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CRUISE INDUSTRY SPENT NEARLY $31 MILLION IN MAINE IN 2005
Contacts: Christine Fischer (ICCL) cfischer@iccl.org or Amy Powers, Director (CruiseMaine) Director@CruiseMaineUSA.com
ARLINGTON, Va. (Aug. 31, 2006) — The cruise industry spent nearly $31 million in Maine in 2005, supporting 412 jobs that paid $14 million in wages and salaries according to an annual economic impact study by Business Research and Economic Advisors (BREA). The study was commissioned by the International Council of Cruise Lines (ICCL).
Historically, Maine was primarily an autumn destination for coastal fall foliage cruises. However, in recent years, aggressive destination marketing has extended the cruise season from May through October. According to the Maine Port Authority, in 2005, Maine’s 12 ports hosted a total of 180 ship calls accounting for nearly 147,000 passenger days. Only five years earlier, in 2000, the state had 74 ship calls.
The dramatic growth of cruise ship calls in Maine has had a significant effect on cruise line spending and industry-related employment in the state. In 2005, cruise line direct expenditures totaled slightly less than $31 million versus less than $15 million in 2004 — an increase of 106 percent in a single year. Total employment rose from 293 jobs paying $8 million in 2004 to 412 jobs paying $14 million in 2005.
In direct cruise line spending, Maine saw the largest year-over-year increase in the manufacturing sector, which jumped from just over $1 million in 2004 to nearly $13 million in 2005, with over $11 million of that total coming in the manufacture of durable goods. As would be expected with more ship calls, the second largest impact came in the business services and government sector which saw an increase from $4.6 million in 2004 to $8.8 million in 2005, an increase of 91 percent.
“This is good news for the Maine economy because it shows that the cruise industry has an impact far beyond what is spent by the passengers,” stated Brian Nutter, Executive Director of the Maine Port Authority. “Maine products purchased by the cruise lines included e-marketing services, restaurant supplies, machinery parts, and even customized high-tech poker chips for the casinos.”
Nationwide, the North American cruise industry generated a total of $32.4 billion into the U.S. economy in 2005, an increase of nearly 8 percent over 2004. The BREA study also found that the cruise industry supported more than 330,000 U.S. jobs and paid $13.5 billion in wages and salaries in 2005.
The complete economic study can be found on the ICCL Web site at www.iccl.org .
ECONOMIC IMPACT OF CRUISE SHIPS IN MAINE: 2005 PASSENGER AND CREW EXPENDITURES IN BAR HARBOR AND PORTLAND UMaine Report Examines Economic Impact of Cruise Ships in Maine Contacts: Todd Gabe (207) 581-3307; Amy Powers (Cruise Maine) (207) 310-0998: David Munson (207) 581-3777
ORONO, Maine (May 2006) – A study conducted by researchers from the UMaine Department of Resource Economics and Policy and Center for Tourism Research and Outreach (CenTRO) shows that cruise ships visiting just two key ports along the coast injected more than $20 million in sales to the Maine economy. The report, which is posted on the CenTRO website (www.umaine.edu/centro), revealed a total economic impact in 2005 of $13.7 million in Bar Harbor and $6.7 million in Portland with regard to overall sales, and supported a total of 270 full- and part-time jobs in the two ports. The economic activity generated by visiting cruise ships provided an estimated $5.5 million in labor income. According to the report, both Portland and Bar Harbor have seen substantial increases in the number of cruise ships visits in recent years, extending the tourism season for local retailers and contributing to the overall economy. The study, which began in January of this year, is an update to a cruise industry impact study conducted by UMaine researchers in 2002. “Upon the request of Cruise Maine, we were able to update previous work done regarding the cruise ship industry in Maine,” said Todd Gabe, an Associate Professor in the Department of Resource Economics and Policy. “In the past few years, we have also studied the cruise industry as a way to encourage passengers to return to the state as part of a longer land-based vacation.” “We are happy that the newly-formed center can provide useful economic information to the people of Maine,” said Thomas Allen, a research associate for CenTRO. “We hope to work with port communities in Maine to support the development of the cruise ship industry, and provide benefits to local business and workers.”
Maine Tourism Facts A Reference Guide to the Impact of Out-of-StateTourism on the State of Maine Tourism - An Integral Part of Maine’s Economy Maine people work for tourism and tourism works for Maine people... In 2003, out-of-state visitors to Maine directly and indirectly generated:
Keeping revenues up... and taxes down... Out-of-state visitors made 70% of all travel expenditures in 2003. In 2003, revenues from tourism totaled $384 million in state and local taxes, including:
Maine Travel Profile...
The Maine Experience... Overnight visitors come to Maine to:
Tourism keeps Maine: The Way Life Should Be by...
2002 Impact of Cruise Ship Passengers in Maine The Example of Bar Harbor Maine's expanding cruise ship industry can provide local economic benefits and add to the state's already large tourism economy. Todd Gabe, Colleen Lynch, and James McConnon share the results of a survey conducted among passengers visiting Bar Harbor, which has emerged as a popular port-of-call on New England summer and autumn cruises. They found that cruise ship passengers have higher household incomes and spend substantially more per day than the typical Maine tourist. They make several suggestions for how ports can maximize the benefits from cruise ship passengers. Download the entire Maine Policy Review article (1.4MB PDF) During the summer of 2002, the University of Maine Department of Resource Economics and Policy conducted passenger surveys in Bar Harbor to determine the economic impact of the cruise industry on the popular island destination. The immediate local economic impact of the cruise industry business is measured in several key areas:
The key findings of the survey are:
The cruise industry accounted for 10% of the total revenues earned by retail stores and restaurants in all of 2002, but a full 64% of retail and 26% of restaurants in the month of October. Passengers accounted for a full $12.1 million in sales in Bar Harbor in 2002 including multiplier effects and supported over 275 full time jobs. The qualitative benefits that this thriving marine-related business adds to our social and cultural fabric is significant and should also be given appropriate consideration. Download the survey (104KB PDF) |
