Cruise Industry Contributed $32.4 Billion To U.S. Economy In 2005
The North American cruise industry generated $32.4 billion into the U.S. economy in 2005, an increase of nearly 8 percent over 2004, contributing to the economy of every state in the nation. In an annual study commissioned by the International Council of Cruise Lines (ICCL), Business Research and Economic Advisors (BREA) found that the cruise industry supported more than 330,000 jobs nationwide and paid a total of $13.5 billion in wages and salaries to Americans in 2005.

Cruise lines, their passengers and crew were responsible for a total of $16.2 billion in direct spending on U.S. goods and services last year – $1.5 billion, or 10 percent, more than in 2004. The industry’s direct expenditures supported nearly 143,000 jobs and paid $5.2 billion in wages and salaries, an increase of 5.6 percent and 8.1 percent, respectively. BREA noted that while growth in embarkations was not as robust in 2005, global spending on a per passenger basis rose from $1,553 in 2004 to $1,667 in 2005, up 7.3 percent. “Last year was challenging due to weather disruptions and fewer new ships delivered,” said ICCL President Michael Crye. “Through those challenges, however, the cruise industry remained a robust economic resource in 2005, benefiting the U.S. economy with $32.4 billion – $4 billion more in goods, services and wages than it spent in 2004.”

The study noted that direct economic benefits to the U.S. economy derived from five main sources:
• Spending by cruise passengers and crew for goods and services associated with a cruise, including travel to the port of embarkation and pre- and post-cruise vacations;
• Shoreside staffing by cruise lines for U.S.-based headquarters, marketing and tour operations;
• Purchase of goods and services necessary for cruise operations, including food and beverages, fuel, hotel supplies and equipment, navigation and communication equipment, etc.;
• Payments for port services at U.S. homeports and ports-of-call; and
• Maintenance and repair of cruise ships at U.S. shipyards and capital expenditures for port terminals, office facilities and other capital equipment.
The $16.2 billion in direct purchases for goods and services for cruise operations by the North American cruise industry benefited the economies of all 50 states. Benefits to states from cruise line purchases included air transportation, food and beverages, ship maintenance and refurbishment, engineering and travel agent commissions. Economic impacts were concentrated in 10 states that accounted for 77 percent of the total U.S. impacts: Florida, California, New York, Alaska, Texas, Georgia, Washington, Hawaii, Massachusetts and Illinois.
Indirect economic impacts included expenditures by cruise line vendors and businesses that supply goods and services to passengers and crew. For example, food processors purchase raw foodstuffs, electricity and water to run equipment and process raw materials, transportation services to deliver finished products to cruise lines or wholesalers, and insurance for property and employees.
In 2005, the cruise industry experienced a more moderate rate of capacity expansion than in recent years. Four major new cruise ships were launched, but the size of the North American fleet remained unchanged at 192 vessels as an equal number of ships were withdrawn from the market. Due to larger newbuilds, capacity grew by 2.2 percent for a total combined capacity of 245,755 lower berths. Overall occupancy rose to 106 percent in 2005, due in part, to passenger rescheduling after a number of cruises were canceled during the hurricane season.
U.S. ports continued to handle 75 percent of all global cruise embarkations in 2005. More than 8.6 million cruise passengers began their cruises from U.S. ports, an increase of 6.3 percent over the previous year. Globally, demand for cruising remained strong in 2005, and the industry increased passenger carryings by 6 percent over 2004 to 11.5 million passengers worldwide. U.S. residents totaled 9.1 million, or 79 percent, of global passengers.
The top ten cruise embarkation ports – Miami, Port Everglades, Port Canaveral, Los Angeles, Galveston, Tampa, New York, Long Beach, Seattle and New Orleans – accounted for 84 percent of all U.S. passenger embarkations. Higher 2005 embarkation numbers were posted by Miami (5.3 percent), Los Angeles (30.9 percent), Galveston (22.1 percent), Tampa (6 percent) and Seattle (18.2 percent).
The complete economic study can be found on the ICCL Web site at www.iccl.org . Additional news releases are available for Florida, California, New York, Alaska, Texas, Washington, Hawaii, Massachusetts, Illinois, Pennsylvania, Louisiana and Maine on the website.

