ALLOWING CRUISE SHIPS IN CANADIAN PORTS

 

Looking out my apartment window across Vancouver harbor, I see the manifestation of another catastrophic policy of the federal. Canada Place, which during normal times would be hosting at least three cruise ships loading passenger for trips to Alaska is totally empty.

During normal times, some of these ships would take passengers on a cruise originating and ending in Vancouver but many would be on their way from Seattle to Alaska and back because the Jones Act required that ships carrying passengers between two US ports must either be staffed entirely by US citizens or stop at a foreign port between them.

This act has now been suspended to restore cruise ship travel to Alaska and to help recovery of that state’s badly suffering tourist-dependent industry. That state’s tourist industry lobbyists can be counted on working hard in Washington to get this suspension made permanent as, without stops in Canada, tourists are likely to spend more time in Alaska enjoying its many attractions.

Let us hope they succeed, and the suspension of Jones Act will be permanent. The act is an economically destructive left-over from the era of nationalist trade policies in the 1920s, which today benefits only a small number of politically influential members of unions in the US maritime sector and imposes high costs on the US economy.

If the Jones Act were removed permanently, cruise ships starting their journey in Seattle would almost certainly continue to stop in Vancouver and Victoria, which offer cruise ship passengers many excellent popular opportunities to sightsee, shop, and dine in Canada’s unique cultural setting. The modern Vancouver airport facilities would again be used by passengers coming from distant places. Cruise ship operators would buy well-priced fuel to run their ships and fresh BC food, and other goods needed to serve their passengers.

The problem facing the province’s cruise ship industry is that the federal government has prohibited cruise ships from entering Canadian harbors until early in 2022, which guarantees the loss of billions of dollars of income by BC businesses and workers that serve cruise ship passengers on land and sell supplies to the ships’ operators. Large federal and provincial tax revenues and charges for the use of docking facilities are lost forever.

The government policy preventing cruise ships from landing on West Coast ports was adopted over the concern that passengers landing in Canada would carry and spread the virus among our population. This concern is no longer valid because cruise ship operators will allow on board only staff and passengers that have been vaccinated. This policy was adopted because the market for cruises had dried up completely in the wake of the widely publicized suffering and deaths of passengers on cruise ships at the start of the pandemic.

One problem with this system is that fake documents could be used to gain access to cruises by passengers who are not vaccinated. This problem can be solved by requiring passengers to possess internationally recognized and government issued vaccine passport. Such vaccine passports are used in some European countries and Israel and may be issued in Canada in response to public demand from many citizens eager to use cruise ships and enjoy uncomplicated air and land travel to and from foreign countries, especially the United States. Private sector systems for the issue of fake-proof documents are likely to become available soon and could be used instead of state-sponsored passports.

The cruise ships can also use quick tests detecting infections before and after passengers go on land excursions. This policy will make the risk of passengers infecting people on land extremely low and compare favorably with the likelihood of infection facing all Canadian residents.

The recent developments in the cruise ship industry and the start of excursions from Seattle to Alaska make it extremely urgent that the government repeal the existing legislation forbidding cruise ships from entering ports on Canada’s coasts. If enacted quickly enough, some cruise ships might return during the 2021 season. Quick removal is needed also to allow cruise planners the long time required to arrange for cruises in 2022 and beyond.  

I hope our government will act quickly and look forward to once again watching majestic cruise ships pass under the Lions Gate bridge and docking at Canada place. And returning the smiles on the faces of passenger visiting our mountains, parks, and restaurants.

Update: Jonathan Helton from the Grassroot Institute of Hawaii informs me that the legislation passed by Congress involves suspension of the provisions of the Passenger Vessel Services Act from 1886, not the Jones Act from 1920. He assures me that most media outlets do not distinguish between these two laws.

Herbert Grubel

Emeritus Professor of Economics

Simon Fraser University