Posted on: Friday, August 29, 2003

Industry report touts cruises' value to economy

By Kelly Yamanouchi
Advertiser Staff Writer

The cruise industry generated $146 million of direct spending in Hawai'i and contributed to nearly 2,500 jobs in the state in 2002, according to an industry study.

A report, released yesterday by the International Council of Cruise Lines, showed cruise industry purchases in Hawai'i make up about 1.2 percent of the total nationwide, while employment makes up about 0.9 percent.

The cruise industry and passengers generated nearly $12 billion in direct spending in the United States last year, an 8.8 percent increase over 2001.

Direct spending includes expenditures by cruise lines, their crews and passengers. The amount includes expenses for food and supplies on ships, advertising, offices and port services.

Indirect spending includes expenditures by cruise line vendors and suppliers, including food processors, utilities, transportation and insurance companies.

The 2,452 jobs in Hawai'i directly and indirectly spurred by the cruise industry includes mainly shoreside employees of the cruise lines and jobs created through cruise line and passenger spending. The jobs figure does not include most shipboard employees, who are often foreign workers.

In Hawai'i, average annual wages for cruise-related jobs were $33,400, according to the study.

The cruise industry generated $82 million in income in Hawai'i last year, or 0.8 percent of the nationwide total.

Hawai'i's contribution is small compared to states like Florida, where cruise lines have headquarters. But the size of the local cruise industry is expected to increase with two U.S.-flag Norwegian Cruise ship vessels to begin sailing among the Islands and other cruise lines coming next year.

"Hawai'i has a very bright future" for the cruise industry, said Michael Crye, president of the International Council of Cruise Lines.

Reach Kelly Yamanouchi at 535-2470 or kyamanouchi@honoluluadvertiser.com.