The Economic Impact of Cruise Industry Worldwide
The cruise industry has an obvious impact on the economy. However, the passage of the COVID-19 pandemic had a major impact on the cruise industry.
A report from 2019 about the global economic impact, highlighted the cruise industry's strong growth and corresponding contributions to the global economy prior to the global health emergency. In 2019, the cruise industry created 1,166,000 jobs, equating to $50.53 billion in wages and $154.5 billion in total output worldwide in 2019. According to the Cruise Lines International Association (2020), the cruise industry is a vital part of local and national economies, supporting 1.17 million jobs in a wide range of industries, including hospitality, aviation, agriculture, retail, leisure, manufacturing, information services, healthcare and, of course, tourism. The COVID-19 pandemic and the following suspension of the cruise operations had a devastating effect on the business. Between mid-March and September 2020, the suspension of cruise operations is estimated to have resulted in losses of more than $77 billion in economic activity, 518,000 jobs and $23 billion in wages globally.
Worldwide, the cruise industry contributes more than $150 billion in economic activity each year and sustains 1.17 million jobs that pay more than $50 billion in wages and salaries, according to a June 2020 report from the Cruise Lines International Association. The economic inputs consist of direct spending by cruise lines, as well as money spent onshore by cruise passengers and crew members. Common examples of onshore spending are shore excursions, souvenir, and other retail purchases, as well as airfare, ground transportation, and hotels. The effects of the global lockout were felt around the world. In the United States, each day of inactivity meant the loss of more than 600 jobs, and each 1% decrease in cruises from U.S. ports meant the loss of 2,000 jobs. In Europe, each day of inactivity meant the loss of 800 jobs, and each 1% decline in cruises from European cities meant the loss of 3,500 jobs. In the UK, each day of inactivity meant the loss of 140 jobs, and each 1% decrease in cruises from the UK meant the loss of 530 jobs. The voluntary suspension of cruise operations had a significant impact on communities and families around the world. Each day of suspension of cruise ship operations resulted in the loss of approximately 2,500 jobs, and every 1% drop in cruise ship operations worldwide resulted in the loss of 9,100 jobs.
Statistics show the importance of the cruise industry to the global economy. Not only is recovery important for these companies, but also for the hard-working people who depend on this industry. Recently, worldwide, we are returning to normalcy and thus, resuming work in the cruise industry. We look forward to a speedy recovery so that the industry can continue to boost the global economy.
Refrences
Cruise industry contribution to U.S. economy grew to $55.5 billion in 2019, generating more than 436,000 American Jobs. Cruise Line Industry Association. (2020, November 19). Retrieved September 2022, from https://cruising.org/en/news-and-research/press-room/2020/november/cruise-industry-contribution-to-us-economy-grew-to-55-billion-in-2019
Impacto Económico de los cruceros y perspectivas 2021: Nota de Prensa en hosteltur. RSS. (2021, January 21). Retrieved September 2022, from https://www.hosteltur.com/comunidad/nota/024851_impacto-economico-de-los-cruceros-y-perspectivas-2021.html