Overtourism by cruise ships? Royal Caribbean CEO fights back

In:
09 Sep 2024
By: 
Elizabeth Wright

Overtourism is a rising issue around the world, but Royal Caribbean's CEO thinks cruise ships are being unfairly targeted.

Two cruise ships docked side by side

Cruise ships have long been singled out for overtourism, particularly in Europe. However, Michael Bayley, Royal Caribbean's President and CEO, argues people underestimate the value cruise ships bring to the tourism industry. 

Each year, over 20 million people take a cruise, sailing to countless destinations around the globe, from the Caribbean to Europe, Australia, Asia, Alaska, and Hawaii. 

Recently, many ports have begun to reevaluate the impact of the cruising industry in their communities, especially as passenger numbers break pre-pandemic levels. 

A few weeks ago, for instance, protestors in Amsterdam prevented cruise ships from safely docking in port, demanding an immediate cessation of the "destructive cruise industry." 

Amsterdam-Serenade-Blocked-2

During a Q&A session onboard the Ultimate World Cruise, Bayley said cruise ships sometimes become targets of the anti-tourism movement because of misinformation. While acknowledging the concerns, he highlights the positive effects of the industry, stating they're always striving to improve. 

Overtourism fueled by misinformation

Oasis of the Seas and Icon of the Seas

Cruising makes up just 2% of all international travel, yet the cruise industry specifically is targeted as contributing to overtourism by transporting hundreds of thousands of guests to destinations and trying to do "something negative" when it comes to the environment. 

In Europe, for instance, Airbnb is a massive driver of tourism in cities like Barcelona, resulting in protests earlier this summer. Guests dining al fresco in Las Ramblas were soaked with water guns, while locals chanted, "Tourists go home," CNN reported. 

By November 2028, Barcelona plans to end short-term rentals by revoking all 10,101 apartment licenses approved as short-term rentals to help ensure residents aren't displaced by "overtourism." 

Barcelona

Additionally, the Assemblea de Barris pel Decreixement Turístic (Neighborhood Assembly for Tourism Degrowth) published 13 proposals to reduce the number of visitors and create a new tourism model, which includes the closure of cruise ship terminals. 

"...sometimes, cruise ships have a target based upon very little information or misinformation...I think it's incumbent on us to improve as an industry, and as a company, our communication over the impact, both positive and negative, on communities," Bayley explains. 

"There's always two sides to a coin," he continues, "And in relation to the impact, there are some incredibly positive attributes that come from our business." 

Many countries' GDP relies heavily on tourism

According to Bayley, the economic value of tourism goes unrecognized.

"In the Caribbean, for example, which is kind of the center of cruise activity...over 50%, pretty much, of all tourists that travel through the Caribbean come on [a] cruise," he says. 

The Cruise Lines International Association's (CLIA) 2024 State of the Industry Report revealed the economic contribution from the cruise industry to the economy is "enormous," despite cruising making up a small percentage of international travel. 

In 2022, cruising contributed $138 billion to the global economy. Additionally, the industry supported 1.2 million jobs and $43 billion in wages. 2023's results are expected to be published this month; however, the impact is predicted to be even greater because of the increase in passengers sailing in 2023 compared to 2022. 

Read more: The demand for Royal Caribbean cruises is hot

Crew members from 100+ countries

Crew member with a duck

On any Royal Caribbean vacation, crew members are important because they're not just friendly faces you see throughout your voyage. Their dedication and expertise help transform cruises into memorable experiences, ensuring that every detail of the guest experience, from dining to entertainment to guest relations, is handled with professionalism and care.  

"We have generations...of crew members who work with Royal Caribbean," remarks Bayley, "There [are] many onboard the ship today who've sent their kids to college, have made investments, have built a family life, have taken care of their elders, [and] have lived a good life through their association with the cruise industry and with Royal Caribbean." 

Read more: 7 most important crew members to meet on your cruise ship

Advanced technology

MAP

"We've got some of the most incredible technology that we've invested in," says Bayley about Royal Caribbean's environmental initiatives, "[It allows] us to stand shoulder-to-shoulder with pretty much any community anyone here lives in." 

The amount of garbage, for example, transferred from cruise ships to landfills is actually tiny thanks to waste management systems. 

He continues to talk about the work that's going into future fuels: "What is the future fuel? Our new ships are what's called 'hybrid ships,' which means they're capable of using traditional marine oil or [liquefied natural gas]." 

Read more: Royal Caribbean's newest cruise ships will convert waste to energy

icon-lng-tank

When Royal Caribbean began developing today's newest ships, the future fuel was LNG. 7-10 years later, however, he brings up current concerns about LNG, including slippage, which is when gaseous methane escapes into the atmosphere. 

Still, though, LNG's carbon footprint is significantly lower than that of traditional marine fuels, and the concerns are working on being addressed. 

"We are committed to a bright future. We are putting a lot of time and energy and resources into not only our environmental impact but also as it relates to our impact with tourism," Bayley says. 

Royal Caribbean has contributed to local communities 

Labadee

Royal Caribbean is the only cruise line to visit Haiti. Located on the northern peninsula, Labadee offers a stunning blend of natural beauty and adventure—exclusively for guests sailing with Royal Caribbean. 

The private destination helps contribute to the local economy, with a controlled group of merchants given the right to sell souvenirs to cruise passengers in the secured resort area. 

In addition to revenue from cruise ship guests, Bayley said Royal Caribbean built a local school in the community, helping to educate thousands of children. They also built a freshwater and sewage system in the area. 

Royal Beach Club concept art

Similarly, Nassau's Royal Beach Club is being constructed as a public-private partnership between Royal Caribbean and The Bahamas, allowing Bahamians to hold up to 49% equity in the project. 

This initiative is expected to generate hundreds of jobs for local Bahamians, both during the construction phase and once in operation. Over a decade, the venture is expected to have an economic impact of around $1 billion. 

Greece will begin taxing cruise ship tourists

Picture of blue domes in Santorini, Greece

Greece plans on imposing a 20-euro levy on cruise passengers visiting Santorini and Mykonos during the peak summer season to help with overtourism, Reuters reported. 

Though the country relies heavily on tourism, some of the most popular destinations have faced challenges with overtourism, which strains the local infrastructure. 

"Cruise shipping has burdened Santorini and Mykonos and this is why we are proceeding with interventions," said Prime Minister Kyriakos Mitsotakis. 

Panoramic view of Santorini, Greece taken while on a 7-night Greek Isles cruise in July 2024

There are also plans to regulate the number of cruise ships that arrive at the same time in certain ports to help further balance the economic benefits of tourism while preserving the quality of life for residents. 

Read more: Ultimate Greek Isles cruise guide


Elizabeth graduated from New York University's Arthur L. Carter Journalism Institute with her M.A. in Journalism in May 2023. Growing up, she had the privilege of traveling frequently with her family and fell in love with cruising after sailing on the Oasis of the Seas her freshman year of high school. She wanted to pursue a career that highlighted her passion for travel and strengths as a writer. 

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