Destination Stewardship Report – Volume 5, Issue 2

This post is from the Destination Stewardship Report, a publication that provides practical information and insights useful to anyone whose work or interests involve improving destination stewardship in a post-pandemic world.


For years, cruise crowds and air pollution have degraded Geirangerfjord, Norway. Photo: “Harboring Tourism”, World Monuments Fund

Opinion: Cruise Crisis

Things in the cruise world are getting dire, even in progressive Norway, where a CEO suggests a tax on his own passengers. Journalist and consultant Arild Molstad offers his own thoughts.

A Modest Proposal to Tamp Down Crowding

Norway’s long coastline, always a popular cruise destination, is now joining other such places in experiencing a massive increase in traffic. Part of the reason is affordability due to a surprising decline in the Norwegian krone. The other is Putin’s war with Ukraine, turning the Russian frontier into a no-go “red zone” for cruise ship operators. The lure of the fjords became an obvious choice for revamped ship itineraries.

There was only one hitch. Norway had decided, starting 2026, to ban polluting big-cruise traffic in its most spectacular fjords: The narrow, vulnerable and iconic Geiranger- and Naeroyfjords, both of them on the UNESCO World Heritage list (see our story regarding the International Ocean Panel).

Now the western coast landscape, with its soaring mountains, glaciers and waterfalls, is becoming a battleground between concerned conservationists and cruise promoters.

The cruise lobby has won the first round, when the Norwegian Parliament agreed to delay the ban for six years – a major letdown for those increasingly worried about overtourism and reputational damage for the nation’s image abroad. Leading politicians and spokesmen for environmental organizations are calling for sustainable measures that can help the local communities manage mass tourism’s negative impacts.

As with many popular places worldwide, there has been growing pressure on Norway’s ruling government coalition to introduce tourism taxes and regulations, yielding only vague promises for an “action plan” that is yet to appear. Meanwhile countries around the world are launching measures based on the “polluter pays” principle inspired by the Paris climate accords.

Cruise CEO Asks for a PAX Tax

Torstein Hagen

A call for urgent action came in October from a surprising stakeholder. In a speech to students at Norway’s leading business school in the World Heritage city of Bergen, cruise-industry leader Torstein Hagen, owner of Viking Cruises, advocated the launch of a tourism cruise tax.

His pioneering and controversial wake-up call for action was instantly picked up in the media. A September issue of Bergensavisen, a Norwegian newspaper, quotes Torstein Hagen as saying “Mass tourism is a complex issue. Popular destinations should be able to tax visitors in order to regulate tourism demand.” He adds that he is critical of Norway’s tax system, and that he would welcome a tax per cruise passenger, which is a way to identify visitors willing to contribute.

It is a timely call. A more thoughtful and greener dialogue is sorely needed between cruise companies and coastal destinations. Both have much to gain by finding common ground in ways that protect the environment and the integrity of fragile places and ports of call plagued by overtourism.

The seasoned, 81-year old tourism pioneer has surely noticed that a growing portion of the international traveling public are beginning to understand the need to tax vulnerable attractions worldwide. Many of these travelers want to become part of the solution, not the problem.

The timely and refreshing proposal for a tourism tax from none other than a cruise company owner sets a good example.

Juneau, Alaska is among ports debating cruise ship limits. Photo: Jonathan Tourtellot

Like the iconic World Heritage city of Bergen, known as “the gateway to the fjords,” a multitude of destinations from Venice and Greece to New Zealand and Caribbean islands are considering, applying, or increasing tourist fees to fund measures that conserve their unique attractions and reduce wear and tear on local infrastructure and cultural heritage.

In contrast, Norway has yet to implement such regulations. Many coastal municipalities in Norway, already facing severe economic challenges, are often left footing the bill for welcoming big ships to their harbors, even as they observe huge cruise revenues escaping to foreign accounts, undermining the local economy’s sustainability.

At the time of writing, economists in Norway are looking at the application of a “nature dividend” to tax the “super-profits” generated by the cruise ships’ presence. A similar dividend tax was in 2023 applied to fish farming’s excessive use of a limited natural resource in the pristine fjords.

Can we look to Norway to find a new holistic coastal tourism model that combines short-term needs with long-term visions? Perhaps Torstein Hagen’s bold stance will show the way.


About the Author

Arild Molstad is an author, photojournalist, conservationist, and consultant based in Oslo, Norway and Eze, France.