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S. 1510, the United States Cruise Ship Tourism Development Act of 1999

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S. 1510, the United States Cruise Ship Tourism Development Act of 1999 S. HRG. 106–1065 S. 1510, THE UNITED STATES CRUISE SHIP TOURISM DEVELOPMENT ACT OF 1999 HEARING BEFORE THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED SIXTH CONGRESS FIRST SESSION OCTOBER 6, 1999 Printed for the use of the Committee on Commerce, Science, and Transportation ( U.S. GOVERNMENT PRINTING OFFICE 75–053 PDF WASHINGTON : 2002 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 11-MAY-2000 11:06 Jul 09, 2002 Jkt 075053 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 75053.TXT SCOM1 PsN: SCOM1 SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED SIXTH CONGRESS FIRST SESSION JOHN MCCAIN, Arizona, Chairman TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii SLADE GORTON, Washington JOHN D. ROCKEFELLER IV, West Virginia TRENT LOTT, Mississippi JOHN F. KERRY, Massachusetts KAY BAILEY HUTCHISON, Texas JOHN B. BREAUX, Louisiana OLYMPIA J. SNOWE, Maine RICHARD H. BRYAN, Nevada JOHN ASHCROFT, Missouri BYRON L. DORGAN, North Dakota BILL FRIST, Tennessee RON WYDEN, Oregon SPENCER ABRAHAM, Michigan MAX CLELAND, Georgia SAM BROWNBACK, Kansas MARK BUSE, Staff Director MARTHA P. ALLBRIGHT, General Counsel IVAN A. SCHLAGER, Democratic Chief Counsel and Staff Director KEVIN D. KAYES, Democratic General Counsel (II) VerDate 11-MAY-2000 11:06 Jul 09, 2002 Jkt 075053 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 75053.TXT SCOM1 PsN: SCOM1 C O N T E N T S Page Hearing held October 6, 1999 ................................................................................. 1 Statement of Senator Abraham .............................................................................. 25 Statement of Senator Brownback ........................................................................... 23 Prepared statement .......................................................................................... 24 Joint Letter of support for S. 1510 .................................................................. 24 Statement of Senator Cleland ................................................................................. 26 Statement of Senator Gorton .................................................................................. 27 Statement of Senator Hutchison ............................................................................ 4 Prepared statement of Senator Inouye .................................................................. 5 Articles .............................................................................................................. 6 Statement of Senator McCain ................................................................................. 1 Prepared statement .......................................................................................... 3 WITNESSES Colenda, Cynthia A., President, International Council of Cruise Lines ............. 29 Prepared statement .......................................................................................... 31 Murkowski, Hon. Frank H., U.S. Senator from Alaska ....................................... 21 O’Toole, Lawrence H., President, Marine Engineers’ Beneficial Association ..... 53 Prepared Statement ......................................................................................... 55 Sanchez, Veronica, Executive Director, Cruising America Coalition .................. 45 Prepared statement .......................................................................................... 47 Walker, Allen, President, Shipbuilders Council of America ................................ 56 Prepared statement .......................................................................................... 59 Wallack, Al, President, Voyager Holdings, Inc ..................................................... 38 Prepared statement .......................................................................................... 39 Welch, Edmund B., Legislative Director, Passenger Vessel Association ............ 40 Prepared statement .......................................................................................... 42 APPENDIX Brennan, Mary S., Chairperson, Legislative Committee, forwarding statement by National Association of Cruise-Oriented Agencies ....................................... 84 Brown, Cynthia L., President, statement on behalf of the American Ship- building Association ............................................................................................. 83 Calian, Philip, President and Chief Executive Officer, American Classic Voy- ages Co. letter dated October 5, 1999 to Senator McCain ................................ 