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SAFETY4SEA

North American cruise industry contributes to the U.S. economy

by The Editorial Team
September 15, 2014
in Shipping
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Generating employment, income and other economic benefits

Cruise Lines Internation Association (CLIA) released anew study showing the contribution of the North American cruise industry that generated employment, income and other economic benefits throughout the U.S. economy.

The study was prepared by Business Research & Economic Advisors (BREA) for theCruise Lines Internation Association (CLIA) with the title “The Contribution of the North American Cruise Industry to the U.S. Economy in 2013”.

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After a strong rebound in 2010 and 2011 from the recession induced impacts of 2009, the North American cruise industry continued to expand in 2012 and again into 2013. In both 2010 and 2011 global passenger carryings and available bed days increased by approximately 10 percent. This increase allowed the industry to reach new highs for capacity and passenger carryings. The growth in available bed days has continued, rising 5.5 percent in 2012, and another 2.7 percent in 2013. Similarly, global passenger carryings con-tinued to increase, by 3.8 percent in 2012 and by 3.9 percent during 2013.

A number of factors influenced the level of growth in 2013 including:

  • weak economic conditions in Europe which reduced demand for cruises, especially in the Mediterranean;
  • the continued weak growth in consumer discretionary spending in the United States; and
  • continued redeployment of capacity from the North American markets to other regions, such as Asia, Australia and the South Pacific.

The major characteristics of the North American cruise industrys activity during 2013:
  • By year-end 2013, the cruise industry’s ocean-going fleet showed a net increase of one, to 178 ships with a combined capacity of 338,505 lower berths. Since 2010, the number of ships in the North American fleet has increased by 5.3 percent while the number of lower berths have increased by 10 percent.
  • During 2013, the North American cruise industry carried 17.6 million passengers on a global basis. This represented a 3.9 percent increase from the previous year and a 18.8 percent increase over 2010.
  • An estimated 10.7 million U.S. residents took cruise vacations throughout the world and accounted for 61 percent of the industry’s global passengers.
  • An estimated 9.96 million cruise passengers embarked on their cruises at U.S. ports during 2013, accounting for 57 percent of the North American cruise industry’s global embarkations. Florida, whose ports handled 6.15 million embarkations, accounted for 62 percent of all U.S. cruise embarkations, an increase of two percentage points from 2012.
  • The cruise lines and their passengers and crew directly spent $20.1 billion on goods and services in the United States, a 2.4 percent increase from 2012 and an 11.6 percent increase from 2010. The cruise lines spent nearly $16.5 billion while passengers and crew spent slightly more than $3.6 billion.
  • Total wages and salaries paid to these workers was $18.3 billion, an increase of 5% over 2012.
  • The cruise industry generated the direct employment of an estimated 147,898 workers with U.S. businesses, who, in return, received $6.6 billion in wages and salaries during 2013.
  • Including the indirect economic impacts, the spending of the cruise lines and their crew and passengers was responsible for the generation of $44 billion in gross output in the United States, a 4.3 percent increase from 2012.
  • Within the U.S., cruise industry expenditures were up from $10.67 million in 2012 to $10.71 in 2013.
  • Nearly 70% of the cruise industry’s non-wage expenditures were made with U.S.- based businesses.

After two years of double-digit growth in global passenger carryings in 2010 and 2011, passenger growth steadily averaged about 3.9 percent in both 2012 and 2013.

After increasing by about 5.0 percent in both 2010 and 2011, the growth in direct cruise in-dustry expenditures in the U.S. was about 4.0 percent in 2012 and 2.4 percent in 2013. Di-rect cruise industry expenditures in the United States were sufficient to hit a new peak of $20.1 billion which is 11.6 percent higher than achieved during 2010.

The major direct economic impacts of the North American cruise industry in the United States during 2013:
  • Cruise passenger embarkations at U.S. ports totaled 9.96 million in 2013.
  • The $20.1 billion in direct spending by the cruise lines and their passengers and crew was a 2.4 percent increase from 2012 and generated 147,898 direct jobs paying $6.6 billion in wages and salaries.
  • The industry spent $9.78 billion in the core cruise travel sector, primarily transportation services and passenger and crew spending. This was a 1.2 percent increase over 2012. These expenditures generated 104,411 jobs and wage income of $4.2 billion.
  • The cruise lines directly employed more than 27,000 U.S. residents as shore-side staff and crew members, and paid them wage income of nearly $1.2 bil-lion.
  • Cruise passengers and crew spent $1.73 billion in non-transportation ex-penditures creating an estimated 21,239 jobs in the retail trade, restaurant and lodging industries. These jobs generated $524 million in wage income.
  • Cruise lines spent another $10.3 billion for goods and services from suppli-ers in the United States in support of their global cruise operations. This spending created an estimated 43,487 jobs in virtually all industries and gen-erated $2.43 billion in wage income.
  • Including the direct, indirect and induced economic impacts, the spending of the cruise lines and their crew and passengers was responsible for the gener-ation of $44.1 billion in gross output in the United States, a 4.3 percent in-crease from 2012. This, in turn, generated 363,133 jobs throughout the country paying $18.3 billion in wages and salaries

Source: CLIA

For more information pelase read the study “The Contribution of the North American Cruise Industry to the U.S. Economy in 2013” by clicking on the image below:

CLIA-The-Contribution-of-the-North-American-Cruise-cover

Tags: CLIAcruise industryshipping marketUS

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