to introduce an Antarctic tourism tax on commercial cruise operations. This article examines the idea of an Antarctic cruise tourism tax, why a tax has not been previously introduced, and the advantages and disadvantages of an Antarctic cruise tourism tax. The uses to which revenue generated through commercial cruise tourism could be put, including recovery of costs incurred through tourism and revenue generation for research and education about Antarctic tourism, are also considered.

Keywords:

• Antarctica
• tax
• tourism
• cruise
• policy
• Antarctic Treaty System

Acknowledgements

The author thanks the organizers of the IPTRN IV conference, Daniela Liggett and Emma Stewart, for their help and support, and the two anonymous referees for their thoughtful comments. The author gratefully acknowledges the support of the funding body.

Notes

¹ Notable Quote, http://www.notable-quotes.com/f/franklin_benjamin.html.

² Keey, “Safeguard This Living Laboratory,”

³ Netherlands, “‘Outstanding Questions’ on Antarctic Tourism: An Inventory and Discussion,” 14.

⁴ Murray and Jabour, “Independent Expeditions and Antarctic Tourism Policy,” 313–4; CEP, Tourism Study: Tourism and Non-Governmental Activities in the Antarctic: Environmental Aspects and Impacts, 16–17.

⁵ Verbitsky, “Antarctic Tourism Management and Regulation: The Need for Change,” 281.

⁶ Beale, “Jurisdiction to Tax,” 587.

⁷ Heywood, Global Politics, 116; Ring, “What’s at Stake in the Sovereignty Debate?: International Tax and the Nation-State,” 5–11.

⁸ Lindahl, “Sovereignty and Representation in the European Union,” 91.

⁹ United States, “Draft Recommendation Submitted by United States: Effects of Tourism in Antarctica.”

¹⁰ Antarctic Treaty. “Protocol on Environmental Protection to the Antarctic Treaty (the Madrid Protocol),” (1991): 30 ILM 1461.

¹¹ CEP, Tourism Study Draft Report: Tourism and Non-Governmental Activities in the Antarctic: Environmental Aspects and Impacts, 21–2.

¹² The latter are not yet in effect.

¹³ ATS Secretariat, “Tourism and Non-Governmental Activities.”

¹⁴ See, for instance, New Zealand, “Environmental Aspects and Impacts of Tourism and Non-Governmental Activities in Antarctica: Project Report,” 3–4.

¹⁵ IAATO, “Home.”

¹⁶ IAATO, “Membership Directory.”

¹⁷ Bastmeijer, “A Long Term Strategy for Antarctic Tourism: The Key to Decision Making within the Antarctic Treaty System?,” 8.

¹⁸ See, for instance, Germany, “Tourism in Antarctica” (Discussion Paper Submitted by the Federal Republic of Germany).

¹⁹ Bastmeijer, “A Long Term Strategy for Antarctic Tourism: The Key to Decision Making within the Antarctic Treaty System?,” 8.

²⁰ Crosbie and Splettstoesser, “Antarctic Tourism Introduction,” 114.

²¹ Johnson and Kriwoken, “Emerging Issues of Australian Antarctic Tourism: Legal and Policy Directions,” 91.

²² United Kingdom, “Tourism and Self-Regulation: A Commentary on IAATO.”

²³ Australia, “An Analysis of Potential Threats and Opportunities Offered by Antarctic Tourism,” 2.

²⁴ Anisimov, Vaughan et al., Climate Change 2007, 655.

²⁵ Snyder and Stonehouse, “Polar Tourism in Changing Environments,” 45.

²⁶ Luck, “Environmental Impacts of Polar Cruises,” 109–10, 113–4.

²⁷ Orams, “Polar Yacht Cruising,” 20–1.

²⁸ Snyder and Stonehouse, “Polar Tourism in Changing Environments,” 44.

²⁹ Aronson et al., “Anthropogenic Impacts on Marine Ecosystems in Antarctica,” 88.

³⁰ IAATO, “Report on IAATO Operator Use of Antarctic Peninsula Landing Sites and ATCM Visitor Site Guidelines, 2013–2014 and 2014–2015 Season,” 3.

³¹ CEP, Tourism Study Draft Report: Tourism and Non-Governmental Activities in the Antarctic: Environmental Aspects and Impacts, 34.

³² Hemmings and Roura, “A Square Peg in a Round Hole: Fitting Impact Assessment under the Antarctic Environmental Protocol to Antarctic Tourism,” 15–18.

³³ Per Annex V, PEPAT.

³⁴ IMO Briefing, “Antarctic Fuel Oil Ban and North American ECA MARPOL Amendments Enter Into Force on 1 August 2011”; IMO Media Centre, “Shipping in Polar Waters: Development of an International Code of Safety For Ships Operating in Polar Waters (Polar Code).”

³⁵ Chair’s Report, Antarctic Treaty Meeting of Experts on the Management of Ship-Borne Tourism in the Antarctic Treaty Area, 4.

³⁶ Brown, “Aust Government Leaves Antarctic Plans on Ice”; Mervis, “US Antarctic Scientists Still Reeling From October Shutdown”; Collins, “British Antarctic Survey Saved after Outcry.”

³⁷ Kennicutt et al., “Polar Research: Six Priorities for Antarctic Science,” 24.

³⁸ CEP, Tourism Study: Tourism and Non-Governmental Activities in the Antarctic: Environmental Aspects and Impacts.

³⁹ Gooroochurn and Sinclair, “Economics of Tourism Taxation,” 479.

⁴⁰ Gago et al., “Specific and General Taxation of Tourism Activities: Evidence from Spain,” 383.

