Change to cruise law
might help isles
The 111-year-old
By Pete Pichaske
Passenger Services Act needs
a waiver, some say
Phillips News ServiceWASHINGTON -- More cruise ships will sail to Hawaii from the mainland if a 111-year-old maritime law is amended by Congress, supporters of the change say. Under the Passenger Services Act of 1886, intended to protect ferry boats on the Great Lakes, foreign cruise ships cannot stop at two consecutive U.S. ports.
Californians who want to sail to Hawaii, for example, must first stop in Mexico or Canada.
Travel and tourism officials say the law is outdated since there is no U.S. cruise business to protect anymore -- the only U.S.-flagged cruise ship is the interisland ship S.S. Independence operated by American Hawaii Cruises -- and that it hamstrings the cruise business.
Backers have persuaded several members of Congress to propose waiving the law and opening the market for domestic cruises, a change they say would add $1 billion a year to cruise business coffers and boost tourism in coastal states like Alaska, California, Texas -- and Hawaii.
"I could see this as very advantageous for Hawaii," said Mary Brennan, head of the National Association of Cruise Only Agencies.
"I would love to be able to sell a direct cruise to Hawaii."
A study by the California Division of Tourism predicted that waiving the ban would make a California-Hawaii trip more attractive to passengers by eliminating the customary bus trip to Mexico.
Researchers proposed sample itineraries for new routes that included cruises directly to Hawaii from San Diego, San Francisco and Monterey, California.
Still, not everyone is convinced.
At a Senate Hearing yesterday before the Commerce, Science and Transportation Committee, a representative of the AFL-CIO's maritime unions condemned the proposal as harmful to the U.S. maritime industry.
"Allowing foreign-flag cruise ships to operate in the U.S. coast-wise trade for an indefinite length of time would severely undermine efforts to expand the U.S.-flag fleet," said Frank Pecquex.
He contended the change would block development of a market for U.S. cruise ships and argued that foreign ships are not subject to the stringent safety standards that govern U.S. ships.
Hawaii Sen. Daniel Inouye, a committee member, also was skeptical.
In his opening statement, Inouye said it was not assured that foreign cruise operations would add lines if the change was made. And, he questioned whether the companies would be subject to the same immigration, fair labor, environmental and tax laws as U.S. businesses.
Inouye said the cruise ships, which he called "floating resorts," would compete with land-based resorts.
"Before we make decisions that would allow large foreign flag cruise ships that are subject to different rules to operate exclusively in domestic service in competition with these businesses, I think we should hear from those businesses," said Inouye.
But William Thayer, president of Waldron Steamship Co., which represents as ship agents about three-quarters of the cruise lines in Hawaii, said hotels erroneously see cruise ships as competition.
Cruises actually can boost hotel business, he said, as passengers often stay in hotels before or after cruises, and they spread word of a destination when they return home.
"Hotels see anything else as a potential threat," said Thayer.
"I see cruise ships as working in concert. There's a lot more business available for everybody," he added.
About 150 cruise ships will sail to Hawaii this year, said Thayer, and the number is expected to increase next year. The increase would be even greater, he agreed, if the restriction on foreign ships was lifted.
Under the law, American Hawaii Cruises, as an existing U.S. line, would be protected from foreign competition and retain its hold on inter-island cruises.
