Economic impact from the loss of cruise ships (Anchorage, Ketchikan: rental car, rental)

[riffle]

Originally Posted by Parnassia

I can see cruise line "failure" affecting revenue from passenger spending on shore. Alaska is an expensive place to get to and logistically difficult to tour around in. Cruise ships offer a relatively inexpensive method to reach the state; one lump sum provides lodging, meals, the transportation cost. Many tourists would never make the trip otherwise. Cruise ship passengers do spend quite a bit on excursions while in port. No, they aren't renting cars, hotel rooms or most of their meals. Even if the amount any single cheapskate passenger spends is relatively low there are thousands of them. If the cruise companies shelve AK tours due to financial hardship the ships don't arrive. There won't be passengers to spend dollars on day excursion fares (air tours etc), fast food, shopping (even if its touristy junk sold in shops near the ports), visits to attractions, etc. You do hear people complain/worry that ports of call have gotten too dependent on a single type of tourism: cruise ship passengers. Invested too much into infrastructure that benefits one industry.

Yes, absolutely. My point was that the cruises will operate if they a) are allowed to and b) have enough passengers to do so profitably. A bailout to keep empty cruise ships sailing wouldn't bring many dollars into Alaska.

[Frostnip]

With cruisers getting the majority of their food, entertainment, and transportation either directly from the cruise line's own providers or from a small number of businesses, many of which aren't locally owned anyway, and many of which bring in seasonal employees from outside or overseas, I'm not sure how much of an impact the lack of cruising will really have on Alaskans in general.

I think the local places that are really going to hurt due to the general drop in tourism are the businesses that cater to adventure travelers, road trippers, hunters and fishers, that sort of thing.

[pnwguy2]

Originally Posted by blueherons

But their headquarters are all in South Florida. The cruise companies are all based out of here and employ hundreds of thousands of employees.

Carnival alone has something like 120,000 employees in South Florida. Norwegian employs almost 40,000 people.

That's a lot of families.

No, Holland America is based in Seattle, and they are laying off 2,000 employees. Seattle itself will lose hundreds of millions with the ships not going to Alaska.

[shinhinichanna]

Is it because the covid disease has affected the number of ships?

[Tom Lennox 70]

Interesting thread that happened to be on top, I cruised to Alaska in the summer of 2018 on Royal Caribbean and Juneau and Skagway were both definitely dependent on cruise tourism. I do think some cruises may run in the summer. I have no idea if the state or local government will deem it safe enough for something like the Yukon White Pass Railroad to operate, that was an amazing excursion and the train was entirely full and crowded, yes we booked through the cruise but local companies definitely benefit. I also went on a helicopter tour in Juneau and nobody on board was 6 feet apart. Dog sledding was also fun. I also wonder how they're going to socially distance the tour buses or the cable car rides in Juneau going to the Mendenhall Glacier.

I know it will be very difficult for the local businesses in downtown Anchorage and in Skagway which gets most of their business from tourists and only have a 3 month window, and ports are losing out on port fees that the ships pay. A lot of seasonal workers in Alaska's tourist business are college students from the lower 48 but business owners still benefit and the state still collects sales tax on souvenirs and services.

I do think if the cruise lines require passengers to wear masks on board that's going to discourage a LOT of people from cruising.

[Tom Lennox 70]

Originally Posted by Frostnip

With cruisers getting the majority of their food, entertainment, and transportation either directly from the cruise line's own providers or from a small number of businesses, many of which aren't locally owned anyway, and many of which bring in seasonal employees from outside or overseas, I'm not sure how much of an impact the lack of cruising will really have on Alaskans in general.

I think the local places that are really going to hurt due to the general drop in tourism are the businesses that cater to adventure travelers, road trippers, hunters and fishers, that sort of thing.

Business owners still lose out even if they're hiring out of state college kids for the summer jobs. Also the state makes a lot of sales tax revenue from the tours, souvenirs and the ports charge the cruise lines a lot in port fees, which are much more expensive than the port fees the ships pay in the Caribbean and Mexico. When I was on my Alaska cruise, Royal Caribbean also had a lot of Alaskan beer on board which is helping out those breweries.

