Elevators shoot upward from the festively decorated reception lobby of Norwegian Cruise Line's Pride of Aloha, which is scheduled to be christened today.
By Allison SchaefersNorwegian Cruise Line and Hawaii will embark on a voyage together today when Pride of Aloha, the first new U.S.-flagged cruise vessel in decades, begins offering interisland ocean travel.
aschaefers@starbulletin.comNCL's expansion in the state is being touted by some as one of the most significant tourist developments to hit the islands since jet travel, and if successful, it could serve as a model for the rebirth of a U.S.-flagged cruise industry, they say.
But it's a new route for NCL and for Hawaii's tourism industry, and plenty of people are watching to see if the business venture will find calm waters or choppy seas.
NCL managers and most visitor industry experts have said they expect Pride of Aloha to make a smooth entry into Hawaii, boosting state revenues by keeping the dollars cruise passengers spend in the state.
Others have said they see rough seas ahead as the infrastructure demands on Hawaii's harbors and roads could outweigh revenues generated by this fledgling industry. Native Hawaiian groups have asked for impact fees and some members of the hotel industry have petitioned the state to make NCL pay accommodation taxes, like the hotels do.
But all agree, today's christening of the 77,104-ton ship in Honolulu Harbor is a big deal.
"It's a very different model than we've had with cruise ships before," said Paul Brewbaker, senior vice president and economist for Bank of Hawaii, who remembers greeting cruise ship passengers at Honolulu Harbor back in the 1950s and '60s.
"In the old days, people got on the Lurline to get to Hawaii," he said. "Now, they'll come to Hawaii as an excuse to ride a ship."
The pool deck is one of 12 guest decks on the Pride of Aloha.
During the next six months, the state expects Pride of Aloha to bring 50,000 visitors to the islands, generating $120 million in visitor spending and another $2 million in spending on supplies, according to data from the state Department of Business, Economic Development & Tourism.NCL's new product will result in the creation of a higher-spending niche market for Hawaii tourism, said state economist Pearl Imada Iboshi. The unique dynamics of a U.S.-flagged industry will extend the average amount of time cruise passengers spend in the islands by 2.7 days, since the ships won't have to leave Hawaiian waters, as well as triple daily visitor expenditures, she said.
"Average daily spending is going to rise from about $100 a day to $300," Iboshi said, adding that the state counts more expenditures from U.S-flagged cruise ship passengers than from foreign-flagged vessels. The reason is Pride of Aloha workers pay state and federal taxes. Also, the company, like any other Hawaii business, must pay all of the costs associated with doing business in the islands, Iboshi said.
The state can't count the cost of what visitors pay to foreign cruise lines or what passengers spend while at sea, because all that money leaves the state. And it can't count the taxes that foreign workers pay in their home countries.
The increase will transform Hawaii's cruise ship visitors from the lowest daily spenders to the highest.
Since NCL is such a big name in the cruise industry, the venture also is likely to create a stronger cruise market for Hawaii, said State Tourism Liaison Marsha Wienert.
"It will attract those visitors who only travel by cruise ship," Wienert said. "It's a growing segment of the visitor industry and therefore we want to capture this market."
It also will bring more first-time visitors and coveted U.S. East travelers to the islands, as well as increase bookings at activities and attractions and create more job and business opportunities, said Rex Johnson, president of the state Hawaii Tourism Authority.
Lolita Baybayan makes a passenger's bed on the Pride of Aloha. Baybayan, who lives on Maui, enjoys working on the ship although she misses her family while aboard.
"I think it's a product that we haven't had much here in Hawaii," Johnson said. "It's one more thing in that shopping basket of activities and things to do that make us attractive and we're happy to add it to our product line."When fully implemented, NCL's planned three-ship U.S.-flagged fleet will bring a $500 million-per-year economic boost to Hawaii, more than $250 million in wages and salaries per year and 10,000 jobs, making NCL one of the top five employees in the state, said Robert Kritzman, executive vice president and managing director of NCL America, the company's U.S.-flagged operation.
"We think we can make this successful," Kritzman said. "We're basically booked through the year and I've heard some travel agents complaining that they can't get group space for next spring."
And, if the operation is as successful as forward bookings suggest, Hawaii could see more expansion from NCL, he said.
The two ships already slotted for the market in addition to the Pride of Aloha are the Pride of America, which is scheduled to make its debut in June of 2005, and a still un-named ship which is due to enter the market sometime in 2006.
But looking farther ahead, the company has purchased the SS Independence and the SS United States historic cruise ships and is looking at possible U.S. home porting options, Kritzman said.
"These are ships that we could rebuild and operate anywhere in the country," Kritzman said. "They could become fourth and fifth ships for Hawaii."
For the Independence that would be a journey full-circle to the last time Hawaii had a U.S.-flagged cruise ship plying the interisland waterways.
Bartender Dustin Brown moved beverages to a refrigerator on the Pride of Aloha after it arrived at Honolulu Harbor's Pier 10 Friday morning. Brown lives in Waipahu and enjoys working on the ship.
Expansion possible
In addition to the Pride of Aloha and its sister ship the Pride of America, which is due in Hawaii in June of 2005, Norwegian Cruise Line has purchased the historic SS Independence and SS United States cruise ships and is looking at home port options, which include Hawaii.
Ship Christened Guest Capacity Length Breadth Speed Tonnage Pride of Aloha July 4, 2004 2,002 853 feet 108 feet 23 knots 77,104 SS Independence June 3, 1950 1,000 682 feet 88.9 feet 23 knots 23,719 SS United States July 3, 1952 1,972 990 feet 101.6 feet 35.6 knots 53,300 Source: Norwegian Cruise Lines
