The National Economic Overview
The cruise industry is a key driver of the U.S. economy, contributing $42.3 billion in gross output in 2012. The industry puts Americans to work across the nation, providing 356,311 jobs and $17.4 billion in wages and salaries.
The remaining 28% of direct expenditures in New York also impacted many other industries throughout the state including law firms, business service companies such as computer services, software consulting and marketing, manufacturers of products such as security equipment, and performing arts and entertainment establishments.
New York City Cruise Ship Economic Summary
New York is the fifth of top ten cruise ports having hosted 586,000 U.S. embarkations during 2012. It generated $1.24 billion in direct spending through 857,000 cruise visits. The city’s cruise ship industry created 16,342 jobs with $944 million in income.
The industry’s ability to continue to sustain and grow these kinds of economic benefits is at risk as outside forces impact New York including competitive efforts from other eastern seaboard port cities to lure visitors, escalating fuel costs and the restrictive berthing policies of destination vacation ports.
In 2014, the New York Cruise Ship Alliance will commit itself to ensuring New York regains passenger growth in this important sector of the destination and hospitality industry and thereby allow our industry to meet his full economic potential for the region.
The Economic Benefits for NYC
Total economic impact of New York City’s cruise industry in 2012 was $196.3 million. Passengers and crew spent an estimated $121.5 million while ashore in 2012. Embarking Passengers: $99.5 million; Transit Passengers: $3.2 million; Crew: $18.8 million.
Passengers with an overnight stay spent an average of $462 during their two-night stay, an increase of 5% over 2011. Spending by embarking passengers was overwhelmingly dominated by those with pre- and post-cruise overnight stays, these activities generating $93.1 million.
Passengers from outside NYC and the tri-state area continued to represent the majority of passengers in 2012 with 43% of NYC embarking cruise passengers residing in the tri-State area.
When surveyed, only 13% reported THAT this was their first visit to New York City, while 53% stated this was their eighth or more visit. At least 41% made it a point to stay overnight at least one day to enjoy the city. Overall, 93% of embarking passengers were satisfied with their visit to New York City.
Business Research & Economic Advisors (BREA) conducted the study.