Originally Posted by
PerthDisco
Means more a low tax environment for ownership where fees are historically levied on gross tonnage (volume). Employment, yes is not limited to people of the flag nationality. All the worlds international shipping is largely done by Phillipino or Indian or other ‘low cost’ crew providing a huge source of USD employment (no living expenses and money sent home to family) but these cruise especially ships need pretty respectable, capable and nice people to operate successful hospitality so you get what you pay for. Some nationalities are better at it than others let’s face it.
Flag (of Convenience) States like Panama, Cayman Islands, Liberia etc. are typically small countries without natural resources or means of existence hence have found this handy niche, invented by lawyers and accountants, of providing for a fee tax effective means of owning companies and assets heavily taxed elsewhere. No surprise it’s been incredibly popular with large organisations.
For the cruise ship companies they still have head offices in USA or Norway so need to face the music in that sense. FoC is purely for the ship asset.
Don’t forget also that, like a plane, from the day of delivery to the wrecking yard they work to make money stopping only for fuel, food, passenger change and essential repair. There is no home port to speak of they chance the sun northern hemisphere southern hemisphere.
