• As Nassau’s overnight bookings leap ‘ten times’

• Data shows 43% of cruise visitors spent under $50

• And 2019’s per capita yields still below 2013 levels

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Nassau Cruise Port’s top executive yesterday said it is targeting a $400m increase in annual passenger spending after data revealed more than 40 percent spent less than $50 in the capital pre-COVID.

Michael Maura told Tribune Business that the additional $400m, which will be generated by increasing average cruise passenger spend by $100 per head, would not go solely to the cruise port and its shareholders but instead will be “disbursed” among all merchants and vendors that rely upon the sector for their livelihoods.

He spoke out after Ministry of Tourism data for 2019, the last full year prior to the COVID-19 pandemic, revealed that 43 percent of cruise passengers who disembarked in Nassau/Paradise Island - more than four out of ten - spent less than $50 during their visit to the destination. And, 18 percent, or almost one-fifth of such visitors, ended up spending less than $20 after leaving the ship.

The Cruise Expenditure Survey Brochure, produced by the ministry’s research and statistics department and which has been obtained by this newspaper, also revealed that average per capita spend by cruise passengers in 2019 was lower than it had been six years earlier in 2013.

While the decline appeared to have bottomed out in 2016, and was on an upward trend prior to COVID-19, the Ministry of Tourism report revealed: “In 2013, the average expenditure of a cruise visitor in Nassau/Paradise Island was $98.66, compared to $82.34 in 2014; $79.92 in 2015; $73.08 in 2016; $78.53 in 2017; and $89.21 in 2018.

“In 2019, however, the average expenditure for a cruise visitor to Nassau/Paradise Island climbed to $92.48.” Amid all the fanfare surrounding Royal Caribbean and Crystal Cruises’ decision to home port in The Bahamas, this data illustrates the scale of the task downtown Nassau and other cruise-reliant ventures face to increase yields to sustainable levels once the industry resumes sailing from Florida.

Mr Maura, acknowledging that it “will collectively take all of us a few years” to increase Nassau/Paradise Island’s annual cruise visitors to 4m passengers, and more than double present per capita spending yields by $100, said Nassau Cruise Port’s $250m transformation is designed as the “catalyst” that will spark an improvement in Bay Street’s product offering.

Agreeing that Nassau needs “to freshen up”, and offer cruise passengers - many of whom will have been to the Bahamian capital before - “something new and interesting”, Mr Maura said the redeveloped cruise port’s focus on local culture, history, food and entertainment will help achieve this while also enticing local residents back downtown at night.

He revealed that the number of cruise ships wanting to “overnight” in Nassau in 2022 was “ten times” what the cruise port had enjoyed in any previous year, which he attributed to the value being added by the cruise port’s redevelopment, although the comparison is likely to be a relatively low bar.

“I think that is one of the justifications for the port’s redevelopment,” Mr Maura told Tribune Business of the Ministry of Tourism’s data. “What I mean by that is Nassau as a destination has been competing with St Maarten, where the reported passenger spend was getting close to $200 per passenger, and the US Virgin Islands, which was over $150-$170 per passenger.

“We felt one of the reasons a transformation was required for Nassau’s harbour and cruise facility was that we kind of need to freshen up, and offer those passengers something new and interesting. We had to have a reason for those passengers to come to Nassau, a reason for those passengers to come off the ship, and a reason for those passengers to spend their money.

“Nassau Cruise Port is a catalyst for property owners and business owners on Bay Street to invest in their businesses and keep pace with the brand new facility that the port will be in a year’s time. We do believe that collectively as a destination we can get more from those passengers and, more importantly, those passengers get more value from us through the investments we’re making.”

The Ministry of Tourism report was silent on how many cruise passengers remain on board their vessels while docked in Nassau, concentrating only on those that disembarked and the 10.3 percent increase in total spending in the Bahamian capital to $325.78m in 2019. Most of that latter figure was lost in 2020 due to the cruise industry’s nine-month shutdown from mid-March.

Mr Maura, meanwhile, said the Nassau Cruise Port would work with the wider tourism industry to more than double passenger spend. “Our objective is to encourage every passenger to spend $100 more than they’ve historically spent, which will get is closer to what those ports in St Maarten and St Thomas have enjoyed.

“If we are successful, what that means as a destination once we get close to 4m passengers per year, that’s a $400m increase in spending per year. That’s our goal, but I think it will take a few years. We’ve got to get the port completed and we have to support our partners downtown.

“This is very much a downtown community effort. The $400m a year increase is not $400m for the Nassau Cruise Port. That’s $400m disbursed over New Providence; money spent with tour and excursion operators; money spent with retailers; money spend with restaurants. That money will be disbursed throughout the community.”

Nassau attracted 3.425m cruise passengers by first and second port of entry in 2019 pre-COVID, so it still has some way to go before it hits the 4m goal cited by Mr Maura even with home porting and the increase in cruise line fleets set to come in stream in the next few years once the pandemic recedes.

Mr Maura said Nassau Cruise Port’s upgrade is focused on “this theme of authentically Bahamian”, and supporting “unique” products and services offered by others that “can only be found in The Bahamas”.

Noting the planned Junkanoo museum, he added: “We’re going to do our part. Entertainment is also a big part. We have the amphitheatre, and the amphitheatre is really going to be a platform for Bahamian artists and an opportunity for The Bahamas to showcase its Bahamian authenticity. 

“We really want to create an exciting and enjoyable destination, especially at night, to get people to come downtown at night. By doing this, it will help merchants and vendors downtown and give them confidence to reinvest in their businesses and reinvest in downtown.”

Mr Maura said the cruise ships had reacted positively to Nassau Cruise Port’s plans, adding: “For the first time, the number of ships that want to overnight and have requested such a stay is 10 times’ what has happened historically in any given year. We’re seeing it for 2022.

“The cruise lines themselves see this downtown waterfront project as justification and reason their guests want to stay overnight. This is very positive news, but we have to get those ships back in port.”