Cruise Ships bring more jobs, business and taxes to region

Cruise ships calling at the Port of Seattle brought $124 million in business revenue, $39 million in payroll and $3.8 million in taxes into the regional economy in 2003. Those figures are expected to grow by more than 50 percent in 2004, according to a newly released economic impact study.

The study, released today by the Port of Seattle, indicated that the cruise industry was responsible for 1,072 jobs in 2003. Growth in the Seattle market means that the jobs figure is expected to increase by 62 percent to 1,732 jobs in 2004.

"Our cruise business continues to be a great success story for Seattle and the region. This study shows that the cruise industry is bringing jobs and creating economic opportunity for businesses large and small throughout the community," said Port Commission President Paige Miller.

The Port of Seattle's role as a major center for passenger cruises to Alaska has grown dramatically since 1999, when the Port hosted just six cruise ships and 6,615 passengers. The 2004 cruise season will see 149 cruise ship calls and more than 500,000 passengers.

"The growth we've experienced proves what we suspected all along," said Port of Seattle Deputy CEO Linda Strout. "Cruise passengers will choose to sail to Alaska from Seattle if they have the opportunity."

The jobs created by cruise activity were primarily in the maritime, visitor and aviation industries. The average annual salary of direct jobs created was $25,840, though it should be noted that Seattle's cruise season is only five months long. The total amount of salaries and wages will increase by 51 percent to $59 million this year.

The $124 million in business revenue was generated by local firms that provide products and services to the cruise lines, their passengers and crew, and cruise related activity at Sea-Tac Airport. The business revenue figure is expected to increase by 68 percent to $208 million during the 2004 cruise season.

State and local tax collections this year will increase by 53 percent to approximately $5.9 million.

The study included a survey of cruise passengers. The survey revealed that 73.9 percent of cruise passengers arrive in Seattle via air and about 73 percent of them spend an average of 1.6 nights in local hotels. During their stay in the Seattle area, cruise passengers spend an average of $63 per night on hotels, $27 in restaurants, $26 on retail purchases, $34 on local transportation and rental cars and $30 on entertainment and landside tours.

"The cruise industry is still young in Seattle," said Miller. "As it matures and continues to grow it will become a more important part of our economy and provide even greater benefits to our region."

The job-impact figures in the study report only on activity generated by sailings through the Port of Seattle's two cruise terminals. They do not include total impacts on the community by major companies such as Holland America Line, Princess Cruises and Tours, and Royal Celebrity Tours, whose headquarters are in Seattle but who operate worldwide.

The study was conducted for the Port by John C. Martin Associates, LLC, with assistance from Maritime Strategy International.