In an unprecedented surge, the Caribbean and Latin America’s cruise tourism industry has shattered previous economic records, generating a staggering $4.27 billion in expenditures. A new study conducted by Business Research & Economic Advisors (BREA) reveals that the cruise sector plays a transformative role in the region’s economic landscape, creating over 94,000 jobs with a combined wage income of more than $1.27 billion across 33 destinations.
This explosive growth, detailed in the Economic Contribution of Cruise Tourism to Destination Economies report, highlights a 27% increase in direct expenditures compared to the last study conducted in 2018, signalling an industry that continues to defy expectations and lift local economies.
Record-Breaking Economic Impact
The Florida-Caribbean Cruise Association (FCCA), the leading body representing the cruise industry across the region, unveiled these figures at its 30th annual FCCA Cruise Conference & Trade Show in St. Maarten. The gathering, which focuses on developing collaborative relationships between cruise operators and local stakeholders, underscored the transformative power of the cruise sector. The conference served as a platform for showcasing these record-breaking economic contributions and laying the groundwork for continued growth.
“We are incredibly proud of these results and the meaningful impact cruise tourism has had on the Caribbean and Latin American economies,” said Michele Paige, CEO of FCCA. “These numbers not only highlight the economic benefits but also present a roadmap for future success between cruise lines and destination stakeholders.”
The study recorded 33.3 million passenger and crew visits across the 33 participating destinations. Passenger spending alone reached $3.07 billion, with an average expenditure of $104.36 per person. Meanwhile, cruise crew members, who made 3.9 million onshore visits, contributed an additional $229.5 million, averaging $58.78 per visit.
Unprecedented Growth Across Destinations
Of the 31 destinations common to the 2018 and 2024 studies, 26 saw a substantial increase in average passenger spending. Moreover, 14 destinations achieved an average spending rate exceeding $100 per passenger, up from 12 in the previous study. This growth reflects the increasing appeal of these destinations and the strategic investments made by local governments and tourism boards to enhance the onshore experience for visitors.
Destinations such as The Bahamas, Mexico’s Cozumel, and Puerto Rico led the charge, reporting the highest total expenditures. The Bahamas, for instance, raked in a whopping $654.8 million, followed closely by Cozumel, which attracted $483.1 million in cruise-related spending.
“Cruise tourism has evolved into a cornerstone of the region’s economic strategy, providing much-needed jobs, boosting local businesses, and injecting millions into island and coastal economies,” noted Paige.
For destinations like The Cayman Islands and Turks and Caicos, the cruise sector has become a critical driver of local economic activity, creating employment opportunities for thousands of residents and bolstering the tourism sector’s overall contribution to national GDP.
Job Creation and Wage Increases
In addition to the record-breaking financial figures, the study highlighted the cruise industry’s ability to generate employment. Over 94,000 jobs were directly linked to the cruise sector, representing a 19% increase compared to the previous study. These jobs, encompassing everything from tour operators and port staff to retail and hospitality workers, collectively earned $1.27 billion in wage income.
The ripple effect of this economic impact is profound. Cruise tourism supports direct employment and stimulates job creation in ancillary sectors such as transportation, food and beverage, and retail, further amplifying the sector’s contribution to local economies.
One of the study’s standout findings was the average economic contribution of a single cruise call. A typical cruise ship with 4,000 passengers and 1,640 crew members generates $369,100 in onshore spending, demonstrating each ship’s immense value to its destination.
Strategic Insights for Future Growth
The FCCA has made it clear that these findings are more than just a snapshot of the industry’s success—they serve as a foundation for future strategic partnerships between cruise lines and local stakeholders. Using the study’s insights, destinations can better tailor their offerings to maximize passenger satisfaction and increase spending.
Key focus areas include enhancing shore excursions, improving port facilities, and creating unique, culturally immersive experiences that appeal to modern travellers. These efforts will be crucial in ensuring that the region continues to attract high-spending passengers while fostering long-term, sustainable growth.
The study also emphasizes the importance of indirect economic benefits, such as cruise passengers returning as longer-stay visitors, and the role of NGOs and cruise line marketing initiatives in boosting destination profiles. While these factors weren’t included in the study’s direct expenditure calculations, they are pivotal in understanding the total economic value of cruise tourism.
Looking Ahead: The Future of Cruise Tourism in the Caribbean and Latin America
As the cruise industry continues its upward trajectory, the Caribbean and Latin American destinations are poised to remain pivotal players in the global tourism landscape. The future looks brighter than ever, with plans to improve infrastructure, offer new experiences, and cultivate deeper relationships between cruise operators and local communities.
Cruise tourism has proven to be an essential economic lifeline for many regional destinations. As the industry sets its sights on even greater heights, the Caribbean and Latin America will undoubtedly continue to reap the rewards.
For more in-depth insights and access to the complete study, visit F-CCA.com/Research.
Written by: My Thanh Pham
