Co-operation to grow business, retain market share key to future success

Vancouver, BC A new study confirms the economic contribution the cruise industry makes in Canada and B.C. The report, commissioned by the Vancouver Port Authority, the North West CruiseShip Association and the St. Lawrence Cruise Association reveals that cruise ship activity in 2003 contributed a total of $1.8 billion to the Canadian economy with $1.2 billion remaining in B.C.

"B.C. is Canada's leading cruise ship centre, accounting for 72 per cent of all cruise ship passenger visits to Canada last year. This industry makes a significant economic contribution to our province and benefits a staggering diversity of businesses and industry sectors," said Captain Gordon Houston, President and Chief Executive Officer, Vancouver Port Authority.

The beneficiaries of cruise spending include small and large B.C. businesses in a variety of sectors such as retail, food and beverage, accommodation, tours and transportation, manufacturing and professional services.

Included in B.C.'s $1.2 billion total economic impact is $660 million in direct spending by cruise lines, their passengers and crew. Expenditures included hotel accommodation, tours, food and beverages, clothing and souvenirs, fuel, vessel maintenance, port services, advertising and promotion, computer programming as well as legal and accounting services.
Additionally, the B.C. cruise industry generated 10,400 full- and part-time jobs, $374 million in wages and salaries and $126 million in business and income taxes.

"Today's report confirms what we've known for years: the cruise ship sector is a vital contributor to both B.C.'s and Canada's economies and a partnership between many different businesses," said John Hansen, President, North West CruiseShip Association. "The success of the cruise industry is founded by positive partnerships between the cruise lines, ports, hotels, airports, a myriad of suppliers as well as federal government and BC agencies. We are fortunate to have such positive relationships both in B.C. and the other cruise regions of Canada."

Houston agreed with Hansen, cautioning that while the Port of Vancouver has a vibrant cruise industry and is still the preferred home port in the Alaska cruise market for the vast majority of cruise lines and their passengers, it is facing growing competition from Seattle and other U.S. ports.

"The Vancouver Port Authority is looking at strategies including marketing efforts and improved infrastructure that will allow us to combat competition, grow the industry and protect our market share," said Houston. "However, we cannot accomplish everything we need to on our own." He said the VPA will continue to work with other B.C. ports and coastal communities, the North West CruiseShip Association, the cruise lines and all levels of government to ensure the continued success of cruising in B.C.

Federal Minister of Industry, the Honourable David Emerson, is optimistic about the potential to build on the success of B.C.'s cruise industry. "There remains untapped potential to grow the business and I look forward to working with the industry, ports and the provincial government to ensure these opportunities are fully explored. We need to ensure that Canada's west coast cruise gateway remains competitive, not just in terms of berth capacity, but also in terms of air access and other contributing factors."

"As we prepare to welcome the world in 2010, our tourism industryacross all sectorswill be expanding rapidly to accommodate the global interest in British Columbia," said John Les, Minister of Small Business and Economic Development. "Through initiatives like the Cruise BC Association, government is working to diversify the cruise industry to ensure our province is a major cruise destination in its own right, not merely a host for cruises on their way to foreign destinations. Now is the time to use our marketing leverage, to combat competition from foreign ports like Seattle, to get the word out and make sure it's heard loud and clear: British Columbia is the best place on earth."

The study, conducted by Business Research & Economic Advisors, reported that 880 cruise ship visits and 1.55 million passengers generated a total of $1.8 billion in economic activity and 14,922 jobs in Canada in 2003.

The Port of Vancouver is Canada's largest and most diversified port, trading $29 billion in goods with more than 90 trading economies each year. Port activities generate 62,000 jobs in total with $1.6 billion in Gross Domestic Product and $3.5 billion in economic output. In the 2004 cruise season, Vancouver welcomed 929,976 revenue passengers aboard 286 sailings. In 2003, 66.7 million tonnes of cargo were shipped through the Port of Vancouver.

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The full copy of the report can be found here:
BREA National economic impact study on cruise [PDF | 1802 KB]




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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