Posted on: Sunday, September 7, 2003

Passengers a boom for a variety of businesses

By Kelly Yamanouchi
Advertiser Staff Writer

Tour providers, bus companies, hoteliers, retailers and even farmers are jockeying to get a piece of the business expected to flow from the arrival of Norwegian Cruise Line's new Hawai'i-based ships in the next few years.

Norwegian plans to have all three of its U.S. flagged cruise ships sailing in the Islands by 2007, contributing 10,200 jobs and $270.6 million in wages and salaries annually to the Hawai'i economy, according to a Norwegian-commissioned study by Pricewaterhouse- Coopers.

That includes 3,000 onboard jobs and thousands more generated by the expected ripple effect from the new cruise business.

"It's (cruising) a good way to showcase Hawai'i for a number of first-time visitors," said Joseph Toy, president of hotel consultancy Hospitality Advisors LLC. The hope is that they return to stay in hotels.

Retailers, especially those near harbors, such as shops at Aloha Tower Marketplace, expect lots of spinoff business.

"We hope that it's going to be awesome," said Dean Iverson, owner of Bungalow Bay fashion store.

Norwegian as well as ship arrivals such as the Queen Elizabeth II bring tourists eager to spend, he said.

Hotels expect to get more customers from tourists visiting on cruise-hotel packages. Norwegian has struck a deal with Marriott and has been in discussions with other hoteliers including Hilton.

Norwegian is also looking for new tours and attractions to sell to its passengers as shore excursions and is in discussions with businesses to strike contracts. Many local businesses, such as Roberts Hawaii, already have agreements to provide transportation services for Norwegian Star passengers.

The cruise-line traffic is an opportunity to grow business in a stagnant marketplace, said Troy Iwamoto, president and chief operating officer of Roberts Hawaii.

"An account like this, of the size and proportion, could make a difference, especially to small businesses in Hawai'i," he said. "It's one of the few bright lights for Hawai'i's visitor industry."

Competition for the Norwegian deals is stiff, but the payoff can be big.

"There are so many operators trying to get the business," said Tom Cook, general manager at tour operator Abercombie & Kent.

"However, they decide to run their business here, more people are going to have jobs. Whether it be for the cruise line, the suppliers, for the bus companies — they're going to have to purchase more buses, hire more mechanics," Cook said.

Supplying the ships could also benefit Hawai'i. Norwegian said it buys about 25 percent of its produce locally for Hawai'i cruises and is in discussions with the state Department of Agriculture about additional products to purchase.

Matthew Loke, administrator of the state agricultural development division, said he wants to coordinate sales of Hawai'i flowers, produce and seafood.

Loke said the state can help organize mini-trade shows for farmers on different islands to meet with Norwegian.

"This is actually a catalyst for something that will affect all the islands," he said.

Mike Sou, production manager at Aloun Farms, is eager to sell local produce such as lettuce, broccoli, melon, cantaloupe, honeydew and corn.

"We sure need the business for Hawai'i," he said .

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