Maine sees increase in economic benefit from the cruise industry

August 25, 2010

The Cruise Lines International Association has released it’s annual economic impact report revealing Maine is one of the state’s whose economic impact benefit actually rose to over $35 mil in 2009, from $29 mil in 2008.

Maine’s economic impact actually rose from an estimated $29 mil in 2008, to over $35 mil in direct cruise industry spending.

• Maine accounted for $35 million in direct cruise industry spending.
• Cruise industry spending generated 637 jobs and $19 mil in income for Maine workers in 2009.
• In 2009, the average wage for Maine industry workers was $30,500.00.

For the industry as a whole in North America; the 2009 results reflect a reduction of the total economic impact from 2008.

These results are not surprising as they reflect the overall recessionary economic environment within the US and globally during 2009. The cruise industry did perform admirably during 2009 with an overall occupancy rate in excess of 104%. Factors contributing to these 2009 results include direct expenditures of the cruise lines, additional capacity deployment outside of U.S., passenger and crew spending as well as the indirect effects of expenditures, job and wage income of those businesses that are linked to the cruise industry, either primarily or in part.

However, the overall economic impact within the U.S. and in all 50 States remains significant. The top line statistics are:

• $35.1 billion in total economic benefit
• $17.2 billion in direct spending by the cruise lines and passengers on U.S. goods and services
• 313,998 total U.S. jobs generated by cruise expenditures
• $14.23 billion in total wages for U.S. employees

You can access a copy of the 2009 Cruise Industry Economic Impact Study Executive Summary, Full Report and State Sheets at http://www.cruising.org/vacation/pressroom-research/market-research.

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UMaine Economists Find Portland Cruise Ship Passengers Generate $5.8 Million-$8 Million

July 29, 2009

Contact: Todd Gabe, 207-581-3307

ORONO, Maine -- Research by two University of Maine economists shows that spending by cruise ship passengers delivered $5.8 million to $8 million to the Portland area last year, representing an expanding revenue source that could increase if cruise ship visits to the city continue to increase.

The spending estimates are conclusions drawn from surveys of nearly 1,300 passengers disembarking in Portland last fall for shopping, sight-seeing and dining in or around Portland.

Economists Todd Gabe, associate professor of economics and a fellow with CenTRO (Center for Tourism Research and Outreach) at the University of Maine, and Jim McConnon, Extension specialist and professor of economics, with assistance from several UMaine students, conducted the research in September and October of 2008 at the request of the city of Portland, which funded the study. The city is assessing the economic impact of the cruise ship industry on the region and establishing a baseline as it develops strategies to maximize the economic benefits and diversify its economic base.

"The Portland waterfront is a vital economic engine for the state and regional economies," says Assistant City Manager Pat Finnigan. "Having the solid, current data, which this report provides, will help us develop long term strategies to maximize the impact of the cruise industry. The scheduled, reliable delivery of tourists to the city during the summer and fall is an opportunity we need to make the most of."

Gabe and McConnon presented their findings Tuesday in Portland at a meeting among the Maine Port Authority, regional tourism leaders and maritime-related businesses, including port agents, pilots and stevedores who serve the cruise industry. The cruise season begins today with the first of two cruises scheduled to dock.

The researchers found that the typical cruise ship passenger spends $80 per day in the Portland region, and that amount swells to $110 if cruise-ship sponsored tours are taken into account. These figures are used to estimate the total spending of 48,000 passengers from 32 ships that docked in Portland last year.

"The cruise ship industry generates between $5.8 and $8 million in sales, 69-96 jobs and between $2 million and $3.2 million in wages and salaries for the Portland region," Gabe says.

"Tourists arriving by water represent a growing new market of often first-time visitors for the state," McConnon notes.

Portland's cruise ship passengers tend to be older, well-educated, affluent and veterans of previous ocean cruises. Many are from states west of the Mississippi River, notably California, Texas, Arizona and Missouri. Maine's traditional tourist profile has been the vacationer who drives here from nearby New England states.

Cruise ship dockings are increasing each year. This year, 45 ships with nearly 70,000 passengers are expected in Portland. Next year, 68 ships are scheduled, more than doubling the number of ships visiting Portland in two years. 

Gabe and McConnon have completed several past studies on the cruise industry and have published journal articles on the topic. In 2002, they studied the economic impact of cruise line visits to Bar Harbor.

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Millions from cruise ship visits on the rise

Study: $29 million entered Maine economy via cruise ships in 2008

By: Bill Trotter

Bangor Daily News • July 29, 2009

People from cruise ships that stopped in Maine spent nearly 20 percent more in 2008 than they did a year earlier, and the revenue is expected to rise this year, according to studies released this week.

On Wednesday, Cruise Lines International Association said the cruise ship industry spent $29 million directly in Maine last year, representing a 20 percent increase over 2007. On Tuesday, researchers with the University of Maine released a study indicating cruise ship passengers spent $5.8 million to $8 million in Portland last year.

Cruise industry-related jobs employed 510 people in Maine and generated $16 million in wages in 2008, CLIA indicated in a statement about its findings.

In 2007, the industry contributed $24 million in direct spending to Maine's economy, according to the industry group.

Overall, the industry directly spent more than $19 billion nationwide, the CLIA study indicated. Indirectly, the industry generated more than $40 billion in the national economy in 2008, the study said.

Maine's busiest cruise ship destination is Bar Harbor, which is expected to receive 96 cruise ship visits between mid-May and early November of this year. According to the UM study, 45 cruise ship visits are scheduled for Portland this year and 68 are scheduled so far for Portland in 2010.

The American Glory and the Grande Caribe were scheduled to make ports of call this week to officially kick off the 2009 cruise ship season for Portland. All told a record-setting 69,892 passengers are expected to visit Portland from July to October.

The Grandeur of the Seas, the first large cruise ship to visit this year, will berth at the Maine State Pier on Aug. 15 and drop off some of its 1,950 passengers.

Rockland is expected to get its first large cruise ship visit in recent memory on Oct. 4 when the Royal Caribbean ship Jewel of the Seas is scheduled to drop anchor in Penobscot Bay. Bangor, Belfast, Camden, Castine and Eastport also are stops for small cruise ships during the summer.

Information about how cruise ship industry spending might break down among various Maine ports was not presented as part of the CLIA study results. According to an earlier UM study, in 2005 the cruise ship industry generated $13.7 million in the local economy in Bar Harbor and $6.7 million in Portland's economy.

According to multiple studies, cruise ship passengers tend to spend $80 to $100 each during their daylong visits in Maine ports. In 2008, when 97 cruise ships visited Bar Harbor, an estimated 144,000 passengers visited the town. Based upon previous spending estimates, these passengers likely spent around $14 million in Bar Harbor and surrounding towns last year.

"The cruise industry continues to be an engine of growth to Maine's economy and the tourism sector, [which is] the state's number one industry," Amy Powers of CruiseMaineUSA said Wednesday in a statement. "Especially during these uncertain economic times, we appreciate more than ever the cruise lines' sustained economic contributions and job creation capabilities in [about a dozen] Maine communities."