Cruise study reveals broad local economic contributions

The expression "a rising tide floats all boats" best describes Charleston's cruise business and its contributions to the local economy in 2010.

At a time when most communities are only shedding jobs, the cruise business is adding them to the tri-county area.

The 69 cruise ships booked for 2010 will pump $37 million into the Charleston metro region and support 407 full-time jobs.

The average wage of a cruise-related job is nearly $40,000 and is well above the regional average. Each cruise ship visit will bring an average of $323,000 in direct spending to the area.

These findings from a new economic analysis commissioned by the State Ports Authority reveal the broad economic contributions of the cruise business to the local economy.

By researching the spending habits of passengers, crew members and the cruise lines themselves, we found that cruises enhance the economy in ways beyond what are considered traditional tourism impacts. Cruises, particularly embarkations from Charleston, support several areas of our local economy.

Cruising is more than a single event -- it is an industry.

For example, the largest sectors supported by the cruise business are transportation services, including the maritime community, retail stores and wholesale trade, which includes the supplies a ship stocks prior to the voyage.

The study reveals that cruise activity this year will have a much larger impact than the previous 2004 study year. The 2010 economic contributions are nearly four times larger than the 2004 estimates, although the number of ship calls only increased from 57 to 69.

This reflects the contributions of more cruises originating from Charleston. Per passenger spending and cruise ship spending are both higher for these embarkation sailings.

Beyond the impact numbers alone, cruises allow us to showcase our city's charm and our state to a largely new and receptive audience. Nearly half of cruise passengers are first-time visitors to Charleston.

Four in five passengers indicate they will likely return to the area to vacation within the next five years, and a high 90 percent indicate they would recommend Charleston to family and friends.

In addition, cruise passengers' income and other demographics make them a great fit with the local tourism industry's target market, and we know that if they come to the Holy City once, they will likely be repeat visitors.

The port's local hospitality partners do a great job managing our visitors and presenting Charleston in the best light while they are in port.

Passenger surveys revealed that of the two-thirds of port-of-call visitors that leave the vessel while in port, half go on organized excursions and tours in the area. Importantly, these visitors provide additional support for our plantations, gardens, museums and historic homes that rely on donations and ticket sales in order to be preserved in the future.

Others who choose to explore the city on their own receive guidance and assistance from the Charleston Area Convention & Visitors Bureau, which staffs the terminal on days when ships arrive in port with visiting passengers.

Charleston remains a niche cruise port, and the port's one-berth facility is in keeping with the scale and charm of the city. While cruises are a small part of the region's overall tourism industry, they have an important role, as our study demonstrates.

Cruising must bring a positive economic impact to the city, while also benefiting the community as a whole.

The major planning effort underway for the Union Pier property is evidence that the State Ports Authority is committed to ensuring that cruises are in keeping with the scale of the city.

The plan's goals include increasing the public's access to the waterfront and creating additional uses for the new cruise facility when it is not in use throughout the year.

The planning effort hinges on wide community input and will ensure that cruises can continue to positively impact our local economy while better serving all those who call Charleston home.

Paul Crotts, Ph.D., is a professor and former chair of the College of Charleston's Department of Hospitality and Tourism Management. Frank Hefner, Ph.D., is a professor of Economics and director of the Office of Economic Analysis at the College of Charleston.