[Hemlock140]

Originally Posted by blueherons

But their headquarters are all in South Florida. The cruise companies are all based out of here and employ hundreds of thousands of employees.

Carnival alone has something like 120,000 employees in South Florida. Norwegian employs almost 40,000 people.

That's a lot of families.

Holland America is headquartered in Seattle, and they have 5,800 employees.


Just as the economy in Alaska is suffering from the lack of cruise ships, the Seattle area is estimated to lose over $500 million if the entire season is cancelled, because of the effect on hotels, the airport, tourist attractions, and local businesses, suppliers, and restaurants.

[Parnassia]

Originally Posted by Tom Lennox 70

Interesting thread that happened to be on top, I cruised to Alaska in the summer of 2018 on Royal Caribbean and Juneau and Skagway were both definitely dependent on cruise tourism. I do think some cruises may run in the summer. I have no idea if the state or local government will deem it safe enough for something like the Yukon White Pass Railroad to operate, that was an amazing excursion and the train was entirely full and crowded, yes we booked through the cruise but local companies definitely benefit. I also went on a helicopter tour in Juneau and nobody on board was 6 feet apart. Dog sledding was also fun. I also wonder how they're going to socially distance the tour buses or the cable car rides in Juneau going to the Mendenhall Glacier.

I know it will be very difficult for the local businesses in downtown Anchorage and in Skagway which gets most of their business from tourists and only have a 3 month window, and ports are losing out on port fees that the ships pay. A lot of seasonal workers in Alaska's tourist business are college students from the lower 48 but business owners still benefit and the state still collects sales tax on souvenirs and services.

I do think if the cruise lines require passengers to wear masks on board that's going to discourage a LOT of people from cruising.

No reason for anyone to be standing 6 feet apart in 2018...

I can't imagine how a cruise ship would manage social distancing for 1000+ passengers crammed onto a vessel for days at a time. They share airspace with each other almost the entire time. Cruise lines have gotten very bad press due to Covid-19 already whether an individual ship deserved it or not. Also, AK is still requiring a 14 day self-quarantine for everyone newly arrived within the state. They wouldn't be able to get off the boat. Their land-based excursions would also require a bunch of people who originated from all over the planet to stay in close proximity for days at a time. Even fairly unconcerned customers couldn't help but be wondering about their potential exposure.

As for the cable car trip...fewer passengers permitted each trip. That will create very long waits for every car. Unless they have a reservation/appointment schedule set up many probably won't want to bother. Tour bus/van companies may not be able to make enough profit running with half or less passengers per vehicle.

[Parnassia]

Originally Posted by shinhinichanna

Is it because the covid disease has affected the number of ships?

Not just that. After every cruise they have to completely disinfect the ship. Many destinations may be requiring a 14 day self quarantine for travelers. Cruise passengers (who have arrived from locations all over the world) wouldn't be able to get off the boat. Managing social distancing for all the passengers during the cruise would probably be next to impossible. Just handling and getting rid of all the disinfecting chemicals and disposable materials on board would be compounding an existing problem. All those chemicals go into holding tanks and must be pumped or dumped somewhere. The ships' tank and trash holding capacities are limited enough as it is. That's the "reality" side of cruising people don't consider. Those massive ships end up being a combination of floating cesspool and landfill. The waste they generate is already an issue for the oceans and the ports. And if someone did get sick during a cruise all the other passengers are facing quarantine. Not a very nice incentive to take a cruise! In every port of call the ship and the passengers could be exposed while on shore. Seems almost impossible to avoid infections. In general, just seems like a dumb idea to go on an international vacation this year.

[AKStafford]

Originally Posted by Tom Lennox 70

Also the state makes a lot of sales tax revenue from the tour.

The State of Alaska does not have a sales tax. Some local municipalities have sales tax, but its not statewide.