 

April, 2006

ICCL Releases Statement on Cruise Ship Safety

In wake of the accidental fire that occurred on board the Star Princess and the tragic bus crash in Chile involving passengers from the Celebrity Millennium, the International Council of Cruise Lines (ICCL) released this month information regarding cruise ship safety.

The cruise industry’s highest priority is to ensure the safety and security of our passengers, crew and vessels. During the past two decades, ICCL member cruise lines have maintained the best safety record in the travel industry while transporting more than 90 million people throughout the world.

Fire Safety And Prevention

• All crew are trained in basic firefighting procedures. Crewmembers specifically assigned to the ship’s firefighting teams receive additional specialized training.

• The average response time for an emergency is within a matter of minutes—fire teams and trained emergency and medical crews are only a few hundred feet away from possible fires.

• ICCL cruise ships have sufficient lifeboats and life rafts for everyone on board, plus additional capacity in reserve.

• At the beginning of each voyage, all cruise passengers go through a mandatory abandon-ship drill for familiarization in the event of an emergency.

• In 2001, ICCL cruise members adopted mandatory safety standards for their cruise ships that exceed existing U.S. and international standards which are integrated into its internationally mandated Safety Management System (SMS) to ensure compliance through internal audits and third party audits.

• Cruise ships comply with the International Maritime Organization’s (IMO) Safety of Life at Sea (SOLAS) Convention which is adopted by countries worldwide, including the United States. SOLAS governs the design, construction and operation of all ships.

• To ensure compliance with SOLAS and other safety requirements, the Coast Guard conducts quarterly inspections on all vessels embarking passengers at U.S. ports. The examinations focus on fire safety systems and life saving equipment and their safety and environmental protection items. Additionally, the Coast Guard witnesses fire and abandon ship drills to ensure crew proficiency.

• The U.S. Coast Guard verifies the adequacy of crew training through observation of drills, examination of documentation and interviews with officers and crew.

• The average ICCL cruise ship (86,000 gross registered tons) has the following:

-- Five fire teams on board

-- Over 170 trained personnel on their fire fighting teams (the average town’s fire department usually has an average of six firefighters per station)

-- Approximately twenty crewmembers with advanced fire fighting training

-- Over 6 miles of fire fighting hose

-- Over 16 miles of sprinkler piping

-- Over 5,000 sprinkler heads

-- Over 500 fire extinguishers

-- Over 4,000 smoke detectors

-- Local sounding alarms in all cabins

-- Over 400 fire stations or hydrants

Shore Excursions

Approximately 98 percent of cruise passengers disembark a cruise ship to visit a port-of-call. Of those that leave the ship, 45-50 percent participates in organized shore excursions offered by the cruise line in conjunction with local operators. Cruising is one of the safest vacation options available with an excellent safety and security record and international oversight by regulatory agencies. When traveling, passengers must remember that they are on an international voyage and are visiting foreign ports-of-call.

Cruise lines rigorously evaluate local shore excursion operators and look at factors such as licensing, proper equipment, insurance and safety records. Cruise lines encourage their passengers to use their shore excursion providers, but cannot prevent them from booking with independent tour operators. Cruise lines do alert their guests on the risks of using companies that have not been vetted by the cruise line or are not properly licensed and insured.

Tragedies on shore excursions are rare. When incidents happen, the cruise line fully cooperates with local officials in their investigation and assists those affected and their families.

