Island Cruise Analysis

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The Issue

Ex:13

Island Cruise

Negotiation about a cruise ship’s right to visit a tropical island Players: Director of the cruise ship Mayor of the island Points of negotiation: Number of visits per year Length of individual visits Volume of passengers allowed to disembark each day

Vinola Vincent 05/29/2008

Background—The Cruise Ship
The Island Queen—privately owned and operated luxury cruise ship Passenger demand for cruises down Poor economy Fear of worldwide terrorism Recurring cases of Norwalk-like viruses on cruise ships Operations dept—adding a new exotic destination to the standard 16-day itinerary

Background—The Island Queen
Accommodates 2200 passengers and 1100 crew members Director: Capt Stu Bing sole responsibility for negotiating all contracts Standard cruise 16 days and 15 nights

Background—Tropical Island
Chain of lush Pacific islands 10miles wide by 38miles long Home to rare and endangered indigenous plant and animal species “The Last Unspoiled Island” Typical activities: surfing, kayaking, fishing, hiking, scuba diving and snorkeling Only 1 movie theater, 1 public restroom and no stoplights

Background—Tropical Island
Governed by autonomous council Mayor serves a 3-year term with 2-term limit and an 8 member island council serving 2-year terms Decisions made by majority council vote Mayor (Gil Egan) tie-breaker

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Access
Current means: small aircraft, small sea vessels 2 inter-island flights between Tropical Island and surrounding islands. 50 passengers/flight On a given day 200 tourists arrive or depart 500 tourists on the island

Sensitivity of the Habitat
For each day a cruise ship operates in TI’s waters 2 weeks of undisturbed marine environment must be maintained Each additional day=2 additional weeks Not able to sustain >5 consecutive days Local residents cannot fish/swim within a 2-mile radius of ship’s anchorage during and for 4 days after TI has never allowed cruise ships

Concerns
Tropical Island...
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