Cruise Ships A Caribbean Example by rwq19624

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									             Cruise Ships:
          A Caribbean Example

• Caribbean accounts for half of world cruise business
    o Almost 15 million passenger arrivals in 2000
    o Cruise tourism has grown much faster than land
       tourism
    o Most popular destinations: Bahamas, US Virgin
       Islands, Cozumel (Mexico), Puerto Rico, Cayman
       Islands, Jamaica
    o Many smaller islands have seen huge growth (St
       Lucia, Dominica, St Kitts & Nevis, Aruba, Curaçao)
    o Most cruises sail from Miami or Port Everglades
       (Florida) or San Juan (Puerto Rico)
            International airport connections

• Huge growth in cruise industry in 1990s
    o 28 new ships built, most for Caribbean
    o Royal Caribbean Cruise Line, Carnival Cruise,
      Holland America, and Princess the major lines
    o Princess spent almost $1 billion on 3 ships
    o Disney also enters cruise market
    o “Bigger is better” philosophy
              Some new ships take nearly 4000 passengers plus
              1000 crew
              Carnival Glory has 14 passenger decks, 22 bars
              and lounges, 15,000 sq ft health club, 4
              swimming pools, 3 restaurants (including upscale
              steakhouse-style supper club)

Economic Impacts

  • Cruise taxes
      o Range in different countries from $1.50/person in
         Guadeloupe to $15/person in Jamaica and Bahamas
      o 1990s attempts by Organization of Eastern Caribbean
         States (OECS) to standardize tax at $10/person
      o Retaliation by cruise lines: some destinations dropped
         (St Lucia)
      o OECS drops the new tax regime

  • Environmental levy
      o OECS imposes $1.50/person levy to finance waste
        management
      o Cruise industry objects, claiming “zero discharge” and
        their own waste management facilities
      o Industry eventually agrees to levy
• Local contributions
    o Cruise lines pay less tax than land-based tourism
            No corporate, luxury, or casino taxes
    o Few jobs for locals (unlike land-based tourism)
            No construction or hotel jobs
            Cruise jobs low wage, unappealing to locals
    o Little supplying of goods to ships
            Most cruise ships purchase from elsewhere
            Customer demands for familiar foods
            Price savings from non-local suppliers
            Reliability of supply from non-local suppliers
    o Flags of convenience
            Most cruise ships registered in Panama and other
            such places, not bound by American or local
            labor laws, taxes, and regulations
            European officers but developing-country crews
            (e.g. Latin America, Philippines, India,
            Bangladesh)
    o Cruise ship lines owned by foreigners, not locals
      (unlike hotels)

• Infrastructure
     o Ports have purpose-built duty free malls and/or tourist
       shops, often stocked with imported merchandise
     o Infrastructure financed by local (national) government
     o Cruise lines will avoid ports with inadequate facilities
• Spending patterns
    o Spending differs by location
           US Virgin Islands $259.80/day
           San Juan $53.80/day
           Antigua $27.70/day
           St Vincent $17.20/day
    o Cruise lines buying or leasing their own islands
           Lower costs
           Avoidance with locals
    o Cruise experience promoted over local experience
           On-board amenities
           Cruise staff promotion of some local places over
           others
           “People do not come to us to visit the Caribbean
           but to be on our boats” –Cruise line spokesman

• Cruise lines generate economies of scale, local impacts less
  (at least economically) than land-based tourism-related
  businesses

• Different kinds of tourist experiences: cruise ship vs land
  (fishing, sailing, water sports, cultural)


• More info: Patty Pattullo, Last Resorts: The Cost of
  Tourism in the Caribbean, 2003

								
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