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Home Peninsula Beacon

Will economy’s choppy seas calm for cruise-ship industry?

Tech by Tech
September 22, 2010
in Peninsula Beacon, Top Stories
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Will economy’s choppy seas calm for cruise-ship industry?

San Diego’s cruise-ship business is experiencing some stormy economic conditions of late, leading to listing cruise schedules and uncertain skies on the horizon. The cruise industry can traditionally be measured cyclically from 18 to 24 months as the timeframe for passengers to schedule those majestic, multi-level vessels for luxury travel to Hawaii, Panama Canal, South America and Mexico. But the faltering economy has trimmed the proverbial sails into San Diego Bay, causing docks to be rather silent this summer. Holland America’s Rotterdam reopened the season Sept. 22, boarding for a trip to Hawaii, Tahiti and the French Polynesia. “For the year 2009, we had 223 cruise calls and 842,353 passengers,” said marketing director Rita Vandergaw. “For 2010, we have 151 cruises confirmed with 507,308 passengers.” But Vandergraw said she felt buoyed by the total number of cruises out of San Diego because all of the country’s ports of call are experiencing downturns in the wake of the national economic rip current. She spoke with some enthusiasm about 2012 but declined to elaborate. Vandergaw has experienced the ebb and flow for almost 20 years. “Fortunately, our tides keep rolling in,” she said. Is there an overabundance of competition from Los Angeles? “Normally, there’s enough to go around for all of us, but they’re hurting, too,” Vandergraw said. According to Vandergraw, San Diego can anticipate about 10 reposition (pass through) cruises, that is, ships coming down from Alaska and heading for the Panama Canal. San Diego lost Carnival’s four- and five-day summer cruises to the Sea of Cortez when Carnival moved to a port at Mobile, Ala. The move accounts for the San Diego terminal’s emptiness. Fewer ships means a decline in airport passengers, hotel needs, repair work and other services provided, said industry officials. “They’re tremendous economic generators,” Vandergaw said. “To build it back is a slow process.” The B Street Terminal is the primary facility with the capacity to work two large ships. But work is proceeding on a $21 million multipurpose terminal that will boost the number of ships San Diego can host at any one time from two to three. The two-story building, measuring 55,000 feet, should be completed and ready for business by December, according to the San Diego Port Authority. “It will have 400 feet in front for special events,” Vandergraw said. “Holland America is our No. 1 customer with seven-, eight-, nine- and 10-day cruises to Mexico, Hawaii, Panama Canal and South America,” Vandergraw said. “Others are Royal Caribbean, Carnival and Celebrity. However, Royal Caribbean recently announced that they are rerouting one of the ships. We anticipate that it will return during another cruise season. “The cruise business is cyclical, and cruise lines often reroute itineraries so they can have more to offer their customers,” she said. “We did pick up a new seasonal departure with Celebrity cruise lines.” Additionally, it was noted that Mexico, the main destination for cruise ships leaving here, has become less desirable for passengers because of safety fears and because the country hasn’t updated its product much in recent years. Despite the potential for increased cruises through Mexican waters in the near future, the continued economic turbulence places uncertainty on the horizon for an industry that blossomed in 1983.

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