Travel Agent - March 3, 2008 - (Page 79)

Hawaii Cruise Ships—What Do We Make of the Shuffle? WHAT IS HAPPENING TO HAWAII’S CRUISE INDUSTRY? There hasn’t been this much acrimony there since Fantasy Island was cancelled (thank you, I’ll be here all week). But seriously, Norwegian Cruise Line is none too happy with the situation in the Aloha State, where the line’s cruise business has ailed, due partly to foreign-flagged vessels, which have guilefully circumvented cabotage rules that were supposed to protect NCL’s American-flagged ships. The fallout: NCL removed yet another ship from the Hawaii market, just days after pulling Pride of Hawaii out and now there are rumblings that NCL could leave Hawaii altogether. The cruise line announced in February that it was withdrawing Pride of Aloha effective May 11, and transferring the ship to sister company Star Cruises, which will use it on Asia itineraries this summer. Pride of Hawaii will begin sailing in Europe as Norwegian Jade after a brief overhaul, while Pride of America will become NCLs remain’ ing ship in Hawaii, for now. The Honolulu Star-Bulletin has reported that NCL could pull its remaining ship from Hawaii if concessions aren’t made with cabotage rules concerning foreignflagged vessels. Competitors such as Princess and Holland America began sidestepping cabotage rules (which state that a foreign-flagged ship must visit a foreign port between U.S. stops) by calling at ports such as Ensenada, Mexico, for sometimes only an hour and at pre-dawn times. (Princess and many other U.S. cruise lines are foreign-flagged.) level playing field in Hawaii.” Now comes word that NCL is vexed by Hawaii officials and tourism leaders, who haven’t fully backed the line’s efforts to get the U.S. Customs and Border Protection agency to tweak cabotage rules to favor NCL. A new federal rule is on the table that will revisit the issue and, if passed, would compel foreign-flagged ships to remain at a foreign port for at least 48 hours. NCL is backing the rule, while U.S. ports, CLIA and other cruise lines with foreign-flagged ships are, predictably, not in favor. scornful of the name Robert Irsay, the then-owner of the Colts. NCLs pullout, perhaps not as ’ dramatic, was nonetheless a shocking move for the cruise operator that was to be Hawaii’s “It” line. Veitch has said that once laws are “clarified and restored,” bringing back Pride of Hawaii could be an option. NCL’s retraction in Hawaii has opened up the state for other cruise lines looking to get a piece of the action. Only days after NCL’s announcement, American Safari Cruises, which operates a collection of smaller ships, said it was making a beeline for Hawaii in December, launching inter-island cruises for higher-end clientele. “We may be seeing a major shift in Hawaii cruising,” said Tim Jacox, American Safari Cruises’ vice president of sales and marketing. “While the large-ship inventory in Hawaii is shrinking, we’re able to meet a longstanding demand for an intimate, up-close inter-island experience.” — DAVID EISEN CRUISE NCL has had a rocky three-plus years of Hawaii sailing, hampered by flattening demand, service problems and competition from foreign-flagged vessels. (NCL’s three ships were American-flagged, which was supposed to give them a quasi-monopoly on Hawaii cruising by allowing them looser inter-island rules than for foreign-flagged vessels. This soon backfired.) “Our Hawaii business has been extraordinarily difficult,” said Colin Veitch, NCLs president and CEO. “The ’ overall price level in the market has been driven down by an unprecedented expansion of capacity from low-cost, foreign-flagged ships operating domestic Hawaii itineraries. We have invested heavily in U.S.-flag cruising in reliance on our nation’s cabotage laws providing a Future of NCL in Hawaii “No one has taken seriously enough that ships once here can go away again,” Veitch told the Star-Bulletin. “The focus in Hawaii should be on making sure that our one ship remains here.” Otherwise, NCL could do what the one-time NFL franchise Baltimore Colts did on March 28, 1984: Under the cover of a snowstorm, they packed up team belongings onto Mayflower moving trucks and bolted for Indianapolis early the next morning, leaving thousands of Marylanders discombobulated and forever CONNECTING YOU For more information on cruising in Hawaii, visit www.travelagentcentral. com/hawaii Norwegian Cruise Line’s presence in Hawaii is diminishing—and may disappear altogether if concessions aren’t made regarding cabotage rules for foreign-flagged ships March 3, 2008 TravelAgent | 79 http://www.travelagentcentral.com/hawaii http://www.travelagentcentral.com/hawaii

Table of Contents Feed for the Digital Edition of Travel Agent - March 3, 2008

Travel Agent - March 3, 2008 Online Now Contents Contributors From the Editor From the Publisher Special Supplement: Planet Hollywood Florida: We Checkout Four Hotels in Key West, the Southernmost Point in the Continental U.S. Europe: Ruthanne Terrero’s Tuscan Adventure Pacific/Asia: Five-Star Hotels in Bangkok Las Vegas: Where Your Clients Go for Golf Outings Central & South America: Starwood Leads Expansion by Hoteliers in Latin America Pacific Northwest: The Fairmont Empress Celebrates its 100th Birthday this Year Alaska: Take a Tour of Anchorage Alaska Briefs Caribbean & Bahamas: La Romana in the Dominican Republic Offers Fun and Pampering Cruises: The Key to Success for River Cruise Lines Full Panama Canal Transits Cruise Briefs Cover Story: Hot Hotels Special Supplement: Spa Specialist Hotels: Venice Beach Eco-Cottages Hotel Briefs Auto Europe: Company Offers Competitive Prices and High Commissions Agency Profile: The Travel Society Charts a Course for Expansion Revelex Revolution: Deal with Am Ex affirms status as Major Provider in Travel Industry Agenda: Fam Trips, Deals & Incentives, Calendar Volunteer Leadership Future of Hawaii’s Cruise Industry Panda Travel, USA Caribbean News In the Spotlight Classified Marketplace Editorial Index Advertising Index Trendwatch

Travel Agent - March 3, 2008

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