The Passenger Vessel Services Act and America’s Cruise Tourism Industry

James Mak (), Christopher Sheehey and Shannon Toriki
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James Mak: Department of Economics, University of Hawaii at Manoa
Christopher Sheehey: Department of Economics, University of Hawaii at Manoa

No 200917, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: The Passenger Vessel Services Act (PVSA) of 1886, a cabotage law, attempts to shield U.S. maritime shipping from foreign competition. It also applies to the U.S. cruise ship industry. The PVSA requires foreign cruise ships that carry passengers between U.S. ports to also stop at foreign ports. Norwegian Cruise Line America (NCLA), which operates one U.S. flagged cruise ship in Hawaii, wants the U.S. Customs and Border Protection to require foreign cruise ships offering Hawaii itineraries from the U.S. west coast to spend more time in foreign ports. We analyze the merits of NCLA’s proposal. We argue that rather than making the PVSA even more protectionist, the law should be repealed.

Keywords: Passenger Vessel Services Act; PVSA; Norwegian Cruise Lines; NCLA; Protectionism; Cruise industry (search for similar items in EconPapers)
Pages: 22 pages
Date: 2009-11-05
New Economics Papers: this item is included in nep-tur
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http://www.economics.hawaii.edu/research/workingpapers/WP_09-17.pdf First version, 2009 (application/pdf)

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Journal Article: The passenger vessel services act and America's cruise tourism industry (2010)
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