scubafanatic
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I think I'd look upon someone other than an official in a port asking for my passport with extreme suspicion. Unless I was banking and in that case I expect it right back after they inspect it.
Maybe I wouldn't do well in that part of the world. My only international travel has been to Mexico, and only the border guys at the airport wanted to see my passport - and they certainly didn't keep it.
A hotel or boat outside the us wanting to keep my passport seems like a hotel or boat in the us wanting to keep my drivers license. Neither is going to happen. They can see it, maybe make a copy of it.
I'll admit I wasn't super thrilled about it either, but at that point on one's trip/vacation what are ya gonna do about it ? Gotta roll with the punches and improvise.