NASSAU, BAHAMAS – Central Bank Governor Rolle says that cruise segment earnings could be boosted by encouraging more passengers to disembark, expanding local products and experiences, and creating additional job opportunities for Bahamians. He noted that the regulator plans to study the cruise tourism sector to identify ways to maximize its economic benefits.
During the regulator’s quarterly economic press briefing, Governor Rolle remarked, “The Bahamas’ cruise market outlook remains favored by the significant investment in private destinations throughout the archipelago. This segment also has a significant captive market from which earnings can be boosted, if a larger share of existing passengers were enticed to disembark and if more local products and experiences were supplied to these visitors.”
Governor Rolle noted that in tourism, there are two sides to focus on: the cruise market and the stopover market. “As far as overall momentum is concerned, the stopover market remains the most important. One does have to monitor trends in that market in terms of seeing what level of influence peddling is being materialized. On the cruise side of the market, it’s important not only to have more visitors leave the ship but to provide opportunities onshore for them to spend money on. That’s part of what’s important notwithstanding the outward signs of visitor volumes,” said Governor Rolle.
He further noted, “If you look at the cruise segment, that is an area where we have agreed, working with the Ministry of Finance to do more studies to understand how to make these connections between the cruise market and the kinds of employment activities that are generated and the kinds of activities going on that point to the revenue potential for the government.”
Deputy Prime Minister Chester Cooper recently asserted that the government is actively addressing the need to ensure greater cruise passenger spending.
The Bahamas leads the Caribbean and Central America with an annual $655 million economic boost from the cruise industry, despite ranking in the bottom 40 percent on visitor satisfaction metrics. According to the Florida-Caribbean Cruise Association (FCCA), the Bahamas ranks first for total passenger spending and local employment, supporting 13,846 jobs with a $250.16 million annual wage bill. Direct spending by cruise lines in the Bahamas is the highest among 33 surveyed countries, totaling $160.2 million annually.
However, the FCCA study highlights weaknesses and untapped potential, noting that nearly 20 percent of cruise visitors and 70 percent of crew members never leave the ship, resulting in missed spending opportunities for local businesses. Additionally, per capita spending has declined since 2018, with passenger spending falling by 8 percent and crew spending dropping by 21 percent.
Despite an increase in total cruise passenger spending from $322.57 million in 2018 to $473.32 million this year—driven by higher visitor arrivals—the decline in per capita spending underscores the Bahamas’ reliance on volume in its cruise tourism market.
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