Greenland has implemented a new cruise tax to address some of the concerns that have arisen from the significant increase in cruise arrivals seen in recent years. Tourism has doubled since 2016, and while many people who work in the sector are positive about the benefits that it can bring, some feel that the current volume of tourism is unsustainable. Many cruise operators were found to support a small number of expeditions to the country, while others preferred conventional cruise liners as they are more profitable. Concerns were also raised regarding the lack of adequate harbour infrastructure in remote and northerly towns, and the impact that large ships and their passengers have on the environment.
Following a campaign by citizens, tour firms, and the country’s tourism board, a new tax mechanism has been implemented. The tax amounts to an extra DKK 50 (£5.73) per passenger, on top of the existing DKK 1.10 (£0.11) per gross tonne of a vessel. The tax will be used to improve port facilities and other amenities that will allow municipalities to handle the influx of tourists sustainably. A model was also developed that demonstrated that the new tax system could generate 2.5 times more income than the previous method, by charging large cruise ships based on passenger numbers and vessel weight.
Officials from Greenland’s tourist board stated that 60 out of 62 tour companies were owned by locals. In addition to adding value and income to the local economy, tourism provided the means to preserve indigenous traditions, such as the Dogsledge Taxi in Sisimiut. Tourists are offered sled rides, hikes, and opportunities to hang out with local sled dogs.
The tax will also have an impact upon the impact that cruises have on the marine environment. East Greenland is home to various populations of Narwhals that have been subject to unsustainable hunting, and they are at high risk of extinction due to marine traffic disturbances from events such as cruises. The Greenland Institute of Natural Resources believe that the new regulations can help preserve marine life. The tax now allows tourism to positively impact upon locals and the wider environment, thereby allowing the industry to continue to grow sustainably
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