Did not want to pay US taxes or aide by US employment regulations
http://www.crew-center.com/why-cruise-ships-sail-under-foreign-flag’s
Working for a cruise line which is registered under a flag other than the American can be complicated, especially when there is a need to address certain rights, such as workman's compensation, discrimination, abuse and/or harassment, as well as other work related issues and problems.
In the entire cruise line industry there is only one cruise line company which has its ships registered under the American flag, all others are registered in foreign countries such as Panama which are more lenient with big corporations, but not to individual employees.
The Cruise Lines International Association explains the reason behind the fact that 90% of the cruise liners register their ships under a foreign flags due to the “capabilities of the flag to deliver the services needed; representation and reputation of the flag in the international shipping community; the performance of the flag state, which dictates how a ship is prioritized by port states; the pool of seafarers able to meet the need of the flag; and the flag’s fees/charges and taxes.”
Many cruise line companies deem that the regulations which follow registration under the U.S. flag are unattractive, therefore they lean towards a country which has regulations and laws which benefit the company and its operation. Some claim that the corporations which sail under a foreign flag do so simply to avoid the American safety and consumer protection regulations and laws. The Federal Maritime Commission also understands and acknowledges this fact by giving the following statement “it is important to know that the Commission has no authority over: passenger line vessel operations, safety issues, amenities onboard vessels or fare levels.”
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