Posted on: Sunday, December 28, 2003
CRUISES
Cruise industry anticipates year of big growth
| Cruising Hawai'i |
By Kelly Yamanouchi
Advertiser Staff Writer
The 27-year-old recently took a job as front office manager aboard the Norwegian Cruise Line's first U.S.-flag ship, the Pride of America.
"I think it was the best decision I ever made," said Winning, who has worked for the Renaissance Ilikai and for the Waikiki Beach Marriott Resort.
"Working for hotels, there's good times and bad times, and you can really feel the effect of the economy." But as he sees it, "It seems like the cruise industry is booming."
Call it the year of the cruise industry.
In 2004, the state is set to welcome a record number of cruise passengers and to relaunch an effort to bring ships with U.S. crews to Hawai'i for interisland cruises.
Norwegian plans to add two U.S.-flagged cruise ships to Hawai'i next year, including the Pride of America that will begin interisland cruises in July.
Under a federal exemption pushed by Hawai'i's congressional delegation, Norwegian will not have to schedule three foreign-built ships to stop in a foreign port before cruising in the Islands. The ships won't have to stop at Kiribati, an island republic hundreds of miles away, as does their sister ship the Norwegian Star.
The ships will be crewed by U.S. workers, including hundreds from Hawai'i who applied for onboard and onshore jobs from pursers to housecleaners.
Beyond the job stimulus that the cruises represent, state officials hope Norwegian's newest sweep into Hawai'i will revive efforts to develop cruise tourism and build on an industry that has bowed to air travel in recent decades.
Industry growing
Nearly 300,000 cruise passengers will tour the Islands next year, according to state forecasts, up from fewer than 237,000 this year. While still a small fraction of the 6.5 million people who travel to Hawai'i annually, the cruises make up one of the fastest-growing sectors of the tourism industry.
The 235,000 cruise visitors who came to Hawai'i last year spent $162.4 million, according to state estimates. That is expected to grow next year with the increase in passengers' arrivals.
Cruise visitors spend less on average than the typical Hawai'i tourist. While all tourists spend an average of $165.16 per person each day, cruise visitors pay out an average of $99 per person daily. However, the amount does not include money spent on their cruise and aboard the ship, and more of that revenue will flow into the state's economy through the Hawai'i workers employed aboard the U.S.-flag ships.
By year's end, Norwegian will have created 2,000 new jobs and boosted businesses that serve the ships and their passengers from tour operators to farmers, retailers and hotel firms.
Norwegian has hired about 780 crew members so far; 80 percent are from Hawai'i, although the company said it has run into difficulty finding as many Hawai'i employees as it would like.
A Norwegian Cruise Line study concluded that by 2007, the company could generate $270.6 million in wages and salaries in Hawai'i and 10,200 jobs annually, including jobs and revenue for other businesses catering to the ships.
Pearl City resident Chris Lee, 29, decided to take a chance when he left the Cheesecake Factory restaurant start-up staff and joined Norwegian.
"I'd like to be there right at the beginning and just spearhead this thing. ... I think it'll be really good for Hawai'i to have these ships," Lee said.
Concerns raised
But while some Hawai'i companies are ecstatic about the new cruise business, others fear the ships could take market share from other visitor accommodations.
Barry Lewin, Maui Hotel Association chairman, said some on Maui think the cruise lines may have an advantage over hotels because they do not pay comparable state taxes, such as the hotel room levy.
Gov. Linda Lingle's tourism liaison, Marsha Wienert, acknowledges the controversy.
"Definitely there are concerns, but it's new commerce, new trade and new business coming into the state. We are looking at it as a positive," she said.
The coming growth in cruise ships plying the waters around the Islands is also spurring stronger efforts to regulate wastewater discharges. The industry has a voluntary agreement with the state that governs the cruise lines' environmental practices, but critics are calling for regulations and penalties for violations.
The cruise ships could also have adverse effects on small communities, some fear. A group of Moloka'i residents this year protested ship stops at their island and some Maui residents remain wary of the impacts as well.
As the number of arrivals to the historic town of Lahaina grows, "some of the folks feel it's losing its sense of Lahaina," said Carol She', Maui district manager of small-boat harbors.
But those who are joining Norwegian on its U.S.-flag cruises dwell on the benefits of the cruise industry.
Dawnann Cabiles, a 37-year-old Pearl City resident working part-time as a cashier at Daiei before being hired by Norwegian, said she's looking forward to the opportunity to travel.
"This is like my mid-life career thing," Cabiles said. "I'm pretty sure I'll go somewhere with this company. I'm positive on that."
Fulfilling promises
The federal exemption and Norwegian's plans aim to complete the failed Project America, a government financed effort by American Classic Voyages to bring U.S.-flag ships to Hawai'i. But the company went bankrupt after Sept. 11, 2001, and took 1,100 jobs with it.
One economist estimated the company's failure would cost the state nearly 3,000 jobs, including those at subcontractors who delivered luggage and guided tours.
The impact was somewhat tempered by Norwegian Star's arrival in December 2001. But the Star is staffed largely by foreign workers. Not until Norwegian started hiring local workers did the promise of Project America move toward fulfillment.
And that has been good for Hawai'i residents.
"Unlike the hotels, where you have to do a lot of cutbacks and people are getting reduced hours, here everybody is working a full load," Winning said.
His cruise job allows him to save money because his room and board is paid for, and he's working most of the time.
"It's challenging, it's rewarding, it's educational, it's fun. But it's not easy and it's not for everyone," Winning said. "This experience has been unlike anything I've ever been through before."
Reach Kelly Yamanouchi at 535-2470 or kyamanouchi@honoluluadvertiser.com.
Cruising Hawai'i
Cruise ships with homeport in Hawai'i next year Starting Hawai'i cruises July 2004 Pride of America, a new ship 2,156 passengers 1,000 U.S. crew members Starting Hawai'i cruises October 2004 Pride of Aloha, the re-flagged Norwegian Sky 3- and 4-day cruises 2,002 passengers 1,000 U.S. crew members Leaving Hawai'i after April 2004 Norwegian Star 7-day cruises 2,250 passengers Foreign-flag crew Starting Hawai'i cruise May 2004 Norwegian Wind 10- and 11-day cruises 1,740 passengers Foreign-flag crew Total cruise ships touring Hawai'i in 2004 29 ships, including those with homeport in Hawai'i 175 tours |