Cruise Industry in U.S. Remains Robust

Industry created 350,000 jobs and $38 billion to U.S. economy.

North American cruise industry grew by 7 percent in 2007, while creating more than 350,000 jobs and generating $38 billion in total economic output, according to the Cruise Line International Association (CLIA).

The national study just released also said that in the first half of 2008 the industry witnessed a 5.43 percent increase in worldwide passengers, with occupancies at about 105 percent. The key findings of the 2007 economic impact study include:

• Spending by the cruise industry and its passengers generated $38 billion in gross output in the U.S., up from $35.7 billion in 2006

• Direct spending by the industry and its passengers in the U.S. totaled $18.7 billion, a 5.9 percent increase over 2006

• The industry was directly and indirectly responsible for generating 354,700 jobs in the U.S., up from 348,000 in 2006, paying a total of $15.4 billion in wages and salaries

These total economic impacts affected all 50 states. The top 10 states accounting for 78 percent of direct purchases and 82 percent of the total employment and income impacts are: 1. Florida, 2. California, 3. Alaska, 4. New York, 5. Texas, 6. Hawaii, 7. Georgia, 8. Washington, 9. Illinois and, 10. Colorado

Over 60 percent of gross output and 40 percent of job creation affected seven industry groups (ranked in order of output): nondurable goods manufacturing, professional & technical services, travel services, durable goods manufacturing, financial services, airline transportation and wholesale trade.

Among the major factors contributing to the positive economic impact:

• With an 8.8 percent increase in available bed days and an increase in average length of a cruise from 6.9 days to 7.2 days, the industry realized a 9.8 percent increase in actual passenger bed days and an industry wide capacity utilization of 104.9 percent

• By year-end, CLIA’s fleet totaled 159 ships, with a capacity of 268,062 lower berths
• In 2007, the industry carried an estimated 12.56 million passengers worldwide, a 4.7 percent increase over 2006

• 9.45 million U.S. residents were cruise passengers in 2007, accounting for 75 percent of all cruisers

• Passenger embarkations at U.S. ports totaled 9.18 million, a two percent increase and a 73 percent share of global embarkations

• Ten U.S. cruise ports accounted for 83 percent of U.S. cruise embarkations: Miami (21 percent), Port Canaveral (14 percent), Port Everglades (14 percent), Los Angeles (6 percent), New York (6 percent), Galveston (6 percent), Seattle (4 percent), Honolulu (4 percent), Long Beach (4 percent), and Tampa (4 percent)

• U.S. embarkations from additional U.S. ports increased by 17.2 percent reflecting the strong growth in new ports of embarkation throughout the country, which include Baltimore, Jacksonville, Boston and others, while embarkations at the top ten ports declined by 2 percent in 2007.

Florida leads the way:

Last year, nearly 5 million people boarded cruise ships from one of five Florida ports – Miami, Port Everglades, Port Canaveral, Tampa and Jacksonville. Floridians made up nearly 2.3 million, or 25 percent, of all U.S. resident passengers.

Among other key Florida findings:

• Florida's tourism-related businesses – such as travel agencies, airlines, hotels, restaurants and those that provide ground transportation – were the main beneficiaries of the cruise industry's $6.06 billion in spending, receiving $2.4 billion.

• An additional $835 million was spent with businesses in the following sectors: food processors, chemical manufacturers, advertising agencies, management and technical consulting companies, and manpower agencies.

• Florida continues to have the nation’s top three ports for passenger embarkations: Miami, Port Everglades and Port Canaveral.

• Port embarkations in 2006: Miami (1,893,000); Port Canaveral (1,298,000); Port Everglades (1,289,000); Tampa (367,000); Jacksonville (130,000).