The Cruise Tourism Myth

By way of a coincidence, a couple of mentions of cruise tourism over the past few days had worked themselves into my consciousness. I referred to one of them yesterday; the other had simply lodged in my memory banks.

The reference I made was to Leo Hickman who has lumped cruise ships in with all-inclusive hotels in branding them one of the worst forms of tourism in that they generate little by way of benefit to local economies. The one I hadn't referred to, but now do, was to Puerto Alcúdia and a question asked by the restaurant association as to why its new commercial port was not receiving cruise ships.

In Alcúdia there was talk of it becoming a port of call. It was one reason why so much was invested in developing the new terminal and in deepening the waters. To date, it has not become a port of call and it may never become so. The restaurant association would wish otherwise, as it would hope to reap the benefits from stopover passengers.

The benefits. Ah yes, the benefits of cruise tourism to local economies. These are the benefits that Palma (though not exclusively Palma) derives from cruise tourism and which the city anticipates more of as the volume of cruise traffic increases.

But, as we are reminded not infrequently, passengers disembark, wallets bulging, ready to spend wildly, only to find shops closed. At least, this is one of the sticks which are used to beat Palma shopowners into opening submission and which is used to criticise an inert local tourism-related industry that spurns the opportunities from cruise tourists.

Alcúdia's restaurants presumably believe that they, along with other local businesses, would enjoy untold riches from passengers taking a bit of shore leave. Would they, though?

One of the most important pieces of research into the economic impact of cruise tourism was undertaken by the Policy Research Corporation on behalf of the European Commission. Based on data from October 2008 to September 2009, it looked at, among other things, expenditure by passengers. Of the top 15 ports in Europe, Palma was ranked sixth with around 53 million euros, a figure that rose to 70 million when crew and ship expenditures were added.

The report calculated specific expenditures dependent upon whether passengers disembarked during a stopover (and not all do) and whether they were joining or leaving the ship. The average spend was, respectively, 60 and 95 euros per passenger (the figure being the same whether joining or leaving).

In themselves, the figures seem healthy enough, but you need to dig down into them to understand what they represent. Mostly all the spend by a passenger joining or leaving a ship is on hotel accommodation; the spend of the passenger who disembarks for the day goes primarily towards an excursion of some sort.

The cruise ship functions in its own way. Because stopovers are short, it organises well in advance, as in booking excursions with a select few attractions/activities for which the cruise ship typically extracts a significant commission; and it is said that this can be as high as 50%, which immediately slashes that expenditure which gets into the local economy.

The ship has its arrangements with hotels, with a handful of chosen excursions and perhaps with certain shops or others, and a commission will operate in almost every instance. The benefit, in other words, tends to be spread very thinly. And where the passenger has some "free" time, what can he actually contribute over and above what has pretty much been pre-determined? P&O, for example, lists Pollensa and Formentor as one of its nine shore excursions. In Pollensa there are 30 minutes "to do as you choose ... it is the perfect place to have a morning coffee".

And so that's about it. A coffee. Very little, and the restaurants of Alcúdia might bear this in mind, is actually spent on food. It's the same issue as with all-inclusives, as the passenger has generally already paid for his food on the ship. At most he might buy a small snack and the odd drink while on shore, and that's it.

There is plenty more that could be said about cruise ships and cruise tourism; about the environmental damage caused by ships, and which is greatly understated, or about the fact that little or no direct employment is generated. A benefit does come from cruises, but it is not as great as might be thought, a point made by Professor Paul Wilkinson of Canada's York University, and a leading researcher into cruise tourism, who has said that "cruise visitors have little potential economic impact".


Any comments to andrew@thealcudiaguide.com please.