Cruise-related spending in U.S. up 9% in 2006

Hawaii's 2006 total got a boost from the arrival of NCL Corp.'s Pride of Hawaii ship

MIAMI » New York and Hawaii were among the fastest growing embarkation points for cruise travelers, according to a study released yesterday.

Cruise lines and their passengers spent $17.6 billion in the United States in 2006, up 9 percent over 2005, according to a report from the Cruise Lines International Association.

The growth rate was down slightly from 10 percent growth the year before because of a slower rate of capacity growth and a drop in consumer spending, the group said.

The report showed that 12 million passengers took cruise vacations worldwide in 2006, with U.S. passengers making up 78 percent of those travelers.

Florida -- home base for Carnival Corp. and Royal Carib-bean Cruises Ltd. -- 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 study showed.

The Port of Galveston in Texas ranked fourth with 617,000 embarkations, an increase of 16 percent from the year before.

New York ranked sixth with 536,000 embarkations in 2006, up 45 percent, with the opening of the Brooklyn Cruise Terminal.

Honolulu also showed substantial growth, with passenger departures reaching 318,000, a jump of 34 percent.

But Honolulu's 2006 total was boosted by the arrival in May 2006 of NCL Corp.'s Pride of Hawaii -- which the company has said it plans to shift to Europe in February of 2008.

The group said the North American cruise industry contributed $702 million in spending to the Hawaii economy in 2006 -- an increase of 37 percent over 2005 -- generating 23,220 jobs paying $675 million in income.

Hawaii accounts for 4 percent of the nation's cruise industry spending, the group said, rising to No. 6 from its eighth place ranking in 2005.

The study was done by Exton, Pa.-based Business Research and Economic Advi- sors, which gathered and analyzed data for the Fort Lauderdale, Fla.-based cruise association.

The growth 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. About 72,000 cruise passengers began their trip in New Orleans in 2006, down from 308,000 the year before, the report showed.

Other ports that saw a drop in embarkations were Boston, down 22 percent with 62,000, and San Diego, down 23 percent with 180,000.

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 80,000 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.