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

Author

Listed:
  • 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)

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 We argue that rather than making the PVSA even more protectionist, the law should be repealed.

Suggested Citation

  • James Mak & Christopher Sheehey & Shannon Toriki, 2009. "The Passenger Vessel Services Act and America’s Cruise Tourism Industry," Working Papers 200917, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:200917
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_09-17.pdf
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    References listed on IDEAS

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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. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
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    4. Robert W. Hahn, 1998. "Policy Watch: Government Analysis of the Benefits and Costs of Regulation," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 201-210, Fall.
    5. Joseph Francois & Hugh M. Arce & Kenneth A. Reinert & Joseph E. Flynn, 1996. "Commercial Policy and the Domestic Carrying Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 181-198, February.
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    Cited by:

    1. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2014. "Impact analysis of maritime cabotage legislations on liner hub-and-spoke shipping network design," European Journal of Operational Research, Elsevier, vol. 234(3), pages 874-884.
    2. Wang, Ying & Jung, Kyung-Ae & Yeo, Gi-Tae & Chou, Chien-Chang, 2014. "Selecting a cruise port of call location using the fuzzy-AHP method: A case study in East Asia," Tourism Management, Elsevier, vol. 42(C), pages 262-270.

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    More about this item

    Keywords

    Passenger Vessel Services Act; PVSA; Norwegian Cruise Lines; NCLA; Protectionism; Cruise industry;
    All these keywords.

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