THE CONTRIBUTION OF THE INTERNATIONAL CRUISE INDUSTRY TO THE U.S ECONOMY IN 2016 OCTOBER 2017

CRUISE LINES INTERNATIONAL ASSOCIATION

BREA

Business Research & Economic Advisors

The Contribution of the International Cruise Industry to the U.S Economy in 2016

Prepared for:

Cruise Lines International Association August 2017

Business Research & Economic Advisors 201 Strykers Rd, Suite 19-132 Phillipsburg, NJ 08865 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table of Contents

EXECUTIVE SUMMARY ...... 2 THE CONTRIBUTION OF THE INTERNATIONAL CRUISE INDUSTRY TO THE UNITED STATES ECONOMY ...... 2 TRENDS: 2011 – 2016 ...... 8 THE CONTRIBUTION OF THE INTERNATIONAL CRUISE INDUSTRY TO INDIVIDUAL STATE ECONOMIES ...... ERROR! BOOKMARK NOT DEFINED.

SECTION I: IMPACT OF THE INTERNATIONAL CRUISE INDUSTRY ON THE U.S. ECONOMY IN 2016 ...... U.S. CRUISE PASSENGERS ...... 16 SPENDING IN THE U.S. ECONOMY GENERATED BY THE CRUISE INDUSTRY ...... 21 Direct Economic Impacts in the United States During 2016 ...... 24 Indirect and Induced Economic Impacts in the United States During 2016 ...... 36 Total Economic Impacts in the United States During 2016 ...... 40

SECTION II: THE CONTRIBUTION OF THE CRUISE INDUSTRY TO THE U.S. ECONOMY BY STATE IN 2016 ...... SUMMARIES OF THE ECONOMIC IMPACTS OF THE TOP TEN STATES ...... 45 Florida ...... 47 California ...... 50 Texas ...... 53 New York ...... 55 Alaska ...... 57 Washington ...... 59 Georgia ...... 61 Illinois ...... 62 Massachusetts ...... 63 New Jersey ...... 65 Economic Impacts in the Remaining States ...... 67

APPENDIX I – STATE IMPACT METHODOLOGY ...... 69 APPENDIX II – INDIVIDUAL STATE TABLES ...... 73

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Executive Summary

The number of passengers sourced1 from the United States and those embarking from U.S. ports rose between 2014 to 2016. Passengers sourced from the U.S. including Puerto Rico, totaled 11.50 million in 2016, another record for the U.S. (see Table ES-1). This is an increase of 1.5 percent from 2014, and U.S.-sourced passengers is 10 percent higher than in 2011.

Cruise passenger embarkations from U.S. ports increased by 5.4 percent from 2014 to 2016, to 11.66 million. Once again, this was a new high for passenger embarkations from U.S. ports.

The Contribution of the International Cruise Industry to the United States Economy

Driven by the strong growth in passenger embarkations, the growth in direct spending by the cruise industry in the U.S. increased. The growth in spending by the cruise lines and their passengers and crew in the U.S. rose by 3.2 percent to $21.69 billion in 2016. This is 15 percent higher than it was in 2011. Again, this represented a new peak in cruise industry expenditures in the U.S. Cruise lines spent significantly less on fuel in 2016 versus 2014, primarily due to lower fuel costs, but also from better operational efficiencies of the newer ships. Despite this decrease in fuel exenditures, the total cruise line expenditures still experienced a 2 percent overall increase from 2014. The $16 billion in expenditures by the cruise lines for goods and services, including capital expenditures, accounted for 74 percent of the direct spending. Cruise lines' direct expenditures for wages for U.S. employees and taxes paid to U.S. federal, state and local tax jurisdictions increased by nearly 4 percent to $1.48 billion, accounting for 6.8 percent of total direct expenditures.

The $4.18 billion in passenger and crew spending for transportation, accommodations, food and other retail goods accounted for the remaining 19.3 percent of direct cruise industry spending. Passenger and crew spending increased by 8.9 percent, in part driven by the robust growth in passenger embarkations from U.S. ports. Since 2011, total passenger and crew spending has increased by 19 percent, which has helped drive the total economic impact up from $40.42 billion to $47.76 billion during this timeframe.

1 Cruise Lines International Association (CLIA) has recently developed a new, more accurate methodology for tracking and assigning the states from which passengers are sourced. While this has no impact on the overall number of U.S. sourced passengers, it has significantly impacted the numbers for individual states.

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Table ES-1 – Expenditures of the International Cruise Industry in the United States, 2011 – 20161 Percent Change from Previous Period 2011 2012 2013 2014 2016 2011 2012 2013 2014 2016

Passengers (Millions) Passengers Sourced from the U.S. 10.45 10.67 10.71 11.33 11.50 3.5% 2.2% 0.3% 5.8% 1.5% U.S. Embarkations 9.84 10.09 9.96 11.06 11.66 1.5% 2.5% -1.3% 11.0% 5.4%

Industry Spending in U.S. ($ Billions) $ 17.59 $ 18.29 $ 18.72 $ 19.59 $ 20.20 4.6% 4.0% 2.4% 4.6% 3.1% Cruise Lines $ 14.07 $ 14.63 $ 15.09 $ 15.63 $ 16.02 5.0% 4.0% 3.1% 3.6% 2.5% Goods and Services $ 12.15 $ 12.66 $ 13.13 $ 13.65 $ 13.96 5.3% 4.2% 3.7% 4.0% 2.2% Capital Expenditures2 $ 1.92 $ 1.97 $ 1.96 $ 1.98 $ 2.06 3.4% 2.5% -0.4% 1.1% 3.8% Passengers and Crew $ 3.52 $ 3.66 $ 3.63 $ 3.96 $ 4.18 3.2% 4.0% -0.7% 8.9% 5.8%

Wages & Taxes Paid by Cruise Lines $ 1.29 $ 1.34 $ 1.38 $ 1.43 $ 1.48 7.9% 3.8% 3.2% 3.1% 3.9%

Total U.S.-based Spending $ 18.88 $ 19.63 $ 20.10 $ 21.02 $ 21.69 4.8% 4.0% 2.4% 4.6% 3.2% 1 NOTE: This study was not conducted in 2015 2 Includes net interest

Source: Business Research & Economic Advisors and Cruise Lines International Association

As indicated in Table ES-2, the growth in the economic benefits increased in tandem with the growth of passengers sourced from the U.S. After increasing by 4.6 percent in 2014, direct cruise industry expenditures in the U.S. rose by 3.2 percent from 2014 to 2016. The direct cruise industry expenditures in the U.S. rose to a new peak of $21.69 billion.

Table ES-2 – Economic Contribution of the International Cruise Industry, 2011 – 2016 Percent Change from Previous Period 2011 2012 2013 2014 2016 2011 2012 2013 2014 2016

Passengers Sourced from the U.S. 10.45 10.67 10.71 11.33 11.50 3.5% 2.2% 0.3% 5.8% 1.5%

Direct Economic Impacts Direct Cruise Industry Exp. ($ Billions)* $ 18.88 $ 19.63 $ 20.10 $ 21.02 $ 21.69 4.8% 4.0% 2.4% 4.6% 3.2% Employment 145,835 146,785 147,899 152,272 158,226 3.9% 0.7% 0.8% 3.0% 3.9% Wages and Salaries ($ Billions) $ 6.22 $ 6.39 $ 6.63 $ 7.02 $ 7.38 6.6% 2.7% 3.7% 5.9% 5.2%

Total Economic Impacts Total Output ($ Billions) $ 40.42 $ 42.27 $ 44.09 $ 46.09 $ 47.76 6.8% 4.6% 4.3% 4.5% 3.6% Employment 347,787 356,311 363,133 373,738 389,432 5.4% 2.5% 1.9% 2.9% 4.2% Wages and Salaries ($ Billions) $ 16.50 $ 17.42 $ 18.27 $ 19.43 $ 20.57 8.3% 5.5% 4.9% 6.3% 5.9% * Includes wages and salaries paid to U.S. employees of the cruise lines Source: Business Research & Economic Advisors and Cruise Lines International Association

NOTE: The Sum of the categories in the Tables and Figures within this report may not add to the totals due to rounding.

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The $21.69 billion in direct cruise industry expenditures generated an estimated 158,226 direct jobs throughout the U.S. economy paying $7.38 billion in wages and salaries during 2016, both records for the cruise industry within the U.S. economy. Driven by the 3.2 percent increase in direct expenditures, the employment impact rose by 3.9 percent while the income impact rose by 5.2 percent.

As indicated in Table ES-3, the direct employment and wage income impacts were spread among virtually all industries in the U.S. economy. The core cruise travel sector in the U.S. - which consists of the cruise lines, airlines, travel agents, port service providers and local businesses, such as hotels and restaurants that are directly impacted by passenger and crew spending - accounted for 70.4 percent of the total direct employment and 62 percent of the total direct wage income impacts. Led by direct employment by the cruise lines and other impacts in the transportation sector, businesses in the core cruise travel sector benefitted from more than 111,500 jobs paying $4.58 billion in wages and salaries.

The cruise lines also purchased a variety of goods and services, such as food and beverages, fuel, insurance, financial and businesses services and entertainment among others, in support of their cruise operations. These expenditures generated another 46,708 jobs paying $2.80 billion in wages and salaries during 2016.

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Table ES-3 –Direct Economic Contribution of the International Cruise Industry in 2016

Direct Total Wages Sector Expenditures Employment & Salaries $ Millions $ Millions

Core Cruise Travel Sector $ 10,516 111,518 $ 4,581 Passenger & Crew Spending $ 2,101 24,951 $ 657 Port Services & Cruise Lines $ 3,519 49,246 $ 2,130 Transportation Services $ 2,811 26,412 $ 1,248 Air Transportation $ 2,084 10,910 $ 547

Cruise Industry Suppliers $ 11,170 46,708 $ 2,801 Agriculture, Mining, Utilities & Construction $ 47 203 $ 7 Manufacturing $ 5,459 12,699 $ 869 Food & Beverages $ 1,042 2,239 $ 103 Apparel & Textiles $ 155 898 $ 42 Chemicals & Plastics $ 293 372 $ 36 Petroleum Refining $ 1,633 134 $ 19 Fabricated Metal Products $ 242 917 $ 63 Industrial Machinery $ 483 1,396 $ 94 Ship Maintenance & Repair $ 777 2,176 $ 173 Computers & Electronic Equipment $ 288 835 $ 90 Other Manufacturing $ 547 3,731 $ 251 Wholesale Trade $ 599 2,903 $ 197 Other Transportation Services $ 21 36 $ 4 Information Services $ 275 557 $ 48 Finance, Insurance, Real Estate & Leasing $ 1,129 2,923 $ 260 Services & Government (ex. Lodging & Travel Services) $ 3,220 27,387 $ 1,416 Professional, Scientific & Technical Services $ 1,759 15,763 $ 696 Administrative & Waste Management Services $ 47 214 $ 14 Arts, Entertainment & Recreation $ 214 1,806 $ 97 Other Services & Government $ 1,200 9,604 $ 610

Total - 2016 $ 21,686 158,226 $ 7,383 Total - 2014 $ 21,019 152,272 $ 7,021 Percentage Change from 2014 3.2% 3.9% 5.2% Source: Business Research & Economic Advisors.

The total economic impacts of the international cruise industry are the sum of the direct, indirect and induced impacts. The direct impacts discussed above generate additional, indirect and induced, impacts as the directly impacted businesses and their employees purchase goods and services from other business-to-business and business-to-consumer enterprises. As a result of these expenditures, the total economic impacts of the cruise industry generated $47.76 billion in total output throughout the U.S. economy. The production of these goods and services generated 389,432 jobs paying $20.58 billion in wages and salaries. The total output impact rose by 3.6 percent from 2014 to 2016 while the employment and income impacts rose by 4.2 percent and 5.9 percent, respectively (see Table ES-4).

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On an industry basis, the services and government sector accounted for the largest proportion of the total economic impacts with $16.36 billion in output generating 215,788 jobs paying $10.14 billion in wages and salaries. The services and government sector accounted for 34.3 percent of the national output impacts, 55 percent of the total employment impacts and approximately 49 percent of the total income impacts.

Table ES-4 –Total Economic Contribution of the International Cruise Industry in 2016 Total Wages & Industry Output Sector Employment Salaries $Millions $Millions

Agriculture, Mining, Utilities & Construction $ 5,057 7,289 $ 586 Manufacturing $ 10,951 33,132 $ 2,378 Food & Beverages $ 883 3,265 $ 218 Apparel & Textiles $ 1,246 1,750 $ 127 Paper and Printing $ 333 1,567 $ 119 Chemicals & Plastics $ 468 4,470 $ 221 Petroleum Refining $ 986 723 $ 92 Fabricated Metal Products $ 719 4,062 $ 304 Industrial Machinery $ 701 1,635 $ 246 Transportation Equipment $ 1,136 2,463 $ 280 Computers & Electronic Equipment $ 3,288 2,833 $ 525 Other Manufacturing $ 1,190 10,365 $ 246 Wholesale & Retail Trade $ 2,840 34,232 $ 1,787 Transportation $ 7,354 78,066 $ 3,645 Information Services $ 963 4,055 $ 401 Finance, Insurance, Real Estate & Leasing $ 4,236 16,870 $ 1,634 Services & Government $ 16,356 215,788 $ 10,143 Professional, Scientific & Technical Services $ 5,760 38,706 $ 2,854 Administrative & Waste Management Services $ 3,746 54,732 $ 1,578 Accommodations & Food Services $ 1,757 46,156 $ 1,058 Performing Arts & Amusements $ 855 25,203 $ 590 Other Services & Government $ 4,238 50,992 $ 4,063

Total - 2016 $ 47,758 389,432 $ 20,575 Total - 2014 $ 46,092 373,738 $ 19,425 Percentage Change from 2014 3.6% 4.2% 5.9% Source: Business Research & Economic Advisors.

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The manufacturing sector, with $10.95 billion in output generated by cruise industry expenditures, accounted for 22.9 percent of the total output impact. The 33,132 manufacturing jobs accounted for 8.5 percent of the total employment, and the $2.38 billion in wages comprise 11.6 percent of the total wage income impacts.

The transportation sector, which includes cruise lines and ports, benefited from $7.35 billion in output, 78,066 jobs and $3.65 billion in wages and salaries. As in 2014, this sector once again accounted for more than 15 percent of the total economic impacts of the cruise industry in the U.S.

The following are the major conclusions of the analysis of the cruise industry economic operations and impacts in the U.S. during 2016:

➢ An estimated 11.5 million cruise passengers were sourced from the U.S.

➢ A total of 11.66 million cruise passengers embarked on their cruises from U.S. ports during 2016. Florida, whose ports handled 7.08 million embarkations, accounted for nearly 61 percent of all U.S. cruise embarkations.

➢ The cruise lines and their passengers and crew directly spent $21.69 billion on goods and services in the U.S., a 3.2 percent increase from 2014 and an 18.9 percent increase from 2011. The cruise lines spent $17.5 billion while passengers and crew spent $4.18 billion.

➢ Within the U.S., spending by the cruise lines with their direct suppliers was up from $10.77 million in 2014 to $11.17 in 2016.

➢ The cruise industry generated the direct employment of an estimated 158,226 workers with U.S. businesses, who, in return, received $7.38 billion in wages and salaries during 2016.

➢ Including the indirect economic impacts, the spending of the cruise lines and their crew and passengers was responsible for the generation of $47.76 billion in gross output in the U.S., a 3.6 percent increase from 2014.

➢ Including the indirect economic impacts, the spending of the cruise lines and their crew and passengers in 2016 was responsible for the generation of 389,432 jobs throughout the country. This represents a 4.2 percent increase over 2014.

➢ Total wages and salaries paid to these workers was $20.58 billion, an increase of 5.9 percent over 2014.

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Trends: 2011 – 2016

In 2016, 11.5 million cruise passengers were sourced from the U.S. As shown in Figure ES- 1, U.S.-sourced cruise passengers have steadily increased with an average annual growth rate of 1.9 percent over the 2011-2016 period. Each year experienced a new high in U.S.- sourced passengers throughout this five-year period.

Figure ES-1 – U.S. Cruise Passenger Statistics, 2011 – 2016

Source: CLIA and BREA

Embarkations from U.S. ports increased from 2011 to 2016 by an annual average of 3.5 percent, including an increase of 5.4 percent from 2014 to 2016.

Thus, an increasing number of passengers are sourced by the international cruise industry from the U.S. for cruises around the globe. At the same time, an increasing number of passengers from the U.S. and elsewhere are beginning their cruises from ports in the U.S.

As a result of these cruises, the cruise lines and their passengers and crew not only purchase goods and services, such as food and beverages, hotel supplies and equipment to name a few, from businesses around the world, but the U.S., in particular. In 2011, U.S. businesses received an estimated $18.88 billion in direct cruise expenditures (see Table ES-5). By 2016, these direct expenditures had increased by 15 percent to $21.69 billion. Thus, as the number of passengers sourced from the U.S. and embarking on cruises from U.S. ports has increased, so

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too has the industry’s expenditures with U.S. businesses. Since 2011, these direct expenditures have increased at an average annual rate of 2.8 percent.

Table ES-5 – Direct Cruise Industry Expenditures in the United States, 2011 – 2016 Average Annual Growth 2011 2012 2013 2014 2016 2011 2012 2013 2014 2016

Passengers Sourced from the U.S. 10.45 10.67 10.71 11.33 11.50 3.5% 2.2% 0.3% 5.8% 1.5%

Direct Economic Impacts Direct Cruise Industry Exp. ($ Billions)* $ 18.88 $ 19.63 $ 20.10 $ 21.02 $ 21.69 4.8% 4.0% 2.4% 4.6% 3.2% Employment 145,835 146,785 147,899 152,272 158,226 3.9% 0.7% 0.8% 3.0% 3.9% Wages and Salaries ($ Billions) $ 6.22 $ 6.39 $ 6.63 $ 7.02 $ 7.38 6.6% 2.7% 3.7% 5.9% 5.2%

Total Economic Impacts Total Output ($ Billions) $ 40.42 $ 42.27 $ 44.09 $ 46.09 $ 47.76 6.8% 4.6% 4.3% 4.5% 3.6% Employment 347,787 356,311 363,133 373,738 389,432 5.4% 2.5% 1.9% 2.9% 4.2% Wages and Salaries ($ Billions) $ 16.50 $ 17.42 $ 18.27 $ 19.43 $ 20.57 8.3% 5.5% 4.9% 6.3% 5.9% Source: Business Research & Economic Advisors

As the direct expenditures of the international cruise industry with U.S. businesses has grown over the past five years, so has the industry's economic impact on the U.S. economy. As discussed, the total economic impacts are the sum of the direct, indirect and induced impacts that result from the direct expenditures. Since 2011, the total economic impact of the cruise industry has increased each year, growing from $40.4 billion in 2011 to $47.8 billion in 2016 (see Figure ES-2). Over the past five years, the total output that has resulted from cruise- related spending in the U.S. has increased by 18 percent, or at an average annual rate of 3.4 percent.1

Also shown in Figure ES-2, the total employment impact of the international cruise industry has followed a similar pattern, increasing from 347,787 jobs in 2011 to 389,432 jobs by 2016. The total employment impact of cruise industry expenditures in the U.S. has increased by 12 percent over the past five years, or 2.3 percent per year.

1 These figures are not adjusted for inflation.

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Figure ES-2 – Total Economic Impact of the International Cruise Industry, 2011 - 2016

Source: Business Research & Economic Advisors

The Contribution of the International Cruise Industry to Individual State Economies

The economic impact of the international cruise industry spread into every state’s economy. Cruise passengers came from virtually every state, and the cruise lines made purchases in support of their operations in just about every state. The principal location factors that influenced the economic impacts by state were:

➢ cruise lines’ headquarters and other facilities; ➢ ports-of-embarkation and ports-of-call; ➢ place of residence of cruise passengers; and ➢ place of business of cruise industry vendors.

As shown in Table ES-6 and Figure ES-3, 11.66 million cruise passengers embarked on their cruises from U.S. ports in 2016. The top 10 U.S. cruise ports accounted for 87.2 percent of 2016 embarkations, virtually unchanged from 2014.

Florida remains the center of cruising in the U.S., accounting for nearly 61 percent of all U.S. embarkations. Passenger embarkations from Florida increased by 2.7 percent from 2014 to 2016 to 7.08 million. Miami continues to lead the Florida ports with 2.55 million embarkations in 2016. With its 18 percent growth from 2014, Port Canaveral is now the second largest U.S.

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port with 2.09 million embarkations. Since 2011, Florida ports have experienced a combined 19.6 percent increase in passenger embarkations.

Table ES-6 – U.S. Embarkations by Port, 2011 - 2016 Percent Change from Previous Period Port 2011 2012 2013 2014 2016 2011 2012 2013 2014 2016 Miami 2,003,000 1,887,000 2,015,000 2,549,000 2,551,000 -7.5% -5.8% 6.8% 26.5% 0.1% Port Canaveral 1,483,000 1,708,000 1,701,000 1,769,000 2,088,000 15.1% 15.2% -0.4% 4.0% 18.0% Port Everglades 1,795,000 1,797,000 1,845,000 1,940,000 1,840,000 2.1% 0.1% 2.7% 5.1% -5.2% Galveston 459,000 604,000 605,000 642,000 869,000 5.5% 31.6% 0.2% 6.1% 35.4% Long Beach 408,000 457,000 298,000 549,000 591,000 -1.4% 12.0% -34.8% 84.2% 7.7% New Orleans 369,000 488,000 489,000 502,000 534,000 41.9% 32.2% 0.2% 2.7% 6.4% New York 611,000 586,000 600,000 576,000 499,000 10.5% -4.1% 2.4% -4.0% -13.4% Seattle 443,000 464,000 430,000 408,000 484,000 -4.9% 4.7% -7.3% -5.1% 18.6% Tampa 449,000 487,000 410,000 451,000 405,000 13.1% 8.5% -15.8% 10.0% -10.2% Los Angeles 304,000 213,000 214,000 291,000 300,000 -16.9% -29.9% 0.5% 36.0% 3.1%

All Other Ports 1,510,000 1,404,000 1,357,000 1,387,000 1,497,000 -5.0% -7.0% -3.3% 2.2% 7.9%

United States 9,834,000 10,095,000 9,964,000 11,064,000 11,658,000 1.4% 2.7% -1.3% 11.0% 5.4% Top 10 Ports 8,324,000 8,691,000 8,607,000 9,677,000 10,161,000 2.7% 4.4% -1.0% 12.4% 5.0% Share of the U.S. 84.6% 86.1% 86.4% 87.5% 87.2% Florida Ports 5,920,000 6,074,000 6,150,000 6,891,000 7,079,000 2.4% 2.6% 1.3% 12.0% 2.7% Share of the U.S. 60.2% 60.2% 61.7% 62.3% 60.7% Source: U.S. Cruise Ports and BREA

Embarkations from California’s ports (Los Angeles, Long Beach, San Diego and San Francisco) have increased by 5.5 percent since 2014 to 1,057,148. The increase was driven by growth in each of the four ports. The increased number of embarkations from Long Beach accounted for 57 percent of California’s total growth.

