ESTIMATING THE ECONOMIC CONTRIBUTION OF A CRUISE SHIP VISIT

Abstract
The international cruise industry has consistently recorded an average annual growth rate of 8.4% since 1980 with the fastest growth happening in the last decade. However, while the domestic market is small—some 50,000 Australians take a cruise annually—Australia's cruise potential lies in the growing international recognition as a safe, interesting destination. Measuring the economic impact of a cruise ship's visit is a challenging task. Consideration must be given to whether it is a port of embarkation/disembarkation or a port of call only, and the facilities and infrastructure available for both ship operations and passenger needs. This article provides estimates of cruise-related expenditure using data for Cairns in Far North Queensland. A framework for classifying cruise-related expenditure is developed. This framework can be used to estimate the economic impacts on Cairns of cruise tourism and, depending on data quality, can be used to estimate the net benefits to Cairns from this special interest visitor market. The framework is, in principle, capable of application to estimate the economic impacts of cruise tourism in any port of call.