83 Connors, John P., on behalf of the American Hotel & Motel Association, letter dated October 1, 1999, to Hon. John McCain .......................................... 86 Feinstein, Hon. Dianne, U.S. Senator from California, prepared statement ...... 75 Frevola, Jr., Albert L., General Counsel, SeaAmerica Cruise Lines, Inc. pre- pared statement ................................................................................................... 88 Galloway, Joseph L., President and CEO, American Society of Travel Agents, letter dated October 5, 1999, to Hon. John McCain .......................................... 87 Hawks, John K., President, Association of Retail Travel Agents, letter dated October 5, 1999 to Hon. John McCain ................................................................ 87 Letter dated October 5, 1999, to Senator Inouye, signed by Directors in the Shipbuilding Industry ................................................................................... 81 Maritime Cabotage Task Force, summary of prepared statement ...................... 89 (III) VerDate 11-MAY-2000 11:06 Jul 09, 2002 Jkt 075053 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 75053.TXT SCOM1 PsN: SCOM1 IV Page Monroe, Michael E., General President, International Brotherhood of Painters and Allied Trades, letter dated October 5, 1999 to Senator Inouye ................ 82 Nagle, Kurt J., President, American Association of Port Authorities letter dated September 23, 1999 to Hon. John McCain .............................................. 86 Response to written questions submitted by Hon. John McCain to: Lawrence H. O’Toole ........................................................................................ 79 Allen Walker ..................................................................................................... 78 Al Wallack ......................................................................................................... 76 VerDate 11-MAY-2000 11:06 Jul 09, 2002 Jkt 075053 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 75053.TXT SCOM1 PsN: SCOM1 S. 1510, THE UNITED STATES CRUISE SHIP TOURISM DEVELOPMENT ACT OF 1999 WEDNESDAY, OCTOBER 6, 1999 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Washington, DC. The Committee met, pursuant to notice, at 9:35 a.m. in room SR– 253, Russell Senate Office Building, Hon. John McCain, Chairman of the Committee, presiding. Staff members assigned to this hearing: Robert Freeman, Repub- lican professional staff; and Carl Bentzel, Democratic senior coun- sel. OPENING STATEMENT OF HON. JOHN McCAIN, U.S. SENATOR FROM ARIZONA The CHAIRMAN. Good morning. Cruise tourism is a booming in- dustry worldwide, with roughly 4 million American passengers an- nually. However, due to barriers in an obscure 1886 law, commonly referred to as the Passenger Vessel Services Act, most of our Na- tion’s port cities are missing out on this economic boom. These bar- riers limit the choices Americans have when deciding on a cruise vacation by restricting the operation of internationally owned and operated vessels from making successive calls on our coastlines. Additionally, new American companies that want to enter the large cruise ship domestic market are faced with barriers that pre- vent them from purchasing vessels already in operation. Instead, they are forced to try and overcome what to date has been the in- surmountable task of acquiring financing to build a vessel in a U.S. shipyard at costs well above the world market. The task of acquir- ing financing is made more difficult by recent reports that point to an oversupply of vessels in the industry. It has become clear that the Passenger Vessels Servicing Act is prohibiting American cruise passengers from cruising between U.S. ports and preventing a wide range of American maritime business and workers from benefiting from increased domestic trade. The protections obstacles to trade contained in the Passenger Vessel Services Act are neither bringing about U.S. flag ownership liners, nor creating American cruise industry jobs. I remain a firm be- liever in removing obstacles to free trade, and it is clearly time to revisit the Passenger Vessels Services Act. At a minimum, the Act must be reformed in order to benefit the cruising consumer, the travel agents, the U.S. ports, and the busi- nesses, stevedores, longshoremen and other workers who service and supply cruise ships sailing in the domestic market. (1) VerDate 11-MAY-2000 11:06 Jul 09, 2002 Jkt 075053 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 75053.TXT SCOM1 PsN: SCOM1 2 I am aware of recent advancements in the U.S. domestic cruise market that will introduce new vessels to the market. However, I remain convinced that the domestic market will remain virtually stagnant
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