Aug 29, 2007 9:55 am US/Eastern
Report: Cruise Industry Is Cruising Right Along
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FT. LAUDERDALE (CBS4) ―
Cruise lines and their passengers spent $17.6 billion in the U.S. in 2006 with New York and Hawaii among the fastest growing embarkation points for cruise travelers.
According to a recently completed study by the Cruise Lines International Association direct spending related to the cruise industry increased 9 percent in 2006, which was down slightly from a 10 percent growth the year.
The report showed that 12 million passengers took cruise vacations worldwide in 2006, with U.S. passengers making up 78 percent of those travelers. Seven ships were added last year, and about 30 more are slated to be built by the end of 2011 as cruise lines anticipate there will be enough demand to fill some 80-thousand new berths.
Over the past few years, the cruise industry has had to answer questions about safety aboard ships stemming from several incidents, including passengers' bouts with stomach illness, a ship fire and traveler disappearances.
It also must deal with the yearly hurricane season and higher fuel costs. Demand has slowed in the key Caribbean market, but the industry has seen potential for growth in the Europe and Asia markets.
Cruise association President Terry Dale noted that industry surveys show only about 17 percent of Americans have taken a cruise, meaning there should be enough demand to meet the increased supply of berths.
"As an industry, we've barely scratched the surface," Dale said, "there's such potential for us to continue to grow."
Florida, which both Carnival Corp. and Royal Caribbean
Cruises Limited call home, led with nearly 56 percent of all embarkations and the top three cruise ports in 2006.
The Port of Miami, Port Canaveral and Port Everglades accounted for more than 4.4 million passenger embarkations. The Port of Galveston in Texas ranked fourth with 617-thousand embarkations, an increase of 16 percent from the year before.
New York ranked sixth with 536-thousand embarkations in 2006, up 45 percent, with the opening of the Brooklyn Cruise Terminal. The port in Honolulu also showed substantial growth, with passenger departures reaching 318-thousand, a jump of 34 percent.
"We've literally brought cruising to the backyards of millions of Americans," Dale said. "It makes it much more accessible for folks, and as a result, you don't have additional costs to fly ... It just makes the experience that much more affordable."
The success in New York and Hawaii were in contrast to a nearly 77 percent drop in passenger embarkations in New Orleans, whose port was hit hard by Hurricane Katrina in 2005. Only about 72-thousand cruise passengers began their trip in New Orleans in 2006, down from 308-thousand the year before.
Other ports that saw a drop in embarkations were Boston, down 22 percent, and San Diego which was down 23 percent.
(© 2007 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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