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On cruise control The Business of Tourism Lets Talk Wines

Dennis Morrison

AP - This undated computer illustration released by Royal Caribbean shows a rendering of the 'Central Park' area of the future Royal Caribbean cruise liner named the 'Oasis of the Seas' that is currently being built in Finland.

On cruise control

Dennis Morrison, Contributor

The global cruise industry through the Cruise Lines International Association (CLIA) is forecasting that cruise passenger traffic will grow by 6.4 per cent in 2010. This is significantly ahead of the 3-4 per cent rate of increase that the World Tourism Organization is projecting for total tourist arrivals. Meanwhile, a survey of travel agents has again ranked the Caribbean/Bahamas/Eastern Mexico as the anticipated top cruise destination for this year ahead of Alaska, Mediterranean and Greek Islands/Turkey, and Hawaii among others.

Up to October of last year, most of the major Caribbean cruise destinations recorded significant declines led by Cozumel (Mexico), US Virgin Islands, Puerto Rico, Jamaica and St Maarten. The Cayman Islands, another major port of call was, however, among those destinations that experienced falling cruise passenger arrivals, although at a modest rate. By contrast, the Bahamas, the region's leading destination, actually registered growth of 16.2 per cent in cruise passengers for the January-September period.

10 per cent increase expected

For 2010, travel agents are anticipating an overall increase in traffic to the region, with most of them surveyed expecting sales to move up by over 10 per cent. They are also reporting that, globally, consumers' interest in cruising is continuing to rise robustly. According to CLIA president, Terry L. Dale, the industry has been able to achieve growth in sales in the face of the economic crisis because "cruise vacations are perceived by virtually all consumers as very high value, when those consumers are seeking value above all else".

After introducing 14 new ships last year, the industry was still able to achieve an occupancy rate of 104.4 per cent, which means that passenger volume kept pace with the increase in capacity. It plans to welcome another 12 new vessels this year, while maintaining the high occupancy. The new ships include Royal Caribbean International's Allure of the Seas with a capacity of 5,400 passengers, Norwegian Cruise Line's Norwegian Epic, 4,200 passengers, and Celebrity Cruises' Celebrity Eclipse, 2,850.

The Allure of the Seas is the sister ship of the Oasis of the Seas which is scheduled to begin calling late this year or early 2011 at the Falmouth cruise pier now under construction. It is planned for both vessels to alternate visits to Jamaica. The Norwegian Eclipse will be dedicated to the eastern Caribbean route.

While Jamaica is anticipating a boost in cruise arrivals from the opening of the Falmouth pier, its existing ports have experienced a downturn, with passenger traffic to Ocho Rios slipping by 4.5 per cent in the January-November 2009 period, and to Montego Bay by a whopping 29.8 per cent. Tourism interests in these areas are, no doubt, anxious about possible impacts of the entry of Falmouth on their business prospects. Assuming that the new super-vessels will lead to increased traffic and not a diversion from existing ports, operators of attractions, ground transportation and duty-free shops should enjoy a rebound next year.

The industry expects that American and Canadian residents will continue to make up the bulk of its guests, 76.5 per cent. The share accounted for by residents of other countries is projected to reach 23.5 per cent, the highest level ever, up from just 10 per cent in 2000.

hospitalityjamaica@gleanerjm.com