Adventure is part of travel and no matter the method of transportation, passengers should be aware of the risks while still enjoying activities in foreign countries. When choosing a cruise, passengers are encouraged to:

• Buy travel insurance

• Choose shore excursions recommended by the cruise line from reputable and established operators that have undergone a stringent evaluation

• Ensure any independent shore excursion providers they choose are properly licensed and insured

March, 2006

ICCL and CI Launch Global Mapping Project to Protect Sensitive Marine Areas

The International Council of Cruise Lines (ICCL) and Conservation International (CI) today announced a joint initiative to develop a global map that integrates additional sensitive marine areas into cruise line navigational charts where wastewater discharge should be avoided. This global mapping project comes as a result of a series of recommendations on wastewater management for the cruise industry developed by an independent science panel comprised of leading marine experts and chaired by internationally recognized marine biologist Dr. Sylvia Earle.

CI and the ICCL will convene a task force of experts in charting and navigation, maritime law, ship operations, and Geographic Information Systems (GIS) to identify sensitive marine areas such as coral reefs, seamounts, shellfish growing areas, and marine protected areas that currently are not recognized on navigation charts. This mapping project will further enhance current operational practices by ICCL member lines to protect the environment. These practices include adhering to no-discharge zones and following a policy of no discharge within four miles of shore (unless the ship is using an advanced wastewater purification system). The task force will explore integrating these zones into the electronic navigation charts used by each cruise ship. Initially, the project will focus on the high traffic areas as identified by a GIS study commissioned by the science panel. “Healthy oceans are critical for the planet’s health and the cruise industry is to be commended for its efforts to implement the recommendations and its support of this ambitious mapping exercise to protect marine biodiversity,” said Dr. Earle, chair of the science panel and executive director of CI’s Global Marine Division. “The science panel understands individual cruise ships and transportation routes will impact how each recommendation can be carried out. Implementation of this mapping exercise will be an important first step as the industry begins the process of reviewing and integrating the science panel’s recommendations into their operations. I am encouraged by the cruise industry’s proactive commitment to healthy oceans.”

The mapping initiative was one of 11 recommendations delivered to the cruise industry by the seven-member independent science panel. The recommendations looked at a variety of issues including:

• Treatment and discharge of blackwater (i.e., wastewater generated from toilets and medical sinks) and graywater (i.e., wastewater from sinks, showers, laundries and kitchens);

• Continued installation and monitoring of advanced wastewater purification systems (AWPS), as well as independent evaluation of AWPS through the U.S. Environmental Protection Agency’s Environmental Technology Verification Program;

• Protocols for disposal of sewage bio-residues (sludge);

• Improving source control and continued use of biodegradable soaps, shampoos, detergents and cleaning agents;

• Improving passenger education about environmental stewardship by providing pre-boarding and onboard literature about waste management practices.

The full list of recommendations, as well as other supporting material developed by the science panel can be found online at www.celb.org and www.iccl.org.

“The industry is grateful that these scientists have volunteered their time to aid the industry in identifying practices that will lead to a cleaner marine environment. Our partnership with Conservation International on the wastewater mapping exercise is an example of our continuing commitment to the world’s oceans,” said Michael Crye, ICCL president. “The ICCL, as well as each of its member lines, will take into consideration all of the independent science panel’s recommendations and determine how to best implement them. From our initial review, a majority of the recommendations will be implemented immediately.”

The world’s oceans face a variety of environmental impacts from land-based wastewater discharges, storm water runoff and marine vessels. It is recognized that wastewater discharges from these other sources far exceeds that of cruise ships, and the science panel supports the current efforts of the cruise industry to minimize its own impacts on the marine environment. “We recognize the cruise industry’s continued leadership to protect the world’s oceans while serving their passengers through their commitment to the science panel recommendations,” said Glenn Prickett, executive director of Conservation International’s Center for Environmental Leadership in Business. “This global mapping initiative demonstrates how the conservation community can work with the tourism industry to develop solutions that contribute to conservation.”

The volunteer, independent science panel comprised of leading marine experts, was convened in March 2004 by the Ocean Conservation and Tourism Alliance – a partnership between CI and the ICCL to help protect biodiversity in top cruise destinations – to evaluate the management practices for cruise ship wastewater discharges and to recommend guidelines for good and improved practices for the industry.

