U.S. Economy Rakes In $32 Billion from North American Cruise Industry

The North American cruise industry chipped in $32.4 billion to the U.S. economy in 2005, 7.9 percent more than in 2004. However, it was the smallest year-over-year increase in 48 months, according to an annual study on the economic impact of cruising commissioned by the International Council of Cruise Lines.

The annual survey, conducted by Business Research and Economic Advisors, found that passenger embarkations increased by 6.3 percent in 2005, compared with a 13.9 percent increase in 2004.

But growth in spending exceeded the growth in embarkations. Per-passenger spending increased 7.3 percent, double the 3.6 percent increase reported for 2004.

The study said the reduced rate of growth was largely due to a reduction in capacity expansion. While the size of the North American fleet did not change from 192 vessels, the study said, larger new-builds added 2.2 percent to the capacity for a total of 245,755 lower berths.

Overall occupancy rose to 106 percent in 2005, due in part, to passenger rescheduling after a number of cruises were canceled during the hurricane season.

The cruise industry as a whole, including passenger and crew direct spending, was responsible for contributing a total of $16.2 billion to the U.S. economy last year, the study said.

That figure was $1.5 billion, or 10 percent, more than in 2004. Nationally, the cruise industry supported more than 330,000 jobs and contributed to a total of $13.5 billion in wages and salaries.