Vancouver-- The Vancouver-Alaska cruise sector posted its first decline in 21 years in the 2003 season, the Vancouver Port Authority (VPA) announced today.

Revenue passengers hosted by the Port of Vancouver declined 15 per cent this year (from 1,125,252 to 953,376), while total sailings declined 10 per cent (from 342 to 307). Each cruise ship sailing from Vancouver generates about $1.5 million in economic output, meaning losses for the regional and provincial economy exceeded $50 million this year.

"The reality is the market for cruises to Alaska continues to grow, but Vancouver's once-dominant share of that market is beginning to erode," said Captain Gordon Houston, VPA President & Chief Executive Officer. Houston said the decline in Vancouver's cruise business is related to a number of factors, including the loss of 3 and 4-night Pacific Northwest cruises, the impact of world events on travel and tourism, and the Port of Seattle's ability to attract cruise ships by opening new facilities.

Houston said several initiatives are underway to diversify and expand the Port of Vancouver's cruise ship business in the future. He noted Cruise BC, a collaborative effort of the VPA and four other port authorities and coastal communities in B.C., is actively working to develop new cruise markets and cruise products while enhancing the employment that cruise ships generate throughout the province.

"Ultimately, it's about being competitive," Houston said. "We can't afford to stand still and rest on our laurels in British Columbia. We must continue to develop new cruise capacity, new itineraries and new experiences to develop and diversify our sector."

Houston added that the competitiveness issues facing B.C.'s cruise sector are also challenging the Port of Vancouver's valuable bulk cargo and container businesses.

"If we can't maintain and enhance our competitive position versus rival ports on the west coast of the United States, the Port of Vancouver will simply not win its share of forecasted business growth over the coming 10 to 15 years," he said. "In fact, if we can't remain competitive, we stand to lose the business we already have."

Houston called on all levels of government in Canada to support the competitiveness of the country's national ports. As Canada's largest port, the Port of Vancouver facilitates $29 billion of trade each year with 90 trading economies around the globe.

"In order for the Port of Vancouver to grow, to support the needs of Canadian business in the future and to increase our share of the burgeoning trade between Asia and North America, we need the support of our governments," Houston said. "Whether it's changes to the Canada Marine Act, transportation infrastructure, access to capital, security or taxation, we must all work together to ensure that our ports remain competitive."

Houston added that the Port of Vancouver has the potential to generate more than 50,000 direct and indirect jobs by 2020 if its competitive issues can be addressed.

The Port of Vancouver is homeport to the Vancouver-Alaska cruise with two modern cruise ship terminals: Canada Place, including a recently added third berth, and Ballantyne Pier, with two berths. Vancouver's cruise business directly generates $177 million in wages, $228 million in GDP and $508 million in economic output.

For more information, please contact:

Anne McMullin,
Director, Corporate Communications and Public Affairs
Vancouver Port Authority
(604) 665-9069 (office)
(604) 665-9073 (fax)
(604) 218-1403 (cellular)
anne.mcmullin@portvancouver.com

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