The growth has only just begun in the Caribbean

There are great prospects for the cruise industry and for the Caribbean region, says Michele Paige
The growth has only just begun in the Caribbean

By Guest |


This article was first published in the Autumn/Winter 2015 issue of International Cruise & Ferry Review.

As president of the Florida-Caribbean Cruise Association, I might be slightly biased to the Caribbean, but nobody can deny its importance to the cruise industry. The birthplace of modern cruising from North America, the Caribbean has grown up with the industry, from about 8 million passenger arrivals 20 years ago to more than 20 million expected from FCCA Member Lines this year.

Growing alongside the passenger arrivals were billions of dollars in passenger and cruise line spending, with passenger spending increasing from approximately US$70.00 20 years ago to US$96.00 in 2012; infrastructure, product and destination development, from tours and ports to entire cruising destinations, such as Falmouth, Jamaica and Puerto Plata, Dominican Republic; and job creation, from tour operators and taxi drivers to shop owners and port workers.

How did the Caribbean evolve into such a dominant cruise tourism market? Well, its proximity to United States ports, longstanding record of safety, friendly citizens and year-round sunny weather certainly didn’t hurt. And where else can a cruise passenger lounge on a beach; dive into a waterfall; raft along a river; trek across a desert; hike up a mountain or volcano; and zipline through a forest – all in one trip?

The Caribbean offers not just all of these sites and experiences, but also a unique assortment of cultures and cuisines, as well as a history that both incorporates these influences and creates a completely individual identity. On that one trip, a passenger can see Dutch architecture and taste French fare on the same island and experience the Spanish and British influences and history, along with the Creole fusion of all of the above.

These features are crucial to cruisers, which Caribbean Tourism Organization’s Future Caribbean Cruise Travel Survey confirmed in its findings that cruise passengers are more interested in destinations than ships, particularly valuing cultural heritage and culinary experiences.

However, cruise destinations and markets now face global competition, with destinations like China growing exponentially and the Mediterranean predicting a record year. In fact, even though the Caribbean again holds the overwhelming lead in global deployment capacity share with nearly 36%, this figure decreased almost two per cent from last year, whereas Asia increased more than 2%.

So how can the Caribbean continue to grow with the cruise industry’s rapidly expanding passenger capacity and ports of call? The same CTO study says it well: “[the] Caribbean’s ability to stimulate the required demand will be directly dependent upon its capacity to refresh and reinvent its tourism economies by effectively adapting to the ever-changing global environment, pushing the envelope, taking risks and launching innovations, which consistently deliver on changing consumer expectations.”

And cruise lines call wherever there is demand. This is why the FCCA works with destinations to employ a similar business model to the cruise lines – built on innovation and differentiation, focused on offering constantly new and refreshed products that align with a brand to motivate new and past passengers not just to cruise, but to experience a particular product and stimulate demand of a variety of cruisers, from first-timers to those who have been there, but haven’t done that.

The FCCA helps Caribbean destinations brand themselves in the same way, with their unique history and offerings so passengers want to not simply cruise the Caribbean, but sample particular islands and products. Platinum Membership with the FCCA comes with a custom-tailored strategy to assist destinations’ private and public sectors by learning about their individual issues and goals and then utilising our knowledge of and contacts in the industry to formulate an action plan that optimises their cruise tourism impact. These plans have helped destinations like Martinique and Mazatlan, Mexico grow from five-year FCCA Member Line passenger arrival lows of 23,000 and zero to expecting more than 270,000 and 190,000, respectively, in 2015.

FCCA Platinum Membership also provides direct access to some of the industry’s most important figures – from Member Line presidents and CEOs to executives who decide where ships call, what sells onboard and how to invest in infrastructure.

Platinum Members meet with these key decision makers through an overarching programme blending business and pleasure to forge relationships that often lead to patronage. Members experience this while proposing a new business model at a meeting or cementing a deal over dinner.

The FCCA’s keynote event, the Conference & Trade Show, taking place in Cozumel, Mexico from 5-9 October, 2015, will also showcase this balance during its five-day agenda chock-full of business sessions and networking opportunities. Attendees can target cruise executives during one-on-one meetings or evening functions, as well as learn from the executives during workshops that cater to informing attendees how to increase their share of cruise tourism.

Of course, simply attending events or joining associations will not be enough to increase business and compete on the global field; destinations and companies must employ the same cruise line model of constant innovation and differentiation. If they do, they will continue to drive demand for repeat cruisers and the wave of new cruisers the industry is currently targeting – not just from North America, but also from the freshly converted global markets.

After all, cruisers are historically loyal; they begin to sample different cruise products, such as luxury liners, along with multiple destinations. Just as many North American cruisers first sail the Caribbean before taking a Mediterranean cruise, the Caribbean can attract passengers from across the seas.

Driving this demand will also ensure that the Caribbean gains from the cruise lines’ ever-increasing capacity through bigger and better ships, with 33 new oceangoing vessels and more than 100,000 berths on the order book. (Keep in mind that the Caribbean had over 50% of the deployment share 20 years ago when it also received less than half of its current passengers.)

Plus other opportunities exist, such as partnering with cruise lines to offer tailored destination products that appeal to particular cruise brands’ demographics.

Yes, the Caribbean has grown up with the industry and experienced a surge in cruise passengers; benefited from billions of dollars in passenger spending and job development; and seen entire cities transformed by cruise line investments. But there is room to grow for the cruise industry, the Caribbean and regional cruise tourism stakeholders, especially if all work together proactively and synergistically.

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