There were also significant developments among the other key ports. Embarkations from Galveston jumped 35 percent to 869,923, in part due to the closure of the Port of Houston, while New Orleans saw its embarkations increase by more than 6 percent. Seattle’s embarkations improved by almost 19 percent from 2014 to 2016 to 484,000, a new high. In 2015, Norwegian Cruise Lines Holding (NCL) signed a 15-year lease agreement with the Port of Seattle. As part of the lease, NCL agreed to invest $30 million in improvements and expansion at the port. NCL’s increasing commitment to the Seattle cruise market helped fuel Seattle’s growth. This increase is also interrelated with the increase in passenger and crew visits to Alaska. New York’s Manhattan and Brooklyn cruise terminals experienced a slight increase in both ship calls and embarkations in 2016 over 2015. However, New York experienced a decrease of 13.4 percent since 2014, to 499,000 embarkations. The change was driven by an 11 percent decrease in ship calls, which resulted in 14 percent fewer passengers at the ports in 2015 over 2014.

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Figure ES-3– U.S. Embarkations by Port, 2014 and 2016 (Thousands)

Source: U.S. Cruise Ports The major economic impacts of the international cruise industry by state during 2016 as shown in Table ES-7 were as follows:

➢ The economic impacts were concentrated in 10 states. These states accounted for 78 percent of the cruise industry’s direct purchases in the U.S., 80 percent of the total employment impact and 82 percent of the income impact. The overall order of the Top 10 remains unchanged from 2014.

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Table ES-7 – Direct Expenditures and Total Employment and Wage Impacts of the International Cruise Industry for All States, 2016 Average Direct Total Wages Total Annual State 2016 2014 Expenditures & Salaries Employment Wage ($ Millions) ($ Millions) ($1,000)

Florida 1 1 $ 7,973 149,020 $ 7,093 $48 California 2 2 $ 2,374 47,801 $ 2,988 $63 Texas 3 3 $ 1,423 25,166 $ 1,622 $64 New York 4 4 $ 1,147 15,708 $ 975 $62 Alaska 5 5 $ 1,065 19,842 $ 991 $50 Washington 6 6 $ 780 18,129 $ 949 $52 Georgia 7 7 $ 703 13,195 $ 709 $54 Illinois 8 8 $ 551 8,186 $ 496 $61 Massachusetts 9 9 $ 486 7,329 $ 483 $66 New Jersey 10 10 $ 450 8,468 $ 500 $59 Louisiana 11 11 $ 432 8,321 $ 347 $42 Pennsylvania 12 13 $ 400 6,438 $ 374 $58 Colorado 13 14 $ 371 2,525 $ 148 $59 Hawaii 14 12 $ 363 5,728 $ 205 $36 Indiana 15 15 $ 333 7,663 $ 387 $51 North Carolina 16 16 $ 255 3,377 $ 165 $49 Michigan 17 18 $ 230 2,632 $ 151 $57 Arizona 18 17 $ 229 3,827 $ 172 $45 Maryland 19 19 $ 204 3,142 $ 175 $56 Ohio 20 20 $ 176 3,335 $ 166 $50 Connecticut 21 21 $ 173 1,197 $ 98 $82 Virginia 22 22 $ 153 2,824 $ 170 $60 Missouri 23 23 $ 142 3,585 $ 180 $50 Oregon 24 24 $ 137 4,126 $ 193 $47 South Carolina 25 25 $ 131 2,368 $ 93 $39 Minnesota 26 27 $ 109 2,173 $ 131 $60 Nevada 27 26 $ 108 1,477 $ 68 $46 Alabama 28 28 $ 103 1,260 $ 58 $46 Tennessee 29 29 $ 66 1,028 $ 48 $47 Kentucky 30 30 $ 61 986 $ 43 $44 New Hampshire 31 31 $ 52 507 $ 27 $53 Wisconsin 32 32 $ 49 759 $ 35 $46 Maine 33 33 $ 48 778 $ 27 $35 Kansas 34 34 $ 47 1,766 $ 81 $46 Dist. of Columbia 35 35 $ 39 228 $ 32 $140 Utah 36 36 $ 38 779 $ 33 $42 Iowa 37 37 $ 36 290 $ 13 $43 Mississippi 38 38 $ 36 433 $ 17 $39 Oklahoma 39 39 $ 34 578 $ 27 $46 Arkansas 40 40 $ 30 488 $ 18 $37 Delaware 41 41 $ 28 208 $ 12 $56 Nebraska 42 43 $ 28 440 $ 21 $48 Rhode Island 43 42 $ 25 340 $ 15 $43 New Mexico 44 44 $ 17 244 $ 12 $47 Idaho 45 45 $ 12 190 $ 8 $42 West Virginia 46 48 $ 10 153 $ 6 $41 Vermont 47 47 $ 10 53 $ 3 $52 North Dakota 48 46 $ 9 170 $ 6 $35 South Dakota 49 49 $ 5 62 $ 2 $39 Montana 50 50 $ 4 76 $ 3 $39 Wyoming 51 51 $ 2 34 $ 2 $47

U. S. Total $ 21,686 389,432 $ 20,575 $53 Source: Business Research and Economic Advisors

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➢ As seen in state Table 11, the total cruise passenger and crew visits to Florida were 11.5 million in 2016. Florida ports accounted for 48 percent of all passenger and crew visits in the U.S during 2016. Passengers, crew and cruise lines combined to directly spend $7.97 billion in Florida, virtually unchanged from 2014. This accounted for 37 percent of the industry’s direct expenditures. This direct spending generated 149,020 total jobs paying $7.09 billion in income. In addition, the state of Florida, which is the home of corporate or administrative offices for most of the cruise lines, accounted for 60 percent of the cruise lines’ U.S.-based employment, and 71 percent of the cruise lines’ U.S.-based wages during 2016.

➢ California, similar to Florida, hosts both cruise line headquarters and ports-of- embarkation. During 2016, cruise passenger and crew visits totaled 2.12 million (Table 12). After increasing by nearly 50 percent in 2014 over 2013, California ports continue to add passengers and crew. Overall, passenger and crew figures were up an additional 10.5 percent in 2016 over 2014. With 11 percent of the industry’s direct expenditures, California businesses received $2.37 billion in direct industry spending, which, in turn, generated 47,801 jobs paying $2.99 billion in wage income.

➢ An estimated 1.28 million passengers and crew visited Texas during 2016, up 19 percent from 1.07 million in 2014 (see Table 13). This represents 5.3 percent of all passenger and crew visits at U.S. Overall, Texas experienced a significant increase in visits to the Port of Galveston. However this increase was tempered by the loss of passenger and crew visits due to the closing the Port of Houston in early 2016. With $1.42 billion in direct spending and 25,166 jobs paying $1.62 billion in income, Texas accounted for 6.6 percent of the industry’s direct expenditures, 6.5 percent of the industry's total employment impact and 7.9 percent of the income impact.

➢ In 2016, an estimated 754,000 passengers and crew visited New York (Table 14), 3.1 percent of total passenger and crew visits in the U.S. This represents an 11.6 percent decrease from 2014. New York accounted for 5.3 percent of the industry’s direct expenditures with $1.15 billion in 2016. This spending generated an estimated 15,708 jobs paying $975 million in income. Even with the decline in passenger and crew visits and direct expenditures, New York maintained its fourth-place ranking among all states for direct spending.

➢ Alaska benefits from the cruise industry primarily as a destination market. During 2016, the cruise industry produced 4.9 million passenger and crew visits to Alaska destinations (see Table 15), a 6.2 percent increase from 2014. The state primarily benefits from cruise passenger spending for shore excursions, pre- and post-cruise stays, food and beverages and general retail. Because of this spending, Alaska accounted for 4.9 percent of the industry’s direct spending with $1.07 billion in expenditures generating 19,842 full- and part-time jobs paying just over $991 million in wage income.

➢ The state of Washington is the location of cruise industry administrative facilities and a port-of-embarkation in Seattle. During 2016 an estimated 711,000 passengers and crew visited Seattle (see Table 16). With $780 million in direct spending and 18,129 jobs paying $949 million in income, Washington accounted for just about 3.6 percent of the industry’s national economic impact.

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➢ Georgia is a major source market for cruise passengers, supporting the industry with a wide range of goods and services. During 2016, 370,000 residents of Georgia cruised. This represented 3.2 percent of U.S. sourced passengers. As a result of the activity of the cruise industry, Georgia businesses received $703 million, or 3.2 percent of the direct expenditures generated by the cruise industry in the U.S. These direct expenditures generated total economic impacts of 13,195 jobs and $709 million in income throughout the Georgia economy during 2016.

➢ Similar to Georgia, Illinois has no direct cruise operations. The state is a net exporter of cruise passengers. It also supports the industry with a wide range of goods and services. Resident cruise passengers in Illinois totaled 213,700 during 2016 and accounted for 1.9 percent of U.S. resident passengers. As a result of the activity of the cruise industry, Illinois businesses received $551 million, or 2.5 percent of the direct expenditures generated by the cruise industry in the U.S. These direct expenditures generated total economic impacts of 8,186 jobs and $496 million in income throughout the Illinois economy during 2016.

➢ The Boston cruise port in Massachusetts is both a port-of-embarkation and a port-of- call for cruises to Canada and Bermuda. An estimated 431,000 passengers and crew visited Massachusetts during 2016 (see Table 19). Massachusetts accounted for 2.2 percent of the industry’s direct expenditures with $486 million in direct spending. These expenditures generated an estimated 7,329 jobs paying $483 million in income.

➢ In 2016, an estimated 363,000 passengers and crew visited New Jersey (see Table 20). This represents 1.5 percent of total passenger and crew visits in the U.S. and a 12 percent increase from 2014. New Jersey accounted for 2.1 percent of the industry’s direct expenditures with $450 million. This spending generated an estimated 8,468 jobs paying $500 million in income.

➢ The impacts in the remaining states were primarily generated by cruise passenger spending for air travel and cruise line purchases from vendors located in each state.

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Section I: Impact of the International Cruise Industry on the U.S. Economy in 2016

The contribution of the international cruise industry is the result of spending by the cruise lines and their passengers and crew. In this section, passengers sourced from the U.S., passenger embarkations from U.S. ports, crew arrivals at U.S. ports and the spending activity of the industry are detailed.

U.S. Cruise Passengers

As shown in Table 1, passenger embarkations at U.S. ports increased from 11.06 million in 2014 to 11.66 million in 2016, a 5.4 percent increase. As was seen in previous years, there was significant variation in growth among the cruise ports within the United States. Passenger embarkations in Florida increased 2.7 percent to 7.08 million from 2014 to 2016, driven by the 18 percent growth seen in Port Canaveral. This was the highest growth for a Florida port in the five-year period, apart from Miami’s 27 percent increase in 2014. Since 2011, passenger embarkations in Florida have increased nearly 20 percent; yet, Florida’s share of total U.S. embarkations has remained virtually unchanged at about 61 percent since 2011.

Table 1 – U.S. Embarkations of the International Cruise Industry, 2011 - 2016

Percent Growth Over Previous Period Port 2011 2012 2013 2014 2016 2011 2012 2013 2014 2016 Florida 5,920,000 6,074,000 6,150,000 6,891,000 7,079,000 2.4% 2.6% 1.3% 12.0% 2.7% Miami 2,003,000 1,887,000 2,015,000 2,549,000 2,551,000 -7.5% -5.8% 6.8% 26.5% 0.1% Port Everglades 1,795,000 1,797,000 1,845,000 1,940,000 1,840,000 2.1% 0.1% 2.7% 5.1% -5.2% Port Canaveral 1,483,000 1,708,000 1,701,000 1,769,000 2,088,000 15.1% 15.2% -0.4% 4.0% 18.0% Tampa 449,000 487,000 410,000 451,000 405,000 13.1% 8.5% -15.8% 10.0% -10.2% Jacksonville 190,000 195,000 179,000 182,000 195,000 9.2% 2.6% -8.2% 1.7% 7.1% California 902,000 837,000 659,000 984,000 1,058,000 -15.2% -7.2% -21.3% 49.3% 7.5% Los Angeles 304,000 213,000 214,000 291,000 300,000 -16.9% -29.9% 0.5% 36.0% 3.1% Long Beach 408,000 457,000 298,000 549,000 591,000 -1.4% 12.0% -34.8% 84.2% 7.7% San Diego 144,000 105,000 74,000 49,000 55,000 -40.7% -27.1% -29.5% -33.8% 12.2% San Francisco 46,000 62,000 73,000 95,000 112,000 12.2% 34.8% 17.7% 30.1% 17.9% New York 611,000 586,000 600,000 576,000 499,000 10.5% -4.1% 2.4% -4.0% -13.4% Other U.S. Ports 2,401,000 2,598,000 2,555,000 2,613,000 3,022,000 4.7% 8.2% -1.7% 2.3% 15.7% Galveston 459,000 604,000 605,000 642,000 869,000 5.5% 31.6% 0.2% 6.1% 35.4% New Orleans 369,000 488,000 489,000 502,000 534,000 41.9% 32.2% 0.2% 2.7% 6.4% Alaska 129,000 137,000 125,000 141,000 157,000 0.8% 6.2% -8.8% 12.8% 11.3% Seattle 443,000 464,000 430,000 408,000 484,000 -4.9% 4.7% -7.3% -5.1% 18.6% Boston 85,000 123,000 143,000 106,000 156,000 1.2% 44.7% 16.3% -25.9% 47.2% Baltimore 252,000 241,000 212,000 199,000 211,000 21.2% -4.4% -12.0% -6.1% 6.0% Honolulu 119,000 122,000 117,000 119,000 114,000 -3.3% 2.5% -4.1% 1.7% -4.2% Remaining U.S. Ports 545,000 419,000 434,000 496,000 497,000 -7.5% -23.1% 3.6% 14.3% 0.2% United States 9,834,000 10,095,000 9,964,000 11,064,000 11,658,000 1.4% 2.7% -1.3% 11.0% 5.4% Source: Port Authorities and Business Research and Economic Advisors

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Miami leads the Florida ports with 2.55 million embarkations, which is virtually unchanged from 2014. This follows a gain of 26.5 percent in 2014, but the moderated numbers observed since then can be expected to rise going forward. Royal Caribbean began construction on a new terminal in 2016 to allow the industry’s largest ships to berth in Port Miami. Additionally, there were at least nine cruise lines with permits to depart for Cuba at the development of this report, with many cruise industry experts expecting to see increases in departures from Miami as a result.

Port Canaveral experienced an 18 percent increase over 2014 to make its debut as the second busiest cruise port in the country. With 2.09 million embarkations, Port Canaveral overtook Port Everglades, with the increase coming from multiple cruise lines. Norwegian Cruise Lines introduced the Norwegian Epic to Port Canaveral in the Fall of 2016, making it the largest Norwegian ship to homeport there. Carnival Cruise Lines also made changes to the locations of its fleet. The Carnival Magic replaced the itineraries of Carnival Valor in April 2016 which increased lower berths by approximately 700 per sailing, and the Carnival Victory replaced the Carnival Sensation in February 2016 which also increased lower berths by about 700 per sailing. Finally, Royal Caribbean positioned Oasis of the Seas, with 5400 lower berths, in Port Canaveral in the fall of 2016.

Jacksonville, which homeports the Carnival Elation, saw embarkations increase by 7 percent during 2016 reaching 194,600 passengers.

Finally, Tampa saw its embarking passengers decrease by approximately 45,000 (10%) since 2014. This decrease mirrors the decrease in total ship arrivals from 198 in 2014 to 180 in 2016.

Passenger embarkations in California’s four cruise ports (Los Angeles, Long Beach, San Diego, and San Francisco) increased by 7.4 percent to 1.06 million passengers during 2016. This was the second consecutive year of increased embarkations following five consecutive years of declines. Total embarkations at the state’s ports crossed the 1 million mark for the first time since 2010.

After a big run up in 2014, passenger embarkations in Long Beach continued to rise in 2016; up nearly 8 percent to 591,000 passengers. The Port of Los Angeles also experienced a moderate growth of 3 percent as embarkations increased to just under 300,000 passengers in

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2016. Embarkations at San Francisco continued their growth trend with an increase of 18 percent to 112,000 passengers. This was the sixth consecutive year of increases. Finally, San Diego experienced an increase in embarkations for the first time since 2010. Total passengers embarking from San Diego was more than 54,000, up 10 percent from 2014.

Combined the nine cruise ports of Florida and California experienced a 3 percent increase in embarkations accounting for less than half (44%) of the total net increase in embarkations among all U.S. cruise ports. In the past, these nine ports have accounted for as much as 97 percent of the U.S. growth. However, these nine ports still account for 70 percent of all U.S. passenger embarkations.

While cruise activity in the remaining states is not as large as in Florida and California, there were significant developments among these ports as well. In New York, embarkations at its two cruise terminals in Manhattan and Brooklyn decreased by 13.0 percent to 498,700 passengers during 2016. This followed a 4 percent increase in 2014. The decline is largely attributable to a shift in deployed capacity from the Canada/New England market, which resulted in a decline in cruise ship calls at the two terminals from 202 in 2014 to 184 in 2016. Reported embarkations were up among other Northeast ports, including Baltimore (+6%), Boston (+46%) and Cape Liberty (+14%).

After experiencing virtually no growth in 2014, embarkations were up at both Galveston (+35%) and New Orleans (+7%) in 2016. Galveston benefited from the closure of the Port of Houston

Following a 5 percent decrease in passenger embarkations in 2014, embarkations in Seattle increased by 19 percent in 2016. Seven cruise lines currently homeport in Seattle. Figure 1 shows the distribution of US embarkations for the Top 10 ports and all others.

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Figure 1 - Distribution of U.S. Embarkations - 2016 Source: Port Authorities and Business Research and Economic Advisors

Miami 22%

Port Canaveral 18%

Port Everglades 16%

Galveston 7%

Long Beach 5%

New Orleans 5%

New York 4%

Seattle 4%

Los Angeles 3%

Tampa 3%

All Other U.S. Ports 13%

As shown in Table 2, 11.50 million cruise passengers were sourced from the United States including Puerto Rico. This represented a 1.6 percent increase from 2014.

A total of 4.2 million passengers were sourced from the states of the South Atlantic region. This represents about 37 percent of the total. The Pacific region, with 1.7 million passengers, is second, with about 15 percent of the U.S. total. With a total of nearly 6 million cruise passengers, these two regions accounted for 52 percent of all cruise passengers sourced from the United States, virtually unchanged from 54 percent in 2014.

The next two largest regions, the West South Central and Middle Atlantic regions, each generated more than a million sourced passengers. Combined, the two accounted for a total of 2.5 million cruise passengers, representing 22 percent of all passengers sourced from the United States

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Table 2 –Cruise Passengers Sourced from the United States, 2011 – 20162

Passengers Share of the U.S. Census Divisions 2011 2012 2013 2014 2016 2011 2012 2013 2014 2016 New England 817,900 887,300 855,500 836,984 604,759 7.8% 8.3% 8.0% 7.4% 5.3% Middle Atlantic 858,600 852,600 841,800 785,388 1,065,486 8.2% 8.0% 7.9% 6.9% 9.3% South Atlantic 3,890,000 3,991,000 4,167,300 4,503,540 4,236,127 37.2% 37.4% 38.9% 39.8% 36.8% East North Central 611,400 563,000 548,200 528,609 821,669 5.9% 5.3% 5.1% 4.7% 7.1% East South Central 267,400 256,500 250,600 252,147 447,592 2.6% 2.4% 2.3% 2.2% 3.9% West North Central 270,600 270,800 264,300 252,987 331,471 2.6% 2.5% 2.5% 2.2% 2.9% West South Central 1,337,900 1,425,600 1,383,000 1,471,633 1,419,082 12.8% 13.4% 12.9% 13.0% 12.3% Mountain 916,100 930,000 925,000 992,535 626,524 8.8% 8.7% 8.6% 8.8% 5.4% Pacific 1,399,900 1,426,900 1,389,300 1,623,705 1,730,795 13.4% 13.4% 13.0% 14.3% 15.0% Puerto Rico and Other U.S. 78,300 71,200 84,000 80,179 219,848 0.7% 0.7% 0.8% 0.7% 1.9% United States 10,448,100 10,674,900 10,709,000 11,327,707 11,503,353 100.0% 100.0% 100.0% 100.0% 100.0%

Source: Cruise Lines International Association

2 The definitions of the nine census divisions are as follows: New England: Connecticut, Maine, Massachusetts, New Hampshire, Vermont and Rhode Island Middle Atlantic: New Jersey, New York and Pennsylvania South Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia East North Central: Illinois, Indiana, Michigan, Ohio and Wisconsin East South Central: Alabama, Kentucky, Mississippi and Tennessee West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota West South Central: Arkansas, Louisiana, Oklahoma and Texas Mountain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming Pacific: Alaska, California, Hawaii, Oregon and Washington.

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Figure 2 shows the distribution of US sourced passengers for the 10 regions.

Figure 2 – Distribution of Cruise Passengers Sourced from the United States – 2016

Source: Cruise Lines International Association

As these data show, U.S. passengers come from all regions of the country with passenger growth reflecting both the changing deployment strategy of the cruise industry and the underlying population growth in each region. Additionally, for the first time since we began our measurement, the number of cruise passengers sourced from the United States is less than the number of cruise passenger embarkations from U.S. ports, 11.5 million versus 11.66 million. Consequently, U.S. resident cruise passengers also provide an economic stimulus to embarkation ports outside the United States. Finally, with 11.66 million cruise embarkations from U.S. ports in 2016, the international cruise industry is a source of significant economic activity in the U.S. economy.

