Cruise Ships Boosting Canadian Economy
A new economic impact study released by the North West & Canada Cruise Association (NWCCA) shows $2.38-billion generated.
“We are very pleased to see growth in both overall economic impact and per passenger spending,” says Greg Wirtz, President of the NWCCA. “And we are happy to see cruise ship visits expanding into new ports in Quebec and Atlantic Canada.”
In the report prepared by Business Research and Economic Advisors (BREA), 2.05 million cruise passenger visits generated $1.16 billion in direct spending by the cruise lines, their passengers and crews, generating 9,849 annualized full and part-time jobs. These direct expenditures create additional spinoff activities that, together with direct spending, create a total economic impact of $2.38 billion. In addition, the direct and indirect economic impact combines to generate 7,661 jobs and $780 million in wages. The total output and income created by the international cruise industry also generates an estimated $239 million in indirect business and income taxes in Canada.
Direct spending includes the cruise lines spending $675 million, passengers spending $448 million and crews spending $33 million.
Spending by cruise lines consisted of three leading categories—professional and business services contributed $113 million, fuel at $87.4 million and machinery and equipment at $86.5 million. The top three spending categories for passengers consisted of tours and transportation at $93.3 million, lodging at $83.1 million and retail sales contributing $45.4 million. Spending by cruise ship crew consisted of retail sales at $22.7 million, food and beverage at $9.4 million and tours and transportation at $1.1 million.
Interior provinces also benefit economically as source markets for goods and services such as food and beverages, fuel and hotel supplies purchased by the cruise lines.
“Cruise passengers and the business they bring are an important part of the Canadian tourism mix,” says Paul Nursey, Vice President Strategy & Corporate Communications of the Canadian Tourism Commission. “We see very high customer satisfaction ratings and high repeat visitation, so cruise passengers get a great introduction to Canada and communities get to add important business diversity.”
The BREA report quantifies the economic contribution of the international cruise industry to the economies of Canada and its Provinces in 2012. NWCCA member cruise lines participated in the study along with their destination partners the Atlantic Canada Cruise Association, the St Lawrence Cruise Association and Cruise BC. Over 18,000 passenger and crew surveys were completed across seven cruise destination ports in Canada, measuring passenger and crew spending patterns and satisfaction.