The seven-member panel gathered, reviewed and synthesized a wide-range of available scientific data. The panel supplemented this research with an intensive series of interviews, stakeholder dialogues and discharge mapping exercises to identify and better understand the cruise industry’s current waste management practices.

In addition to chairwoman Dr. Sylvia Earle, the science panel includes experts from various geographic locales and scientific disciplines including: Dr. Marlin Atkinson, professor, Hawaii Institute of Marine Biology; Dr. Adolphe O. Debrot, research department head, Carmabi Foundation; Dr. Thomas E. Lacher, Jr., executive director, Center for Applied Biodiversity Science, Conservation International; Charles D. McGee, laboratory supervisor Orange County, California Sanitation District; Dr. Ellen Prager, president, Earth2Ocean, Inc.; and Dr. Andrew Rogerson, professor and associate dean, Nova Southeastern University.

CI today also released a new publication, From Ship to Shore: Sustainable Stewardship in Cruise Destinations, highlighting cruise lines, local governments, civil society organizations and shore operators that are taking proactive measures to ensure a sustainable future for cruise tourism while preserving cruise destinations.

Conservation International (CI) applies innovations in science, economics, policy and community participation to protect the Earth's richest regions of plant and animal diversity in the biodiversity hotspots, high-biodiversity wilderness areas and key marine ecosystems. With headquarters in Washington, D.C., CI works in more than 40 countries on four continents. For more information about CI, visit www.conservation.org.

ICCL Releases Information On Crime Aboard Cruise Ships

The International Council of Cruise Lines (ICCL) today released information regarding crime on board cruise ships prior to the March  hearing before the House Subcommittee on National Security, Emerging Threats and International Relations. The industry data, based on 15 cruise lines’ submissions, totaled 206 complaints from passengers and crew during a three-year timeframe (2003-2005) when more than 31 million people sailed on cruise ships. There were 178 complaints of sexual assault, four robberies and 24 missing persons during the three-year period.

The cruise industry retained nationally-renowned criminologist Professor James Fox, Ph.D., as an independent expert to review the data provided to Congress. Professor Fox is the Lipman Family Professor of Criminal Justice at Northeastern University, visiting fellow with the U.S. Department of Justice, Bureau of Justice Statistics and author of 16 books. “While virtually no place - on land or sea - is totally free of risk, the number of reported incidents of serious crime from cruise lines is extremely low, no matter what benchmark or standard is used,” said Fox.

“Cruising is one of the safest vacations available with an outstanding record that demonstrates the industry’s commitment to safety and security,” said Michael Crye, president of the ICCL. “The cruise lines cooperated with Congress in gathering these statistics to further demonstrate that cruising is an exceptionally safe vacation.” Crye further explained, “Certainly, these are not just numbers; they represent people that have gone through personal tragedies. We do not intend to minimize or brush aside their grievances nor shirk responsibility. The cruise industry is constantly reviewing its practices and procedures to make sure incidents, no matter how rare, are handled responsibly and with compassion.”

Cruise lines operate within a legal framework under which international, federal and state authorities investigate crimes on board cruise ships. All allegations of crimes involving U.S. citizens are reported to the Federal Bureau of Investigation (FBI), and alleged crimes against Americans can be investigated and prosecuted under U.S. federal statutes even if they arise on cruise ships outside of U.S. waters.

ICCL member cruise lines maintain a strict zero-tolerance policy for crime that was adopted in 1999. In the event of an incident, the cruise industry takes all allegations and incidents seriously, reports them to the proper authorities and fully cooperates in any investigation. In many instances, cruise lines do not publicly disclose detailed information to comply with directions from law enforcement and out of respect for the families involved.

Cruise lines work closely with local, state, federal and international authorities, such as port authorities where ships call, the U.S. Coast Guard, U.S. Customs and Border Protection, the FBI and Interpol. Every cruise ship has a dedicated security officer and staff whose sole function is the security of the passengers, crew and vessel. Security staff personnel typically have a former law enforcement or military background and are trained according to international security regulations.

