Alaska Officials Explore Direct Cruise Ship Routes Amid Trade Tensions with B.C.

Officials in Alaska are renewing their push to amend a 139-year-old law known as the Passenger Vessel Services Act (PVSA), which mandates that U.S. passenger ships must stop at a foreign port when traveling between U.S. ports. This law currently requires cruise ships departing from Seattle to make a stopover in Victoria, British Columbia, before continuing to Alaska.

U.S. Senator Dan Sullivan, who represents Alaska, is advocating for Congress to revise this legislation or for President Donald Trump to issue an executive order to eliminate the PVSA. The aim is to allow more direct cruise routes to Alaska without the obligatory Canadian stop, which Sullivan argues would significantly bolster Alaska’s economy and tourism industry at the expense of B.C. ports.

This initiative comes in light of British Columbia’s introduction of new road tolls for U.S. commercial vehicles, enacted as a response to U.S. tariffs on Canadian goods imposed by the Trump administration. Alaska’s officials view this as a retaliatory measure, pushing for legislation that could allow cruise lines to bypass Canadian ports altogether.

If successful, this change could drastically affect the cruise industry in Victoria, where stopover traffic from cruise ships is vital. Conversely, Vancouver’s cruise business, primarily serving as a homeport for Alaskan itineraries, might see less impact. Recent history shows cruise lines have maintained a strong presence in Vancouver, with Disney Cruise Line returning to the city each year since 2013 after a brief period of operation in Seattle.

The PVSA repeal isn’t a new concept. Discussions were held back in 2021, when the pandemic led to the suspension of cruise operations, and Alaskan leaders sought exemptions to restart tourism without Canadian ports. The response from the federal government at that time was an executive order that temporarily exempted Alaska and Hawaii from the PVSA, although the cruise industry did not rebound as expected in 2021, largely due to challenges posed by the pandemic and logistical limitations.

In recent years, some Alaskan communities, particularly Juneau, have expressed concerns over the overcrowding caused by cruise ship passengers. Despite a recent referendum that showed opposition to limiting cruise ships, local businesses are concerned about the potential economic effects on tourism revenue and community jobs.

For Victoria, the harbor authority reported approximately 970,000 passengers visiting in 2024, down from a record high of one million in 2019. In contrast, Vancouver’s Canada Place terminal has reported increasing passenger volumes, fueled by pent-up demand post-pandemic, with expectations for 1.2 million passengers in 2025.

The growing tensions in trade relations between the U.S. and Canada may affect visitor numbers across the border, as calls for boycotting American destinations arise. However, the lower value of the Canadian dollar could potentially mitigate some of these impacts by appealing to American tourists.

The overall implications of a potential repeal of the PVSA could be substantial for the economies of both British Columbia and Alaska, as they navigate the complexities of tourism, trade, and legislative changes amid shifting international relations.

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