What cruise calls bring to small local businesses

The question

How does cruise tourism generate income for micro, small and medium-sized enterprises and for local communities at ports of call in the APEC region, and how can these benefits be measured and expanded?

The method

Review of the literature and of earlier impact studies; workshops with local stakeholders in five destinations (Broome, San Antonio, Keelung, Alotau, Callao); online and paper survey of businesses (47 usable responses) and communities (49 responses), April-May 2019; five case studies; illustrative spending scenarios by destination type. Survey results are stated to be indicative only.

What the study finds

US$140assumed spend per transit passenger at a major portIn the spending assumptions the authors use for their worked examples (US dollars, not measured values), a transit passenger spends $29 at a tender-served call and $140 at a major or flagship port, while passengers starting or ending their cruise there spend $315-350.

≤ US$1.79Massumed average direct spending per callApplying these assumptions, average direct spending per call (passengers, crew and cruise line combined) ranges from US$0.07 million to US$1.79 million depending on destination type: port type, ship size and whether passengers embark or disembark shift the result by more than an order of magnitude.

AUD 5.9Mestimated cruise economic output in Papua New GuineaAn IFC study cited in the report (Papua New Guinea, 60 calls at five ports in 2015) estimates a total economic output of AUD 5.9 million; half of the spending went to the state via port fees and 30% to tour operators.

> 60%of surveyed firms add extra staff (indicative)In the business surveys run in the participating destinations, more than 60% of firms say they add staff to serve cruise ships; only Keelung shows a lower share. The authors treat these results as indicative (47 usable responses).

Broome's local cruise association reports that calls rose from 13 ships in 2016 to 68 in 2019. The figure should be read with care: the report's own tables show the comparison mixes large and small ships, and cruise spending actually fell over the period.
The authors cite Amsterdam: after it introduced an €8 per-head tax on transit visitors, several lines cancelled all their calls. They conclude that destinations should announce cost increases well in advance, because ships can easily be redeployed.
Among respondents to the business and community surveys, the most frequently reported problems are limited knowledge of the cruise sector (41%), inadequate tourism facilities (39%), infrastructure gaps and an underdeveloped tourism offer (37% each).

Why it matters for ports and cities

The report suggests that what a call is worth depends first on the type of port (home port or transit only, berth or tender) and on local firms having products ready to sell. It also points to three priorities for ports and cities: measuring impact consistently, coordinating local players and informing passengers better.

Limitations

The business and community surveys have no statistical sample (unknown population, 47 and 49 responses) and their results are stated to be indicative. Spending figures by destination type are hypothetical scenarios, not measurements. Much of the market data is taken from CLIA and industry sources.

Full reference and source

Smith, S., Marshall, T. (2020). APEC Economic Study on the Impact of Cruise Tourism: Fostering MSMEs’ Growth and Creating Sustainable Communities. APEC Tourism Working Group / APEC Secretariat (realizzato da AEC Group Pty Ltd).

Read the original study ↗

Summary written by the ODYBOAT Observatory in our own words. Tables and figures belong to the authors.