Spending in the U.S. Economy Generated by the Cruise Industry

Business Research and Economic Advisors (BREA) conducted a survey of the Member Cruise Lines of the Cruise Lines International Association (CLIA) that provides the basis for our estimates of the industry’s 2016 expenditures for the operating and administrative expense categories outlined in Table 3. These data were collected for global payments and payments made to U.S. businesses in addition to other regions of the world. Surveys were returned for 17 cruise lines. These cruise lines were: AIDA Cruises, Carnival Cruise Line, Celebrity Cruises,

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Costa, Cunard Line, Disney Cruise Line, Hapag-Lloyd, Holland America Line, Norwegian Cruise Line, Oceania, P&O Cruises, Paul Gauguin Cruises, Princess Cruises, Regent, Royal Caribbean International, Seabourn, and TUI Cruise Lines. Combined, these cruise lines accounted for approximately 85 percent of the industry’s global passengers.

Table 3 – Operating and Administrative Expense Categories

Operating Expenses Adminstrative Expenses Travel Agent Commissions Marketing, Advertising & Promotion Cost of Travel Insurance for Passengers Other Cost of Sales Customs\Immigration\Int'l Arrivals Fees Charged to Passengers Accounting & Legal Services Air Fares Collected from Passengers Computer/Internet Consulting Services Costs of Pre- or Post-Cruise Packages Collected from Passengers Financial Services Food & Beverages Other Professional Services Fuel Telephone Port Charges & Fees Travel & Entertainment Restaurant/Hotel/Casino Supplies Rent Vessel Maintenance, Repair & Drydock Fees Utilities Vessel Insurance Land-Side Employees Wages & Salaries Maintenance Equipment & Supplies Cost of Shore Excusions Crew Wages & Salaries Source: Business Research and Economic Advisors

In addition to the aggregate revenue and expense data, more detailed data on vendor purchases were obtained from a smaller group of cruise lines. Vendor-specific data were obtained from the following cruise lines: Carnival Cruise Lines, Celebrity Cruises, Holland America Line, Princess Cruises and Royal Caribbean International. These five cruise lines accounted for approximately 75 percent of the industry’s non-wage U.S. operating and administrative expenses at the time of collection. These data were then aggregated by industry group and state and used to estimate total cruise industry expenditures by industry. These detailed expenditures accounted for about 65 percent of the total estimated expenditures made by the international cruise lines with U.S. businesses. The vendor purchases were aggregated into 95 industry sectors consistent with the 2016 U.S. input/output accounts.

The economic benefits that accrue to the U.S. economy arise from five principal sources of spending by the cruise industry and its passengers and crew:

➢ spending by cruise passengers and crew for goods and services associated with cruise ship arrivals at U.S. ports, including travel to the port of embarkation, pre- and post-cruise vacation spending, shore excursions, food and beverages and other retail;

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➢ expenditures by the cruise lines for goods and services necessary for cruise operations, including food and beverages, fuel, vessel maintenance and repair, ship’s supplies and so forth;

➢ spending by the cruise lines for port services at U.S. ports-of-embarkation and transit ports-of-call;

➢ the shore-side staffing by the cruise lines for their headquarters, marketing and tour operations; and

➢ capital expenditures for facilities constructed in the U.S., including port terminals, office facilities, and other capital equipment.

As shown in Table 4, the cruise lines spent an estimated $16.0 billion for goods and services with U.S. businesses during 2016, including more than $2.0 billion for capital expenditures. Overall, this represents a 3 percent increase from similar expenditures in 2014. Total spending by the cruise lines has increased each year since 2011. As a result, the 2016 spending for goods and services by cruise lines reached a new peak and is 26 percent above the 2009 recession induced cyclical low of $12.7 billion.

Table 4 – U.S. Expenditures ($ Billions) of the International Cruise Industry, 2011 – 2016

Percent Change from Previous Period 2011 2012 2013 2014 2016 2011 2012 2013 2014 2015

U.S. Purchases of the Cruise Lines $ 14.07 $ 14.63 $ 15.09 $ 15.63 $ 16.02 5.0% 4.0% 3.1% 3.6% 2.5% Goods and Services $ 12.15 $ 12.66 $ 13.13 $ 13.65 $ 13.96 5.3% 4.2% 3.7% 4.0% 2.2% Capital Equipment (incl. net interest) $ 1.92 $ 1.97 $ 1.96 $ 1.98 $ 2.06 3.4% 2.5% -0.4% 0.9% 4.0% Passengers and Crew Expenditures $ 3.52 $ 3.66 $ 3.63 $ 3.96 $ 4.18 3.2% 4.0% -0.7% 8.9% 5.8%

Wages & Taxes Paid by Cruise Lines $ 1.29 $ 1.34 $ 1.38 $ 1.43 $ 1.48 7.9% 3.8% 3.2% 3.1% 3.9%

Total U.S.-based Spending $ 18.88 $ 19.63 $ 20.10 $ 21.02 $ 21.69 4.8% 4.0% 2.4% 4.6% 3.2% Source: Business Research and Economic Advisors

Cruise passengers and crew added $4.18 billion in spending with U.S. businesses. Approximately half of these expenditures represented airfares that were directly purchased by passengers. Of the remaining $2.1 billion in passenger and crew expenditures, 72 percent were spent on food and beverages, and lodging. The remainder consisted of mostly retail purchases. Passenger expenditures, excluding airfares, were made at the U.S. ports-of-embarkation and transit ports-of-call. The estimated $4.18 billion in passenger and crew spending for 2016 increased by 5.8 percent from 2014, and represents a new high for passenger and crew spending in the United States.

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Thus, the international cruise industry and its passengers and crew spent a total of $20.21 billion for goods and services (excludes wages and taxes) provided by U.S. businesses, a 3 percent increase from similar expenditures in 2014. It is also 26 percent above the 2009 cyclical low of $16 billion.

In addition to the direct purchase of goods and services from U.S. businesses, the cruise industry made combined payments of $1.48 billion in wages and benefits to its employees and taxes to federal, state and local governments in the United States. Wage and benefit payments accounted for about 87 percent of the total. The tax payments consisted primarily of employer contributions to Social Security and sales and property taxes paid to state and local governments. This represented a 3.9 percent increase from 2014.

Including wages and taxes, the international cruise industry and its passengers and crew made total payments of $21.7 billion to U.S. businesses, U.S.-resident cruise line employees and U.S. taxing jurisdictions. This was a 3.2 percent increase from total spending by the international cruise industry in 2016.

Direct Economic Impacts in the United States During 2016

The direct economic impacts of the cruise industry in the United States are derived from a broad range of activities including:

➢ port services and cruise industry employment; ➢ transportation of cruise passengers from their place of residence to the ports of embarkation; ➢ travel agent commissions; ➢ spending for shore excursions and pre- and post-cruise stays in U.S. port cities; ➢ passenger and crew spending for retail goods in U.S. port cities; and ➢ purchases of supplies by the cruise lines from U.S. businesses.

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As a result of this spending, an estimated 158,226 full and part-time jobs3 were generated, paying wages of $7.38 billion during 2016.4 Thus, the 3.2 percent annual growth in direct industry expenditures resulted in a 3.9 percent increase in direct employment and a 5.2 percent increase in direct wage income relative to 2014. The slower growth in employment is primarily the result of the overall increase in labor productivity in all sectors, which reduced the number of employees per dollar of final demand. This increase in labor productivity also resulted in a higher increase in direct wage income relative to the direct employment gains (see Table 5).

Table 5 – Direct Economic Impacts of the Cruise Industry in the United States – 2016

Direct Total Wages Sector Expenditures Employment & Salaries $ Millions $ Millions

Core Cruise Travel Sector $ 10,516 111,518 $ 4,581 Passenger & Crew Spending $ 2,101 24,951 $ 657 Port Services & Cruise Lines $ 3,519 49,246 $ 2,130 Transportation Services $ 2,811 26,412 $ 1,248 Air Transportation $ 2,084 10,910 $ 547

Cruise Industry Suppliers $ 11,170 46,708 $ 2,801 Agriculture, Mining, Utilities & Construction $ 47 203 $ 7 Manufacturing $ 5,459 12,699 $ 869 Food & Beverages $ 1,042 2,239 $ 103 Apparel & Textiles $ 155 898 $ 42 Chemicals & Plastics $ 293 372 $ 36 Petroleum Refining $ 1,633 134 $ 19 Fabricated Metal Products $ 242 917 $ 63 Industrial Machinery $ 483 1,396 $ 94 Ship Maintenance & Repair $ 777 2,176 $ 173 Computers & Electronic Equipment $ 288 835 $ 90 Other Manufacturing $ 547 3,731 $ 251 Wholesale Trade $ 599 2,903 $ 197 Other Transportation Services $ 21 36 $ 4 Information Services $ 275 557 $ 48 Finance, Insurance, Real Estate & Leasing $ 1,129 2,923 $ 260 Services & Government (ex. Lodging & Travel Services) $ 3,220 27,387 $ 1,416 Professional, Scientific & Technical Services $ 1,759 15,763 $ 696 Administrative & Waste Management Services $ 47 214 $ 14 Arts, Entertainment & Recreation $ 214 1,806 $ 97 Other Services & Government $ 1,200 9,604 $ 610

Total - 2016 $ 21,686 158,226 $ 7,383 Total - 2014 $ 21,019 152,272 $ 7,021 Percentage Change from 2014 3.2% 3.9% 5.2% Source: Business Research and Economic Advisors

3 Throughout this report all employment impacts are the sum of annualized full- and part-time jobs. 4 These figures include the U.S. employees of the cruise lines and the industry’s trade associations and their wage income.

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Figure 3 shows the direct cruise industry expenditures and direct employment impacts from 2011 through 2016. Direct cruise industry expenditures have increased each year, from $18.9 billion in 2011 to $21.7 billion in 2016, a 15 percent increase.

Similarly, the annual direct employment contribution has increased by more than 8 percent since 2011, rising from 145,835 to 158,228.

Figure 3– Direct Cruise Industry Expenditures and Employment, 2011 - 2016

Source: Business Research and Economic Advisors

The Core Cruise Travel Sector in the United States

The core cruise travel sector in the United States consists of the cruise lines, airlines, travel agents, port service providers and local businesses, such as hotels and restaurants that are directly impacted by passenger and crew spending. Businesses in these sectors of the U.S. economy received an estimated $10.52 billion in direct spending by the cruise lines and their passengers and crew in 2016. This, in turn, supported the employment of an estimated 111,518 workers, an increase of 3.5 percent from 2014, and $4.58 billion in wage income, for a similar increase of 3.6 percent.

Spending in the core cruise travel sector totaled $10.5 billion while the cruise industry purchased an additional $11.17 billion in goods and services from its direct suppliers. Thus, the core cruise travel sector accounted for 48 percent of the direct spending by the cruise

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industry, 71 percent of the direct employment, and 62 percent of the direct wage income, all virtually unchanged from the 2014 study.

Port Services and Cruise Lines in the United States

Once again in 2016, Cruise lines and port service providers were the leading components of the core cruise sector, accounting for 33 percent of cruise industry spending in the core cruise travel sector (see Figure 4). This segment of the core cruise sector includes two primary components: i) expenditures with U.S. cruise ports and their service providers, such as stevedores and pilots and ii) the direct U.S.-based employment and wages of the cruise industry, including the employment and income of the industry’s trade associations.

Port service providers at each of the embarkation ports and transit ports-of-call in the United States provide a broad range of services including tugboat and piloting services, port agents, stevedores, passenger reception services, warehousing and other material handling services. Secondly, many of the major international cruise lines maintain administrative and marketing offices throughout the United States. While Florida hosts the majority of cruise headquarters, cruise line offices are also located in California and Washington. Additionally, the lines also maintain marketing and telephone centers in several other states, including Oregon and Kansas, and also have tour operations and support staff in Alaska and Hawaii. These employees and their wages are included in this sector. Third, industry trade associations maintain staff in Alaska, Florida and Washington, D.C. As with the cruise lines, the employees of these associations and their wages are also included in the core cruise travel sector.

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Figure 4 – Distribution of Core Cruise Travel Sector Direct Spending – 2016 ($10.51 Billion)

Source: Business Research and Economic Advisors

During 2016, the cruise industry spent $3.52 billion on such services, up from $3.42 billion in 2014. As a result of these expenditures, port service providers, the cruise lines and their trade associations provided 49,246 full- and part-time jobs, an increase of 2.1 percent from 2014, and paid an annual income of $2.13 billion.

On an industry basis, 74 percent of these jobs are found in the transportation sector, including water transportation, trucking, warehousing and other transport services, while the remainder were in administrative and support services. The cruise lines directly account for approximately 56 percent of the employment and wage impacts in this sector. The remaining 44 percent of the impacts occur principally with port authorities with additional impacts affecting ship agents; stevedoring and warehousing firms and other water transportation services, such as pilots and tugboats; and administrative and support services to these services.

Transportation Services in the United States

With $2.81 billion in direct expenditures, the transportation services sector was the second largest component of the core cruise travel sector and accounted for 27 percent of cruise industry spending within the core cruise travel sector. Transportation services primarily include travel agents and tour operators.

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The $2.81 billion in spending by the cruise lines and their passengers and crew for transportation services was a 3.7 percent increase from 2014. Overall, BREA estimated that the cruise industry spending for these transportation services was responsible for the generation of 26,412 jobs in this sector paying $1.25 billion in wage income. The employment impact rose by 5.8 percent from 2014 while the income impact increased by 9.6 percent.

Air Transportation Services in the United States

Air transportation accounts for another 20 percent of cruise industry spending in the core cruise travel sector. About half of the passengers arrived at their port city by air travel. At the same time, the average airfare dropped by about 15 percent to approximately $365 per passenger. As a result, cruise passengers who flew to their port city spent an estimated $2.08 billion on air transportation, a drop of 4.6 percent from 2014. These expenditures produced 10,910 jobs in the United States a decrease of 4.5 percent from 2014, while the wage income impact decreased by 3.7 percent to $547 million.

Passenger and Crew Spending in the United States

The final component of the core cruise travel sector is the spending of cruise passengers and crew for a variety of retail, dining, local transit and lodging services.5 First, as previously discussed, 11.66 million passengers embarked on cruises at U.S. ports. Second, the industry generated approximately 5.2 million transit visits at U.S. ports-of call, most of which were in Alaska, Key West, Port Canaveral and Catalina. Finally, crew onboard cruise ships visit both ports-of-embarkation and transit ports-of-call. Passenger and crew combined spending for non-transportation services of the core cruise travel sector totaled an estimated $2.1 billion in the United States during 2016, an increase of 8.2 percent from 2014. These expenditures accounted for 20 percent of cruise industry spending within the core cruise travel sector. This spending was responsible for the generation of 24,951 jobs in the U.S., an increase of 7.8 percent from 2014. The associated annual wages are $657 million, an increase of 9.5 percent from 2014.

5 Passenger and crew expenditures for sightseeing and shore excursions are included in the Transportation Services category of the core cruise travel sector.

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On an industry basis, the employment and wage impacts were concentrated in three key industries: the accommodation, food and beverage service, and retail industries (including tours and sightseeing). The accommodation sector accounted for 26 percent of passenger and crew non-transportation expenditures, while the food and beverage service sector accounted for about 22 percent and the retail trade industry accounted for the remaining 52 percent of the economic impacts generated by passenger and crew expenditures.

Adding in the cost of shore tours and local transportation, part of which was included in Transportation Services, passengers and crew spent $2.41 billion in port cities throughout the United States. This was a 3 percent increase from 2014. As shown in Table 6 and Figure 5, embarkation passengers accounted for 59 percent of the total spending with $1.42 billion in 2016. Based upon the passenger survey data referenced previously, about 40 percent of embarking passengers stayed one or more nights in a port city and spent a total of $1.2 billion during their visits. On average, these overnight cruise visitors spent $259 per visit, virtually unchanged from 2014. The average length of stay of these passengers was approximately 1.1 nights.

Table 6 – Passenger and Crew Expenditures in the United States – 2016

Spending per Visits Spending Visit Embarkation Passengers 11,658,105 $ 1,424,936,337 $ 122.23 Overnight Stays 4,651,140 $ 1,203,819,624 $ 258.82 Day of Cruise Arrivals 7,006,966 $ 221,116,714 $ 31.56 Port-of-Call Passengers 5,204,783 $ 649,896,632 $ 124.87 Crew 7,214,230 $ 339,501,664 $ 47.06 Total 24,077,118 $ 2,414,334,633 $ 100.28 Source: Business Research and Economic Advisors

Embarking passengers who arrived at the port city on the day of their cruise spent an average of $31.56. Most of these expenditures were for local transit, parking and limited food and retail purchases. In total, we estimated that these passengers spent $221 million during 2014.

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Figure 5 – Distribution of Spending by Passenger and Crew in the United States – 2016 Total = $2.41 Billion

Source: Business Research and Economic Advisors

BREA also estimated that the cruise industry generated 5.2 million transit port-of-call visits.6 Approximately 63 percent of these visits were made to ports in Alaska. Cruise ships also make calls at other ports throughout the United States including Key West, Port Canaveral, Hawaii, and many of the East and West Coast ports. Survey data for transit port-of-call passengers indicated that the typical port-of-call passenger spent an average of nearly $125 per visit. Consequently, we have estimated that these passengers spent $650 million in the United States during 2016, or 27 percent of the total passenger and crew spending. The average passenger expenditure per port-of-call visit declined by 5.3 percent from 2014.

Finally, crew onboard the cruise ships will disembark at both ports-of-embarkation and transit ports-of-call. We estimated that more than 7.2 million crew arrivals were made at U.S. port cities in 2016. The average per crew expenditures was $47.06 per arrival. Crew spent an estimated $340 million in the United States during 2016, up 2.4 percent from 2014. This equates to 14 percent of the total expenditures of passengers and crew.

6 Since individual passengers will make several port-of-call visits on any itinerary, passenger visits are approximately three times greater than the number of passengers taking cruises to U.S. ports-of-call.

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Another way to view passenger and crew spending is in terms of the onshore spending generated by a typical or average cruise ship call. As shown in Table 7, we have estimated that a 3,000-passenger ship generated an average of approximately $403,000 in passenger and crew onshore spending per call in the home port city during 2016. A similar ship making transit port-of-call visits generated an average of approximately $331,000 in passenger and crew onshore spending per U.S. port call.

Table 7 – Estimated Onshore Spending Generated by a 3,000-Passenger Cruise Ship – 2016

Onshore Spending Spending Visits per Visit Homeport Cruise Visit 3,750 $402,684 $107.38 Passengers with Overnight Stays 1,200 $310,587 $258.82 Passengers Arriving on Day of Cruise 1,800 $56,802 $31.56 Crew 750 $35,295 $47.06 Port-of-Call Cruise Visit 3,600 $391,161 $108.66 Passengers 2,850 $355,866 $124.87 Crew 750 $35,295 $47.06

Source: Business Research and Economic Advisors

Other Direct Impacts in the United States – Cruise Line Expenditures

During 2016, U.S. businesses outside the core cruise travel sector received $11.17 billion in direct spending by the cruise lines. These expenditures generated an estimated 46,708 jobs in the nation paying wage income of $2.8 billion. Expenditures with suppliers increased by 4.8 percent from 2014. As a result of a shift in industry mix and productivity gains, the employment impact among cruise industry suppliers increased by about 5 percent while the income impact rose by 7.7 percent. Table 5 (Shown Earlier) shows the direct impacts of these expenditures by the cruise lines on major business sectors of the U.S. economy. These economic impacts by sector are as follows:

➢ Petroleum Refining ($1.63 billion in direct expenditures, 134 jobs and $19 million in wage income): the refining of petroleum products used to power the cruise ships and lubricate engines and equipment. The result of the net effect of the continued expansion of the cruise ship fleet with the significant drop in oil prices during 2016, expenditures for petroleum products decreased by nearly 22 percent. The

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employment and wage impacts in this capital intensive industry decreased by 14.6 percent and 9.5 percent, respectively.

➢ Professional, Scientific and Technical Services ($1.76 billion in direct expenditures, 15,763 jobs, and $696 million in wage income): comprised of a very broad range of business services, including legal, accounting and consulting services; advertising, promotional and marketing agencies; computer hardware and software consulting; and security and manpower services. The cruise industry expenditures with these service providers increased by 7.3 percent from 2014. The subsequent employment impact rose by 6.2 percent while the income impact increased by 11.4 percent.

➢ Finance, Insurance, Real Estate and Leasing ($1.13 billion in direct expenditures, 2,923 jobs, $260 million in wage income): banking and brokerage services; vessel, passenger travel and employee health insurance; real estate services and the leasing of property and equipment. Spending with financial service providers rose by 1.8 percent from 2014. The employment impact increased by 1.2 percent from 2014 while the income impact increased by 5.7 percent.

➢ Food and Beverages ($1.04 billion in direct expenditures, 2,239 jobs, and $103 million in wage income): cruise line purchases of alcoholic and non-alcoholic beverages and food consumed on the cruise ships by passengers and crew. The cruise industry increased its expenditures on food and beverages by 2.0 percent in 2016. The direct employment impact rose by 6.9 percent while the wage impact increased by 4.0 percent.

➢ Ship Maintenance and Repair ($777 million in direct expenditures, 2,176 jobs and $173 million in wage income): includes cruise ship maintenance and repair by all of the cruise lines at U.S. shipyards and the construction of support vessels, such as lifeboats and passenger tenders. Cruise industry expenditures for ship repair and maintenance in the U.S. increased by 7.6 percent from 2014. The direct employment impact rose by 1.2 percent while the wage impact rose by 4.2 percent from 2014.

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➢ Wholesale Trade ($599 million in direct expenditures, 2,903 jobs, and $197 million in wage income): primarily includes the wholesale distribution and warehousing costs associated with the purchase and delivery of manufactured products consumed and/or used onboard the cruise ships. Expenditures among wholesalers increased by 1.5 percent from 2014. The employment impact rose by 1.4 percent, while the wage impact increased by 3.7 percent from 2014.