Crye offered the following advice for travelers: “While instances of crime on board cruise ships are rare, it is important to be observant of one’s possessions and one’s surroundings at all times while traveling. Cruise passengers are reminded of this, as they are in any hotel, by safety information, daily bulletins, port visit briefings and the provision of room safes or safety deposit boxes.” Crye also added that “while a crime can occur anywhere, a cruise ship is one of the safest ways to travel.”

The ICCL and several cruise lines testified in a maritime security hearing before the House Subcommittees on National Security, Emerging Threats and International Relations and Criminal Justice, Drug Policy and Human Resources on Dec. 13, 2005. Following the December hearing, the Subcommittees, led by Congressman Christopher Shays (R-CT), requested numbers from individual cruise lines on sexual assault, missing persons and robberies ($5000 value and above) during a three-year period (2003-2005). During this time, more than 31 million people took cruise vacations.

About the ICCL: The International Council of Cruise Lines (ICCL) represents the interests of 15 passenger cruise lines that call on major ports in the United States and abroad. ICCL member lines include: Carnival Cruise Lines; Celebrity Cruises; Costa Cruise Line N.V.; Crystal Cruises; Cunard Line; Disney Cruise Line; Holland America Line; NCL America; Norwegian Cruise Line; Princess Cruises; Radisson Seven Seas Cruises; Royal Caribbean International; Seabourn Cruise Line, Silversea Cruises; and Windstar Cruises. These vessels account for approximately 90 percent of the North American passenger cruise line industry.

January 2006

Cruise Lines Supported Hurricane Relief Efforts Throughout 2005

After a historic hurricane season, members of the International Council of Cruise Lines (ICCL) and Cruise Lines International Association (CLIA) donated nearly $10 million in relief contributions as well as the donation of goods and supplies and volunteer efforts to storm-ravaged areas in Mexico, Florida and the Gulf Coast.

Individual cruise line hurricane relief efforts for the 2005 hurricane season included:

-- Chartering three cruise ships to the Federal Emergency Management Agency (FEMA) to shelter evacuees or aid relief workers in the Gulf region for six months

-- Delivery of hundreds of pallets of food, drinking water, medical supplies and blankets to rescue operations in Mobile and Cozumel

--Transporting of 80 hurricane-stranded Americans in Cozumel to the United States

-- Monetary donations to the American Red Cross, the United Way of America, Partnership for Recovery, the Salvation Army, Florida Hurricane Relief Fund, Louisiana Disaster Recovery Fund, the Mississippi Hurricane Recovery Fund, Save the Children - Gulf Coast Hurricane Recovery Fund, My Key West Emergency Relief Fund, Cozumel-based orphanage Ciudad de Angeles, volunteer shelters and children’s charities

-- Corporate programs to match employee donations dollar-for-dollar

-- Employee payroll deductions for donations to relief funds

-- Offering passengers the option to contribute to relief funds through shipboard accounts or through the cruise line’s Web site

-- Shipments of furniture and soft goods for use in shelters and rebuilding efforts

-- Donation of several cruises for an online charity auction

-- Offering on-site child care services, hot showers and hot meals to take home for dinners and weekends for hurricane-affected employees in Florida

The cruise industry has aided local communities throughout the world following natural disasters in the past. During the 2004 hurricane season affecting the Caribbean and United States, as well as the tsunami devastation in Southeast Asia, millions of dollars in aid and supplies were donated from the cruise lines to help those areas respond and rebuild.

Cruise ships will return to hurricane-stricken areas when they are allowed, supporting local economies through tourism. “We recognize the lengthy recovery process and the cruise industry is a dedicated partner in the restoration of this important region,” said Michael Crye, ICCL president.

The International Council of Cruise Lines (ICCL) represents the interests of 15 passenger cruise lines that call on major ports in the United States and abroad. ICCL member lines include: Carnival Cruise Lines; Celebrity Cruises; Costa Cruise Line N.V.; Crystal Cruises; Cunard Line; Disney Cruise Line; Holland America Line; NCL America; Norwegian Cruise Line; Princess Cruises; Radisson Seven Seas Cruises; Royal Caribbean International; Seabourn Cruise Line, Silversea Cruises; and Windstar Cruises. These vessels account for approximately 90 percent of the North American passenger cruise line industry.

