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

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Author Info

  • James Mak

    ()
    (Department of Economics, University of Hawaii at Manoa)

  • Christopher Sheehey

    (Department of Economics, University of Hawaii at Manoa)

  • Shannon Toriki

    (Department of Economics, University of Hawaii at Manoa)

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    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 We argue that rather than making the PVSA even more protectionist, the law should be repealed.

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_09-17.pdf
    File Function: First version, 2009
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    Bibliographic Info

    Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200917.

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    Length: 22 pages
    Date of creation: 05 Nov 2009
    Date of revision:
    Handle: RePEc:hai:wpaper:200917

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    Keywords: Passenger Vessel Services Act; PVSA; Norwegian Cruise Lines; NCLA; Protectionism; Cruise industry;

    This paper has been announced in the following NEP Reports:

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    1. Clifford Winston, 1998. "U.S. Industry Adjustment to Economic Deregulation," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 89-110, Summer.
    2. repec:reg:rpubli:234 is not listed on IDEAS
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