Port plan to undergo economic impact assessment

An economic impact assessment for the proposed cruise berthing facility is in the works, The Cayman Reporter understands.

Minister of Finance Hon Marco Archer

Minister of Finance Hon Marco Archer confirmed that PricewaterhouseCoopers (PWC) has been contracted to carry out the assessment. The Cayman Reporter inquired if the assessment has already started and how much this assessment will cost the country, but Mr Archer has not responded at press time.

The Cayman Islands has already done an Environmental Impact Assessment (EIA) to the tune of $2.5 million based on the current proposal of a two finger pier. The EIA indicated that dredging and its silt plume could impact 15 acres of coral reef. Now that the EIA has been completed and the Department of Environment (DoE) is the process of completing a report on the assessment to submit to Cabinet, a call for the examination of the proposal’s impact on the entire economy has been made.

Founder and Director-General at The Cayman Institute, Nicholas Robson, said to grasp the full impact of the proposal its impact on the country’s economy must be evaluated. He believes the economic impact assessment should state how financing a cruise port, that could destroy a significant part of the reef on the south-west of the island, will affect the country. He believes it should look at how many jobs will be affected in the retail sector as well as in to water sports industry.

He noted that it is also imperative to analyse the true strengths and weaknesses of the cruise tourism and stay-over tourism to these islands.

"We should be weighing up the cruise passenger industry and its per-capita spend against stay-over tourism. Should we be looking into lengthening the runway to 10,000 feet to be able to accommodate long haul flights from Europe and points east? The Persian Gulf and China have many high net worth individuals which may well want to come to the Cayman Islands. We have already had Mr. Lee Ka-Shing one of the richest men in Hong Kong residing and doing business here," he said. Furthermore, Mr Robson stated that it is important for Cayman to know how many cruise passengers it can manage. "If we try and take too many cruise passengers per day none will have an enjoyable experience," he said.

Commenting on his own stance on the port plans Mr Robson said he is for any initiative that will have the greatest benefit to the majority of the people in the Cayman Islands. "A decision made today will affect the Cayman islands for many years into the future. Furthermore, with Cuba opening up the cruise industry may find that more passengers want to go to Cuba, causing some of the cruise lines dropping Cayman," he said.

The Advancement of Cruise Tourism in the Cayman Islands (ACT) member Chris Kirkconnell told The Cayman Reporter that the ACT was formed because members involved in the cruise industry felt that the Cayman Islands Tourism Association (CITA), the tourism sector’s representative group, was only concerned about stay-over businesses. Those involved in cruise felt that in order to have a voice they had to start a group of their own.

"Once we formed ACT CITA tried to convince us that we didn’t need a separate entity and it seemed like they were trying to give us some kind of attention up until now. If you look at the member makeup of CITA its much more heavily stay-over focused than cruise," Mr Kirkconnell expressed. More

 

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Port plan to undergo economic impact assessment

An economic impact assessment for the proposed cruise berthing facility is in the works, The Cayman Reporter understands.

George Town's Proposed Cruise Terminal

Minister of Finance Hon Marco Archer confirmed that PricewaterhouseCoopers (PWC) has been contracted to carry out the assessment. The Cayman Reporter inquired if the assessment has already started and how much this assessment will cost the country, but Mr Archer has not responded at press time.

The Cayman Islands has already done an Environmental Impact Assessment (EIA) to the tune of $2.5 million based on the current proposal of a two finger pier. The EIA indicated that dredging and its silt plume could impact 15 acres of coral reef. Now that the EIA has been completed and the Department of Environment (DoE) is the process of completing a report on the assessment to submit to Cabinet, a call for the examination of the proposal’s impact on the entire economy has been made.

Founder and Director-General at The Cayman Institute, Nicholas Robson, said to grasp the full impact of the proposal its impact on the country’s economy must be evaluated. He believes the economic impact assessment should state how financing a cruise port, that could destroy a significant part of the reef on the south-west of the island, will affect the country. He believes it should look at how many jobs will be affected in the retail sector as well as in to water sports industry.

He noted that it is also imperative to analyse the true strengths and weaknesses of the cruise tourism and stay-over tourism to these islands.

“We should be weighing up the cruise passenger industry and its per-capita spend against stay-over tourism. Should we be looking into lengthening the runway to 10,000 feet to be able to accommodate long haul flights from Europe and points east? The Persian Gulf and China have many high net worth individuals which may well want to come to the Cayman Islands. We have already had Mr. Lee Ka-Shing one of the richest men in Hong Kong residing and doing business here,” he said.

Furthermore, Mr Robson stated that it is important for Cayman to know how many cruise passengers it can manage. “If we try and take too many cruise passengers per day none will have an enjoyable experience,” he said.

Commenting on his own stance on the port plans Mr Robson said he is for any initiative that will have the greatest benefit to the majority of the people in the Cayman Islands. “A decision made today will affect the Cayman islands for many years into the future. Furthermore, with Cuba opening up the cruise industry may find that more passengers want to go to Cuba, causing some of the cruise lines dropping Cayman,” he said.

The Advancement of Cruise Tourism in the Cayman Islands (ACT) member Chris Kirkconnell told The Cayman Reporter that the ACT was formed because members involved in the cruise industry felt that the Cayman Islands Tourism Association (CITA), the tourism sector’s representative group, was only concerned about stay-over businesses. Those involved in cruise felt that in order to have a voice they had to start a group of their own.

