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V.I. cruise arrivals rank third in the Caribbean, study finds
By LYNN FREEHILL
Friday, December 8th 2006
Daily News Photo by NICK SCHNEEMAN Passengers from the Queen Mary 2 return to their ship, which stopped in the outer harbor at St. Thomas on Thursday.
St. Thomas is the third-busiest cruise port in the Caribbean, and cruise passengers spent an estimated $288.3 million when visiting the U.S. Virgin Islands between May 2005 and April 2006 - nearly $100 million more than any other destination in the region.
The figures are according to a new study on the regional economic impact of cruise tourism that was commissioned by the Florida-Caribbean Cruise Association.
With 1.63 million passengers coming onshore, the island came just behind Cozumel, Mexico, with 1.71 million, and the Cayman Islands, with 1.67 million. Cozumel led in visits despite disruptions caused by Hurricane Wilma, which damaged cruise-ship piers there in 2005.
Only four other destinations hit the $100 million mark in passenger spending - St. Maarten with $189 million, Cozumel with $157 million, the Cayman Islands with $138 million and San Juan with $115 million.
Nineteen regional destinations were included in the study, and the USVI accounted for 22 percent of passenger spending among all of them.
Among ship crew, whose expenditures also were estimated, the USVI also topped the list, with $50.6 million spent - an average of $143.83 per crew member. Although St. Maarten's per-member spending was higher, at $159.55, fewer crew went ashore there, so that island's total crew expenditures fell short of St. Thomas' at $46.2 million.
Cruise lines themselves spent $22.7 million in the USVI, the fifth-highest amount among the destinations studied. About 90 percent of that went toward port fees, while 10 percent went for ship supplies.
The study estimated that the total of $361.6 million spent by passengers, crew members and the cruise lines together generated 3,525 jobs in the territory.
"Due to the large volume of high value duty free shopping at this destination, it required over $102,000 in cruise tourism expenditures to create a direct job," the study's compilers wrote.
The FCCA commissioned Business Research and Economic Advisors of Exton, Pa., to perform the survey-based study. Its results were presented at the FCCA's regional conference on Grand Cayman Island in October, but they were not released locally until Thursday, when the West Indian Co. offered to provide copies to the public.
WICO is ship's agent to vessels berthing at its Havensight dock. Its president and chief executive officer, Edward Thomas, did not return calls for comment on the study Thursday. In a written statement, however, Thomas said the study confirms that St. Thomas continues to be the market leader and the most preferred cruise destination in the Caribbean.
The FCCA denied The Daily News' request to see the study in November. The association said it was the responsibility of different destinations to distribute the study, since each local government paid to be part of it.
The territory paid $5,000 to be included in the study, according to Tourism Commissioner Pamela Richards. She said it was the first time the cruise lines and destination governments cooperated so closely on such an effort.
The two sectors worked in partnership, pooling resources and sharing information, Richards said in an analysis of the study e-mailed to The Daily News on Thursday.
"I believe we were able to get more detailed data, which will prove extremely helpful in determining which areas are performing well and those that may require more attention," Richards said.
In conducting the study, passengers on all of the FCCA's member lines were surveyed after a port of call during the months of March, April and May only.
The FCCA member lines are Carnival Cruise Lines, Celebrity Cruises, Costa Cruise Lines, Cunard Line, Disney Cruise Line, Holland America Line, MSC Cruises (USA) Inc., Norwegian Cruise Line, Princess Cruises, Regent Seven Seas Cruises, Royal Caribbean International and Windstar Cruises.
There were 1,939 responses to the USVI survey, and 80.8 percent of those reported making a purchase onshore. Their expenditures were divided into 11 categories, including watches and jewelry, local crafts and souvenirs, ground transportation, liquor and electronics.
To calculate per-person spending, the study's compilers calculated the percentage of crew members or passengers who spent in a particular category and the average amount they spent. Then they spread that among the number who reported coming ashore.
For example, 38 percent of passengers who disembarked reported spending an average of $591.70 on watches and jewelry. Spread among all passengers who disembarked, the "weighted average spend per party" came to $222.51.
All of the passengers surveyed called on St. Thomas. During the May-through-April cruise year, St. Croix's three cruise-ship calls were over the Christmas and New Year's holidays and did not fall during the survey period.
In addition to questions about their spending, passengers also were asked to rate their satisfaction with 1 indicating little or no satisfaction and 10 indicating extreme satisfaction, average scores on different aspects of passengers' shoreside experience were as follows:
- Safety: 8.4 (between very and extremely satisfied).
- Courtesy of local employees: 8.2 (between very and extremely satisfied).
- Beaches: 8.0 (very satisfied).
- Friendliness of residents: 7.8 (very satisfied).
- Shopping experience: 7 (very satisfied).
- Historic sites: 6.7 (between somewhat and very satisfied).
- Likelihood of recommending a USVI resort vacation to family or friends: 6.5 (between somewhat and very likely).
- Likelihood of returning to the USVI for a resort vacation: 4.8 (between not too likely and somewhat likely).
Meanwhile, the tourism industry's hotel sector also is examining its impact on the local economy. The Caribbean Hotel Association has commissioned a study by Tourism Global, a Barbados-based travel and tourism development investment firm. It will estimate the sector as a consumer of local goods and services, including appliances, furniture, toiletries, food and beverage, legal services, insurance and public services.
The USVI is one of nine destinations to be included in the study. V.I. Hotel and Tourism Association board member Richard Doumeng said Thursday he is not certain when the study will be finished. "We have seen some preliminary findings, but we do not yet have the statistical breakdown we were expecting," he said.
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