December, 2005

ICCL Issues Statement On December Congressional Hearing On Ship Safety

The cruise industry places the highest priority on the safety and security of its passengers and crew. With more than 10 million passengers cruising each year, the industry goes to great lengths to ensure that its passengers are safe and that they have a fun and enjoyable vacation experience. Unfortunately, incidents of missing persons and/or crime on board cruise ships occasionally happen. While rare, the industry fully acknowledges these incidents and extends its sympathies to those passengers and their families. The membership of the International Council of Cruise Lines (ICCL) reports any such incident to the proper authorities and cooperates in any investigations.

The House Subcommittees on National Security, Emerging Threats and International Relations and Criminal Justice, Drug Policy and Human Resources called a congressional hearing to discuss international maritime security on December 13, 2005. ICCL President Michael Crye [testified] on the industry’s safety and security practices.

A cruise ship is comparable to a secure building with a 24-hour security guard. Since a vessel operates in a controlled environment, access can be strictly enforced. Every person on board a cruise ship, from the captain to the cleaning staff and all guests, are placed on an official manifest. Passengers and crew may embark or disembark only after passing through security. Once the ship is underway, access is strictly limited to documented employees and fare-paying passengers.

A cruise ship’s work force is pre-screened. The U.S. State Department oversees the issuance of work visas to foreign nationals who sail with ships into US ports. US embassy personnel in the crew member’s country of origin conduct background checks.

Cruise lines operate within a very strict legal framework that gives both federal and state authorities the right to investigate crimes on board cruise ships. Unlike most instances of shoreside crime, the FBI has the authority to investigate and prosecute alleged crimes in international waters involving Americans.

In 1999, the member lines of the ICCL adopted a zero tolerance industry standard for crimes committed on board. In the rare instance crimes occur on board, cruise lines report and cooperate with the appropriate law enforcement authorities.

The U.S. Coast Guard has jurisdiction for inspection and enforcement of international safety and security standards for all ships calling at US ports. In a 1995 study, the US Coast Guard determined that the cruise industry was one of the safest modes of transportation available.

Cruising is one of the most popular vacation options, in large part because of its excellent safety record and the high level of quality service provided on board cruise ships. The cruise industry is committed to providing a secure environment for its passengers and crew. We will continue to work with all appropriate federal and state agencies to ensure the safety and well-being of all passengers and crew on board our vessels.

Click below for ICCL’s Safety Fact Sheet http://www.iccl.org/pressroom/passafetyfactsheets.pdf

For testimony given at the Congressional hearing in December, click

http://www.iccl.org/pressroom/crye_testimony_12-13-05.pdf

************

The International Council of Cruise Lines (ICCL) based in Arlington, Virginia, represents the interests of 15 passenger cruise lines that call on major ports in the United States and abroad. ICCL member lines include: Carnival Cruise Lines; Celebrity Cruises; Costa Cruise Line N.V.; Crystal Cruises; Cunard Line; Disney Cruise Line; Holland America Line; NCL America; Norwegian Cruise Line; Princess Cruises; Radisson Seven Seas Cruises; Royal Caribbean International; Seabourn Cruise Line, Silversea Cruises; and Windstar Cruises. These vessels account for approximately 90% of the North American passenger cruise line industry. shipping policy and develops recommendations to its membership on a wide variety of issues.

November, 2005

ICCL Issues Statement On Recent Piracy Attack Off Somalia’s Coast

The cruise industry places its highest priority on the safety and security of its passengers and crew. With more than ten million passengers cruising each year, the industry takes every measure appropriate to ensure that its passengers are safe and that they have an enjoyable vacation experience.