“Once we formed ACT CITA tried to convince us that we didn’t need a separate entity and it seemed like they were trying to give us some kind of attention up until now. If you look at the member makeup of CITA its much more heavily stay-over focused than cruise,” Mr Kirkconnell expressed. More

 

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Cuba and the Cayman Islands Concerns Grow With Prospect of U.S. Presence

Already, American corporations are poised to rush into a country only 90 miles from Florida’s shores.In March, a delegation from the U.S. Agriculture Coalition for Cuba, an agribusiness group that includes Cargill, the National Grain and Feed Association, the National Chicken Council and other companies and organizations, flew to Havana to meet with Cuban officials.

And cruise ship companies and hotel chains like Marriott and Hilton have indicated their enthusiasm. "I can’t stop thinking about it," Frank Del Rio, chief executive officer of Norwegian Cruise Line Holdings, said in an interview. "Cuba and the cruise industry are just a match made in heaven, waiting to happen. More

The question for the Cayman Islands, who is considering constructing a new cruise ship dock, is how will the opening of Cuba affect cruise traffic to George Town?

I argue that an Economic Study is needed, in addition to the Environmental Impact Assesment (EIA), to analyse the economics of the cruise business to the Cayman Islands as a whole. This study should compare the financial benefits of stay-over tourism, with the extension of Owen Roberts International Airport (ORIA) to 10.000' feet allowing the handling of long-haul direct flights from Europe, East Asia (China, Japan, South Korea) and the Persian Gulf. It may be possible to turn ORIA into the air-hub of the Western Caribbean with Cayman Airways actually turning a profit as a regional carrier. Editor

 

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Warning over Cuba emergence

Cayman among countries most impacted, report says

The emergence of Cuba as a rival for tourists and investment dollars will change the travel landscape in the Caribbean forever, industry leaders have warned.

“The likelihood that cruise lines will drop some existing ports to accommodate Cuba port visits is real and the proximity of Cuba to the U.S. mainland can allow for Cuba to be easily added to a schedule that can impact itineraries to near markets such as the Bahamas, the Cayman Islands, and Jamaica,” the report says.

Caribbean tourism officials are pushing for a new partnership with the U.S. amid growing concern that the thawing of relations with Cuba will have drastic consequences for neighboring islands.

“The biggest and most disruptive pebble to be dropped into the Caribbean pool in fifty years will arrive with the opening of travel to Cuba for United States citizens,” the Caribbean Hotel & Tourism Association warns in a position paper.

The association says islands closest to Cuba, including the Cayman Islands, are likely to suffer the “greatest ripple effects.”

The association is looking to create a Caribbean Basin Tourism Initiative to help boost investment and travel across the region with help from the U.S. The initiative calls for technical and policy support from the U.S. to ensure the stability of tourism-based economies in the region if U.S. tourists are, as expected, allowed to visit Cuba after a 50-year embargo.

“While U.S. tour, airline and cruise executives are eyeing the tourism potential of the long-forbidden paradise 90 miles south of Key West, Florida, conflicted stakeholders throughout the wider Caribbean have legitimate concerns [over] whether there will be a level playing field and whether the rest of the region will grow tourism arrivals or lose tourism investments and arrivals as they divert to Cuba,” said Caribbean Hotel & Tourism Association President Emil Lee. More

If the Cayman Islands builds a new cruise dock, destroying many dive sites in the vicinity of George Town in the process, and the islands then see some cruise lines deserting the Cayman Islands for Cuban ports where will we be then? Should these islands be developing stay-over tourism and extending the existing runway to direct accomodate long-haul flights from Europe, the Midle East and East Asia?

Editor

 

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MPs pass cruise ship casino law

Visiting cruise ships are set to be allowed to keep their casinos open when in port after MPs passed the Cruise Ship (Casino) Act 2013 early this morning.

The concession — allowing on-board casinos to operate between 9pm and 5am — would ensure Bermuda remained competitive as a cruise destination, according to Tourism Minister Shawn Crockwell.

He said such a move would economically benefit both the cruise companies, which would increase their on-board revenue, and the Island, which would collect licence fees.

Presenting the Act for its second reading yesterday afternoon, Mr Crockwell said the ships would have to be in port for one night or more to qualify for permission.

“The use of the casino is to be limited to passengers on board the ship only. No local residents or visitors to the ship will be allowed to participate in casino activities.”

He said the key concern for many would be the impact on local retailers, restaurateurs and entertainers, but he believed it would be “minimal”.

Mr Crockwell said: “Our research has indicated that the majority of visiting cruise passengers return to their ship by 9pm and, by this time, most of our retail shops are closed.

“However, and I want to emphasise the word however, if the destination provides good products that include good entertainment and amenities that goes beyond the traditional offerings, the passenger will stay ashore to take in the local experience and spend money.

“Not all cruise passengers purchase their tickets at a discounted price. Many of the passengers are well-heeled and high-income earners and these new ships have one and two bedroom suites with butler services on their upper decks that have a price point comparable to high-end resorts.

“These high net income passengers choose to cruise because of the product and service that is offered and similarly they will patronise local businesses if we have the products on offer that they desire.

“Therefore, the impact to local businesses will be minimal and our Ministry will closely monitor and analyse the impact to this segment of our local businesses and enterprise.”

The Minister said smaller ships capable of berthing in Hamilton and St George’s, with a passenger capacity not exceeding 2,000, would not be charged a licence fee.

“In our discussions with the operators of these smaller, and often older ships, they have shared with us that they are at a competitive disadvantage,” he said. “Not charging them a permit fee will assist in placing them in a more competitive position.”

Mr Crockwell reiterated a commitment to hold a referendum on gaming in Bermuda before the next Budget but said the issue of cruise ship casino opening was a “separate and distinct matter”. More