17 October 2008

Cruise industry worth $38bn to North America

The North American cruise industry contributed $38 billion in gross economic output last year, a 6.4% increase over 2006.

Direct spending by the industry and its passengers in the US exceeded $18 billion, 5.9% increase over 2006.

At the same time, the industry maintained a 105% average occupancy rate while increasing capacity, diversifying product and expanding operations worldwide, according to research for the US-based Cruise Lines International Association (CLIA).

Cruises created 354,700 US jobs, positively impacting every state in the country and almost every major industry, according to the association. The study also found that by the end of 2007, CLIA-membersÃ¢â¬â¢ fleets totalled 159 ships, with a capacity of 268,062 lower berths.

Member cruise lines carried an estimated 12.56 million passengers worldwide, a 4.7% increase over 2006.

Of this, there were 9.45 million US cruise passengers, accounting for 75% of all cruisers.

The number sailing from US ports totalled 9.18 million, a two per cent increase and a 73 per cent share of global embarkations.

Latest passenger statistics for the first half of 2008 saw an overall 5.43% increase in passengers worldwide, CLIA reported.

CLIA president and CEO Terry Dale said: "Two clear messages result from the 2007 economic impact study and the January-June passenger figures.

"First, the North American cruise industry continues to make a significant and growing contribution to the American economy and the industry is generating business development and investment, job creation and spending in all 50 states.

"Second, these positive indicators reflect the fact that consumers continue to respond strongly and positively to the outstanding value that a cruise vacation represents and the innovative product such a vacation offers."

Dale said the economic growth is a result of CLIA member lines' decisions to offer customers affordability, increased choice in destinations around the world, innovative onboard amenities and recreation, worldwide itineraries and more and more ports of embarkation close to where millions of Americans live.

"Even in uncertain economic periods, the US consumer recognizes these factors as a strong value proposition," he said.

International consumers are increasingly attracted to cruising as a result of new and additional capacity deployed in the Mediterranean and Europe, Dale added.

Figures for the first half of 2008 show a 31% increase in internationally sourced passengers.

"It has been encouraging to see sustained passenger growth and high cruise occupancies,Ã¢â¬~ said Dale.

Ã¢â¬ÅâœWhile much of the passenger growth stemmed from internationally sourced guests, North American sourced passengers also posted modest year-over-year gains of .29% through the second quarter.

Ã¢â¬ÅâœIn 1995, as little as 10.6% of guests sailing on CLIA member cruise lines were sourced outside of North America and, year to date, that percentage has grown to 20.5%.

Ã¢â¬ÅâœThe international markets are increasingly important to many CLIA member lines and it is gratifying to see that their investment in these regions is paying off so quickly."

A Report by Phil Davies