➢ Industrial Machinery ($483 million in direct expenditures, 1,396 jobs, and $94 million in wage income): includes heavy equipment used to power the cruise ships such as boilers and turbines, elevators and parts, printing equipment, kitchen and restaurant equipment and plumbing and water treatment equipment. Direct expenditures in this industry increased by 10.5 percent while the direct employment rose by the same amount. The wage impacts increased by 17.5 percent.

➢ Computers and Electronic Equipment ($288 million in direct expenditures, 835 jobs and $90 million in wage income): includes the manufacture of computers, lighting equipment, audiovisual products and communication and navigation equipment. The cruise industry's expenditures for computers and electronic equipment was up 3.6 percent from 2014. As a result, the direct employment impact in this industry increased by 4.9 percent and the wage income impact rose by 7.1 percent.

➢ Fabricated Metal Products ($242 million in direct expenditures, 917 jobs, and $63 million in wage income): includes a variety of hard goods, such as doors and fixtures in cabins and crew quarters, security equipment, fabricated products used in equipment and storage facilities on the cruise ships, etc., and tools used onboard cruise ships during repair and maintenance of the vessels. Direct expenditures in this industry increased by 9.0 percent from 2014 while the direct employment and wage impacts increased by 4.9 percent and 8.6 percent, respectively.

➢ Arts, Entertainment and Recreation ($214 million in direct expenditures, 1,806 jobs and $97 million in wage income): includes the purchase of art work for cruise ships, the hiring of designers, entertainers and crew for shows onboard cruise ships and other recreational activities on and off the cruise ships. Cruise industry expenditures for entertainment services increased by under 1 percent over 2014. The direct employment impact increased by 1 percent while the wage income impact rose by 2.1 percent.

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Figure 6 – Distribution of Direct Expenditures to Cruise Industry Suppliers – 2016 Total = $11.17 Billion

Source: Business Research and Economic Advisors

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Indirect and Induced Economic Impacts in the United States During 2016

The indirect economic benefits derived from the cruise industry result in part from the additional spending by the suppliers to the cruise industry. For example, food processors must purchase raw foodstuffs for processing; utility services, such as electricity and water, to run equipment and process raw materials; transportation services to deliver finished products to the cruise lines or wholesalers; and insurance for property and employees. The U.S. input/output table and multipliers were used to estimate the indirect impacts.7 The input/output table reflects the inter-industry links among industries in the U.S. economy. Use of the U.S. input/output table permits the estimation of the additional economic impacts that the direct spending by the cruise industry, its passengers and its suppliers has on all other industries in the U.S. economy.

In addition to the indirect impacts generated by the purchase of business goods and services by cruise industry suppliers, the employees of the cruise lines and their suppliers generate additional economic benefits through their purchases of consumer goods and services including such goods as autos, food, clothing, furniture, health care and so forth.

The economic impact analysis implied that the direct spending of the international cruise industry generated another 231,206 jobs in the United States through the indirect and induced spending by businesses and employees, an increase of 4.4 percent from 2014. In addition, these jobs generated $13.2 billion in wage income for these workers, an increase of 6.4 percent from 2014. As shown in Table 8, the indirect economic impacts touch virtually every industry in the nation.

7 Bureau of Economic Analysis, Annual Input/Output Accounts for the U.S. Economy, 2015.

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Table 8 – Indirect and Induced Economic Impacts of the Cruise Industry in the United States – 2016

Direct Total Wages Sector Expenditures Employment & Salaries $Millions $Millions

Agriculture, Mining, Utilities & Construction $ 47 7,125 $ 587 Manufacturing $ 5,459 20,474 $ 1,471 Food & Beverages $ 1,042 2,235 $ 112 Apparel & Textiles $ 155 1,604 $ 83 Paper & Printing $ 116 1,276 $ 83 Chemicals & Plastics $ 293 2,375 $ 201 Petroleum Refining $ 1,633 483 $ 32 Fabricated Metal Products $ 242 3,599 $ 214 Industrial Machinery $ 483 863 $ 64 Transportation Equipment $ 778 2,188 $ 179 Computers & Electronic Equipment $ 288 2,299 $ 263 Other Manufacturing $ 430 3,552 $ 240 Wholesale & Retail Trade $ 957 30,688 $ 1,509 Transportation $ 5,619 16,738 $ 850 Information Services $ 275 2,996 $ 280 Finance, Insurance, Real Estate & Leasing $ 1,129 14,108 $ 1,222 Services & Government $ 8,200 139,076 $ 7,273 Professional, Scientific & Technical Services $ 1,759 22,971 $ 2,192 Administrative & Waste Management Services $ 2,989 27,306 $ 945 Accommodations & Food Services $ 1,977 23,125 $ 497 Performing Arts & Amusements $ 234 4,941 $ 202 Other Services & Government $ 1,239 60,733 $ 3,437

Total - 2016 $ 21,686 231,206 $ 13,192 Total - 2014 $ 21,019 221,466 $ 12,404 Percentage Change from 2014 3.2% 4.4% 6.4% Source: Business Research and Economic Advisors

The Services & Government sector was the most significantly impacted sector within the nation. This sector accounted for 60 percent of the indirect employment impact and 55 percent of the wage impact. The indirect impacts of cruise industry spending generated 139,076 jobs in the Services and Government sector paying $7.3 billion in wage income. The indirect employment impacts in this sector rose by 5.2 percent while the income increased by 7.0 percent from 2014. Within the Services & Government segment, approximately 98 percent of the employment and income impacts were in the services industry. Federal, state and local government agencies accounted for the remaining two percent.

Within the Professional, Scientific and Technical Services subsector, the indirect impacts added 22,971 jobs, an increase of 4.9 percent from 2014, and $2.19 billion in wage income, a growth of 5.9 percent over 2014. These impacts resulted from business demand for a variety

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of services, including legal and accounting services, consulting services, especially computer consulting, advertising and other business services.

Figure 7 – Distribution of Indirect Employment Impacts – 2016 Total = 231,206 Jobs

Source: Business Research and Economic Advisors

Another 27,306 jobs and $945 million in income were generated in the Administrative and Waste Management Services subsector. The respective percentage increases from 2014 for the employment and wage income impacts were 6.1 and 5.7 percent, respectively. This sector is comprised of establishments that provide routine support activities for the day-to-day operations of other businesses. These include such activities as temporary help services, document preparation services, telephone call and answering services, security services, travel agents and tour operators and sanitary services to name a few.

The Accommodations and Food Services subsector, which includes hotels and restaurants, benefited from the creation of an estimated 23,125 jobs and $497 million in wage income. These impacts are primarily due to the travel and dining requirements of day-to-day business operations, as well as consumer vacation travel. The indirect employment impact rose by 5.5 percent from 2014 and the income impact increased by 5.5 percent.

The indirect impacts measured in the Other Services & Government subsector are primarily personal, health, amusement and entertainment, and educational and social services that are

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generated by the spending of households whose income is directly and indirectly generated by the cruise industry. With respective indirect employment and income impacts of 60,733 jobs and $3.44 billion, the indirect employment impacts jumped by 4.9 percent from 2014 while the income impacts increased by 8.3 percent.

An estimated 30,688 indirect jobs, 13.3 percent of the total indirect employment impacts, with an annual income of $1.51 billion were generated in the Wholesale & Retail Trade sector because of cruise industry spending in 2016. Relative to 2014, the indirect employment impacts in this sector rose by 2.8 percent while the wage income impacts increased by 4.1 percent. The wholesale trade subsector accounted for approximately 43 percent of the indirect employment impacts and 61 percent of the wage income impacts in the two subsectors. The higher income share reflects the higher average wage in the wholesale trade industry.

The Transportation sector remained an important sector within the nation with 16,738 indirect jobs, 7.2 percent of the total indirect employment impacts, paying $850 million in wages. This reflects the strong inter-industry linkages within the transportation sector, as well as, the heavy usage of a variety of transportation services to supply businesses with their inputs and to deliver consumer goods to retail outlets. The indirect employment impacts in this sector rose by 1.3 percent from 2014 while the income impacts increased by 3.2 percent.

Finally, the indirect impacts of cruise industry spending generated 20,474 jobs within the manufacturing sector during 2016, 8.9 percent of the total indirect employment. These jobs paid $1.47 billion in annual income, an increase of 4.7 percent from 2014. The majority of the employment impacts were spread among nine industries with the employment impacts ranging from 483 jobs in the petroleum refining industry to 3,599 jobs in the fabricated metals industry. Combined, the nine industries shown in Table 7 (above) accounted for 92.1 percent of the indirect impacts in the manufacturing sector.

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Total Economic Impacts in the United States During 2016

Even though the international cruise industry provides a service that is considered an import to the U.S. economy, it is responsible for considerable domestic economic activity. As noted previously the industry directly spent $21.7 billion in the United States in 2016. As shown in Table 9, this spending generated $47.8 billion in total industry output among U.S. businesses during 2016, an increase of 3.6 percent from 2014. The $47.8 billion in total output resulted in the employment of 389,432 workers, an increase of 4.2 percent from 2014, and $20.6 billion in wages and salaries, a growth of 5.9 percent from 2014. These total impacts are the sum of the direct, indirect and induced impacts of the direct spending of the international cruise industry.

Table 9 – Total Economic Impacts of the Cruise Industry in the United States – 2016

Total Wages & Industry Output Sector Employment Salaries $Millions $Millions

Agriculture, Mining, Utilities & Construction $ 5,057 7,289 $ 586 Manufacturing $ 10,951 33,132 $ 2,378 Food & Beverages $ 883 3,265 $ 218 Apparel & Textiles $ 1,246 1,750 $ 127 Paper and Printing $ 333 1,567 $ 119 Chemicals & Plastics $ 468 4,470 $ 221 Petroleum Refining $ 986 723 $ 92 Fabricated Metal Products $ 719 4,062 $ 304 Industrial Machinery $ 701 1,635 $ 246 Transportation Equipment $ 1,136 2,463 $ 280 Computers & Electronic Equipment $ 3,288 2,833 $ 525 Other Manufacturing $ 1,190 10,365 $ 246 Wholesale & Retail Trade $ 2,840 34,232 $ 1,787 Transportation $ 7,354 78,066 $ 3,645 Information Services $ 963 4,055 $ 401 Finance, Insurance, Real Estate & Leasing $ 4,236 16,870 $ 1,634 Services & Government $ 16,356 215,788 $ 10,143 Professional, Scientific & Technical Services $ 5,760 38,706 $ 2,854 Administrative & Waste Management Services $ 3,746 54,732 $ 1,578 Accommodations & Food Services $ 1,757 46,156 $ 1,058 Performing Arts & Amusements $ 855 25,203 $ 590 Other Services & Government $ 4,238 50,992 $ 4,063

Total - 2016 $ 47,758 389,432 $ 20,575 Total - 2014 $ 46,092 373,738 $ 19,425 Percentage Change from 2014 3.6% 4.2% 5.9% Source: Business Research and Economic Advisors

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Since 2011, the total economic impact of the international cruise industry has increased significantly. Total annual output supported by the cruise industry has increased by 18.2 percent over the five-year period. As a result of the increased output, the cruise industry’s total annual employment and wage impacts have increased by 12 percent and 24.7 percent respectively.

Virtually all sectors of the economy were affected by the international passenger cruise industry. The industries that were most significantly affected included:

➢ Air Transportation ➢ Travel Agents ➢ Advertising ➢ Food Processing ➢ Ship Maintenance and Repair ➢ Petroleum Refining ➢ Business Services ➢ Wholesale Trade

However, many other industries were affected in some form, including lodging, insurance, telecommunications, retail trade and many others.

As shown in Table 9 (above) and Figure 8 (below), the Transportation Services sector accounted for the most total jobs generated by the international cruise industry. Just over 78,000 jobs were generated in this sector, accounting for 20 percent of the total employment impact. These jobs, in turn, generated $3.65 billion in wages.

The Administrative & Waste Management Services and the Other Services & Government subsectors accounted for 14 percent and 13 percent, respectively, of all (direct, indirect and induced) jobs generated in the United States by the spending of the cruise industry and its passengers and crew. Combined, these two subsectors generated nearly 106,000 jobs and $5.6 billion in wages during 2016 as a result of the spending by the international cruise industry.

Approximately, $11.0 billion in output was generated in the Manufacturing sector. With 33,100 jobs created, the Manufacturing sector accounted for 8.5 percent of the total jobs, and over 11.6 percent of the income, $2.38 billion, generated by cruise industry spending. Durable

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goods accounted for 57 percent of manufacturing while nondurable goods accounted for 43 percent.

Figure 8 – Distribution of Total Employment Impacts – 2016 Total = 389,432 Jobs

Source: Business Research and Economic Advisors

Finally, the Wholesale & Retail Trade sector accounted for 8.9 percent of the total employment impact of the cruise industry having generated just over 34,000 jobs and $1.79 billion in income as a result of the expenditures of the international cruise industry.

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Section II: The Contribution of the Cruise Industry to the U.S. Economy by State in 2016

The national economic contributions discussed in the previous section also had an effect on individual state economies. The direct economic contribution of the cruise industry and its passengers and crew was allocated to each state based on several criteria. First, vendor purchases by industry were allocated to each state based upon a sample of state- and industry- specific vendor purchases obtained from the cruise lines. Second, wages and salaries of shoreside employees of the cruise lines were allocated to each state based upon the location of administrative facilities as provided by the cruise lines. Third, national travel agent commissions were allocated to each state based upon the place of residence of cruise passengers. Fourth, air transportation spending was assigned to each state based upon a combination of the residence of passengers and the ports of embarkation of passengers. Fifth, cruise passenger and crew expenditures were allocated to states based upon embarkation and arrival data.

The total economic contribution in each state was estimated by using state- and industry- specific multipliers obtained from the Bureau of Economic Analysis. These multipliers reflect the industry and wage structure in each state. As a consequence, the direct and indirect economic contributions estimated for each state reflect the distribution of vendor purchases by the cruise industry by industry and state, the place of residence of cruise passengers, the regional distribution of cruise embarkations and port-of-call visits and the economic structure of each state.

As shown in Table 10, our analysis shows that the international cruise industry affects every state economy. Table 10 shows the total employment and wages, which result in part, from the direct expenditures of the cruise lines for goods and services used to support their cruise operations. These range from the purchase of food and beverages, to ship maintenance and refurbishment, to engineering, insurance and management consulting services. Economic contributions are also generated by other components of what we have called the core cruise travel sector. These include the commissions received by travel agents from the cruise lines, airfares received by airlines from cruise passengers and fees received by port authorities and port service providers.

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Table 10 – Direct Expenditures and Total Employment and Wage Impacts of the International Cruise Industry for All States – 2016

Total Average Direct Share of Total Share of Wages & Share of Annual State 2016 2014 Expenditures the U.S. Employment the U.S. Salaries the U.S. Wage ($ Millions) ($ Millions) ($1,000) Florida 1 1 $ 7,973 36.8% 149,020 38.3% $ 7,093 34.5% $ 47.6 California 2 2 $ 2,374 10.9% 47,801 12.3% $ 2,988 14.5% $ 62.5 Texas 3 3 $ 1,423 6.6% 25,166 6.5% $ 1,622 7.9% $ 64.5 New York 4 4 $ 1,147 5.3% 15,708 4.0% $ 975 4.7% $ 62.1 Alaska 5 5 $ 1,065 4.9% 19,842 5.1% $ 991 4.8% $ 49.9 Washington 6 6 $ 780 3.6% 18,129 4.7% $ 949 4.6% $ 52.3 Georgia 7 7 $ 703 3.2% 13,195 3.4% $ 709 3.4% $ 53.7 Illinois 8 8 $ 551 2.5% 8,186 2.1% $ 496 2.4% $ 60.6 Massachusetts 9 9 $ 486 2.2% 7,329 1.9% $ 483 2.3% $ 65.9 New Jersey 10 10 $ 450 2.1% 8,468 2.2% $ 500 2.4% $ 59.0 Louisiana 11 11 $ 432 2.0% 8,321 2.1% $ 347 1.7% $ 41.7 Pennsylvania 12 13 $ 400 1.8% 6,438 1.7% $ 374 1.8% $ 58.1 Colorado 13 14 $ 371 1.7% 2,525 0.6% $ 148 0.7% $ 58.6 Hawaii 14 12 $ 363 1.7% 5,728 1.5% $ 205 1.0% $ 35.8 Indiana 15 15 $ 333 1.5% 7,663 2.0% $ 387 1.9% $ 50.5 North Carolina 16 16 $ 255 1.2% 3,377 0.9% $ 165 0.8% $ 48.7 Michigan 17 18 $ 230 1.1% 2,632 0.7% $ 151 0.7% $ 57.4 Arizona 18 17 $ 229 1.1% 3,827 1.0% $ 172 0.8% $ 44.9 Maryland 19 19 $ 204 0.9% 3,142 0.8% $ 175 0.9% $ 55.7 Ohio 20 20 $ 176 0.8% 3,335 0.9% $ 166 0.8% $ 49.8 Connecticut 21 21 $ 173 0.8% 1,197 0.3% $ 98 0.5% $ 81.9 Virginia 22 22 $ 153 0.7% 2,824 0.7% $ 170 0.8% $ 60.2 Missouri 23 23 $ 142 0.7% 3,585 0.9% $ 180 0.9% $ 50.2 Oregon 24 24 $ 137 0.6% 4,126 1.1% $ 193 0.9% $ 46.8 South Carolina 25 25 $ 131 0.6% 2,368 0.6% $ 93 0.5% $ 39.3 Minnesota 26 27 $ 109 0.5% 2,173 0.6% $ 131 0.6% $ 60.2 Nevada 27 26 $ 108 0.5% 1,477 0.4% $ 68 0.3% $ 46.0 Alabama 28 28 $ 103 0.5% 1,260 0.3% $ 58 0.3% $ 46.0 Tennessee 29 29 $ 66 0.3% 1,028 0.3% $ 48 0.2% $ 46.4 Kentucky 30 30 $ 61 0.3% 986 0.3% $ 43 0.2% $ 43.6 New Hampshire 31 31 $ 52 0.2% 507 0.1% $ 27 0.1% $ 53.3 Wisconsin 32 32 $ 49 0.2% 759 0.2% $ 35 0.2% $ 46.1 Maine 33 33 $ 48 0.2% 778 0.2% $ 27 0.1% $ 34.7 Kansas 34 34 $ 47 0.2% 1,766 0.5% $ 81 0.4% $ 45.9 Dist. of Columbia 35 35 $ 39 0.2% 228 0.1% $ 32 0.2% $ 140.4 Utah 36 36 $ 38 0.2% 779 0.2% $ 33 0.2% $ 42.4 Iowa 37 37 $ 36 0.2% 290 0.1% $ 13 0.1% $ 43.1 Mississippi 38 38 $ 36 0.2% 433 0.1% $ 17 0.1% $ 39.3 Oklahoma 39 39 $ 34 0.2% 578 0.1% $ 27 0.1% $ 46.4 Arkansas 40 40 $ 30 0.1% 488 0.1% $ 18 0.1% $ 36.9 Delaware 41 41 $ 28 0.1% 208 0.1% $ 12 0.1% $ 56.5 Nebraska 42 43 $ 28 0.1% 440 0.1% $ 21 0.1% $ 47.7 Rhode Island 43 42 $ 25 0.1% 340 0.1% $ 15 0.1% $ 42.6 New Mexico 44 44 $ 17 0.1% 244 0.1% $ 12 0.1% $ 47.1 Idaho 45 45 $ 12 0.1% 190 0.0% $ 8 0.0% $ 42.1 Vermont 46 47 $ 10 0.0% 53 0.0% $ 3 0.0% $ 51.9 West Virginia 47 48 $ 10 0.0% 153 0.0% $ 6 0.0% $ 40.5 North Dakota 48 46 $ 9 0.0% 170 0.0% $ 6 0.0% $ 35.3 South Dakota 49 49 $ 5 0.0% 62 0.0% $ 2 0.0% $ 38.7 Montana 50 50 $ 4 0.0% 76 0.0% $ 3 0.0% $ 39.5 Wyoming 51 51 $ 2 0.0% 34 0.0% $ 2 0.0% $ 47.5 U. S. Total $ 21,686 389,432 $ 20,575 $ 52.8

Source: Business Research and Economic Advisors

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Economic Impacts in the Top 10 States

As shown in Table 10, all states had some direct expenditures generated by the international cruise industry in 2016. This ranged from approximately $2 million in Wyoming to nearly $8 billion in Florida.

The top 10 states accounted for 78 percent of the direct expenditures of the cruise industry with $17 billion (See Figure 9). Of the top 10 states, eight (Florida, California, Texas, New York, Alaska, Washington, Massachusetts and New Jersey) had significant cruise ports. Of these, Alaska was primarily a destination rather than a homeport state. The other two states, Georgia, and Illinois, had no cruise ports but were significant source markets for cruise passengers and provided vendor support for cruise and cruise tour operations. These 10 states also accounted for 80 percent of the total jobs generated by cruise tourism in the United States with nearly 313,000 jobs paying $16.8 billion in wage income, 82 percent of the total national impact.

Of the remaining states, 20, including the District of Columbia, received less than $50 million in direct cruise industry expenditures. With the exception of Maine, these were largely source market states will smaller populations. Another 17 states received $50 to $350 million in direct expenditures. Three of these were states where smaller cruise port operations occurred (Virginia, South Carolina and Alabama), while the rest contained a larger population from which passengers were sourced or provided goods and services to the cruise industry. Finally, there were four states that received between $350 and $450 million in direct cruise industry expenditures. Two of these have homeport and transit cruise operations that drive the majority expending in their states (Louisiana and Hawaii) while Pennsylvania and Colorado provide a larger population from which passengers are sourced as well directly providing a variety of goods and services to the cruise industry, particularly in the manufacturing industry.

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Figure 9 – Distribution of Direct Expenditures of the International Cruise Industry in the Top 10 States – 2016 Top 10 State Total = $17 Billion

Source: Business Research and Economic Advisors

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Summaries of the Economic Impacts of the Top 10 States

Florida

As has been discussed previously in this report, Florida is the center for cruising from the United States. As shown in Table 11, 7.08 million passengers boarded their cruises from one of Florida’s five cruise ports, Port of Miami, Port Everglades, Port Canaveral, Port of Tampa and Port of Jacksonville8, accounting for 61 percent of embarkations at all U.S. ports. While these ports primarily offer cruises to the Bahamas, the Caribbean and Central America, cruises that originate in Florida also travel to ports around the world.

