Cruise lines brighten Hawai'i tourism outlook
By Kelly Yamanouchi
Advertiser Staff Writer
The small but rapidly growing cruise industry in Hawai'i was one of the bright spots in the local tourism industry in 2002 and appears on a path of even greater expansion in years to come.
The number of visitors touring Hawai'i on cruise ships jumped 52.3 percent in 2002 compared with the previous year, according to data released yesterday by the Department of Business, Economic Development and Tourism.
That amounts to 242,144 passengers — just 3.8 percent of the state's estimated 6.4 million visitors last year. The cruise visitors also accounted for a total of about $164 million in expenditures in Hawai'i last year.
Of the total cruise passengers, 7,117 were Hawai'i residents.
The number of cruise visitors is expected to grow further as Norwegian Cruise Line develops plans to deploy three ships based in Hawai'i operating under the U.S. flag over the next few years. Other cruise lines are also considering stops in the Islands.
Many in the tourism industry still doubt that cruises will have a major impact on the state's economy. Not only do cruise passengers make up a tiny portion of total visitors, but cruise visitors spend far less in Hawai'i than other groups of visitors. Last year through November, the average cruise visitor spent just $99 on shore compared to about $170 for other visitors.
Expenditures include money spent on tours, lodging, restaurants, entertainment and shopping. Hawai'i residents on cruises spent even less, averaging $43 per day.
But while failing airlines and geopolitical uncertainty have slowed the recovery of Hawai'i's tourism industry for more than a year, the cruise industry is expanding both locally and globally.
In 2001, 26 ships made 121 Hawai'i trips, bringing in 159,031 passengers. Arrivals climbed last year with 27 cruise ships making 133 trips and carrying 242,144 passengers. The increase in arrivals came despite the decline in travel after the Sept. 11 terrorist attacks and continuing tensions with Iraq.
About 54.6 percent of cruise visitors came from the Eastern part of the United States and 30.3 percent from the West; 6.6 percent from Canada; 2.4 percent from Europe; and 6.1 percent from other areas.
"The consistent growth in cruise passengers in the Islands, despite the challenges of the past year, was welcome news and was one of the strengths exhibited by the state's recovering tourism industry," said Ted Liu, DBEDT director.
Growth in the cruise industry also offers opportunities for the Neighbor Islands to attract more visitors. Most cruise passengers visited O'ahu, the Big Island, Kaua'i and Maui. Some also spent additional time outside their cruise itineraries visiting Lana'i and Moloka'i.
Tourism leaders see Neighbor Island visits as a way to attract experienced visitors who are looking for something new. Nearly 60 percent of cruise passengers were repeat visitors.
Cruise visitors spent an average of seven days in Hawai'i last year, including an average of 2.46 days on shore before or after their cruise. Of those that spent extra nights on shore, about 59 percent stayed in hotels. Others stayed at condominiums, time-share properties or with friends and relatives.
The state's data are based on 21,080 survey forms representing 45,863 visitors. The sample's margin of error was 0.1 percent.
Norwegian Cruise Line recently won an exemption from federal law that will allow it to operate in Hawai'i without having to stop at a foreign port as required of foreign ships by the Passenger Vessel Services Act.
Norwegian has said it hopes to be able to call at more ports — including Lahaina on Maui and Kailua in Kona on the Big Island.
The Norwegian Star, based in Hawai'i year round since December 2001, carries about 2,250 passengers. A second Norwegian ship is here for a seven-month stint through April, carrying about 1,740 passengers on each trip.
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