Friday, December 27, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, March 20, 2020
The Cruise Industry Assistance Washington Should Give: Repeal the Passenger Vessel Services Act
By Cato Foundation @ 3:00 AM :: 2137 Views

The Cruise Industry Assistance Washington Should Give: Repeal the Passenger Vessel Services Act

by Colin Grabow, Cato Foundation, March 19, 2020

As the coronavirus produces gaping holes in the balance sheets of companies throughout the economy, President Trump has given numerous indications that he considers the cruise industry a prime candidate for a federal bailout. With many of the world’s major cruise lines headquartered in electorally‐​important Florida, that’s not a surprise.

But before appropriating a single dollar of taxpayer money to these cruise lines, Congress and the White House should opt for another form of relief: repeal of the Passenger Vessel Services Act (PVSA). Passed in 1886, the law mandates that vessels transporting passengers within the United States be U.S.-flagged, U.S.-crewed, U.S.-owned, and U.S.-built. Its provisions largely mirror those of the better‐​known Jones Act but apply to people instead of cargo.

Like the Jones Act, the PVSA has been hurting the country almost since its inception. Indeed, after Hawaii was annexed by the United States, and thus became subject to cabotage laws such as the PVSA, representatives from the territory complained that transportation to the U.S. mainland became more difficult than when Hawaii was still an independent kingdom. The advent of commercial air travel, which is not subject to a U.S.-build requirement for domestic service, has thankfully eliminated this hassle.

Fortunately for the cruise industry, the PVSA’s restrictions can be avoided if voyages departing from the United States feature at least one stop in a foreign port. This explains why cruises to Alaska departing from Seattle typically include Victoria, Canada on their itinerary or why cruises from the West Coast to Hawaii often have passengers disembark for a few hours in Ensenada, Mexico.

These unnecessary ports of call result in wasted time and resources. That translates into higher costs and reduced competitiveness for the cruise industry. But it’s also bad for U.S. tourism. Visits to Ensenada or Victoria is time not spent enjoying the sights and attractions of Alaska or Hawaii.

The PVSA, meanwhile, has done nothing to foster a U.S.-flagged cruise industry. Indeed, such ships are almost non‐​existent. Of all the world’s oceangoing cruise ships only a single one, Norwegian Cruise Lines’ Pride of America, complies with the PVSA’s strictures. But even this lone vessel comes with a rather large asterisk:

In 2001, powerful Southern senators arranged for U.S. taxpayers to subsidize a shipyard in Mississippi so it could build a cruise vessel. It tried, and it failed. Within a year, a bungled, half‐​completed hull was declared “unfloatable” and was towed across the Atlantic to be completed in Germany for Norwegian Cruise Lines. But to avoid embarrassment to the U.S. government, the ship is still billed as “Made in America” and is free from the knotted mooring of the Passenger Vessel Services Act.

The case for repealing the PVSA, or at least exempting large cruise ships from its requirements, is overwhelming. It would provide needed economic relief to both the cruise industry and the U.S. destinations they visit at no cost to taxpayers. Equally important, it would be a powerful signal of Washington’s seriousness of purpose in confronting the current crisis and willingness to slaughter the most sacred of cows, including the country’s protectionist maritime laws, in order to place the economy on a steadier footing. Markets would surely take notice. The time to act is now.

---30---

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii