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HAL Ship Makes First Call of Season in Boston

Maritime Activity Reports, Inc.

May 5, 2006

From flowers to fuel and milk to wine, Holland America Line's cruise operations have a significant economic impact on Boston and Massachusetts. Last year that impact totaled $21,429,680m, and in 2006 it is projected to climb slightly to just under$22,000,000 as the ms Maasdam sails to or from Boston on 17 cruises.

Holland America Line's economic impact includes staffing at the cruise terminal, provisioning ships, refueling, passenger spending, crew spending, port fees and taxes, and marketing and sales expenditures in the region. "Holland America Line has enjoyed working with Boston as our gateway for our Canada New England cruises," said Stein Kruse, president and CEO of Holland America Line. "We've had a very successful operation here the last several years and look forward to continuing that relationship as we bring more than 21,000 guests to the city. "The Canada/New England cruising region is really an up and comer for our industry, especially among families seeking summer cruises with great ports and fantastic scenery," added Kruse.

Holland America Line begins calling at Boston on May 20, 2006, at the conclusion of a seven-day cruise between Montreal and Boston. Continuing this itinerary through Sept. 30, the ship will visit the Saguenay Fjord and calls at Quebec City; Charlottetown, Prince Edward Island; Halifax and Sydney, Nova Scotia; and Bar Harbor, Maine. The Maasdam makes a final visit to Boston as a port visit on Oct. 14 during a 10-day sailing from Montreal to Norfolk. Fares start at US$999 per person, double occupancy. To operate its 17 cruises, Holland America Line works with more than 100 Massachusetts vendors. These businesses range from local companies who supply Holland America Line ships with $100,000 in products each season to vendors who will provide US$1 million worth of marine fuel. ,p>Holland America Line estimates the direct impact of its 2006 Boston cruises to total approximately US$4,126,000 for Boston and US$9,300,000 for Massachusetts. This includes direct spending of $1,693,600, by the company in Boston and $2,433,000 spent by cruise guests and crew in shops, restaurants, hotels, museums, local sightseeing attractions and taxicabs. Other expenditures include maintaining its ships and provisioning its fleet, plus port fees, charges and taxes. Each season Holland America Line provisions each ship every other week on the "turn around" sailings. Provisioning a ship means bringing aboard all of the supplies and food products needed for a sailing. For example, the Maasdam will require some 15,206 eggs and 908 gallons of milk each week -- coming from local farmers. In addition, local growers will supply 97,383 pounds a week in fresh produce.

Total, the company anticipates its overall economic impact in Boston and the surrounding region during 2006 will be $21,948,000, using a 2.36 economic multiplier.

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