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CNMI urged to look into cruise ship business
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Posted on Dec 07 1998
A Hawaii-based planning consultancy firm has urged the Commonwealth Ports Authority to conduct a marketing study of the cruise chip industry so that it can cash in on the growing popularity of cruises in Hawaii.
The study would help the ports authority in assessing the potential of the cruise ship industry in the CNMI and develop a proactive marketing and facilities improvement program reflective of the potential of the market.
According to Edward Z. Pskowski, vice president of Leo A. Daly, a planning firm, the cruise ship industry is growing at some 7.9 percent per annum over the last 10 years while worldwide tourism is increasing approximately at 3 percent per annum.
Based on the study of the Hawaii cruise market, total estimated passengers will reach more than 150,000 by year 2000 and more than 300,000 by 2006. In 1998 alone, the cruise industry in Hawaii brought some $304.76 million in combined revenue from tourist spending, harbor fees and taxes to name a few.
In the recommended study of cruise industry in the Northern Marianas, the potential economic impact will be evaluated in terms of passenger and crew spending, job creation and tax revenue.
Likewise, the existing port facilities will be evaluated and future requirements will be determined in the light of the potential market and economic benefits.
Saipan receives regular calls from cruise lines and U.S. military vessels which brought total commercial ship calls to 589 for fiscal year 1998. Beginning January 1999, two Navy vessels will call on the port of Saipan every other month which is expected to boost the sagging tourism industry.
Development of the cruise industry may provide the CNMI the much needed additional tourism revenue since visitor arrivals have continuously declined amid the financial crisis besetting the region.
The garment business has contributed greatly in the seaport revenue because of increase in import of raw materials and export of finished products. Value of exported garments increased 58 percent from fiscal year 1996 to 1997 and this is upward trend is expected to continue.