On November 5, 2005, the Seabourn Spirit was approached by two small armed boats off the coast of Somalia. The boats were unsuccessful in their attempts to board the ship. The cruise line is in close contact with authorities regarding this incident, which is believed to have a robbery motive. Due to the highly trained security staff on board the vessel, the ship was able to immediately initiate measures to safeguard the passengers and vessel. ICCL member lines have extensive onboard security plans and teams in place to protect against such scenarios, and have had these protections in place for many years.

While this type of incident has occurred on occasion to other types of ocean going vessels in remote waters around the world this is the only such known piracy attack on a cruise ship in the membership of the International Council of Cruise Lines (ICCL). “This incident, while highly unusual and an isolated occurrence, demonstrates the efficiency of existing security protocols and the ability of the ship’s officers and crews to protect passengers,” said J. Michael Crye, president of the ICCL.

ICCL cruise line members will continue to work with all appropriate international, federal and state agencies to ensure the safety and security of all passengers and crew onboard our vessels.

The International Council of Cruise Lines (ICCL) represents the interests of 16 passenger cruise lines that call on major ports in the United States and abroad. ICCL member lines include: Carnival Cruise Lines; Celebrity Cruises; Costa Cruise Line N.V.; Crystal Cruises; Cunard Line; Disney Cruise Line; Holland America Line; NCL America; Norwegian Cruise Line; Orient Lines; Princess Cruises; Radisson Seven Seas Cruises; Royal Caribbean International; Seabourn Cruise Line, Silversea Cruises; and Windstar Cruises. These vessels account for approximately 9 percent of the North American passenger cruise-line industry.

September, 2005

Passports Needed For US Cruise Travel

By January 1, 2008, all U.S. citizens are required to have passports for travel within the Western Hemisphere, per the recommendations of the 9/11 Commission and the 2004 Intelligence Reform Bill. To implement the law, the Departments of State and Homeland Security proposed a phase-in program referred to as the Western Hemisphere Travel Initiative (WHTI). As announced in April 2005, the WHTI program originally recommended three different deadlines for U.S. citizens to obtain a passport, depending on the region they were traveling to within the Western Hemisphere. The government has now modified their original timeline to the following requirements for U.S. citizens:

• December 31, 2006 – Passport or other accepted document required for all air or sea travel within the Western Hemisphere.

• December 31, 2007 – Passport or other accepted document required for all U.S. land border crossings.

The International Council of Cruise Lines (ICCL) is pleased that the government eliminated the initial December 2005 deadline for travel to the Caribbean, Bermuda and Central and South America. However, we would prefer implementation of all phases of the WHTI to be delayed until January 2008. There is no basis for treating travelers who travel by air or sea any differently from those who travel over land borders, and having two different sets of rules, depending on one’s mode of travel, would be extremely confusing to travelers.

In addition, having a unified implementation date of 2008 for all modes of travel will give much needed time to the federal government, the travel industry, and most importantly, the traveling public, to adapt to the new passport program. The Western Hemisphere includes the regions that are the most heavily visited cruise destinations in the world, accounting for approximately 70 percent of all cruise ship visits, or 7.6 million passengers. Currently, the State Department estimates that only 20 percent of all Americans have passports.

The ICCL’s highest priority is the safety and security of our passengers and crew, and we clearly understand that the government has a legitimate need to enhance the security at the borders. Requiring a standardized identification document, (e.g. passport) is an important aspect of that effort and it simplifies the process of border crossings to have a single recognized document in place. The members of the ICCL request that sufficient time be allotted to allow for the public to understand the new rules, and for the travel industry to be able to communicate the new requirements to their customers, and most importantly, for the public to obtain their passports.

Cruise Industry Contributed $30 Billion To U.S. Economy In 2004

The North American cruise industry had a total impact of more than $30 billion on the United States’ economy in 2004, an increase of more than 18 percent over 2003. In an annual study commissioned by the International Council of Cruise Lines (ICCL), Business Research and Economic Advisors (BREA) found that the cruise industry supported nearly 316,000 jobs nationwide and paid a total of more than $12.4 billion in wages and salaries in 2004. “Despite an ongoing war in Iraq and consumer uncertainty about the economy last year, the cruise industry continued to grow, spending a significant amount of money in the United States and supporting a lot of jobs,” said ICCL President Michael Crye. “The spending is not just in seaport cities either; virtually every business sector and every single state—from Alabama to Wyoming—benefited from cruise line expenditures.”

