ACTA is supporting the advocacy efforts of the Tourism Industry Association of British Columbia (TIABC) and the Cruise Line Industry Association (CLIA) by strongly urging the federal government to protect the future of Canada’s West Coast Alaska cruise program.
ACTA and the cruise line industry support the health and safety of Canadians being paramount—and as vaccines roll out across Canada and the USA, ACTA says, “it is important that the infrastructure for cruising remain intact for the future, and at the same time allow for the potential of sailings later in 2021. There are significant lobbying efforts underway in the USA for a workaround to the US Passenger Vessel Services Act that could gravely impact the future of the cruise line industry in Canada.”
The US Passenger Vessel Services Act, often referred to as the Jones Act (as it is a piece of legislation within the Jones Act), prohibits ships of Non-US registry from embarking and disembarking guests at two different US ports. The exception to this rule is if the itinerary includes a distant foreign port. By including Canadian ports on Alaska itineraries, for example, cruise lines can offer one -way itineraries between the US ports and Alaska ports.
In February, the Canadian federal government extended the cruise ban in Canada to February 2022.
In early March, two US Senators Lisa Murkowski and Dan Sullivan from Alaska, joined the growing lobby effort to save the Alaskan cruise industry by introducing new legislation. The Alaska Tourism Recovery Act, if passed, would allow cruise ships to sail to Alaska without requiring a stop in Canada.
Workaround could become permanent
“We are very concerned that this temporary change to the US Passenger Vessel Services Act could become permanent” said Wendy Paradis, President, ACTA. “At the very minimum, in 2021, the Canadian government should allow an operational or “technical” stop in Victoria to satisfy the Jones Act and thus allow Seattle-based Alaska cruises to run this season, with the required stop in Canada. It keeps port operations continuing and will allow for a more expeditious start when the cruise ban order is lifted.”
She added: “If cruise ships are no longer required to call at Canadian ports, this may have a long term and devastating impact on the B.C. economy and the Canadian travel industry.”
Economic impact of Alaska cruises on Canada
ACTA recently discussed the economic impact of the cruise ban to the BC economy with MP Tako Van Popta, for Langley – Aldergrove, BC. MP Van Popta raised this point – and the risk of US workarounds –directing questions to the Minister of Transport during the March 9, 2021 Question Period in the House of Commons.
The economic impact to B.C in 2019 was $2.72 billion and 17,384 jobs. Amendments to the US Passenger Vessel Services Act in 2021 would also have significant and negative impact to the East Coast – Atlantic cruise market as well. The overall economic impact to Canada (including the Atlantic cruise line industry) is $4.278 billion – direct and indirect.
“This economic impact also includes the loss to travel agencies, travel agents and independent travel agents and is another important issue that underscores the urgent need for the governments to start working with industry on a roadmap to recovery that will protect jobs and the Canadian travel industry infrastructure,” said Paradis.