⁴¹ Eijgelaar, Thaper, and Peeters, “Antarctic Cruise Tourism: The Paradoxes of Ambassadorship, ‘Last Chance Tourism’ and Greenhouse Gas Emissions,” 349.

⁴² Gooroochurn and Sinclair, “Economics of Tourism Taxation,” 481.

⁴³ Palmer and Riera, “Tourism and Environmental Taxes. With Special Reference to the ‘Balearic Ecotax’,” 667–9.

⁴⁴ Gago et al., “Specific and General Taxation of Tourism Activities: Evidence from Spain,” 381.

⁴⁵ Hall, “Policy Learning and Policy Failure in Sustainable Tourism Governance: From First- and Second-Order to Third-Order Change?,” 650.

⁴⁶ Prasad Poudyal, “Presentation by Nepal: Overview of Current Tourism Scenario and Policy Implications in Nepal,” 63.

⁴⁷ Cater and Cater, “The Economic Impacts of Marine Wildlife Tourism,” 156–8.

⁴⁸ With the exception of SAR funding (which was not directly mentioned, although maritime accidents were), these possible funding uses are confirmed by the “Vision”, “Environmental Stresses” and “Headline Goals” outcomes of the CEP Workshop on Antarctica’s Future Environmental Challenges held in 2006, while funding uses related to tourism research and education, and monitoring of Antarctic sites are confirmed by the 2012 CEP Tourism Study. See United Kingdom, Australia, France, “Antarctica’s Future Environmental Challenges: Report of the CEP Workshop,” 4–5; CEP, Tourism Study: Tourism and Non-Governmental Activities in the Antarctic: Environmental Aspects and Impacts.

⁴⁹ Powell, Kellert, and Hamm, “Antarctic Tourists: Ambassadors or Consumers?,” 239.

⁵⁰ Landau, “International Cooperation and Management of Tourism: A World within a World,” 243.

⁵¹ Bauer, “An Evaluation of Coastal Tourism Activities in the Antarctic Peninsula Region,” 113.

⁵² Liggett et al., “Stakeholder Perspectives on the Governance of Antarctic Cruise Tourism,” 171–6.

⁵³ IAATO, “Management of Tourism in Antarctica – An IAATO Perspective,” 4.

⁵⁴ Chaturvedi, The Polar Regions: A Political Geography, 222.

⁵⁵ ASOC, “Tourism and the Duty for ATCP Action,” 3.

⁵⁶ ASOC, “A Decade of Antarctic Tourism: Status, Change and Actions Needed,” 4.

⁵⁷ ASOC, “Key Elements of a Strategic Vision for Antarctic Tourism,” 5.

⁵⁸ ASOC, “A Decade of Antarctic Tourism: Status, Change and Actions Needed,” 5.

⁵⁹ ASOC, “Key Issues for a Strategic Approach to Review Tourism Policies,” 6.

⁶⁰ The IAATO website advises intending passengers that “IAATO’s Financial Support Comes from You” and states “that the operator you travel with contributes the following to IAATO: 2015 – 16 season – US$15 for landed-passenger operations/US$11.25 for cruise-only operations”, IAATO, “IAATO’s Financial Support Comes from You.”

⁶¹ Arriagada and Perrrings, “Paying for International Environmental Public Goods,” 798.

⁶² Milne and Chervier, “A Review of Payments for Environmental Services (PES) Experiences in Cambodia.”

⁶³ Ferraro and Kiss, “Ecology: Direct Payments to Conserve Biodiversity,” 1718.

⁶⁴ For instance, Dunn, “Payments for Ecosystem Services”; UK National Ecosystem Assessment Follow-on NR0150; Forest Trends, The Katoomba Group & UNEP, “Payments for Ecosystem Services: Getting Started: A Primer.”

⁶⁵ De Francisco and Boelens, “Payment for Environmental Services: Mobilising an Epistemic Community to Construct Dominant Policy,” 495.

⁶⁶ Kubiszewski and Costanza, “Ecosystem Services for Sustainable Prosperity,” 178–80.

⁶⁷ Kubiszewski and Costanza, “Ecosystem Services for Sustainable Prosperity,” 182.

⁶⁸ Ihalanyake and Diviskera, “The Tourism Tax Burden: Evidence from Australia,” 259.

⁶⁹ Eijgelaar, Thaper, and Peeters, “Antarctic Cruise Tourism: The Paradoxes of Ambassadorship, ‘Last Chance Tourism’ and Greenhouse Gas Emissions,” 337–54.

⁷⁰ Maher, Steel, and McIntosh, “Antarctica: Tourism, Wilderness and ‘Ambassadorship’,” 208.

⁷¹ Beaumont, “Ecotourism and the Conservation Ethic: Recruiting the Uninitiated or Preaching to the Converted?,” 335.

⁷² Buckley, “Sustainable Tourism: Research and Reality,” 534.

⁷³ Hall, “Framing Behavioural Approaches to Understanding and Governing Sustainable Tourism Consumption: Beyond Neoliberalism, ‘Nudging’ and ‘Green Growth’,” 1106–8.

⁷⁴ Powell, Kellert, and Ham, “Antarctic Tourists: Ambassadors or Consumers?,” 238.

⁷⁵ Article 3, PEPAT.

⁷⁶ Chair’s Report, Meeting of Experts on the Management of Ship-Borne Tourism in the Antarctic Treaty Area, 22.

⁷⁷ However, Daniela Liggett suggests that “most of the Antarctic tourism operators are based in signatory states. Furthermore, IAATO could assume the role of a mediary”. D. Liggett, personal communication.

⁷⁸ United Nations, “Growth in United Nations Membership 1945-present.”

Additional information

Funding

This work was supported by the AUT Contestable Research Fund [grant number AX 14/03].