Study: Cruise Industry Generated $35.7b to U.S. Economy

Wednesday, August 29, 2007
The North American cruise industry last year generated $35.7b in gross U.S. economic output and supported 348,000 American jobs paying $14.7 billion in wages, according to a new report prepared for Cruise Lines International Association (CLIA). The report shows total cruise industry spending increased by 10 percent in 2006 and finds that the overall spending had an impact in all 50 states. Direct purchases by the cruise lines for goods and services such as food and beverage, fuel, equipment, business services, port services, vessel maintenance and repair as well as purchases by crew and passengers of goods and services related to cruising, including pre- and post-cruise stays, airfare and lodging, totaled $17.6 billion in 2006. Adding the indirect economic impacts, such as transportation services to deliver finished products to the cruise lines and utilities needed to run manufacturing equipment, the total economic impact generated by the cruise industry was $35.7 billion.

The economic impact of the cruise industry reached into every state, with 79 percent of direct purchases and 83 percent of total employment and income concentrated in 10 states: Florida, California, Texas, Alaska, New York, Hawaii, Georgia, Washington, Illinois and Massachusetts. U.S. ports also saw the benefits from a growing cruise industry. Embarkations at U.S. ports increased by over 4 percent, totaling 9 million, and accounted for 75 percent of total global embarkations. The Contribution of the North American Cruise Industry to the U.S. Economy in 2006 study was conducted by Business Research & Economic Advisors (BREA) in Exton, Pa., and analyzes the economic benefits to the U.S. economy from five principal sources: spending by cruise passengers and crew; shoreside staffing by cruise lines in U.S. cities; expenditures by cruise lines for goods and services; cruise line spending for U.S. port services; and expenditures in U.S. shipyards for maintenance and repair.

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