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Majestic mountains. Sensational glaciers. Pristine fjords. And endless miles of gorgeous coastline.

If this kind of stunningly beautiful scenery sounds like something you’d enjoy, there are only a few places in the world where you can find it including Chile, Norway and Alaska. And if you’d like to see these destinations in all of their glory, the most economical and spectacular way to do so is by cruise ship.

Land of Fire and Ice: Surrounded by snow-capped volcanoes, emerald forests and pristine lakes, Chile’s beautiful Lake District is nestled between the Pacific Ocean and the majestic Andes Mountains. The region is part of the zone known as the “Pacific Ring of Fire,” and sits atop two major tectonic plates with more than 1,000 volcanoes, 41 of which are still active. Just a few miles south, you’ll find the majestic fjords of southern Patagonia where you’ll sail between walls of tall, craggy rocks and snow-capped peaks on your way to the Strait of Magellan and nearby giant glaciers. And you’ll see plenty of native wildlife including penguins, sea wolves and cormorants.

The dramatic scenery of Southern Chile can be seen on cruises that sail around the Horn of South America between Valparaiso, Chile and Buenos Aires, Argentina. These itineraries usually last between 12 to 20 days, and have cruise fares that start as low as C$94 per day.

Majestic Fjords of Norway: It’s been called “the world’s most beautiful voyage” and was recently voted to the top of National Geographic Traveler magazine’s list of most iconic travel destinations. We’re talking about the magnificent fjords along Norway’s dramatic 1,250-mile west coast, which will fill your days with spectacular vistas, snow-capped mountains, and an astonishing variety of flora and fauna.

The natural beauty of the fjords comes from their narrow, crystalline rock walls that rise up to 4, 500 feet from the Norwegian Sea and extend 1, 640 ft below sea level. In particular, the Geiranger Fjord region is so beautiful that it was recently designated a World Heritage Site by UNESCO.

A number of cruise lines sail to the Norwegian fjords, including Cunard, Crystal, MSC, Holland America and Seabourn. And Norwegian-based Hurtigruten offers year-round coastal cruises around Norway that depart daily. While cruise fares for Norway are usually more expensive than those for the rest of Europe, they can still be purchased for as low as C$136 a day.

America’s Final Frontier: This is where you’ll see magnificent glaciers calving huge chunks of ice into the bay, Orca whales frolicking in the ice flow, and black bears roaming the coastline of magnificent fjords. It’s Alaska, the most northern, western and eastern state in the union (the end of the Aleutian chain of islands crosses the international dateline), and a place so beautiful that it is consistently rated one of the top cruise destinations in the world.

It’s also the closest to reach from Canada and the U.S., and currently offers some of the best rates in the industry with cruise fares starting as low as C$82 per day.

A wide variety of cruise lines offer Alaska voyages between April and September, with departures from San Francisco, Seattle, Vancouver and Whittier. The best itineraries include a sail up one of the spectacular fjords to pass by a glacier (usually Glacier Bay, Sawyer Glacier or Hubbard Glacier), and stops in ports like Skagway, Ketchikan and Juneau that are within easy reach of sensational attractions like train rides across the mountains and helicopter landings on glaciers.

So if you’re ready to see some of the most spectacular scenery in the world, all you have to do is decide which destination you’re going to cruise to first.

The announcement last Friday that the cruise industry had reached a tentative agreement with Alaska’s Governor Sean Parnell on the state’s controversial “head tax” is a step in the right direction.

The Governor’s proposal to lower the $46 tax by 25% still has to be approved by the state legislature before it adjourns on April 18. But if it passes, the agreement will make Alaska a more cost-competitive destination, keep cruise lines from pulling out more ships, and restore thousands of tourism jobs that have been lost in the last three years.

The passenger head tax and a series of other taxes and environmental measures were introduced following a state-wide ballot initiative (a form of referendum) in 2006. Sponsored by a local group called “Responsible Cruising in Alaska,” the initiative introduced a series of new taxes and rules on top of existing ones, including:

- a new $46 per passenger head tax to pay for improvements to port infrastructure, even though cruise lines had already been paying (and still continue to pay) a voluntary improvement tax to almost every port they visit;

- a new $4 per person environmental fee to pay for state-employed Ocean Rangers to sail aboard every ship, even though cruise lines had already voluntarily agreed to rigorous environmental rules and reporting;

- a new 33% gaming fee imposed on the cruise ship casino profits; and,

-  a new, more stringent water emission regulation that is tougher than anything required on land, even though the cruise industry had already invested $200 million to meet previous environmental standards. The new rule is so strict that drinking water used onshore in Alaska has too high a copper content for cruise ships to use and discharge into state waters.

