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Global cruise industry contributes $1.33 billion to Texas economy

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WASHINGTON, DC – The global cruise industry contributed $1.33 billion to Texas’ economy in 2014, increasing 5.6 percent since 2013 and accounting for 6.3 percent of the cruise industry’s spending nati

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WASHINGTON, DC – The global cruise industry contributed $1.33 billion to Texas’ economy in 2014, increasing 5.6 percent since 2013 and accounting for 6.3 percent of the cruise industry’s spending nationwide, according to a new study from Cruise Lines International Association (CLIA), the largest cruise industry trade association and the leading authority of the global cruise community.

CLIA’s 2014 Economic Impact Analysis, an independent study commissioned by CLIA and conducted by Business Research and Economic Advisors (BREA), shows that the cruise industry’s direct expenditures in Texas generated total[1] economic impacts of 22,689 jobs and $1.42 billion in wages and salaries.

“The cruise industry is a critical contributor to the U.S. economy and we see evidence of the industry’s positive effect spreading into every state, including Texas,” said Cindy D’Aoust, CLIA’s acting CEO. “We saw a double-digit percent increase in passenger and crew visits, which contributed to the cruise industry’s economic impact in Texas. This increase was primarily the result of a quadrupling of visits as both Princess Cruises and Norwegian Cruise Line expanded operations in Texas.”

Cruise Passenger and Crew Spending in Texas

According to CLIA’s study, cruising at Texas ports generated 1.07 million passenger and crew visits, representing 4.6 percent of all passenger and crew visits in the U.S. and marking a 19 percent increase over 2013. These visits produced $85.1 million in passenger and crew onshore spending, or nearly $80 per visit. Total passenger and crew spending in Texas increased 24 percent from 2013.

2014 CLIA Economic Impact Analysis

TEXAS Totals Share of the U.S. (percent)

Passenger Embarkations 750,000 6.8
Resident Cruise Passengers 1,233,000 11.0
Total Passenger & Crew Visits 1,069,000 4.6
Direct Expenditures ($ Millions) $1,331 6.3
Total Employment Impact 22,689 6.1
Total Wage Impact ($ Millions) $1,417 7.3

Additional findings from CLIA’s study:

• Cruisers embarking from Texas’ two cruise ports (Galveston and Houston) totaled 750,000, accounting for 6.8 percent of embarkations at all U.S. ports

• Tourism-related industries received approximately $569 million, or 43 percent of the cruise industry’s $1.33 billion in direct spending in Texas.

• Another $481 million, or 36 percent of the total direct spending in Texas, was spent with businesses in six additional business segments: food processors, machinery manufacturers and petroleum refiners in the manufacturing sector; and advertising agencies, insurance carriers, and management and technical consulting companies in the nonmanufacturing sector. The remaining 21 percent impacted several other industries throughout the state including wholesalers of products purchased by cruise lines, apparel manufacturers, software publishers and companies that manufacture and distribute communication and navigation equipment.

Top Ten States

According to CLIA’s study, the top ten states benefitting economically from the cruise industry are:

1. Florida
2. California
3. Texas
4. New York
5. Alaska
6. Washington
7. Georgia
8. Illinois
9. Massachusetts
10. New Jersey

Global Cruise Industry’s Contributions to the U.S. Economy
The growing economic impact from the cruise industry in Texas reflects the industry’s increasing contribution to the U.S. economy. In 2014, cruise lines, their passengers and crew spent a record $21 billion in the U.S. in 2014, up 16 percent since 2010 and representing a new peak in U.S. cruise industry expenditures. Total contributions[2] of the global cruise industry to the U.S. economy reached a record $46.09 billion in 2014, up 4.5 percent from the previous year. This includes generating 373,738 U.S. jobs paying more than $19 billion in wages and salaries.

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Editor in chief is Linda Hohnholz.