Cruise Ship Tourism Concern (10/8/2014)

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Cruise Ship Tourism Concern (10/8/2014) PART OF A SERIES OF RESEARCH BRIEFINGS WHICH PRESENT INTRODUCTORY SUMMARIES ON TOPICS OF INTEREST TO OUR MEMBERS TourismConcern research briefing Cruise tourism – what’s below the surface? Research briefing 2016 • Helen Jennings & Kai Ulrik Introduction Questions raised include: A short history Whether it’s travel by river boat on the • How much economic benefit The earliest ocean-going vessels Rhine or aboard one of the gigantic do passengers actually bring to the were not primarily concerned with destinations they visit, as on board ships that ply the Caribbean, cruise passengers, but rather with the cargo spending demands and incentives that they could carry. By the mid-1850s, tourism is becoming ever more increase? popular. But is this form of tourism however, ships began to add a range of ethical and sustainable? Does it bring • What are the environmental luxuries in order to cater for passengers. impacts of massive cruise real benefits to local communities in Although often luxurious, ocean liners ships visiting sensitive marine nonetheless had shortcomings – such the places visited? environments? And how is the as a lack of passenger space – that huge quantity of waste generated According to Cruise Market made them unsuitable for cruising. Watch, under 4 million passengers during such cruises dealt with? Superliners – massive purpose-built worldwide went on cruises in • With many larger ships 1990, over 7 million in 2000, registered in countries where there floating hotels designed to address and over 18 million in 2010. By is limited legal protection for these shortcomings – first appeared 2020 numbers are projected to employees, how are cruise workers in the early twentieth century, making increase to more than 25 million, treated? the 1920s and 1930s were an era of with nearly 60% of passengers from USA and around 25% from This report presents findings glamorous trans-Atlantic travel. These Europe. The industry regards this from desk-based research aimed journeys ceased during World War II, growth as success, but elsewhere at answering these questions, and the advent of air travel after the there is mounting concern about particularly in relation to mass war dampened cruising’s revival. But the damaging impacts of a sector market cruise tourism. from the 1960s, ‘fun’ vacation cruises growing so rapidly. increased dramatically, particularly in the Caribbean and Mediterranean. Ships at the cruise ship terminal in Nassau, The Bahamas The extravagance and luxury of cruise packages, often for seemingly bargain prices,* has brought increasing numbers of customers since, with an estimated 2100% growth since 1970 * Many cruise lines now have a more resort- like fare structure, with low up front prices masking the a la carte purchases which increase the real costs on board. Action for Ethical Tourism TourismConcern research report Economic impacts bananas and other tropical fruits, of the major cruise companies are yet scarcely sells any to the many ‘transnational’– circumventing Carnival Liberty, Carnival Triumph and the Carnival Glory visiting Although governments may benefit from taxes and sales of fuel, and some visiting cruise ships (Tourism national borders and manipulating St. Thomas, US Virgin Islands, carrying nearly 9,000 passengers. local businesses can sell passengers duty free goods and local tours, Concern, 2015). local economies. (Robinson, 2003). limited time spent ashore and the provision of food, drink and other goods Even in the places where local For example Royal Caribbean – on board, mean that local people often derive little or no benefit from the produce is bought by the ships, the second largest cruise company thousands of passengers disembarking from cruise ships. prices paid are kept to the in the world (see box opposite) minimum by the bargaining – are based in Miami, Florida, The extent of the economic benefit economy (CLIA, 2016/1). power of the companies. and yet sail under a Liberian brought to a particular destination However, the majority of local flag. The company does not offer by cruise tourism is debatable. businesses do not share the Passengers may also be given cruises to anywhere in Africa, let In theory visiting passengers buy economic benefits. And, even incentives to purchase tickets for alone to Liberia. However, the food, souvenirs and local tours at when purchases are made ashore, tours ashore whilst still on board. arrangement does mean that they ports on their cruise. In practice, there can be agreements between These can include money back pay very little in US taxes, which however, cruise companies can cruise companies and bigger local vouchers which, ironically, are may have helped the founder to limit the time spent ashore, and