As a result, Alaska has earned the dubious distinction of having the highest cruise passenger tax in the world, as well as having some of the most onerous and costly cruise ship regulations on the planet.  This has squeezed profit margins for ships operating in Alaska, especially with a tough economy making it difficult for cruise lines to pass these increased operating costs on to consumers.

Not surprisingly, cruise lines have begun to move some ships out of Alaskan waters in favour of less costly and more welcoming destinations.  After all, unlike hotels, cruise ships are moveable assets and can be relocated to wherever they can attract the most passengers and earn the most money. In fact, there will be three fewer cruise ships plying Alaskan waters this summer, which will reduce cruise ship visitors to the state by 17% or 140,000 passengers – the first decline in 30 years. And if the tentative agreement is not approved, the decline will continue.

Even if the agreement is approved, more will need to be done. After all, cutting the head tax to $34.50 per person is just a way for Alaska to remove the 25% of the tax that is not being spent in Alaska port communities and which the cruise lines have been arguing is illegal. Under the U.S. constitution, taxes on interstate travel and commerce can only be used to improve facilities for those activities. However, Alaska has been using a portion of the tax to subsidize public projects that have nothing to do with cruising – which is clearly unfair and probably illegal.

So what does all this mean to the cruising public?

For the last 30 years cruise ships have provided an economical way for millions of people to experience the magnificent beauty of Alaska. They’ve worked cooperatively with local ports and state agencies to reduce their environmental footprint, grow tourism, and improve local infrastructure. And they continue to invest in making Alaska the type of destination the traveling public wants to visit.

So let’s hope the Legislature of Alaska will seize the moment in the weeks ahead and begin to reduce the unfair tax and regulatory burden they’ve placed on cruise lines. By doing so, they will ensure that Alaska remains a great destination for cruising, that passengers continue to have lots of choice, and that cruise fares remain affordable for years to come.

Cruise fares to Alaska have reached rock bottom and are unlikely to sink this low again. At least, that’s the view of almost everyone who runs or follows cruise lines for a living including financial analysts and industry executives.

A report from UBS Securities in March confirmed that cruise prices to Alaska were down from the previous year and represented some of the greatest vacation values in the market. The UBS Cruise Pricing Survey tracks pricing across various itineraries and brands, and analyzes pricing year-over-year on a week-to-week basis.

More recently, a report published this month from Raymond James Securities concluded the weakness in pricing continues across all major cruise destinations.

“While it appears that year over year booking declines have moderated
slightly compared to the 1st quarter for European and Alaska itineraries,
it is likely due to the continued pricing declines in the face of an already weakened cruise environment,” reported Raymond James analyst Joe Hovorka.

The Raymond James report concluded that pricing for both Alaska and Europe itineraries has continued to decline: “Alaska is continuing to set a new all-time low in our survey, while Europe is currently at levels not seen since May 2003 (when the ongoing invasion of Iraq kept cruisers away and pricing soft).”

According to Stuart MacDonald, the CEO of Tripharbour.ca / Triphabor.com, Alaska cruise fares on average are down by 35% to 40% over 2008. Some of this reduction is tied to the elimination of fuel surcharges which were in effect last year. But much of it has come from the lowering of base cruise fares to fill empty berths.

“The challenge for cruise lines is that too few people have been chasing too many cruise berths,” says MacDonald. “Americans represent the bulk of cruise passengers in Alaska, and they have cut back significantly on their travel because of the recession. However, cruise lines did not reduce their inventory, and the result has been some of the largest price reductions in the history of the Alaska cruise business.”

In contrast, most cruise lines have announced reductions in the number of sailings they will be offering in Alaska next year, so inventories will be greatly reduced. This will make it possible for cruise lines to avoid the deep level of discounting required this year. In fact, cruise fares released for the 2010 Alaska season show that prices will be higher and much closer to brochure rates.

As Micky Arison, the CEO of Carnival Cruises said last week during a conference call with financial analysts, cruise fares may have finally bottomed out. Almost everyone in the cruise industry agrees, so the only remaining question is how much longer will it be before rates start creeping up again?

It’s too early to say for sure, but with 7-day Alaska cruises recently selling for as low as C$224 per person for an inside cabin (double occupancy, excluding taxes and fees), it’s unlikely we’ll ever see deals this good again.