Cruise lines, their passengers and crew were responsible for a total of $14.7 billion in direct economic impacts last year—nearly $2 billion more than in 2003. BREA attributed much of that increase to a rise in U.S. passenger embarkations of nearly 14 percent, to 8.1 million. These direct expenditures supported 135,000 jobs paying $4.8 billion in wages and salaries.

The study noted that direct economic benefits to the U.S. economy arose from five principal sources:

• Spending by cruise passengers and crew for goods and services associated with a cruise, including travel to the port of embarkation and pre- and post-cruise vacations;

• Shoreside staffing by cruise lines for U.S.-based headquarters, marketing and tour operations;

• Purchase of goods and services necessary for cruise operations, including food and beverages, fuel, hotel supplies and equipment, navigation and communication equipment, etc.;

• Payments for port services at U.S. homeports and ports-of-call; and

• Maintenance and repair of cruise ships at U.S. shipyards and capital expenditures for port terminals, office facilities and other capital equipment.

Cruise line operational expenditures for wages, taxes and goods and services accounted for approximately 80 percent of direct spending, while passenger and crew spending on transportation, accommodations, food and other retail accounted for the remaining 20 percent.

Indirect economic impacts included expenditures by cruise line vendors and businesses that supply goods and services to passengers and crew. For example, food processors purchase raw foodstuffs, utilities such as electricity and water to run equipment and process raw materials, transportation services to deliver finished products to cruise lines or wholesalers and insurance for property and employees.

According to the study, the United States is the primary beneficiary of the cruise industry’s global economic impact with more than 75 percent of the North American cruise industry’s expenditures made with U.S.-based businesses. In 2004, cruise lines spent $7.2 billion for goods and services from U.S. suppliers, supporting 42,350 jobs in virtually every industry and generating $1.7 billion in wage income.

With the addition of eight new cruise ships, growth of the North American fleet remained comparable to 2003. However, the new, larger vessels accounted for nearly 25,000 additional berths (single beds), an 11.6 percent increase in capacity growth – well above the industry’s average 8 percent long-term growth trend over the past decade. In spite of this growth in capacity, the industry was able to increase its passenger carryings and occupancy rate.

U.S. ports and port cities were major beneficiaries of cruise line growth. With 8.1 million embarkations in 2004, U.S. ports accounted for 75 percent of the 10.85 million total worldwide passenger embarkations.

The top 10 cruise embarkation ports—Miami, Port Everglades, Port Canaveral, New York, Los Angeles, Galveston, Tampa, Long Beach, New Orleans and Seattle—accounted for 87 percent of all U.S. passenger embarkations. BREA attributed lower embarkation numbers in 2004 for Miami (-14 percent) and Tampa (-6 percent) to capacity redeployment to emerging cruise ports like Jacksonville and Mobile, and increased sailings from mid-size ports such as San Diego (+113 percent) and Seattle (+ 80 percent).

While the industry’s economic impact was felt in all 50 states and the District of Columbia, 81 percent was concentrated in 10 states: Florida, California, New York, Alaska, Texas, Washington, Georgia, Illinois, Colorado and Hawaii. Florida, of course, has more homeports than any other state; Alaska is primarily a port-of-call destination; Hawaii serves as both a homeport and port-of -call market, and the three states with no cruise ports — Georgia, Illinois and Colorado — served as significant passenger source markets and provided vendor support for cruise and tour operations.

The complete economic study can be found on the ICCL Web site at www.iccl.org. Additional news releases are available for Florida, California, New York, Alaska, Texas, Washington, Illinois, Hawaii, Massachusetts, Pennsylvania and New Jersey.