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Publication Title | Current Trends Considerations in Cruise Destination Development

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Volume 6

Current Trends & Considerations in Cruise Destination Development

By: Coastal Systems International, Inc.

Introduction

The cruise industry has experienced incredible growth over the past three decades, expanding at an annual rate of 7.2%. Coinciding with the strong overall growth of the industry, the cruise lines are adding significant vessel capacity - reported to include 23 new vessels by the end of 2014. The current generation of newbuild ships will provide the largest cruise ships built to date, including the Carnival Magic (3,652 PAX), Norwegian Epic (4,100 PAX), and the Royal Caribbean Allure and Oasis of the Seas (5,400 PAX) (Source: CLIA, 2008 & 2010).

The cruise industry's growth is generating consistent demand for new berths. Cruise destinations are also evolving significantly, expanding from basic pier structures to

comprehensive day destinations with entertainment, retail, and dining facilities. The Caribbean region - long the world's largest and most economically important cruise market - is poised to continue capturing the majority of global cruise passengers; however, a significant expansion of port and tourism capacity will be required to accommodate the burgeoning cruise demand.

The typical cruise ship carrying 2,550 passengers and 480 crew members conservatively generates over USD $285,000 in passenger and crew expenditures during a single port-of-call visit (Source: BREA, 2009). Based on these significant operational revenues, cruise destination developers and the cruise lines have been successful in securing financing for large-scale, multi-million dollar development projects.

This volume of Perspective reviews current trends in cruise destination development and delineates important development considerations that must be addressed in the early stages of project design and planning.

Smaller cruise ports such as Roatan, Honduras, which occupies approximately 2 hectares of lands reclaimed from the seabed, are used as embarkation points for a variety of shore excursions.

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