businesses which effectively shut only able to be spent on board! accrue a reported fortune of US$8 also encourage passengers to buy out smaller concerns. According to Brida & Zapata billion (Walker, 2012). It also goods on board. (2015) more than 50% of shore- means that Royal Caribbean is Many of the larger cruise ships based activities are sold on board accountable only to the far less The Cruise Lines International run their own ‘ship economies’ by the cruise companies, with local stringent labour and safety laws Association (CLIA) state that providing floating hotels that operators only receiving 25% to of Liberia, which has arguably cruise lines generated nearly satisfy most of the eating, drinking 50% of the full price. The same led to worse rights and conditions 1 million jobs in 2014 and and even shopping needs of the local operators are also forced to of employment for staff on contributed nearly $120 million passengers. Ships can carry all pay high prices to advertise their their ships. Such companies are Who owns the cruise ships? (£85 million) to the global the supplies they need on board tours on board. Those that can effectively floating ‘transnational The multi-national companies who run the industry have considerable power and often do so even where local afford to compete in this way tend corporations’. The 165m main promenade aboard Norwegian food is easily available. Costa to be the bigger local companies. and influence. cruise ship Color Magic, with restaurants, bars Rica, for example, is one of the Mexico, in an effort to gain a Host Resorts…. where? and shops that cater to every taste. biggest Caribbean exporters of The largest, Carnival Corporation, is a holding company that owns Carnival little more from cruise tourism, Some companies are even Cruise Lines (24 ships), Princess Cruises (16 ships), Holland America Line (15 creating their own ‘dream resort’ is attempting to request a levy ships), Costa (14 ships), P&O Cruises (7 ships), Cunard (3 ships), Seabourn (6 of $5 per passenger (Brida, destinations: purchasing land, ships), AIDA (10 ships) and P&O Cruises Australia (3 ships). 2015). Many other destinations and even whole islands, in order to reap all the profits from though are so highly dependent Royal Caribbean Cruises Ltd is the holding company for: Royal Caribbean on cruise tourism that their passengers’ visits. International (23 ships), Celebrity Cruises (11 ships), Pullmantur (5 ships), ability to negotiate reasonable Royal Caribbean for years terms of trade is restricted. The Azamara Club Cruises (2 ships), CDF Croisieres de France (1 ship). promoted a resort named economic value of cruise ships to ‘Labadee’ on the island of Norwegian Cruise Line Holdings Ltd has 13 ships in service and MSC Cruises governments and port authorities, Hispaniola in the Caribbean. especially in small island states, has 12 ships. Sliversea has six ships, Fred Olsen Cruises four and Disney also Labadee is actually in Haiti, an creates competition for their visits has four ships. impoverished country that is which can lead to the lowering plagued with natural disasters, Source: Beyondships.com of taxes and the relaxing of political strife, and economic regulations, further reducing the depravation. Royal Caribbean benefits to local people of their to accurately advertise Labadee questions. Have transnational rents a strip of the coastline visit (Kingston, 2006). as being in Haiti. Carnival cruise companies become too from the government, and here Corporation is soon to follow in powerful? Should there be more Floating tax havens and passengers use their cruise ship Royal Caribbean’s footsteps to regulation on an international flags of convenience cards to buy everything they create their own private resort basis? To what extent is there will need. The landscape is fair competition? Do countries Just as there are problems on the Haitian coast (Tourism exploited and the Haitian people visited by cruise ships have any tracking the financial affairs of Concern, 2015). are completely excluded from real power to claim a fair share cargo ships sailing under ‘flags the economic benefits. It took a The way cruise companies of the profits of such tourism? of convenience’, so there are also considerable amount of public use their economic muscle to (Klein, 2005). concerns with cruise liners. Many outrage to even get the cruise line maximise profits raises numerous TourismConcern research report Caye Caulker villagers attributed a large stretch of debris off their shores to dumping by cruise ship traffic a few miles from the island in Belize. Environmental impacts (Guardian 2009). Sulphur resulting in discharge that often dioxide and nitrogen oxides are contains significant amounts of ‘Most travelers don’t realize that taking a cruise is more harmful to the also major
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