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Caribbean Tourism Industry .........


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An article that appeared in the Miami Herald this weekend suggests Caribbean nations may form a collective front to demand larger "head taxes" per cruise ship entering their ports. Seems that if these nations can pull together they can leverage the current COVID situation to their advantage. I was surprised to learn from the article that the average cruise passenger spends $132 for a port day in the Caribbean sun while tourists staying over-night spend 10X that amount. I've always felt that Caribbean nations weren't particularly fond of the impact the cruise industry has had in that region. OTH, I have also felt that these same nations want to bite the hand that feeds them routinely demanding more infrastructure development, higher and higher port fees, etc. There's been sort-of a tense stand off that is reflected in the occasional political protests and cold shoulders offered by the indigenous peoples of the islands when 15,000 + cruisers from 5 or more cruise ships deluge their islands on any given day.  COVID presents and interesting advantage to nations engaging in some form of collective bargaining with the cruise lines. They simply won't open their ports until the cruise lines open their wallets. Of course that is going to cost passengers in the form of increased fares.  I could envision a political stand-off having little to do with COVID that will prevent the cruise industry from starting cruising in the Caribbean in August.    

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They will have to be careful...along with airlines, cruiselines…..etc. On one hand they are hurting and need money, but if they charge too much, they wont get the tourist to come..its a catch 22 and a fine line to balance.

 

Oh..and I may have spent $132 in some ports(although rare) but I can confirm I have never spent 10x that for an overnight......

 

 

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I don't fundamentally disagree with you, Monctonguy but if they can get their acts together and put pressure on the lines in a collective fashion, they're in the drivers seat. Both need the money. If Caribbean nations open airports and hotels and resorts get filled while cruise ports remain shuttered, their drawing tourist dollars and the cruise lines aren't. If the number cited in the Miami Herald article is correct (overnight tourists spend 10X as much as 1 day cruise passengers) I can seem them sitting on their hands with regard to opening their cruise ports.

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Why do you think that the cruise lines, in general, and Royal Caribbean, specifically, have put so much emphasis (not to mention $$) on developing their own ports/resorts ?  Of course, all of this has come to a screeching halt since the plague, but prior to that, it was no holds barred, trying to develop their "private islands" (all over the world) and new resorts (Grand Lucayan).  They want to be able to bypass local politics and minimize local leverage.  Control is power.

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Probably poor use of the data.

Reality - average spend per cruise passenger $132 is a one day number.

Average spend per person staying overnight has to be total spend for however long they stay. 10X is not unrealistic because it includes accommodations and multiple meals per day, not to mention multiple days of buying souvenirs and other cr*p they don't need.

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Despite the cited numbers, many of the Caribbean Nation ports, need both the overnight tourists as well as the daily cruise visitors to sustain any standard of living they have achieved. They have depended on both for sometime and doing without one would have a major impact, even if all resorts were operating at 100%.  It can be said that it is both an advantageous time as well as a risky time to take a stand. Although the Cruise Ship Companies find themselves in financial places they don't want to be in, the Caribbean Nations people and infrastructure has been without any inflow of tourist monies for almost 3 months. I think they are feeling a bigger crunch than the industry currently, given the millions of residents that have no source of income during these times. Just a lay opinion though.

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But it also needs to be factored in that a huge chunk of the potential overnight tourist are cruise visitors. For many people they may never think of visiting these places, when you see so much about the history of France, Greece, etc. Then they take a cruise and decide they would like to stay 3 or 4 nights at a resort. I can count two people, I know not a lot, that went on a cruise then decided to take a solo trip to the Cayman Islands. I am sure that it equals out because I doubt resorts see the same amount of people cruise ships deliver daily. I think everything across the board will be raised.

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I had read the article and looked at the numbers as well as discussing it with some other people.  My take is the cruise lines and islands need each other.  Yes the islands would prefer people to come and stay on the island but in a lot of cases that isn't realistic.  None of these islands can house overnight the number of people who arrive by cruise ship.  Also, the flight options and costs make it less likely these same people will visit for an overnight stay.  The people who fall in love with an island because they visited it on a cruise will return and stay for a vacation but that will be the minority. 

We started cruising many years ago then switched to all-inclusive vacations for about 10 years and are now back to cruising.  We are heading to Mexico July 1 because our July cruises were canceled.  We do not spend $1,320 per person per day when we go on a land vacation.  That is not realistic to us a family of 5.  Island governments receive port fees, investment in infractions and aid from cruise lines.  All of that needs factored in.

We tend to spend with locals whether cruising or land vacation and rarely book the cruise line's excursions.  We would be happy with a cruise or two to nowhere or the private islands but then want to visit new places.  Will we decide to visit those places as land vacations if we don't cruise, probably not.  We will stick to the more popular all-inclusive places that we've already hit like Mexico and Jamaica.  We've also done Dominican Republic but could care if we ever return there.  I don't see a lot of these islands suddenly becoming packed with land vacationers if cruises stop going to that island and I see the people and the governments losing out.  Is cruising perfect for the islands? No but tourism of any form impacts these nations.

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@Hoski  I would agree. I did all-inclusive in the Dominican Republic once, won't return again. My thing is I don't mind Caribbean being all about the ship, they are mostly beach and water-sports focus. I would do a cruise just to the private islands. If we are talking any other itinerary, I want my ports....Alaska, Australian, etc.  

Another thing I just thought of is crime. Places in the Caribbean need cruise lines more than inclusive resorts. People who venture off the resort and into the island will be hard-pressed to return if something criminal happens. With a cruise you might just chalk it up to wrong place, wrong time and venture more cautiously.

 

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Speaking with our favorite locals in St Maarten.....that Island was hurting badly after Irma and Maria with no cruise ships for weeks. 
 

First time cruise visitors are IMPERATIVE to these islands. 
 

Tread lightly Caribbean governments. Although will youREALLY notice the extra $200-$300 in your cruise fare? 
 

I will agree with @WAAAYTOOO about developing more private destinations. I’m looking forward to see what they eventually do with Grand Lucayan. 

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