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Caribbean cruise ships not always a boon for local businesses

Paul Davy works to sell wood carvings to tourists from Royal Caribbean’s Allure of the Seas in Falmouth, Jamaica. Local vendors say they see little business from cruise passengers.

Associated Press

Paul Davy works to sell wood carvings to tourists from Royal Caribbean’s Allure of the Seas in Falmouth, Jamaica. Local vendors say they see little business from cruise passengers.

FALMOUTH, Jamaica — Tourists emerge by the hundreds from a towering, 16-deck megaship docked at the Caribbean's newest cruise port. They squint in the glare of the Jamaican sun, peer curiously at a gaggle of locals beyond a wrought-iron fence and then roar out of town on a procession of air-conditioned tour buses.

Few stop to buy T-shirts, wooden figurines or beach towels from the dozens of merchants lining the road outside the fence, or visit the colonial-era buildings that dot the town. Not many venture beyond the terminal's gates, unless it's in one of the buses that whisk them past increasingly disgruntled vendors and taxi drivers.

That's not the way townspeople in the old Jamaican sugar port of Falmouth were told it would be.

Jamaica's port authority and Royal Caribbean Cruises Ltd. pitched the $220 million port as a place where passengers would dive into the historic city for "a wraparound experience not unlike Colonial Williamsburg, but one that is infused with the signature warmth of the Jamaican people." Locals were told the tourists might spend more than $100 each.

But since the industry's biggest ships started arriving early last year that warmth and those dollars have been kept at a distance.

"We were promised that we'd be able to show people our Jamaican heritage, sell our crafts. But most of the tourists stay far away from the local people," said Asburga Harwood, an independent tour guide and community historian. "We're on the losing end."

Trade groups say the flourishing cruise ship industry injects about $2 billion a year into the economies of the Caribbean, the world's No. 1 cruise destination. But critics complain it produces relatively little local revenue because so many passengers dine, shop and purchase heavily marked-up shore excursions on the boats or splurge at international chain shops on the piers.

The World Bank said in a 2011 report on Jamaica that as much as 80 percent of tourism earnings do not stay in the Caribbean region, one of the highest "leakage" rates in the world.

A new report commissioned by the Florida-Caribbean Cruise Association trade group says passengers spent $1.48 billion during port calls during the 2011-12 season at 21 regional destinations, including a few Central and South American nations with ports on the Caribbean.

But $583 million of that money went for watches and jewelry bought in cruise destinations where international chains dominate pier shopping. An additional $270 million went to shore excursions, which are typically sold by the cruise lines using local tour operators. Just $87 million went to local crafts and souvenirs, according to the report.

The criticism isn't confined to Jamaica.

In Haiti, the hemisphere's poorest nation, tourists step off Royal Caribbean ships to visit fenced-in Labadee on the country's north coast. The visitors are prohibited from leaving the cruise line's property, which has white-sand beaches and one of the world's longest zip lines.

But each passenger to Labadee pays a $10 tax to the Haitian government, producing more than $6 million a year for the country.

Caribbean cruise ships not always a boon for local businesses 10/20/12 [Last modified: Saturday, October 20, 2012 4:30am]

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