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Split Decision by First Circuit May Lead to UnBarred Harbour for Maine Tourist Town

Kit Yona, M.A.

Article by: Kit Yona, M.A.

Legal Writer

Reviewed by Joseph Fawbush, Esq. | Last updated on

For towns near vacation destinations or that are themselves a treat to visit, a steady stream of tourists can be a matter of survival for both businesses and the municipality. Local residents without a financial interest often have a different opinion of the visitors, viewing them as irritating interlopers who are a constant source of vexation. Trying to find an acceptable compromise can leave both sides frustrated and unsatisfied.

Such is the case in Bar Harbor, Maine, where a battle between townies and an alliance of local businesses and cruise ships has taken the issue to court. A split decision from the U.S. First Circuit Court of Appeals on August 11, 2025, vacated part of the ruling and remanded the core of the dispute back to the district court. At stake is a 1,000-passenger-per-day cruise ship cap that was voted in by the town's residents.

The district court, which originally ruled in favor of the town, must now reweigh the wishes of Bar Harbor's permanent population against the rights to free commerce for local businesses and the cruise ship industry. The appeals court also dismissed several of the claims made by the plaintiffs, including assertions that the tourist cap violated the Dormant Commerce Clause.

Haven't Seen You Here Before ... Are You Local?

Located on Mt. Desert Island off the coast of Maine, Bar Harbor is a popular resort town that serves as the gateway to Acadia National Park. The park, which draws close to four million visits per year, features beaches, 158 miles of hiking trails, and breathtaking scenery. It's one of the ten most-visited parks under the U.S. National Park Service.

While the island's three other towns offer smaller harbors and anchorages, Bar Harbor serves as the primary point for cruise ships to dock and disembark passengers. With a permanent population of just over 5,000 in the 2020 census, residents began to complain about the town being overrun by the unrestricted daily influx of tourists arriving via cruise ships.

In November 2022, Bar Harbor put it to a vote. With a 1,780 to 1,273 result, the residents voted to place a 1,000 passenger-per-day cap on those arriving on and disembarking from cruise ships. Enforcement began in summer 2024, but legal challenges were filed long before that.

The Association To Preserve and Protect Local Livelihoods (APPLL) joined forces with other local businesses and the Penobscot Bay and River Pilot Association to file suit. Arguing that the new ordinance violated the U.S. Constitution and federal maritime laws, it claimed that the impact on local businesses would be devastating. After a trial in 2023, a U.S. District Court upheld the town's ordinance in 2024. A vote to repeal the existing ordinance and replace it with a less restrictive cap in November of that year was defeated by 65 votes. For the time being, the cap would remain in place.

Northern Exposure

The First Circuit panel included retired U.S. Supreme Court Justice Stephen Breyer. In dismissing the charges contesting federal preemption, the court ruled that access to the bay wasn't being restricted, only the number of people permitted to visit Bar Harbor itself. This was determined not to be a constitutional violation.

By remanding the case back to the district court, the ruling indicated that the court needed to be shown the ordinance's actual impact on congestion in the harbor and downtown areas of Bar Harbor before it could provide a just ruling on its merits. With APPLL and the other plaintiffs claiming the opportunity to once again address and possibly alter the cap as a victory, it remains to be seen if they'll be allowed to say "Dirigo."

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