Table 11– Summary of 2016 Cruise Industry Impacts – Florida

Share of the Florida U.S.

Passenger Embarkations 7,079,000 60.7% Resident Cruise Passengers 2,932,000 25.5% Total Passenger & Crew Visits 11,541,000 47.9%

Direct Expenditures ($ Millions) $ 7,973 36.8% Total Employment Impact 149,020 38.3% Total Wage Impact ($ Millions) $ 7,093 34.5%

Source: Cruise Lines International Association and Business Research and Economic Advisors

Given the proximity of cruise homeports in Florida and the Gulf Coast to Florida residents, the state also led the nation in U.S.-sourced cruise passengers with 2.9 million passengers, 25 percent of all U.S.-sourced cruise passengers. With nearly two and a half times as many embarkations as resident passengers, the cruise industry in Florida is the largest net importer of cruise passengers in the United States.

Relative to 2014, Florida experienced an increase of 2.7 percent in passenger embarkations.

8 Key West is a port-of-call for Caribbean cruises and thus does not generate passenger embarkations. However, passenger and crew transit visits and spending in Key West and other ports are included in the state visit and spending estimates.

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Including homeport and transit calls, cruising at Florida ports generated an estimated 11.5 million passenger and crew visits, accounting for 48 percent of all passenger and crew visits in the United States. These visits produced an estimated $1.05 billion in passenger and crew onshore spending, or nearly $100 per visit. As in 2014, Florida is the only state to generate over $1 billion in annual passenger and crew expenditures, something no other state has yet achieved. Total passenger and crew spending in Florida increased by 1.5 percent from 2014 as a result of the increase in passenger and crew visits.

Florida is not only the center for cruise originations, it is the center of just about all aspects of the cruise industry. Carnival Corporation & plc., Royal Caribbean Cruises, Ltd. and Norwegian Cruise Line have their headquarters in Florida as do other cruise lines. Accordingly, Royal Caribbean reached a deal with Port Miami in 2016 to build a new terminal for which construction started in the spring of 2017. Overall, operations in 2016 employed nearly 21,000 workers, approximately 60 percent of the total employment of all cruise lines throughout the United States.

As a result of the activity of the cruise industry, Florida businesses received $7.97 billion, or 37 percent of the direct expenditures generated by the cruise industry in the United States. Due to the absolute scale of the industry, direct expenditures in Florida impacted just about all segments of the economy, including recreation and amusement establishments, wholesalers of products purchased by cruise lines, manufacturers of communications and navigation equipment, producers of machinery and equipment such as engine parts, boilers, laundry equipment and computers, manufacturers of fabricated metal products such as locks and security equipment and business service providers such as interior designers and computer services consultants. Tourism-related businesses in addition to the cruise lines, such as travel agencies, airlines, hotels, restaurants and providers of ground transportation were certainly the main beneficiaries of the cruise industry. These tourism-related industries received approximately $3.8 billion, or 48 percent of the industry’s direct expenditures in Florida. Another 21 percent of direct spending went to the manufacturing industry with $1.7 billion in direct expenditures. The three largest sectors affected within this industry were the food and beverage manufacturers, petroleum manufacturers and chemical manufacturers that make soap, cleaning and toiletry products.

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Finally, these direct expenditures generated total economic impacts of 149,020 jobs and $7.1 billion in income throughout the Florida during 2016. Florida’s total employment impact increased by 1.8 percent while the total wage impact rose by 3.9 percent. These impacts accounted for 38 percent of the national employment impact and 35 percent of the national wage impact.

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California

With respect to the cruise industry, California is very similar to Florida only on a smaller scale. The state has four major cruise ports in Los Angeles, Long Beach, San Diego and San Francisco that combined generated 1,058,000 passenger embarkations during 2016, 9.1 percent of total U.S. embarkations (see Table 12). Cruise itineraries primarily include ports along the Pacific coast of Mexico, but also include cruises through the Panama Canal, to Hawaii and Alaska.

Table 12 – Summary of 2016 Cruise Industry Impacts – California

Share of the California U.S. Passenger Embarkations 1,058,000 9.1% Resident Cruise Passengers 1,391,000 12.1% Total Passenger & Crew Visits 2,120,000 8.8% Direct Expenditures ($ Millions) $ 2,374 10.9% Total Employment Impact 47,801 12.3% Total Wage Impact ($ Millions) $ 2,988 14.5%

Source: Cruise Lines International Association and Business Research and Economic Advisors

All of the California embarkation ports experienced an increase in embarkations from 2014 to 2016 and the collective increase was 7.5 percent. This followed a nearly 50 percent increase in 2014 over 2013 due to the redeployment of capacity to the Mexico West cruise market. This market continues to drive growth in California due to the repositioning of several larger ships, to the variety of itinerary lengths and destinations offered. Total embarkations at the state’s ports reached the one million mark for the first time since 2010.

Embarkations in San Francisco continued their strong growth trend with an increase of about 18 percent to reach 112,000 passengers. This was the sixth consecutive period of increases; and although the absolute number of annual embarkations in San Francisco are lower than other ports in California, they are now almost two and a half times what they were in 2011. San Francisco is the only port in California to show increases in period-over-period growth over the five years between 2011 and 2016. San Diego reversed its trend of declines in embarkations after five consecutive years. They increased 10.3 percent to reach 54,000 embarkations in 2016. Los Angeles and Long Beach have consistently been the busier ports

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in California. In 2016, they continue this trend combing for 891,000 embarkations which accounted for 84 percent of all embarkations in California. This is down only slightly from 85% of their combined total in 2014.

Cruise passengers sourced from California accounted for 12.1 percent of U.S.-sourced passengers and totaled 1.39 million during 2016, an increase of 5.4 percent from 2014. The larger number of resident passengers than passenger embarkations makes California a net exporter of cruise passengers.

Including homeport and transit calls, cruising at California ports generated an estimated 2.1 million passenger and crew visits, accounting for 8.8 percent of all passenger and crew visits in the United States. These visits produced an estimated $144 million in passenger and crew onshore spending, or about $68 per visit. Total estimated spending by passengers and crew increased by 9 percent from 2014 as a result of the 5.4 percent increase in passenger and crew visits.

Again, similar to Florida, California is the home of headquarters and support facilities for several cruise lines including Princess and Crystal Cruises. Overall, the industry had almost 2,200 employees in California, or about 6.3 percent of total employment of the cruise lines throughout the United States.

Total direct cruise industry expenditures in California were approximately $2.37 billion, or 10.9 percent of the direct expenditures generated by the cruise industry in the United States. This figure is the result of increased spending with businesses that support the industry beyond just cruises originating in California. These include entertainment, food processing and legal and professional services to name a few. Tourism-related businesses, such as travel agencies, airlines, hotels, etc., received $911 million, or 38 percent of the industry’s direct expenditures in California and a 30 percent increase from 2014. Another $466 million, or 20 percent of the total, was spent with businesses in three additional business segments, food processors and petroleum refiners within the manufacturing sector, and advertising agencies in the nonmanufacturing sector. Direct expenditures in California also impacted many other industries throughout the state including business service providers such as computer services,

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software developers, legal service providers, apparel manufacturing and the entertainment and amusement industry, including artwork and producers of musical and theatrical shows.

Finally, these direct expenditures generated total economic impacts of 47,801 jobs and $2.99 billion in income throughout the California economy during 2016. These impacts accounted for 12.3 percent of national employment impact and 14.5 percent of the national wage impact.

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Texas

During 2016, Texas’ two cruise ports, Galveston and Houston, had 896,000 embarkations, which accounts for 7.7 percent of all U.S. cruise embarkations. This share of all U.S. embarkations is up from 6.8 percent in 2014, and accounts for a nearly 20 percent increase in passengers in Texas over 2014. Cruise passengers sourced from Texas accounted for 9.5 percent of all U.S.-sourced passengers and totaled 1.09 million during 2016. The larger number of sourced passengers than passenger embarkations makes Texas a net exporter of cruise passengers. Cruise operations being discontinued in Houston in the spring of 2016 was offset by a 35 percent increase in passenger embarkations in Galveston from 2014 to 2016. This growth accounted for 227,000 new embarkations at that location.

Table 13 – Summary of 2016 Cruise Industry Impacts – Texas

Share of the Texas U.S. Passenger Embarkations 896,000 7.7% Resident Cruise Passengers 1,089,000 9.5% Total Passenger & Crew Visits 1,277,000 5.3% Direct Expenditures ($ Millions) $ 1,423 6.6% Total Employment Impact 25,166 6.5% Total Wage Impact ($ Millions) $ 1,622 7.9%

Source: Cruise Lines International Association and Business Research and Economic Advisors

Combining passenger and crew visits, ships making calls at the Texas ports generated an estimated 1.28 million passenger and crew visits, accounting for 5.3 percent of all passenger and crew visits in the United States. This increase of nearly 20 percent in passenger and crew visits is directly proportional to the increase in embarkations because there were no transit visits recorded at either port in Texas. The visits produced an estimated $96.1 million in passenger and crew onshore spending, or approximately $75 per visit. Total passenger and crew spending in 2016 increased by 13 percent from 2014 as a result of the nearly 20 percent increase in visits.

As a result of the increase in cruise operations in Galveston, cruise industry direct expenditures increased by 6.9 percent in 2016 to $1.42 billion, representing 6.6 percent of the direct expenditures generated by the cruise industry in the United States. Tourism-related businesses,

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such as travel agencies, airlines, hotels, etc., received approximately $708 million, 50 percent of the industry’s direct expenditures in Texas. Another $379 million, 27 percent of direct expenditures in the state, was spent with businesses in three additional business segments, petroleum refiners in the manufacturing sector and wholesale trade and advertising agencies in the nonmanufacturing sector. The remaining 23 percent of direct expenditures in Texas also impacted many other industries throughout the state including food processors, machinery and computer equipment manufacturers, apparel manufacturers, software publishers, companies that manufacture and distribute communication and navigation equipment, insurance carriers and a variety of professional services like legal, architectural and engineering services.

Finally, these direct expenditures generated total economic impacts of 25,166 jobs and $1.62 billion in income throughout the Texas economy during 2016. These impacts accounted for 6.5 percent of national employment impact and 7.9 percent of the national wage impact.

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New York

New York is primarily a place of embarkation for cruises to Canada, Bermuda, the Bahamas and the Caribbean. While the cruises to Canada and Bermuda are seasonal (Spring through Fall months), cruises to the Bahamas and the Caribbean are offered on a year-round basis. The City of New York saw 499,000 passenger embarkations during 2016, 4.3 percent of total U.S. embarkations. The Manhattan Cruise Terminal handled approximately 90 percent of the passengers while the Brooklyn Cruise Terminal, processed the remaining 10 percent.

Table 14 – Summary of 2016 Cruise Industry Impacts – New York

Share of the New York U.S. Passenger Embarkations 499,000 4.3% Resident Cruise Passengers 524,000 4.6% Total Passenger & Crew Visits 754,000 3.1% Direct Expenditures ($ Millions) $ 1,147 5.3% Total Employment Impact 15,708 4.0% Total Wage Impact ($ Millions) $ 975 4.7%

Source: Cruise Lines International Association and Business Research and Economic Advisors

Cruise passengers sourced from New York accounted for 4.6 percent of U.S.-sourced passengers and totaled 524,000 during 2016. As a result, New York was a net importer of cruise passengers.

Relative to 2014, New York experienced a 13.4 percent decline in passenger embarkations. As a result, New York’s share of passenger embarkations fell from 5.2 percent in 2014 to 4.3 percent in 2016.

Including homeport and transit calls, cruising at New York cruise terminals generated an estimated 754,000 passenger and crew visits, accounting for 3.1 percent of all passenger and crew visits in the United States. This was a 7.7 percent decline from 2014. These visits produced an estimated $122 million in passenger and crew onshore spending, or $162 per visit. Passenger and crew spending decreased by 16 percent from 2014.

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Cruise industry direct expenditures in New York totaled $1.15 billion, or 5.3 percent of the direct expenditures generated by the cruise industry in the United States. Direct cruise industry expenditures in the state decreased by 7.7 percent from 2014.

Tourism-related businesses, such as travel agencies, airlines, hotels, etc., received approximately $416 million, 36 percent of the industry’s direct expenditures in New York. Another $424 million, 37 percent of the direct expenditures, was spent with businesses in five additional business segments, food processors, textile and apparel manufacturers, and petroleum refiners and distributors within the manufacturing sector; and advertising agencies and financial services, including banking, insurance and securities companies in the nonmanufacturing sector. The remaining 27 percent of direct expenditures in New York also impacted many other industries throughout the state including law firms, business service companies such as computer services, software consulting and marketing, manufacturers of fabricated metal products such as locks and security equipment and performing arts and amusement establishments.

Finally, these direct expenditures generated total economic impacts that remain virtually unchanged from 2014 with 15,708 jobs and $975 million in income throughout the New York economy during 2014. These impacts accounted for 4.0 percent of national employment impact and 4.7 percent of the national wage impact.

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Alaska

Alaska is the premier cruise destination market in the United States. During 2016, Alaska ports received about 3.3 million cruise passenger visits, approximately 63 percent of all port-of-call cruise passenger visits at U.S. ports. The state does have homeporting operations as well, and generated 157,000 embarkations on turnaround cruises between Alaska and Vancouver, Canada. The three busiest ports - consisting of Juneau, Ketchikan and Skagway - accounted for over 80 percent of all passenger visits to Alaska. Juneau accounted for 29 percent with just over 1 million visits, Ketchikan accounted for 28 percent with 948,000 visits and Skagway accounted for 24 percent with 817,000 visits. The remaining 19 percent were distributed among seven additional locations and accounted for approximately 535,000 visits. The cruise lines maintain significant tour operations in the state and employed an annual average of approximately 2,100 full- and part-time employees during the year.

Table 15 – Summary of 2016 Cruise Industry Impacts – Alaska

Share of the Alaska U.S. Passenger Embarkations 157,000 1.3% Resident Cruise Passengers 9,000 0.1% Total Passenger & Crew Visits 4,897,000 20.3% Direct Expenditures ($ Millions) $ 1,065 4.9% Total Employment Impact 19,842 5.1% Total Wage Impact ($ Millions) $ 991 4.8%

Source: Cruise Lines International Association and Business Research and Economic Advisors

Alaska is one of the least populous states in the nation and thus resident cruise passengers in the state totaled 9,000 and accounted for 0.1 percent of U.S.-sourced passengers during 2016. Thus, Alaska was a net importer of cruise passengers.

Relative to 2014, Alaska experienced a 11 percent increase in passenger embarkations and a 4.2 percent increase in cruise passenger and crew visits. Including homeport and transit calls, cruising at Alaska ports generated 4.9 million passenger and crew visits,9 accounting for 20.3 percent of all passenger and crew visits in the U.S. These visits produced an estimated $524

9 Since individual passengers will make several port-of-call visits on any given itinerary, passenger visits are approximately three times greater than the number of passengers taking cruises to Alaska.

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million in passenger and crew onshore spending, an 8.3 percent increase over 2014 and accounting for nearly $107 per visit.

Alaska ranked 5th in cruise industry direct expenditures with $1.07 billion, or 4.9 percent of the direct expenditures generated by the cruise industry in the United States. Tourism-related businesses, such as tour operators, airlines, hotels, etc., received approximately $678 million, approximately 64 percent of the industry’s direct expenditures in Alaska.10 Another $59 million was spent with businesses in five additional business segments, food processors and petroleum refiners and distributors within the manufacturing sector; and employment agencies, trucking companies and utilities in the nonmanufacturing sector.

Finally, these direct expenditures generated total economic impacts of 19,842 jobs and $991 million in income throughout the Alaska economy during 2016. These impacts accounted for 5.1 percent of national employment impact and 4.8 percent of the national wage impact.

10 Excludes the wages and salaries paid to cruise line employees in the state.

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Washington

Washington has one major cruise port, Port of Seattle, which had 484,000 passenger embarkations during 2016, up 18.6 percent. Holland America Group has its headquarters in Washington. The Seattle cruises were destined for the Alaska cruise market and also included at least one visit to a Canadian port. Washington's share of the total embarkations at U.S. ports was 4.2 percent in 2016.

Table 16 – Summary of 2016 Cruise Industry Impacts – Washington

Share of the Washington U.S. Passenger Embarkations 484,000 4.2% Resident Cruise Passengers 258,000 2.2% Total Passenger & Crew Visits 711,000 3.0% Direct Expenditures ($ Millions) $ 780 3.6% Total Employment Impact 18,129 4.7% Total Wage Impact ($ Millions) $ 949 4.6%

Source: Cruise Lines International Association and Business Research and Economic Advisors

Cruise passengers sourced from Washington totaled 258,000 during 2016, 2.2 percent of U.S.- sourced passengers and a 28 percent decrease from 2014. Still, Washington was a net importer of cruise passengers.

Combining passenger and crew visits, cruising from the Port of Seattle generated an estimated 711,000 passenger and crew visits, accounting for 3 percent of all passenger and crew visits in the United States. These visits produced an estimated $40.9 million in passenger and crew onshore spending, or $58 per visit.

As a result of the increase in passenger and crew visits in Seattle (18 percent), direct cruise industry expenditures in Washington increased by 5 percent to $780 million, or 3.6 percent of the direct expenditures generated by the cruise industry in the United States. Tourism-related businesses, such as travel agencies, airlines, hotels, etc., received more than $260 million, or 33 percent of the industry’s direct expenditures in the state. Another $234 million, or 30 percent was spent with businesses in six additional business segments, food processors, petroleum refiners and distributors, and ship repair companies within the manufacturing sector; and advertising agencies, engineering and design companies and management

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consulting firms in the nonmanufacturing sector. Direct expenditures in Washington also impacted many other industries throughout the state including law firms, insurance carriers, business service providers such as computer services, software consulting and marketing, and other financial service companies.

Finally, these direct expenditures generated total economic impacts of 18,129 jobs and $949 million in income throughout the Washington economy during 2016, an increase of 4.4 percent and 3.4 percent, respectively. Both the employment and wage impacts accounted for just over 4.5 percent of the corresponding national impacts.

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Georgia

Georgia is a major source market for cruise passengers making it a net exporter of cruise passengers, although it has no direct cruise operations. It also supports the industry with a wide range of goods and services. Cruise passengers sourced from Georgia totaled 370,000 during 2016, 3.2 percent of U.S.-sourced passengers – up from only 2.2 percent in 2014.

Table 17 – Summary of 2016 Cruise Industry Impacts – Georgia

Share of the Georgia U.S. Passenger Embarkations N.A. N.A. Resident Cruise Passengers 370,000 3.2% Direct Expenditures ($ Millions) $ 703 3.2% Total Employment Impact 13,195 3.4% Total Wage Impact ($ Millions) $ 709 3.4%

Source: Cruise Lines International Association and Business Research and Economic Advisors

Cruise industry expenditures in Georgia grew by 5.6 percent in 2016 to $703 million, or 3.2 percent of the direct expenditures generated by the cruise industry in the United States. Since Georgia is a source market for cruise passengers, tourism-related businesses, such as travel agencies, airlines, hotels, etc., accounted for 36 percent of the industry’s direct expenditures in the state, or $253 million. Another $192 million or 27 percent was spent with businesses in the top six support industries, food processors, chemical manufacturers and computer and electronic equipment manufacturers within the manufacturing sector; and advertising agencies, insurance companies and management and technical consultants in the nonmanufacturing sector. Direct expenditures in Georgia also impacted many other industries throughout the state including telecom companies, other financial services, software publishers and textile and apparel manufacturers.

Finally, these direct expenditures generated total economic impacts of 13,195 jobs and $709 million in income throughout the Georgia economy during 2014. Georgia’s total employment impact increased by 6.1 percent from 2014 as a result of the increase in direct spending while the total wage impact grew by 6.6 percent. These impacts accounted for approximately 3.4 percent of national employment and wage impacts.

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Illinois

Similar to Georgia, Illinois is a major source market for cruise passengers making it a net exporter of cruise passengers, yet has no direct cruise operations. It also supports the industry with a wide range of goods and services. Cruise passengers sourced from Illinois totaled 214,000 during 2016, accounting for 1.9 percent of U.S.-sourced passengers.

Table 18 – Summary of 2016 Cruise Industry Impacts – Illinois

Share of the Illinois U.S. Passenger Embarkations N.A. N.A. Resident Cruise Passengers 214,000 1.9% Direct Expenditures ($ Millions) $ 551 2.5% Total Employment Impact 8,186 2.1% Total Wage Impact ($ Millions) $ 496 2.4%

Source: Cruise Lines International Association and Business Research and Economic Advisors

Cruise industry expenditures in Illinois increased by 8.0 percent in 2016 to $551 million, or 2.5 percent of the direct expenditures generated by the cruise industry in the United States. Since Illinois is a source market for cruise passengers, tourism-related businesses, such as travel agencies, airlines, hotels, etc., accounted for 20 percent of the industry’s direct expenditures in the state, or $108 million. Approximately $143 million, or 26 percent was spent with businesses in the top five support industries, food processors, paper manufacturers, and apparel and textile firms within the manufacturing sector; and advertising agencies and insurance companies in the nonmanufacturing sector. Direct expenditures in Illinois also impacted many other industries throughout the state including management and technical consultants, video and music production companies, paint and chemical manufacturers, business service providers such as computer services, software consulting and marketing.

Finally, these direct expenditures generated total economic impacts of 8,186 jobs and $496 million in income throughout the Illinois economy during 2016. As a result of the increases in direct cruise expenditures in the state, Illinois’ total employment impact increased by 5 percent from 2014 while the wage impact rose by 16 percent. These impacts accounted for 2.1 percent of national employment impact and 2.4 percent of the national wage impact.

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Massachusetts

The Boston cruise port in Massachusetts is both a port-of-embarkation and a port-of-call for cruises to Canada and Bermuda. The cruises to Canada and Bermuda are seasonal (spring through fall months). Cruise ships sailing from Boston carried an estimated 156,000 passengers during 2016, up 47 percent from 2014. Much of this increase is due to the continuous improvements and upgrades Boston has put into its CruisePort, including a $2.5 million upgrade to the second terminal which was completed in February 2015. These changes have led to additional ships homeporting from, and calling on Boston as a stopover destination on Canada/New England trips. Boston represents 1.3 percent of total U.S. embarkations. Cruise passengers sourced from Massachusetts accounted for 3.1 percent of U.S.-sourced passengers and totaled 356,000 during 2016.

