The cruise industry is among the hardest hit by the coronavirus outbreak, but the $2 trillion stimulus bill working its way through the government will not provide bailout funds for cruise companies.
According to The Washington Post, United States Treasury Secretary Steven Mnuchin said the bill would allot $500 billion in loans or guarantees to distressed businesses, but he revealed the companies must be based in or work primarily from the U.S.
Several of the top cruise lines in the world are not incorporated in the U.S. as a way to avoid paying higher taxes and the country’s more stringent minimum wage requirements, including Carnival Cruise Line and Royal Caribbean International.
The Cruise Lines International Association (CLIA) applauded the stimulus package Thursday thanks to its inclusion of relief for more than 30,000 CLIA travel agent members. The industry trade group thanked lawmakers for “reaching a historic agreement to address the unprecedented crisis.”
The CLIA said it would continue working with the government to protect the cruise industry as companies continue to secure loans to improve liquidity, which experts believe should become an industry-wide trend.
“As it relates to the rescue package, cruise lines are not lobbying for a bailout. CLIA and our members agree that the most important stimulus the government can provide on behalf of the wider cruise community in the United States is help for small- and medium-sized businesses, including a vast network of travel agencies, tour operators and suppliers, with a presence in all 50 states,” CLIA spokeswoman Bari Golin-Blaugrund wrote in an email.
The possible exclusion of cruise companies in the bill came as a shock to some considering U.S. President Donald Trump expressed his desire in previous interviews to help the pillars of the hard-hit travel industry, including cruise lines, airlines and hotels.
In addition, executives from the cruise industry recently met with Vice President Mike Pence.
During a press conference Thursday, President Trump said he would support cruise lines being forced to register in the U.S. to receive aid from the government, saying, “We’re going to work very hard on the cruise line business and we’re going to figure something out.”
The stimulus bill also provides $10 billion in direct assistance to airports across the country, but they would be required to retain at least 90 percent of their workforce through the end of 2020 in exchange for the funds.
For travel agents and advisors, the legislation includes assistance for those affected by the coronavirus outbreak.
WATCH: President Trump speaks about cruise companies (provided by Fox Business)
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