The Honolulu Advertiser reports that a proposed law change that would reduce the amount of time foreign-flagged ships can spend in Hawai'i has been thrown out by the White House Office of Management and Budget.
It's bad news for NCL America, the US-flagged arm of Norwegian Cruise Line, which prompted the attempt to change the law.
NCL America was set up specifically to operate in Hawai'i waters - under US cabotage laws, as a US-flagged operation it is allowed to cruise just in the islands, instead of having to make the long voyage to the islands from the American west coast (four days in each direction) - but it has been struggling to make the venture work.
From operating three ships in the region, it now just has one.
NCL America said it sent the other two ships away because it couldn't compete with rival foreign-flagged ships. ...Norwegian Cruise Lines hasn't backed down from its position that something needs to be done to protect its US-flagged operation in Hawai'i. NCL America's US-flagged ships are at a competitive disadvantage because they're subject to US taxes and labor laws.
Travel Weekly US reports NCL is unhappy with the decision, arguing that its one remaining ship should be protected because it provides significant economic benefits for the islands.
Pride of America provides more than 4,600 jobs, $496 million in total economic impact and $142 million in total earnings impact, "which is almost 3.3 times more than the economic impact attributable to the entire foreign-flag fleet that calls on Hawaii", NCL said.
I have feared the writing is on the wall for NCL America ever since their offer of a cruise in Hawai'i to see the operation was quietly withdrawn.
It is a shame as it would be great to cruise Hawai'i without all those sea days at the start and end of the holiday, which add so much to the time you are away.I wonder, though, why NCL didn't sort this matter out before they went in to the Big 50 with all guns blazing - well three ships anyway - lost money and rather a lot of face.
Hawai'i loss is our gain, of course. Pride of Hawai'i has become Norwegian Jade and is now sailing from Southampton and will be cruising in Europe this winter. Not quite Hawai'i I know, but with all the Hawai'i-themed decor and public area names at least you can dream of bronzed surf dudes and leis!
Jane Archer