Table 19 – Summary of 2016 Cruise Industry Impacts – Massachusetts

Share of the Massachusetts U.S. Passenger Embarkations 156,000 1.3% Resident Cruise Passengers 356,000 3.1% Total Passenger & Crew Visits 431,000 1.8% Direct Expenditures ($ Millions) $ 486 2.2% Total Employment Impact 7,329 1.9% Total Wage Impact ($ Millions) $ 483 2.3%

Source: Cruise Lines International Association and Business Research and Economic Advisors

Total passenger and crew visits to Massachusetts were 431,000, accounting for 1.8 percent of all passenger and crew visits in the United States. These visits produced an estimated $34.8 million in passenger and crew onshore spending, or just under $81 per visit.

Cruise industry direct expenditures in Massachusetts in 2016 totaled $486 million, or 2.2 percent of the direct expenditures generated by the cruise industry in the United States. Tourism-related businesses, such as travel agencies, airlines, hotels, etc., received approximately $213 million, or 44 percent of the industry’s direct expenditures in Massachusetts. Another $187 million, 38 percent of the direct expenditures, was spent with businesses in five additional business segments, food processors and petroleum companies within the manufacturing sector and advertising agencies, insurance agencies and management

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consulting firms in the nonmanufacturing sector. The remaining 18 percent of direct expenditures in Massachusetts also impacted many other industries throughout the state including law firms, business service companies, such as computer services, software consulting and marketing, manufacturers of textile and apparel products, and educational and training institutions.

Finally, these direct expenditures generated total economic impacts of 7,329 jobs and $483 million in income throughout the Massachusetts’ economy during 2016. These impacts accounted for 1.9 percent of national employment impact and 2.3 percent of the national wage impact.

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New Jersey

New Jersey is primarily a place of embarkation for cruises to Canada, Bermuda, the Bahamas and the Caribbean. While the cruises to Canada and Bermuda are seasonal (spring through fall months), cruises to the Bahamas and the Caribbean are offered on a year-round basis. Cape Liberty, New Jersey's cruise port, saw an estimated 255,000 passenger embarkations during 2016, 2.2 percent of total U.S. embarkations and an increase of nearly 14 percent from 2014. In November of 2015 Royal Caribbean replaced the 3,634 passenger Freedom of the Seas with the 4,180 passenger Anthem of the Seas. In addition, Cape Liberty is now homeporting ships from Royal Caribbean, Celebrity, Mein Schiff, Azamara and Viking Sea.

Table 20 – Summary of 2016 Cruise Industry Impacts – New Jersey

Share of the New Jersey U.S. Passenger Embarkations 255,000 2.2% Resident Cruise Passengers 286,000 2.5% Total Passenger & Crew Visits 363,000 1.5% Direct Expenditures ($ Millions) $ 450 2.1% Total Employment Impact 8,718 2.2% Total Wage Impact ($ Millions) $ 524 2.5%

Source: Cruise Lines International Association and Business Research and Economic Advisors

Cruise passengers sourced from New Jersey accounted for 2.5 percent of U.S.-sourced passengers and totaled 286,000 during 2016. Thus, New Jersey was a net exporter of cruise passengers. Relative to 2014, New Jersey experienced a 6.7 percent increase in the number of resident cruise passengers.

Cape Liberty generated an estimated 363,000 passenger and crew visits, accounting for 1.5 percent of all passenger and crew visits in the United States. This was a 12 percent increase from 2014. These visits produced an estimated $17.8 million in passenger and crew onshore spending in New Jersey, or just over $49 per visit. Passenger and crew spending increased by about 16.4 percent from 2014.

Direct cruise industry expenditures rose by 9.2 percent to $ 450 million, or 2.1 percent of the direct expenditures generated by the cruise industry in the United States. Tourism-related businesses, such as travel agencies, airlines, hotels, etc., received approximately $216 million,

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48 percent of the industry’s direct expenditures in New Jersey. Another $92 million, 20 percent of the direct expenditures, was spent with businesses in five additional business segments, food processors, textile and apparel manufacturers, and petroleum refiners and distributors within the manufacturing sector; and advertising agencies and insurance companies in the nonmanufacturing sector. The remaining 32 percent of direct expenditures in New Jersey also impacted many other industries throughout the state including law firms, business service companies such as computer services, software consulting and marketing and manufacturers of chemical products

Finally, these direct expenditures generated total economic impacts of 8,718 jobs and $524 million in income throughout the New Jersey economy during 2016. These impacts accounted for 2.2 percent of national employment impact and 2.5 percent of the national wage impact. The employment impact rose by 12.9 percent while the wage impact rose by 16.2 percent.

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Economic Impacts in the Remaining States

The direct expenditures generated by the international cruise industry and their total economic impacts in each of the states in 2016 are shown in Table 21. As discussed above, the magnitude of the economic impacts in each state is dependent upon the scope of cruise operations, if any, the number of resident cruise passengers and the value of vendor purchases. The 40 states and the District of Columbia outside the top ten states accounted for 22 percent of the cruise industry’s direct expenditures in 2016 – unchanged from 2014. Most of the states outside of the top ten are source markets for cruise passengers and vendor goods and services. Some states, such as Louisiana, Hawaii, Maryland and South Carolina, have cruise operations, as well. These three states ranked 11th, 14th, 19th and 25th respectively in terms of direct industry expenditures during 2016. Of these four states, all but Hawaii maintained their 2014 rankings, while Hawaii’s ranking fell from 12th to 14th from 2014.

Since 2009 passenger embarkations in New Orleans have more than doubled and reached another new high of 534,000 in 2016. In Maryland, the Port of Baltimore had 211,100 embarkations, an increase of 6.3 percent from 2014, and virtually back to its 2013 level.

The Port of Charleston in South Carolina reported 193,200 embarkations, a 16 percent increase over 2014. For the second consecutive study, Hawaii, which is a major cruise destination, saw total passenger embarkations decrease – this time by 4 percent over 2014.

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Table 21 – Direct Expenditures and Total Employment and Wage Impacts of the International Cruise Industry for All States, 2016

Total Average Direct Share of Total Share of Wages & Share of Annual State 2016 2014 Expenditures the U.S. Employment the U.S. Salaries the U.S. Wage ($ Millions) ($ Millions) ($1,000)

Alabama 28 28 $ 103 0.5% 1,260 0.3% $ 58 0.3% $ 46.0 Alaska 5 5 $ 1,065 4.9% 19,842 5.1% $ 991 4.8% $ 49.9 Arizona 18 17 $ 229 1.1% 3,827 1.0% $ 172 0.8% $ 44.9 Arkansas 40 40 $ 30 0.1% 488 0.1% $ 18 0.1% $ 36.9 California 2 2 $ 2,374 10.9% 47,801 12.3% $ 2,988 14.5% $ 62.5 Colorado 13 14 $ 371 1.7% 2,525 0.6% $ 148 0.7% $ 58.6 Connecticut 21 21 $ 173 0.8% 1,197 0.3% $ 98 0.5% $ 81.9 Delaware 41 41 $ 28 0.1% 208 0.1% $ 12 0.1% $ 56.5 Dist. of Columbia 35 35 $ 39 0.2% 228 0.1% $ 32 0.2% $ 140.4 Florida 1 1 $ 7,973 36.8% 149,020 38.3% $ 7,093 34.5% $ 47.6 Georgia 7 7 $ 703 3.2% 13,195 3.4% $ 709 3.4% $ 53.7 Hawaii 14 12 $ 363 1.7% 5,728 1.5% $ 205 1.0% $ 35.8 Idaho 45 45 $ 12 0.1% 190 0.0% $ 8 0.0% $ 42.1 Illinois 8 8 $ 551 2.5% 8,186 2.1% $ 496 2.4% $ 60.6 Indiana 15 15 $ 333 1.5% 7,663 2.0% $ 387 1.9% $ 50.5 Iowa 37 37 $ 36 0.2% 290 0.1% $ 13 0.1% $ 43.1 Kansas 34 34 $ 47 0.2% 1,766 0.5% $ 81 0.4% $ 45.9 Kentucky 30 30 $ 61 0.3% 986 0.3% $ 43 0.2% $ 43.6 Louisiana 11 11 $ 432 2.0% 8,321 2.1% $ 347 1.7% $ 41.7 Maine 33 33 $ 48 0.2% 778 0.2% $ 27 0.1% $ 34.7 Maryland 19 19 $ 204 0.9% 3,142 0.8% $ 175 0.9% $ 55.7 Massachusetts 9 9 $ 486 2.2% 7,329 1.9% $ 483 2.3% $ 65.9 Michigan 17 18 $ 230 1.1% 2,632 0.7% $ 151 0.7% $ 57.4 Minnesota 26 27 $ 109 0.5% 2,173 0.6% $ 131 0.6% $ 60.2 Mississippi 38 38 $ 36 0.2% 433 0.1% $ 17 0.1% $ 39.3 Missouri 23 23 $ 142 0.7% 3,585 0.9% $ 180 0.9% $ 50.2 Montana 50 50 $ 4 0.0% 76 0.0% $ 3 0.0% $ 39.5 Nebraska 42 43 $ 28 0.1% 440 0.1% $ 21 0.1% $ 47.7 Nevada 27 26 $ 108 0.5% 1,477 0.4% $ 68 0.3% $ 46.0 New Hampshire 31 31 $ 52 0.2% 507 0.1% $ 27 0.1% $ 53.3 New Jersey 10 10 $ 450 2.1% 8,468 2.2% $ 500 2.4% $ 59.0 New Mexico 44 44 $ 17 0.1% 244 0.1% $ 12 0.1% $ 47.1 New York 4 4 $ 1,147 5.3% 15,708 4.0% $ 975 4.7% $ 62.1 North Carolina 16 16 $ 255 1.2% 3,377 0.9% $ 165 0.8% $ 48.7 North Dakota 48 46 $ 9 0.0% 170 0.0% $ 6 0.0% $ 35.3 Ohio 20 20 $ 176 0.8% 3,335 0.9% $ 166 0.8% $ 49.8 Oklahoma 39 39 $ 34 0.2% 578 0.1% $ 27 0.1% $ 46.4 Oregon 24 24 $ 137 0.6% 4,126 1.1% $ 193 0.9% $ 46.8 Pennsylvania 12 13 $ 400 1.8% 6,438 1.7% $ 374 1.8% $ 58.1 Rhode Island 43 42 $ 25 0.1% 340 0.1% $ 15 0.1% $ 42.6 South Carolina 25 25 $ 131 0.6% 2,368 0.6% $ 93 0.5% $ 39.3 South Dakota 49 49 $ 5 0.0% 62 0.0% $ 2 0.0% $ 38.7 Tennessee 29 29 $ 66 0.3% 1,028 0.3% $ 48 0.2% $ 46.4 Texas 3 3 $ 1,423 6.6% 25,166 6.5% $ 1,622 7.9% $ 64.5 Utah 36 36 $ 38 0.2% 779 0.2% $ 33 0.2% $ 42.4 Vermont 46 47 $ 10 0.0% 53 0.0% $ 3 0.0% $ 51.9 Virginia 22 22 $ 153 0.7% 2,824 0.7% $ 170 0.8% $ 60.2 Washington 6 6 $ 780 3.6% 18,129 4.7% $ 949 4.6% $ 52.3 West Virginia 47 48 $ 10 0.0% 153 0.0% $ 6 0.0% $ 40.5 Wisconsin 32 32 $ 49 0.2% 759 0.2% $ 35 0.2% $ 46.1 Wyoming 51 51 $ 2 0.0% 34 0.0% $ 2 0.0% $ 47.5 U. S. Total $ 21,686 389,432 $ 20,575 $ 52.8

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 68 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Appendix I – State Impact Methodology

As described in Section I of this report, Member Cruise Lines of CLIA were asked to provide data on aggregate domestic and international expenditures for their operating and administrative expenses. Responses were obtained from 17 cruise lines. Combined, these cruise lines11 accounted for approximately 85 percent of the industry’s global passengers. These data were used to develop the estimates of the overall spending of the cruise industry in the United States. As indicated in Section I, we estimated that the industry spent $21.69 billion on goods and services in the United States. Of this total, $11.17 billion represented direct payments by the cruise lines to U.S. suppliers for operating and administrative goods and services. The remaining $10.52 billion represented expenditures by passengers for air travel and other goods and services, wage payments to the U.S. resident employees of the cruise lines and their associations, and port-related expenses and travel agent commissions paid by the cruise lines.

In addition to the aggregate revenue and expense data for 2016, more detailed data on vendor purchases were previously obtained from a smaller group of cruise lines.12 These data were then aggregated by industry group and state and used to estimate total cruise industry expenditures by industry. These data listed the type of commodities and services that were purchased, as well as the location of the vendors. As a result, we were able to establish industry- and state-specific shares for the cruise industry purchases. Using these shares, the national direct vendor purchases for 2016 were allocated to the corresponding industries in each state.

The $10.52 billion in core cruise travel expenditures were allocated to each state using data on the place of residence of cruise passengers and passenger embarkations as described in Section I of this report. During 2016, the cruise industry spent $3.52 billion for port services and wages of their U.S.-resident employees. The $1.28 billion in wages of the employees of the cruise lines were allocated to each state based upon state-specific employment and wage data received

11 These cruise lines were: AIDA Cruises, Carnival Cruise Line, Celebrity Cruises, Costa, Cunard Line, Disney Cruise Line, Hapag-Lloyd, Holland America Line, Norwegian Cruise Line, Oceania, P&O Cruises, Paul Gauguin Cruises, Princess Cruises, Regent, Royal Caribbean International, Seabourn, and TUI Cruise Lines 12 Vendor-specific data were obtained for the following cruise lines: Carnival Cruise Lines, Royal Caribbean International, Celebrity Cruises, Holland America Line, and Princess Cruises. These five cruise lines accounted for approximately 75 percent of the industry’s non-wage U.S. operating and administrative expenses.

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from the cruise lines. The remaining $2.24 billion in U.S. port service expenditures were allocated to each state based upon its share of U.S. passenger and crew visits. For example, Florida, which accounted for 44 percent of total passenger and crew visits to U.S. ports, was allocated just under $1.0 billion in port service spending.

The $2.1 billion in air transportation expenditures was split in half, one-half representing the origination of air travel and the other half representing the destination of air travel. The origination half of air travel expenditures were allocated to each state based upon its share of U.S.-sourced cruise passengers. Thus, Massachusetts, which accounted for 3.1 percent of U.S. passengers sourced from the United States, was allocated $32.6 million for the origination component of air travel spending. Massachusetts also accounted for 1.3 percent of U.S. cruise embarkations and thus was allocated another $13.7 million for the destination component of air travel spending. Thus, Massachusetts received a total allocation of approximately $46 million in direct air transportation expenditures, 2.2 percent of national expenditures for air transportation generated by the international cruise industry.

The $2.81 billion in U.S. transportation services expenditures consists of $683 million in expenditures for passenger shore excursions and $2.13 billion for travel agent commissions and other miscellaneous ground transportation services, such as bus service between airports and cruise terminals. Since these services are spread out through all states of the economy, the total was allocated to each state based upon its share of U.S. passengers on a place-of-residence basis. Thus Texas, which accounted for 9.5 percent of U.S.-resident cruise passengers, was allocated approximately $202 million in transportation service expenditures. The allocation of the $683 million in expenditures for shore excursions is discussed below.

Finally, the $2.1 billion in passenger and crew spending and the $683 million in shore excursion expenditures were allocated to each state based upon each state’s embarkations, split between overnight stays and day of cruise arrivals, estimated port-of-call arrivals and estimated crew visits. Total U.S. spending for the four categories was reported in Table 6 in Section I. When possible, survey data were used to estimate spending for each category for each state. Passenger and crew spending estimates were based on data collected from various research reports prepared by BREA and other researchers for the following ports: Port Everglades, Port of Miami, Port of New Orleans, Port of New York, Port of Tampa, Port of San Diego,

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Port of Los Angeles and Hawaii and Alaska ports-of-call. Per passenger spending estimates for the ports-of-embarkation were used to estimate total passenger spending at each of the ports. The average for the ports was then used to estimate total passenger spending for all other passenger embarkations.13

For example, survey data representing the five embarkation cruise ports in Florida indicated that 40.9 percent of embarking cruise passengers stayed one or more nights in the port city and that these passengers spent an average of about $231 during their stay. Thus, 2.9 million (0.409 x 7.08 million) cruise passengers were estimated to have spent $670 million on lodging, food, entertainment, etc. in Florida during 2016. The remaining 4.18 million Florida cruise passengers (day of cruise arrivals) spent an average of $36.26 per passenger for a total of $152 million. An estimated 1 million passengers visited Florida ports as port-of-call or transit passengers. These passengers spent an average of $71 per visit, resulting in total expenditures of approximately $71 million. Finally, crew who went ashore spent an average of $102 on each call to a Florida port. An estimated 1.56 million crew disembarked cruise ships and visited Florida during 2014 and spent $159 million. Thus, we have estimated that passengers and crew spent approximately $1.05 billion in Florida during 2016, 44 percent of total passenger and crew spending (excluding travel) in the United States.

By comparison, passengers and crew were estimated to have spent $122 million (5 percent of total U.S. spending by passengers and crew) in New York during 2016. Approximately 74 percent, or $91 million, was spent by embarking passengers who spent one or more nights in New York City. Passengers who stayed overnight at least one night in New York spent an average of $534.

Alaska received an estimated 3.44 million cruise passenger visits during 2016. This includes approximately 157,000 passengers who either embarked or disembarked on their cruise in Alaska. Cruise passengers spent an average of $150 per visit. Thus, we have estimated that $517 million was spent by cruise passengers visiting Alaska ports. An estimated 700,000 onshore crew visits generated another $7 million, or $11 per visit. Thus, cruise passengers and

13 Per passenger spending estimates were segmented by passengers who stayed overnight either prior to or after a cruise and those passengers who arrived on the day of the cruise.

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crew spent a total of $524 million in Alaska, accounting for 22 percent of total passenger and crew spending in the United States.

Passenger and crew expenditures were allocated to the remaining states using average per visit spending estimates from all available surveys.

Thus, the $21.69 billion in U.S. expenditures paid by the international cruise industry and its passengers and crew were allocated among all states and the District of Columbia. The total value of the direct spending by state is shown in Table 10 in Section II. The direct spending data by industry in each state are shown in the individual state tables in Appendix II that follows.

The industry direct expenditure data in each state was then converted to value-added using national ratios of value-added to output for each industry. Using industry- and state-specific ratios of compensation-to-value-added, implied compensation in each industry and state was estimated for the direct expenditures. The direct employment impacts resulting from the direct industry spending were estimated by dividing the wage compensation estimates by industry- and state-specific annual compensation rates. All of these data were obtained from the Bureau of Economic Analysis (BEA).

The direct employment estimates were then multiplied by the BEA employment multipliers to generate the estimates of the total employment contribution of the cruise industry by state and industry. Finally, the employment estimates were multiplied by average annual compensation rates to estimate the total effect on wage compensation in each state. The total employment and wage contribution of the international cruise industry by state and industry are shown in Appendix II.

The estimated direct and total economic impacts at the state level were controlled to sum to the national economic impacts on an industry-by-industry basis. Thus, the estimated state economic impacts for direct purchases, employment and wage income sum to the national impacts.

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Appendix II – Individual State Tables

Figure 10 – Total Employment Impact of the International Cruise Industry by State – 2016 (Thousands)

.

