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					                                                                                          The Economic Impact of

                                   Carnival Cruise Lines Operations
                                                                            in the Long Beach Economy and
                                                                              the State of California, 2006




              Carnival Corporation: A Global Company

              Carnival, one of the most popular and profitable cruise lines in the world, began in 1972 as the vision of the late
              Ted Arison. Today, Carnival Corporation operates a fleet of 87 ships, with another 20 ships scheduled for delivery
              between now and 2012. At any given point in time, there are more than 215,000 people sailing aboard the Carnival
              fleet, with over 160,000 guests and 80,000 shipboard employees worldwide.

              The North American cruise industry accounts for over 80 percent of worldwide passenger embarkations. Carnival
              Corporations is the unquestioned market leader with 50 percent of all embarkations. Carnival Cruise Line is the
              largest single cruise line in the industry with over 3 million annual passengers and a market share of 33 percent.




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                         Economic Impact of Carnival Cruise Lines Operations
                     in the Long Beach Economy and the State of California, 2006

        The Long Beach Cruise Terminal                                          Economic Impacts

        In 2003, the Long Beach Cruise Terminal opened, representing            Economic impacts from Carnival Cruise Lines’ Long Beach Cruise
        an investment of $50 million. The construction of the passenger         Terminal arise from:
        terminal was unique in that it marked the first time a cruise
        company, Carnival Corporation, built a port in the United States        • Spending by cruise passengers and crew members for goods and
        from scratch, including the terminal and pier.                          services associated with the cruise. In 2006, cruise passengers and
                                                                                crews spent $24.9 million in the local economy.
        Carnival Cruise Lines has two ships positioned out of Long Beach.
        Carnival Pride is a ship with 2,124 lower berths that provides a        • Spending by Carnival Cruise Lines’ operations staff at the
        seven-day cruise usually to the Mexican Rivera, with ports of call in   terminal and their expenditures for goods and services, including
        Puerto Vallarta, Mazatlan, and Cabo San Lucas. Carnival Paradise        food and beverages, fuel, hotel supplies, equipment and so forth. In
        is a ship with 2,052 lower berths that provides three and four day      2006, Carnival Cruise Lines spent $57.5 million on its operations
        cruises to Baja Mexico (Ensenada Mexico and Catalina Island).           and purchasing within the local economy.

        The Long Beach Cruise Terminal served approximately 400,000             • The $82.4 million in direct expenditures generated an
        individual passengers annually or 800,000 embarkations and              employment impact of 536 jobs and an annual payroll of $18.2
        disembarkations. Almost 20 percent of cruise passengers are             million.
        out-of-the-area and generate approximately 53,000 room nights in
        either pre or post cruise stays in the local economy.                   The direct expenditures of $82.4 million, in turn, yield indirect and
                                                                                induced impacts in the regional and state economies.

                       Passengers & Crew Spending,
                                                                                • In the regional economy, defined as the counties of Los Angeles,
                              $24.9 million
          millions                                                              Orange, San Diego, Riverside, San Bernardino, and Ventura, the
          $30.0                                                                 total economic impact of Carnival Cruise Lines was $126.6 million,
                                                             $24.9 million      an annual payroll of $28.9 million and 792 jobs.
          $22.5
                                         $20.5 million

                                                                                • At the state level, Carnival Cruise Lines’ Long Beach operations
          $15.0
                                                                                generated a total economic valued at $132.4 million, an annual
                                                                                payroll of $31.2 million supporting 847 jobs. The total economic
              $7.5
                      $4.4 million                                              impact for the State of California is only slightly higher than that of
                                                                                the region, indicating that much of the economic impact of Carnival
               $0
                         Crew            Passengers             Total           is in the local and regional economy.




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                                                                                Future Prospects
                   Carnival Cruise Lines Direct Expenditures,
                                 $57.5 million
                                                                                On March 29, 2009 one of Carnival Cruise Lines newest ships,
              millions
                                                                                Carnival Splendor, is scheduled to replace Carnival Pride for the
              $60                                               $57.5 million   seven day voyages to the Mexican Rivera. Carnival Splendor is a
              $50
                                                                                113,300-ton vessel with a maximum passenger capacity of 3,700. The
                                                                                deployment of Carnival Splendor requires a $10 million construction
              $40                             $36.6 million                     expenditure for an additional berth and related expenditures to the
                                                                                pier and the Long Beach Cruise Terminal.
              $30

                           $20.9 million                                        Carnival Splendor will have additional economic impacts with its
              $20
                         Ship Provisions     Port & Operating      Total        increased capacity of 1,000 additional passengers and an additional
                                                   Costs        Expenditures
                                                                                300 crew members per cruise. Had Carnival Splendor been deployed
                                                                                in Long Beach during 2006, the total annual passengers would have
                                                                                increased by 50,000. In 2006 dollars, these additional passengers
                                Total Direct Expenditures,                      would have spent $5.4 million; added crew members would have
                                       $82.4 million                            spent $600,000; the economic impact of Carnival Splendor would
              millions
                                                                                have increased direct expenditures in the local economy by $6 million.
              90
                                                                82.4 million
                                                                                The added capacity of Carnival Splendor would cause Carnival
              70
                                              57.5 million                      Cruise Lines purchases of goods and services to increase$3 million.
              50                                                                Staffing levels for embarkation, disembarkation, security and added
                                                                                personnel would have involved additional $5 million expenditure.
              30           24.9 million                                         Overall, the additional economic impact of Carnival Splendor would
                                                                                have been $14 million in direct annual expenditures. These added
              10
                         Passengers & Crew      Carnival
                                               Cruise Lines
                                                                Total Direct
                                                                Expenditures
                                                                                expenditures would have increased the direct expenditures from
                                                                                $82.4 million to $96.4 million.




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                              Total Economic Impact of Carnival Cruise Lines Operations
                                      in the Long Beach Economy and the State

              Activity                                          Direct              Indirect             Induced                 Total

              Operations and Purchasing                      $57.5 million        $17.1 million        $16.5 million          $91.1 million

              Passenger and Crew Spending                    $24.9 million        $8.2 million         $8.2 million           $41.3 million

              Total                                         $82.4 million        $25.3 million        $24.7 million          $132.4 million

              Jobs

              Operations and Purchasing                          297                   78                  123                    498

              Passenger and Crew Spending                        239                   49                   61                    349

              Total                                              536                  127                  184                    847

              Payroll

              Operations and Purchasing                      $11.9 million        $3.9 million         $4.6 million           $20.4 million

              Passenger and Crew Spending                    $6.4 million         $2.1 million         $2.3 million           $10.8 million

              Total                                         $18.2 million         $6.0 million         $6.9 million          $31.2 million




                                      Economic Impact Study of Carnival Cruise Lines Operations
                                This study was prepared by Drs. Lisa M. Grobar and Joseph P. Magaddino of the Office of
                                Economic Research at California State University, Long Beach. The authors may be contacted
                                at 562.985.5061 or oer@csulb.edu. 2008




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