CLIA report shows value of cruise industry to UK economy

The cruise industry contributed €10.4 billion to the UK economy last year, according to a report by CLIA.

It claimed this represents around 22% of the cruise industry’s total output across Europe.

The report, conducted by the Business Research & Economic Advisors on CLIA’s behalf, found there was €3.85 billion direct expenditure, up 18% on 2015 and almost €1.5 billion more than in 2009.

The remaining €6.55 billion was indirect and induced expenditure.

Direct expenditure was mainly distributed across cruise line purchases (€2,481 million), passenger and crew spending (€559 million), compensation of cruise line employees (€675 million) and ship repairs (€135 million).

CLIA UK & Ireland director Andy Harmer said: "The figures released today bear testament to the cruise industry continuing to make significant contributions to the UK’s economy and the multi-billion valuation shows that cruise is a major player within the travel sector.

"More Brits are choosing a cruise holiday, more cruise passengers are embarking on a cruise from UK ports and the number of ports-of-call visitors continues to increase. This, along with more jobs being created through the cruise industry, translates into great economic benefits for the country."

A total of 1,094,000 cruise passengers embarked on a cruise from UK ports, an increase of 34,000 from 2015. More than 80% departures were from Southampton.

The UK also experienced growth in ports-of-call visits, with 1,415,000 passengers visiting a UK port in 2017, up 39% on 2015. The most visited British port was Invergordon, Scotland, with an estimated 134,000 cruise passengers going ashore.

These port-of-call visits generated an additional €113 million in direct expenditures such as tours and souvenirs. Passengers spent an average of €80 while in port and €180 at their port-of-embarkation.

Together, passengers and crew spent an estimated €559 million at ports-of-embarkation and call, accounting for 15% of total cruise industry expenditure in the UK. Cruise passengers spent an estimated €431million on flights, port fees, accommodation, refreshments, excursions and other expenditure in the UK. An estimated €14.8 million was spent by crew at ports-of-embarkation and call, averaging €35 member.

There were 37,720 roles generated by cruise-related spending; 17,183 Britons worked for cruise lines, either in administrative offices or as crew onboard ships. Other jobs included direct suppliers to the cruise lines and the employees of establishments that provide goods and services to cruise passengers. This paid €1.41billion in employee compensation.

Direct employment was 10% up on 2015, while the wage impact increased by 17% to €1.41 million.

UK employment generated by the cruise industry is also up, with an estimated 82,410 Britons directly and indirectly employed, up from 73,919 in 2015.

The average job generated by the cruise industry paid slightly over €38,300, said the report.

Harmer added: "The success of the global cruise industry is set to continue with 24 new ships scheduled to launch in 2019 and 107 new ships on order for delivery before 2027, worth close to $60 billion. As the cruise industry’s confidence in the UK increases, so does the number of ships built for the UK market.

"P&O Cruises’ Iona, the largest ever cruise ship built for the British market with capacity of over 5,200 passengers, will launch in 2020. And Cunard revealed last year that it is building what will be the largest cruise ship in its history, with the 3,000-passenger ship joining the iconic fleet in 2022.

"Furthermore, just this month Celebrity Cruises announced that its second Edge-class ship, Celebrity Apex, will be christened in Southampton in 2020 and sail a mini-season in the UK. The ship will join Celebrity Silhouette, marking the first time the line has operated two ships in the UK."