Source: Business Research and Economic Advisors

Figure 11 – Total Income Impact of the International Cruise Industry by State – 2016 ($ Millions)

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 73 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 22 – Total Economic Impacts – Alabama - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - $ 42 $ 3,321 Manufacturing $ 24,046 $ 175 $ 11,052 Nondurable Goods $ 13,728 $ 89 $ 6,663 Durable Goods $ 10,318 $ 86 $ 4,390 Wholesale & Retail Trade $ 2,626 $ 47 $ 3,010 Transportation $ 14,468 $ 84 $ 4,300 Information Services $ 0 $ 7 $ 521 Finance, Insurance, Real Estate & Leasing $ 4,687 $ 42 $ 2,828 Services & Government $ 57,663 $ 863 $ 32,986 Professional, Scientific & Technical Services $ 5,787 $ 107 $ 8,471 Administrative & Waste Management Services $ 49,559 $ 635 $ 20,781 Health, Education & Social Services $ - $ 5 $ 186 Other Services & Government $ 2,317 $ 116 $ 2,757 Total $ 103,492 $ 1,260 $ 58,018

Source: Business Research and Economic Advisors

Table 23 – Total Economic Impacts – Alaska - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 6,066 $ 1,370 $ 226,399 Manufacturing $ 56,291 $ 381 $ 22,570 Nondurable Goods $ 44,566 $ 85 $ 5,954 Durable Goods $ 11,725 $ 296 $ 16,616 Wholesale & Retail Trade $ 108,468 $ 1,658 $ 61,731 Transportation $ 445,697 $ 6,674 $ 344,281 Information Services $ 2,464 $ 78 $ 4,797 Finance, Insurance, Real Estate & Leasing $ 2,858 $ 125 $ 7,218 Services & Government $ 443,294 $ 9,556 $ 323,830 Professional, Scientific & Technical Services $ 18,794 $ 683 $ 49,381 Administrative & Waste Management Services $ 20,019 $ 856 $ 39,155 Health, Education & Social Services $ 3,231 $ 82 $ 3,413 Other Services & Government $ 401,250 $ 7,935 $ 231,881 Total $ 1,065,136 19,842 $ 990,826

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 74 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 24 – Total Economic Impacts – Arizona - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - $ 101.00 $ 6,366 Manufacturing $ 5,348 $ 162.00 $ 12,178 Nondurable Goods $ 1,237 $ 130.00 $ 10,608 Durable Goods $ 4,111 $ 32.00 $ 1,570 Wholesale & Retail Trade $ 912 $ 119.00 $ 7,552 Transportation $ 27,881 $ 222.00 $ 15,428 Information Services $ 24,293 $ 103.00 $ 6,911 Finance, Insurance, Real Estate & Leasing $ 16,605 $ 200.00 $ 10,869 Services & Government $ 154,251 $ 2,920.00 $ 112,802 Professional, Scientific & Technical Services $ 25,123 $ 436.00 $ 29,585 Administrative & Waste Management Services $ 121,306 $ 2,020.00 $ 70,050 Health, Education & Social Services $ 369 $ 20.00 $ 1,018 Other Services & Government $ 7,453 $ 444.00 $ 10,670 Total $ 229,292 3,827 $ 172,106

Source: Business Research and Economic Advisors

Table 25 – Total Economic Impacts – Arkansas - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - $ 13 $ 702 Manufacturing $ 3,058 $ 47 $ 2,333 Nondurable Goods $ 3,018 $ 17 $ 1,078 Durable Goods $ 40 $ 30 $ 1,255 Wholesale & Retail Trade $ 7 $ 10 $ 571 Transportation $ 4,028 $ 33 $ 2,300 Information Services $ 2 $ 2 $ 128 Finance, Insurance, Real Estate & Leasing $ 2,204 $ 19 $ 960 Services & Government $ 20,735 $ 364 $ 11,168 Professional, Scientific & Technical Services $ 3,409 $ 39 $ 2,568 Administrative & Waste Management Services $ 17,284 $ 298 $ 7,822 Health, Education & Social Services $ 0 $ 2 $ 41 Other Services & Government $ 43 $ 25 $ 737 Total $ 30,034 488 $ 18,162

Source: Business Research and Economic Advisors

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Table 26 – Total Economic Impacts – California - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 546 $ 2,048 $ 187,266 Manufacturing $ 556,253 $ 4,841 $ 406,709 Nondurable Goods $ 423,605 $ 2,932 $ 280,630 Durable Goods $ 132,647 $ 1,909 $ 126,079 Wholesale & Retail Trade $ 108,200 $ 2,842 $ 187,214 Transportation $ 402,784 $ 5,474 $ 245,303 Information Services $ 26,850 $ 924 $ 126,952 Finance, Insurance, Real Estate & Leasing $ 83,948 $ 3,479 $ 270,213 Services & Government $ 1,195,274 $ 28,193 $ 1,564,688 Professional, Scientific & Technical Services $ 331,226 $ 8,161 $ 796,044 Administrative & Waste Management Services $ 502,345 $ 10,650 $ 437,299 Health, Education & Social Services $ 15,894 $ 557 $ 26,126 Other Services & Government $ 345,808 $ 8,825 $ 305,219 Total $ 2,373,855 47,801 $ 2,988,345

Source: Business Research and Economic Advisors

Table 27 – Total Economic Impacts – Colorado - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 1 $ 98 $ 11,099 Manufacturing $ 245,336 $ 178 $ 18,378 Nondurable Goods $ 237,523 $ 84 $ 6,767 Durable Goods $ 7,813 $ 94 $ 11,611 Wholesale & Retail Trade $ 42,483 $ 230 $ 15,989 Transportation $ 15,871 $ 221 $ 12,998 Information Services $ 877 $ 43 $ 3,905 Finance, Insurance, Real Estate & Leasing $ 9,323 $ 379 $ 21,640 Services & Government $ 56,614 $ 1,376 $ 64,356 Professional, Scientific & Technical Services $ 19,884 $ 306 $ 27,620 Administrative & Waste Management Services $ 30,366 $ 794 $ 28,993 Health, Education & Social Services $ 7 $ 12 $ 418 Other Services & Government $ 6,357 $ 264 $ 7,325 Total $ 370,505 2,525 $ 148,365

Source: Business Research and Economic Advisors

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Table 28 – Total Economic Impacts – Connecticut - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 0 $ 25 $ 3,030 Manufacturing $ 45,320 $ 244 $ 21,655 Nondurable Goods $ 4,289 $ 199 $ 17,541 Durable Goods $ 41,030 $ 46 $ 4,115 Wholesale & Retail Trade $ 1,297 $ 48 $ 4,499 Transportation $ 7,567 $ 48 $ 3,495 Information Services $ 3,381 $ 16 $ 1,627 Finance, Insurance, Real Estate & Leasing $ 36,306 $ 138 $ 17,669 Services & Government $ 78,915 $ 678 $ 46,491 Professional, Scientific & Technical Services $ 43,561 $ 234 $ 26,904 Administrative & Waste Management Services $ 31,535 $ 294 $ 13,678 Health, Education & Social Services $ 281 $ 20 $ 1,195 Other Services & Government $ 3,538 $ 130 $ 4,186 Total $ 172,786 1,197 $ 98,466

Source: Business Research and Economic Advisors

Table 29 – Total Economic Impacts – Delaware - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - $ 4 $ 297 Manufacturing $ 515 $ 9 $ 681 Nondurable Goods $ 321 $ 4 $ 309 Durable Goods $ 194 $ 5 $ 372 Wholesale & Retail Trade $ 35 $ 4 $ 338 Transportation $ 1,703 $ 7 $ 652 Information Services $ - $ 2 $ 208 Finance, Insurance, Real Estate & Leasing $ 12,557 $ 17 $ 1,278 Services & Government $ 13,106 $ 165 $ 8,072 Professional, Scientific & Technical Services $ 3,386 $ 38 $ 3,523 Administrative & Waste Management Services $ 9,091 $ 100 $ 3,817 Health, Education & Social Services $ - $ 1 $ 39 Other Services & Government $ 629 $ 26 $ 693 Total $ 27,916 208 $ 11,526

Source: Business Research and Economic Advisors

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Table 30 – Total Economic Impacts – District of Columbia - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 1 $ 122 Manufacturing $ 19 1 $ 66 Nondurable Goods $ 16 - $ 26 Durable Goods $ 3 - $ 40 Wholesale & Retail Trade $ 1 1 $ 54 Transportation $ 845 4 $ 296 Information Services $ 1 2 $ 221 Finance, Insurance, Real Estate & Leasing $ 1,765 50 $ 5,112 Services & Government $ 36,667 169 $ 25,982 Professional, Scientific & Technical Services $ 12,327 71 $ 8,060 Administrative & Waste Management Services $ 3,593 40 $ 1,733 Health, Education & Social Services $ 47 4 $ 167 Other Services & Government $ 20,700 54 $ 16,022 Total $ 39,299 228 $ 31,853

Source: Business Research and Economic Advisors

Table 31 – Total Economic Impacts – Florida – 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 18,624 4,209 $ 260,338 Manufacturing $ 1,671,883 11,196 $ 727,889 Nondurable Goods $ 923,006 7,961 $ 537,541 Durable Goods $ 748,877 3,235 $ 190,349 Wholesale & Retail Trade $ 407,311 8,788 $ 487,719 Transportation $ 2,569,717 31,481 $ 1,498,399 Information Services $ 104,759 1,975 $ 152,592 Finance, Insurance, Real Estate & Leasing $ 53,662 9,620 $ 576,194 Services & Government $ 3,147,367 81,751 $ 3,390,047 Professional, Scientific & Technical Services $ 382,889 15,329 $ 1,178,138 Administrative & Waste Management Services $ 1,231,917 32,482 $ 1,187,473 Health, Education & Social Services $ 20,920 1,069 $ 45,506 Other Services & Government $ 1,511,642 32,871 $ 978,930 Total $ 7,973,324 149,020 $ 7,093,178

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 78 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 32 – Total Economic Impacts – Georgia - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 383 413 $ 24,717 Manufacturing $ 149,808 1,350 $ 88,211 Nondurable Goods $ 87,368 716 $ 49,210 Durable Goods $ 62,440 635 $ 39,002 Wholesale & Retail Trade $ 18,794 649 $ 44,545 Transportation $ 134,903 1,438 $ 67,136 Information Services $ 8,471 234 $ 19,997 Finance, Insurance, Real Estate & Leasing $ 38,852 1,572 $ 97,004 Services & Government $ 351,899 7,539 $ 367,604 Professional, Scientific & Technical Services $ 68,712 1,596 $ 112,956 Administrative & Waste Management Services $ 122,705 2,615 $ 96,185 Health, Education & Social Services $ 3,142 121 $ 5,142 Other Services & Government $ 157,340 3,207 $ 153,321 Total $ 703,109 13,195 $ 709,214

Source: Business Research and Economic Advisors

Table 33 – Total Economic Impacts – Hawaii - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 10 11 $ 900 Manufacturing $ 21,564 85 $ 4,174 Nondurable Goods $ 17,254 30 $ 1,987 Durable Goods $ 4,310 53 $ 2,187 Wholesale & Retail Trade $ 12,515 119 $ 5,308 Transportation $ 163,090 1,868 $ 52,504 Information Services $ 71 4 $ 270 Finance, Insurance, Real Estate & Leasing $ 2,404 19 $ 1,240 Services & Government $ 162,911 3,622 $ 140,766 Professional, Scientific & Technical Services $ 3,519 51 $ 4,106 Administrative & Waste Management Services $ 7,282 1,636 $ 62,784 Health, Education & Social Services $ 34 5 $ 185 Other Services & Government $ 152,076 1,930 $ 73,691 Total $ 362,564 5,728 $ 205,162

Source: Business Research and Economic Advisors

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Table 34 – Total Economic Impacts – Idaho - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 7 $ 325 Manufacturing $ 568 11 $ 668 Nondurable Goods $ 519 6 $ 429 Durable Goods $ 50 5 $ 239 Wholesale & Retail Trade $ 21 5 $ 264 Transportation $ 1,337 12 $ 645 Information Services $ 66 1 $ 51 Finance, Insurance, Real Estate & Leasing $ 1,156 9 $ 452 Services & Government $ 9,058 145 $ 5,336 Professional, Scientific & Technical Services $ 3,277 36 $ 2,275 Administrative & Waste Management Services $ 5,704 88 $ 2,575 Health, Education & Social Services $ - 1 $ 25 Other Services & Government $ 77 20 $ 461 Total $ 12,206 190 $ 7,741

Source: Business Research and Economic Advisors

Table 35 – Total Economic Impacts – Illinois - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 3 202 $ 18,746 Manufacturing $ 185,042 1,461 $ 114,648 Nondurable Goods $ 98,557 933 $ 74,143 Durable Goods $ 86,486 529 $ 40,505 Wholesale & Retail Trade $ 25,577 511 $ 37,824 Transportation $ 30,928 589 $ 33,136 Information Services $ 35,283 217 $ 21,330 Finance, Insurance, Real Estate & Leasing $ 64,924 628 $ 48,625 Services & Government $ 209,495 4,578 $ 221,715 Professional, Scientific & Technical Services $ 116,518 1,448 $ 112,509 Administrative & Waste Management Services $ 80,637 2,039 $ 75,335 Health, Education & Social Services $ 1,531 86 $ 4,268 Other Services & Government $ 10,809 1,005 $ 29,603 Total $ 551,255 8,186 $ 496,024

Source: Business Research and Economic Advisors

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Table 36 – Total Economic Impacts – Indiana - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 0 195 $ 12,543 Manufacturing $ 5,296 1,017 $ 71,411 Nondurable Goods $ 3,602 764 $ 55,259 Durable Goods $ 1,694 253 $ 16,152 Wholesale & Retail Trade $ 325 295 $ 15,052 Transportation $ 9,294 329 $ 16,024 Information Services $ 387 49 $ 2,761 Finance, Insurance, Real Estate & Leasing $ 14,819 270 $ 14,628 Services & Government $ 302,558 5,508 $ 254,162 Professional, Scientific & Technical Services $ 9,176 532 $ 31,136 Administrative & Waste Management Services $ 38,091 1,007 $ 27,856 Health, Education & Social Services $ 1,936 68 $ 2,289 Other Services & Government $ 253,355 3,901 $ 192,881 Total $ 332,679 7,663 $ 386,581

Source: Business Research and Economic Advisors

Table 37 – Total Economic Impacts – Iowa - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 0 4 $ 329 Manufacturing $ 3,403 25 $ 1,457 Nondurable Goods $ 3,400 10 $ 704 Durable Goods $ 3 14 $ 754 Wholesale & Retail Trade $ 1 7 $ 376 Transportation $ 2,660 16 $ 959 Information Services $ 26 3 $ 172 Finance, Insurance, Real Estate & Leasing $ 16,412 46 $ 3,039 Services & Government $ 13,992 189 $ 6,224 Professional, Scientific & Technical Services $ 3,011 29 $ 1,629 Administrative & Waste Management Services $ 10,503 138 $ 4,093 Health, Education & Social Services $ - 2 $ 51 Other Services & Government $ 479 20 $ 451 Total $ 36,495 290 $ 12,556

Source: Business Research and Economic Advisors

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Table 38 – Total Economic Impacts – Kansas - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 160 86 $ 5,291 Manufacturing $ 1,965 153 $ 8,711 Nondurable Goods $ 1,522 93 $ 5,305 Durable Goods $ 444 61 $ 3,405 Wholesale & Retail Trade $ 77 76 $ 4,079 Transportation $ 21,759 515 $ 26,160 Information Services $ 1 25 $ 1,703 Finance, Insurance, Real Estate & Leasing $ 5,940 135 $ 6,741 Services & Government $ 17,595 776 $ 28,024 Professional, Scientific & Technical Services $ 7,051 192 $ 11,054 Administrative & Waste Management Services $ 9,598 346 $ 11,261 Health, Education & Social Services $ 760 16 $ 583 Other Services & Government $ 186 222 $ 5,126 Total $ 47,499 1,766 $ 80,709

Source: Business Research and Economic Advisors

Table 39 – Total Economic Impacts – Kentucky - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 25 $ 1,502 Manufacturing $ 7,502 88 $ 5,634 Nondurable Goods $ 7,118 49 $ 3,572 Durable Goods $ 384 39 $ 2,062 Wholesale & Retail Trade $ 497 30 $ 1,670 Transportation $ 4,347 60 $ 3,917 Information Services $ 85 9 $ 518 Finance, Insurance, Real Estate & Leasing $ 4,580 38 $ 2,400 Services & Government $ 44,486 736 $ 27,195 Professional, Scientific & Technical Services $ 20,580 203 $ 13,391 Administrative & Waste Management Services $ 18,623 340 $ 9,193 Health, Education & Social Services $ - 5 $ 141 Other Services & Government $ 5,283 188 $ 4,470 Total $ 61,497 986 $ 42,836

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 82 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 40 – Total Economic Impacts – Louisiana - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 797 $ 73,596 Manufacturing $ 45,900 455 $ 34,485 Nondurable Goods $ 25,088 264 $ 16,312 Durable Goods $ 20,812 191 $ 18,174 Wholesale & Retail Trade $ 17,690 448 $ 19,843 Transportation $ 109,912 1,595 $ 51,188 Information Services $ 27 50 $ 2,906 Finance, Insurance, Real Estate & Leasing $ 7,028 222 $ 11,589 Services & Government $ 251,544 4,754 $ 153,830 Professional, Scientific & Technical Services $ 16,848 626 $ 39,523 Administrative & Waste Management Services $ 69,075 1,128 $ 37,089 Health, Education & Social Services $ 3,758 122 $ 4,303 Other Services & Government $ 161,863 2,878 $ 72,915 Total $ 432,102 8,321 $ 347,437

Source: Business Research and Economic Advisors

Table 41 – Total Economic Impacts – Maine - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 22 $ 1,057 Manufacturing $ 7,710 66 $ 3,706 Nondurable Goods $ 992 42 $ 2,371 Durable Goods $ 6,717 24 $ 1,336 Wholesale & Retail Trade $ 6,927 90 $ 3,410 Transportation $ 8,075 68 $ 2,568 Information Services $ 133 5 $ 349 Finance, Insurance, Real Estate & Leasing $ 3,437 29 $ 1,897 Services & Government $ 21,403 498 $ 14,083 Professional, Scientific & Technical Services $ 2,429 57 $ 3,737 Administrative & Waste Management Services $ 7,120 98 $ 3,438 Health, Education & Social Services $ 40 5 $ 182 Other Services & Government $ 11,813 338 $ 6,726 Total $ 47,684 778 $ 27,070

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 83 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 42 – Total Economic Impacts – Maryland - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 79 $ 6,488 Manufacturing $ 28,359 166 $ 13,232 Nondurable Goods $ 23,380 82 $ 7,736 Durable Goods $ 4,979 84 $ 5,495 Wholesale & Retail Trade $ 10,596 181 $ 11,026 Transportation $ 38,946 495 $ 13,747 Information Services $ 7,293 40 $ 3,828 Finance, Insurance, Real Estate & Leasing $ 12,468 342 $ 24,903 Services & Government $ 106,121 1,839 $ 101,797 Professional, Scientific & Technical Services $ 27,189 525 $ 47,592 Administrative & Waste Management Services $ 59,270 753 $ 31,894 Health, Education & Social Services $ 6,737 71 $ 3,904 Other Services & Government $ 12,925 490 $ 18,407 Total $ 203,784 3,142 $ 175,021

Source: Business Research and Economic Advisors

Table 43 – Total Economic Impacts – Massachusetts - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 118 $ 10,148 Manufacturing $ 44,100 441 $ 40,250 Nondurable Goods $ 19,510 276 $ 27,659 Durable Goods $ 24,590 165 $ 12,591 Wholesale & Retail Trade $ 11,357 322 $ 21,589 Transportation $ 58,637 691 $ 25,330 Information Services $ 5,630 100 $ 11,266 Finance, Insurance, Real Estate & Leasing $ 26,404 1,282 $ 131,165 Services & Government $ 339,828 4,375 $ 243,546 Professional, Scientific & Technical Services $ 168,587 1,354 $ 116,657 Administrative & Waste Management Services $ 139,504 2,002 $ 90,086 Health, Education & Social Services $ 5,156 168 $ 8,893 Other Services & Government $ 26,580 851 $ 27,910 Total $ 485,956 7,329 $ 483,294

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 84 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 44 – Total Economic Impacts – Michigan - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 0 58 $ 4,474 Manufacturing $ 73,959 427 $ 31,905 Nondurable Goods $ 59,650 267 $ 22,480 Durable Goods $ 14,311 159 $ 9,425 Wholesale & Retail Trade $ 11,967 127 $ 8,980 Transportation $ 13,690 104 $ 7,894 Information Services $ 898 19 $ 1,436 Finance, Insurance, Real Estate & Leasing $ 19,327 179 $ 11,356 Services & Government $ 110,007 1,718 $ 85,289 Professional, Scientific & Technical Services $ 31,216 433 $ 38,353 Administrative & Waste Management Services $ 55,055 729 $ 29,317 Health, Education & Social Services $ 91 14 $ 510 Other Services & Government $ 23,646 542 $ 17,109 Total $ 229,849 2,632 $ 151,334

Source: Business Research and Economic Advisors

Table 45 – Total Economic Impacts – Minnesota - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 49 $ 3,860 Manufacturing $ 14,640 199 $ 14,806 Nondurable Goods $ 11,257 118 $ 9,238 Durable Goods $ 3,383 82 $ 5,568 Wholesale & Retail Trade $ 1,151 91 $ 6,311 Transportation $ 7,709 121 $ 7,323 Information Services $ 2,926 36 $ 3,064 Finance, Insurance, Real Estate & Leasing $ 18,700 473 $ 32,803 Services & Government $ 63,837 1,204 $ 62,382 Professional, Scientific & Technical Services $ 12,737 279 $ 24,208 Administrative & Waste Management Services $ 27,242 433 $ 15,372 Health, Education & Social Services $ 18 17 $ 595 Other Services & Government $ 23,841 475 $ 22,207 Total $ 108,963 2,173 $ 130,549

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 85 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 46 – Total Economic Impacts – Mississippi - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 14 $ 884 Manufacturing $ 7,602 62 $ 3,418 Nondurable Goods $ 1,145 48 $ 2,702 Durable Goods $ 6,457 15 $ 716 Wholesale & Retail Trade $ 150 8 $ 463 Transportation $ 4,438 20 $ 1,226 Information Services $ - 1 $ 72 Finance, Insurance, Real Estate & Leasing $ 2,703 17 $ 885 Services & Government $ 21,476 311 $ 9,919 Professional, Scientific & Technical Services $ 1,956 28 $ 1,771 Administrative & Waste Management Services $ 18,862 246 $ 7,194 Health, Education & Social Services $ - 2 $ 52 Other Services & Government $ 659 35 $ 902 Total $ 36,368 433 $ 16,867

Source: Business Research and Economic Advisors

Table 47 – Total Economic Impacts – Missouri - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 77 $ 5,404 Manufacturing $ 26,548 317 $ 18,744 Nondurable Goods $ 20,564 185 $ 11,599 Durable Goods $ 5,983 132 $ 7,146 Wholesale & Retail Trade $ 305 129 $ 7,381 Transportation $ 10,639 176 $ 9,680 Information Services $ 7,859 66 $ 4,618 Finance, Insurance, Real Estate & Leasing $ 10,069 738 $ 35,918 Services & Government $ 86,582 2,082 $ 97,977 Professional, Scientific & Technical Services $ 10,965 398 $ 30,380 Administrative & Waste Management Services $ 33,399 669 $ 21,643 Health, Education & Social Services $ 621 44 $ 1,781 Other Services & Government $ 41,597 971 $ 44,173 Total $ 142,002 3,585 $ 179,722

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 86 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 48 – Total Economic Impacts – Montana - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 4 3 $ 255 Manufacturing $ 89 2 $ 131 Nondurable Goods $ 84 1 $ 70 Durable Goods $ 5 1 $ 62 Wholesale & Retail Trade $ 3 2 $ 106 Transportation $ 386 5 $ 315 Information Services $ 50 1 $ 40 Finance, Insurance, Real Estate & Leasing $ 700 7 $ 384 Services & Government $ 2,557 56 $ 2,148 Professional, Scientific & Technical Services $ 880 13 $ 796 Administrative & Waste Management Services $ 1,674 35 $ 1,120 Health, Education & Social Services $ 0 1 $ 8 Other Services & Government $ 2 7 $ 224 Total $ 3,790 76 $ 3,379

