Cruise Tourism in the Caribbean

Topics: Tourism, Cruise ship, World Tourism Organization Pages: 17 (5193 words) Published: March 11, 2013

Critically examine the role that Caribbean cruise tourism is playing in the economies and social sectors of the region. What are the economic and social costs/ benefits derived from this type of industry? What should Caribbean countries be doing to derive more benefits and mitigate social and environmental damage?|

Table of Contents




A cruise is defined as a Sail from place to place for pleasure, through a succession of destinations on board a cruise ship. This is inclusive of accommodation as well as food and beverages.

Ted Arison and Knut Kloster, operating under the name Norwegian Caribbean Line (NCL), became the first cruise line to commission a ship specifically designed for modern cruising vacations. Due to the success of NCL, the 1970s and 1980’s were filled with the development of competitor cruise lines such as Commodore Cruise Line, Royal Caribbean Cruise Line, and P&O Cruises (Vladimir 2008).

The cruise industry has grown rapidly within the last few decades and it has become one of the most important sectors within the tourism industry. It has brought both negative and positive impacts, economic, social and environmental, and the perceived costs and benefits associated with the development of cruise tourism to the visiting destinations. Significantly, in terms of destinations the most popular in recent years has predominantly been the Caribbean. These aspects will now be discussed.


Tourism is now, more than ever, recognized as a major economic contributor in many destinations worldwide, adding value for foreign exchange but also support for export industries and environmental, social, cultural, and historic resources support and protection. Economists have distinguished three categories of economic impacts; direct, indirect, and induced. Direct effects are production changes associated with the immediate effects of changes in tourism expenditures. For example, an increase in the number of tourists staying overnight in hotels would directly yield increased sales in the hotel sector. The additional hotel sales and associated changes in hotel payments for wages and salaries, taxes, and supplies and services are direct effects of the tourist spending. Indirect effects are the production changes resulting from various rounds of re-spending of the hotel industry's receipts in other backward-linked industries (i.e., industries supplying products and services to hotels). Induced effects are the changes in economic activity resulting from household spending of income earned directly or indirectly as a result of tourism spending. For example, employees supported directly or indirectly by tourism, spend their income in the local region for housing, food, transportation, and the usual array of household product and service needs. The sales, income, and jobs that result from household spending of added wage, salary, or proprietor’s income are induced effects. Similarly, cruise tourism expenditure has direct, indirect and induced effects on the economy of a destination. The direct effect is on a supplier who sells goods and services directly to cruise vessels, cruise passengers and crew. Expenditures related to cruise vessel include port costs, marine expenses, food and beverages, fuel, water, maintenance. Cruise passengers expenditures include those that are not part of the cruise itself, such as taxis, souvenirs, shore excursions, food and beverages. Crew expenditures include restaurants, retail goods, recreational activities and transport services. Indirect effects result from the purchases of direct suppliers like goods from others companies. Induced effects arise from the expenditures of direct and indirect recipients produced...
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