Source: Business Research and Economic Advisors

Table 49 – Total Economic Impacts – Nebraska - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 11 $ 623 Manufacturing $ 1,971 35 $ 1,911 Nondurable Goods $ 1,796 15 $ 913 Durable Goods $ 175 20 $ 998 Wholesale & Retail Trade $ 31 19 $ 972 Transportation $ 4,416 71 $ 4,118 Information Services $ 363 12 $ 968 Finance, Insurance, Real Estate & Leasing $ 10,165 60 $ 3,284 Services & Government $ 11,291 232 $ 9,121 Professional, Scientific & Technical Services $ 3,915 63 $ 4,047 Administrative & Waste Management Services $ 7,319 112 $ 3,643 Health, Education & Social Services $ 18 4 $ 133 Other Services & Government $ 39 53 $ 1,298 Total $ 28,237 440 $ 20,997

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 87 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 50 – Total Economic Impacts – Nevada - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 38 $ 2,778 Manufacturing $ 15,697 210 $ 15,804 Nondurable Goods $ 2,772 190 $ 14,932 Durable Goods $ 12,924 20 $ 871 Wholesale & Retail Trade $ 2,537 45 $ 2,595 Transportation $ 10,891 87 $ 4,377 Information Services $ 175 7 $ 405 Finance, Insurance, Real Estate & Leasing $ 4,034 40 $ 2,260 Services & Government $ 74,418 1,050 $ 39,547 Professional, Scientific & Technical Services $ 17,023 144 $ 11,049 Administrative & Waste Management Services $ 48,646 701 $ 21,131 Health, Education & Social Services $ 17 2 $ 79 Other Services & Government $ 8,733 203 $ 7,288 Total $ 107,751 1,477 $ 67,766

Source: Business Research and Economic Advisors

Table 51 – Total Economic Impacts – New Hampshire - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 10 $ 771 Manufacturing $ 8,572 61 $ 3,826 Nondurable Goods $ 8,545 25 $ 2,083 Durable Goods $ 27 34 $ 1,741 Wholesale & Retail Trade $ 862 20 $ 1,530 Transportation $ 6,194 28 $ 1,872 Information Services $ 30 4 $ 376 Finance, Insurance, Real Estate & Leasing $ 3,740 27 $ 2,060 Services & Government $ 32,108 357 $ 17,052 Professional, Scientific & Technical Services $ 4,572 50 $ 4,206 Administrative & Waste Management Services $ 26,379 252 $ 10,864 Health, Education & Social Services $ 627 9 $ 458 Other Services & Government $ 529 46 $ 1,524 Total $ 51,507 507 $ 27,487

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 88 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 52 – Total Economic Impacts – New Jersey - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 136 131 $ 12,148 Manufacturing $ 63,831 564 $ 49,064 Nondurable Goods $ 44,684 271 $ 22,716 Durable Goods $ 19,147 293 $ 26,346 Wholesale & Retail Trade $ 13,030 456 $ 33,787 Transportation $ 104,795 1,120 $ 42,080 Information Services $ 11,334 124 $ 13,359 Finance, Insurance, Real Estate & Leasing $ 28,892 522 $ 45,665 Services & Government $ 228,138 5,551 $ 303,567 Professional, Scientific & Technical Services $ 93,259 1,196 $ 119,722 Administrative & Waste Management Services $ 101,168 3,336 $ 146,355 Health, Education & Social Services $ 73 63 $ 2,844 Other Services & Government $ 33,638 956 $ 34,646 Total $ 450,157 8,468 $ 499,670

Source: Business Research and Economic Advisors

Table 53 – Total Economic Impacts – New Mexico - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 16 $ 1,207 Manufacturing $ 323 7 $ 428 Nondurable Goods $ 279 4 $ 309 Durable Goods $ 44 3 $ 118 Wholesale & Retail Trade $ 6 5 $ 259 Transportation $ 1,799 13 $ 845 Information Services $ 1 2 $ 101 Finance, Insurance, Real Estate & Leasing $ 1,526 13 $ 626 Services & Government $ 12,868 188 $ 8,313 Professional, Scientific & Technical Services $ 4,791 52 $ 3,751 Administrative & Waste Management Services $ 7,574 111 $ 3,878 Health, Education & Social Services $ - 1 $ 31 Other Services & Government $ 503 24 $ 653 Total $ 16,522 244 $ 11,779

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 89 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 54 – Total Economic Impacts – New York - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 1,111 279 $ 27,481 Manufacturing $ 126,464 1,040 $ 79,895 Nondurable Goods $ 82,731 602 $ 49,731 Durable Goods $ 43,733 438 $ 30,165 Wholesale & Retail Trade $ 30,351 731 $ 50,620 Transportation $ 125,044 1,688 $ 59,046 Information Services $ 3,465 225 $ 23,673 Finance, Insurance, Real Estate & Leasing $ 251,567 1,417 $ 174,451 Services & Government $ 609,193 10,328 $ 560,127 Professional, Scientific & Technical Services $ 164,893 2,276 $ 185,151 Administrative & Waste Management Services $ 165,398 3,571 $ 170,340 Health, Education & Social Services $ 3,201 262 $ 12,980 Other Services & Government $ 275,701 4,219 $ 191,656 Total $ 1,147,193 15,708 $ 975,293

Source: Business Research and Economic Advisors

Table 55 – Total Economic Impacts – North Carolina - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 80 $ 4,624 Manufacturing $ 59,609 413 $ 26,881 Nondurable Goods $ 53,148 190 $ 13,255 Durable Goods $ 6,461 223 $ 13,626 Wholesale & Retail Trade $ 5,289 127 $ 7,907 Transportation $ 23,833 168 $ 9,222 Information Services $ 1,792 36 $ 3,179 Finance, Insurance, Real Estate & Leasing $ 16,118 205 $ 14,251 Services & Government $ 148,110 2,348 $ 98,460 Professional, Scientific & Technical Services $ 48,911 525 $ 38,738 Administrative & Waste Management Services $ 86,766 1,399 $ 45,215 Health, Education & Social Services $ 159 19 $ 803 Other Services & Government $ 12,274 405 $ 13,704 Total $ 254,752 3,377 $ 164,524

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 90 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 56 – Total Economic Impacts – North Dakota - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 31 6 $ 479 Manufacturing $ 309 6 $ 301 Nondurable Goods $ 287 3 $ 180 Durable Goods $ 22 3 $ 122 Wholesale & Retail Trade $ 4 6 $ 274 Transportation $ 572 7 $ 454 Information Services $ 214 2 $ 133 Finance, Insurance, Real Estate & Leasing $ 1,256 12 $ 547 Services & Government $ 6,575 131 $ 3,837 Professional, Scientific & Technical Services $ 977 16 $ 809 Administrative & Waste Management Services $ 5,578 101 $ 2,683 Health, Education & Social Services $ - 1 $ 15 Other Services & Government $ 21 13 $ 330 Total $ 8,961 170 $ 6,025

Source: Business Research and Economic Advisors

Table 57 – Total Economic Impacts – Ohio - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 1 82 $ 6,271 Manufacturing $ 19,706 447 $ 32,499 Nondurable Goods $ 6,548 334 $ 25,399 Durable Goods $ 13,159 113 $ 7,100 Wholesale & Retail Trade $ 1,062 130 $ 7,950 Transportation $ 14,500 144 $ 9,079 Information Services $ 59 29 $ 1,992 Finance, Insurance, Real Estate & Leasing $ 25,578 203 $ 12,186 Services & Government $ 114,835 2,300 $ 95,831 Professional, Scientific & Technical Services $ 22,583 420 $ 30,810 Administrative & Waste Management Services $ 61,245 1,077 $ 33,916 Health, Education & Social Services $ 754 38 $ 1,317 Other Services & Government $ 30,253 765 $ 29,788 Total $ 175,741 3,335 $ 165,808

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 91 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 58 – Total Economic Impacts – Oklahoma - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 14 57 $ 5,484 Manufacturing $ 3,226 32 $ 1,895 Nondurable Goods $ 3,099 18 $ 1,100 Durable Goods $ 128 14 $ 793 Wholesale & Retail Trade $ 356 17 $ 893 Transportation $ 4,384 36 $ 2,878 Information Services $ 5 5 $ 269 Finance, Insurance, Real Estate & Leasing $ 3,426 33 $ 1,492 Services & Government $ 22,532 398 $ 13,827 Professional, Scientific & Technical Services $ 3,717 61 $ 3,548 Administrative & Waste Management Services $ 18,724 282 $ 8,837 Health, Education & Social Services $ 61 4 $ 117 Other Services & Government $ 30 51 $ 1,325 Total $ 33,944 578 $ 26,738

Source: Business Research and Economic Advisors

Table 59 – Total Economic Impacts – Oregon - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 198 256 $ 12,136 Manufacturing $ 6,604 442 $ 30,227 Nondurable Goods $ 3,694 296 $ 23,204 Durable Goods $ 2,910 145 $ 7,023 Wholesale & Retail Trade $ 603 221 $ 13,942 Transportation $ 34,750 1,034 $ 43,810 Information Services $ 280 57 $ 4,637 Finance, Insurance, Real Estate & Leasing $ 3,860 199 $ 10,636 Services & Government $ 91,121 1,917 $ 77,687 Professional, Scientific & Technical Services $ 79,974 576 $ 39,180 Administrative & Waste Management Services $ 7,934 659 $ 19,975 Health, Education & Social Services $ 4 40 $ 1,182 Other Services & Government $ 3,210 642 $ 17,350 Total $ 137,417 4,126 $ 193,075

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 92 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 60 – Total Economic Impacts – Pennsylvania - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 183 $ 15,270 Manufacturing $ 146,522 1,236 $ 88,464 Nondurable Goods $ 40,467 928 $ 68,698 Durable Goods $ 106,053 307 $ 19,767 Wholesale & Retail Trade $ 18,144 312 $ 20,890 Transportation $ 42,053 530 $ 27,247 Information Services $ 2,141 92 $ 7,100 Finance, Insurance, Real Estate & Leasing $ 32,217 732 $ 50,235 Services & Government $ 159,034 3,353 $ 164,521 Professional, Scientific & Technical Services $ 67,080 986 $ 83,355 Administrative & Waste Management Services $ 82,290 1,512 $ 54,539 Health, Education & Social Services $ 444 108 $ 5,304 Other Services & Government $ 9,219 747 $ 21,323 Total $ 400,112 6,438 $ 373,727

Source: Business Research and Economic Advisors

Table 61 – Total Economic Impacts – Rhode Island - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 7 $ 382 Manufacturing $ 421 23 $ 1,438 Nondurable Goods $ 137 16 $ 1,015 Durable Goods $ 284 7 $ 423 Wholesale & Retail Trade $ 47 7 $ 451 Transportation $ 4,094 24 $ 1,020 Information Services $ - 4 $ 379 Finance, Insurance, Real Estate & Leasing $ 3,789 19 $ 1,232 Services & Government $ 16,639 256 $ 9,622 Professional, Scientific & Technical Services $ 2,455 31 $ 2,330 Administrative & Waste Management Services $ 12,727 176 $ 5,713 Health, Education & Social Services $ 6 5 $ 194 Other Services & Government $ 1,452 44 $ 1,385 Total $ 24,991 340 $ 14,524

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 93 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 62 – Total Economic Impacts – South Carolina - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 76 $ 4,867 Manufacturing $ 13,480 258 $ 17,051 Nondurable Goods $ 6,620 129 $ 8,462 Durable Goods $ 6,861 129 $ 8,589 Wholesale & Retail Trade $ 4,777 122 $ 5,654 Transportation $ 36,424 486 $ 12,848 Information Services $ - 14 $ 961 Finance, Insurance, Real Estate & Leasing $ 5,431 73 $ 4,436 Services & Government $ 70,943 1,339 $ 47,068 Professional, Scientific & Technical Services $ 6,768 161 $ 11,197 Administrative & Waste Management Services $ 56,146 804 $ 26,471 Health, Education & Social Services $ - 11 $ 388 Other Services & Government $ 8,028 363 $ 9,012 Total $ 131,055 2,368 $ 92,885

Source: Business Research and Economic Advisors

Table 63 – Total Economic Impacts – South Dakota - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 2 $ 83 Manufacturing $ 391 3 $ 196 Nondurable Goods $ 280 2 $ 118 Durable Goods $ 112 2 $ 78 Wholesale & Retail Trade $ 26 2 $ 98 Transportation $ 516 4 $ 164 Information Services $ 1 - $ 15 Finance, Insurance, Real Estate & Leasing $ 1,673 7 $ 322 Services & Government $ 2,870 44 $ 1,296 Professional, Scientific & Technical Services $ 655 8 $ 377 Administrative & Waste Management Services $ 2,181 28 $ 773 Health, Education & Social Services $ - 1 $ 12 Other Services & Government $ 34 7 $ 134 Total $ 5,478 62 $ 2,174

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 94 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 64 – Total Economic Impacts – Tennessee - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 0 14 $ 732 Manufacturing $ 3,556 90 $ 5,766 Nondurable Goods $ 3,196 49 $ 3,307 Durable Goods $ 360 41 $ 2,460 Wholesale & Retail Trade $ 70 34 $ 2,064 Transportation $ 8,387 72 $ 4,606 Information Services $ 47 7 $ 456 Finance, Insurance, Real Estate & Leasing $ 6,832 114 $ 6,711 Services & Government $ 47,003 697 $ 27,323 Professional, Scientific & Technical Services $ 9,298 120 $ 8,141 Administrative & Waste Management Services $ 35,666 471 $ 15,865 Health, Education & Social Services $ 132 8 $ 385 Other Services & Government $ 1,908 98 $ 2,932 Total $ 65,896 1,028 $ 47,658

Source: Business Research and Economic Advisors

Table 65 – Total Economic Impacts – Texas – 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 18,604 2,939 $ 415,272 Manufacturing $ 414,261 2,076 $ 177,320 Nondurable Goods $ 299,366 1,422 $ 120,725 Durable Goods $ 114,896 654 $ 56,596 Wholesale & Retail Trade $ 73,785 1,503 $ 98,896 Transportation $ 238,614 3,588 $ 188,555 Information Services $ 11,808 373 $ 33,906 Finance, Insurance, Real Estate & Leasing $ 45,844 2,457 $ 173,949 Services & Government $ 619,617 12,230 $ 534,180 Professional, Scientific & Technical Services $ 117,241 2,548 $ 201,465 Administrative & Waste Management Services $ 409,606 5,196 $ 204,791 Health, Education & Social Services $ 1,914 150 $ 6,540 Other Services & Government $ 90,855 4,336 $ 121,384 Total $ 1,422,532 25,166 $ 1,622,078

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 95 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 66 – Total Economic Impacts – Utah - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 0 20 $ 1,388 Manufacturing $ 890 43 $ 2,606 Nondurable Goods $ 633 28 $ 1,861 Durable Goods $ 257 14 $ 745 Wholesale & Retail Trade $ 84 21 $ 1,190 Transportation $ 5,887 46 $ 3,240 Information Services $ 724 13 $ 765 Finance, Insurance, Real Estate & Leasing $ 3,496 105 $ 5,100 Services & Government $ 26,472 531 $ 18,665 Professional, Scientific & Technical Services $ 4,565 85 $ 5,702 Administrative & Waste Management Services $ 20,600 349 $ 10,200 Health, Education & Social Services $ 80 9 $ 269 Other Services & Government $ 1,227 88 $ 2,494 Total $ 37,551 779 $ 32,954

Source: Business Research and Economic Advisors

Table 67 – Total Economic Impacts – Vermont – 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 1 $ 107 Manufacturing $ 249 5 $ 390 Nondurable Goods $ 192 3 $ 290 Durable Goods $ 57 2 $ 99 Wholesale & Retail Trade $ 8 1 $ 90 Transportation $ 337 3 $ 173 Information Services $ 64 1 $ 45 Finance, Insurance, Real Estate & Leasing $ 815 5 $ 349 Services & Government $ 8,070 37 $ 1,991 Professional, Scientific & Technical Services $ 6,631 12 $ 1,054 Administrative & Waste Management Services $ 1,437 19 $ 732 Health, Education & Social Services $ - 1 $ 34 Other Services & Government $ 3 5 $ 171 Total $ 9,543 53 $ 3,145

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 96 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 68 – Total Economic Impacts – Virginia - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 47 $ 3,321 Manufacturing $ 26,969 178 $ 11,478 Nondurable Goods $ 8,100 125 $ 8,268 Durable Goods $ 18,868 52 $ 3,211 Wholesale & Retail Trade $ 1,293 62 $ 4,124 Transportation $ 16,556 131 $ 7,289 Information Services $ 670 35 $ 4,140 Finance, Insurance, Real Estate & Leasing $ 9,073 856 $ 57,880 Services & Government $ 98,833 1,515 $ 82,214 Professional, Scientific & Technical Services $ 31,592 419 $ 41,224 Administrative & Waste Management Services $ 63,491 860 $ 32,719 Health, Education & Social Services $ 170 15 $ 653 Other Services & Government $ 3,581 221 $ 7,618 Total $ 153,397 2,824 $ 170,446

Source: Business Research and Economic Advisors

Table 69 – Total Economic Impacts – Washington – 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ 1,947 801 $ 41,740 Manufacturing $ 164,741 1,640 $ 127,949 Nondurable Goods $ 56,393 1,014 $ 84,352 Durable Goods $ 108,348 626 $ 43,596 Wholesale & Retail Trade $ 22,321 929 $ 56,710 Transportation $ 274,117 3,866 $ 206,235 Information Services $ 6,380 304 $ 40,522 Finance, Insurance, Real Estate & Leasing $ 18,001 638 $ 41,184 Services & Government $ 292,021 9,951 $ 434,172 Professional, Scientific & Technical Services $ 113,515 2,315 $ 153,135 Administrative & Waste Management Services $ 73,708 4,193 $ 178,832 Health, Education & Social Services $ 11,544 308 $ 11,008 Other Services & Government $ 93,255 3,135 $ 91,197 Total $ 779,528 18,129 $ 948,512

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 97 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 70 – Total Economic Impacts – West Virginia – 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 8 $ 547 Manufacturing $ 113 6 $ 506 Nondurable Goods $ 113 3 $ 305 Durable Goods $ - 3 $ 202 Wholesale & Retail Trade $ - 3 $ 161 Transportation $ 1,385 13 $ 738 Information Services $ - 1 $ 38 Finance, Insurance, Real Estate & Leasing $ 1,220 8 $ 428 Services & Government $ 7,087 114 $ 3,743 Professional, Scientific & Technical Services $ 1,274 16 $ 901 Administrative & Waste Management Services $ 5,790 85 $ 2,493 Health, Education & Social Services $ 23 1 $ 24 Other Services & Government $ 1 12 $ 325 Total $ 9,805 153 $ 6,161

Source: Business Research and Economic Advisors

Table 71 – Total Economic Impacts – Wisconsin - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ - 15 $ 1,125 Manufacturing $ 4,576 100 $ 6,579 Nondurable Goods $ 2,950 63 $ 4,491 Durable Goods $ 1,625 37 $ 2,088 Wholesale & Retail Trade $ 287 26 $ 1,497 Transportation $ 4,232 40 $ 2,223 Information Services $ 22 7 $ 498 Finance, Insurance, Real Estate & Leasing $ 13,786 102 $ 5,880 Services & Government $ 25,658 469 $ 16,874 Professional, Scientific & Technical Services $ 7,119 94 $ 6,461 Administrative & Waste Management Services $ 17,713 295 $ 8,349 Health, Education & Social Services $ 94 7 $ 249 Other Services & Government $ 732 73 $ 1,815 Total $ 48,560 759 $ 34,676

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 98 July 2017 Cruise Lines International Association 2016 U.S. Economic Impact Analysis

Table 72 – Total Economic Impacts – Wyoming - 2016

Direct Total Total Wages Sector Purchases Employment ($1,000) ($1,000) Agriculture, Mining, Utilities & Construction $ (0) 4 $ 384 Manufacturing $ 44 1 $ 39 Nondurable Goods $ 44 - $ 14 Durable Goods $ - - $ 26 Wholesale & Retail Trade $ 0 1 $ 29 Transportation $ 262 3 $ 244 Information Services $ - - $ 7 Finance, Insurance, Real Estate & Leasing $ 283 3 $ 121 Services & Government $ 1,527 22 $ 859 Professional, Scientific & Technical Services $ 481 5 $ 301 Administrative & Waste Management Services $ 1,046 14 $ 478 Health, Education & Social Services $ - 1 $ 2 Other Services & Government $ - 2 $ 78 Total $ 2,115 34 $ 1,683

Source: Business Research and Economic Advisors

Business Research and Economic Advisors Page 99 July 2017

BREA

Business Research and Economic Advisors

BREA specializes in custom market analyses for clients throughout the private and public sectors. These unique market analyses integrate economic, financial, and demographic trends with primary market research, proprietary client data, and advanced statistical and modeling techniques. This approach results in comprehensive and actionable analysis, databases and models designed to support planning, sales and marketing and public relations within client organizations.

BREA’s principals each have more than 25 years of experience in consulting and forecasting with a wide range of international product and service companies, including consumer products, leisure, retailing, gaming, business services, telecommunications, utility and financial services. Their consulting assignments provide critical analysis and insight into market dynamics, product demand, economic trends, consumer behavior and public policy.

BREA’s approach to market analysis focuses on determining market or product characteristics that can be summarized by three attributes: size, share, and growth. Since studies are designed to meet the specific needs of each client, they can incorporate many dimensions of the market and include a variety of ancillary services. To carry out this market analysis, BREA provides the following services:

Market Research: design and implementation of primary market research instruments using telephone, mail and intercept surveys. Test instruments are designed to collect information on product demand, attributes of consumers and users, perceived product attributes and customer satisfaction.

Segmentation Analyses: segmenting demand attributes by product line, consumer demographics (age, income, region, etc.) and business characteristics using market research, government statistics and proprietary databases.

Statistical and Econometric Modeling: developing quantitative models relating market and product demand to key economic factors and demographic market/consumer attributes. Models can be used for forecasting, trend analysis and divergence/convergence analysis.

Market Studies and Trend Analyses: detailed descriptions of markets (defined as products, regions, industries, consumer segments, etc.) and comprehensive analyses of underlying market forces (such as economic and financial conditions, competitive environment, technology, etc.).

Economic Impact Studies: thorough analysis of industries and consumption behavior and their contribution to or impact on national and regional (state, metropolitan areas, counties, etc.) economies.

Business Research and Economic Advisors P.O. Box 955 Exton, PA 19341 . . CLIAG CLIAG

1201 F STREET NW, SUITE 250 WASHINGTON, DC 20004 +1.202.759.9370

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