Bad Business Partners
The cruise industry’s record on business practices with local communities is unfavorable. The article, How the Cruise Industry Disregards Pollution, Low Wages and Disease, talks about the industry's practice to set up merchants that pay profits back to the cruise line, and excursions are often booked with 3rd party companies. It also discusses how cruise lines pressure local governments.
CRUISE SHIP ECONOMICS
A Net Loss
The cruise ship industry talks about economic benefit to the community but that is simply not the case. Research shows the economic benefit to the community is about 5% of what is promised. When detrimental impacts (e.g. pollution) are considered, there is a significant net loss to the community. Cruise ship tourists spend less than virtually all other categories of tourists – even backpacker spend more. This makes perfect sense, remember this industry’s sole focus is maximizing profits. Cruise ship tourists, eat breakfast on-board are bussed to an excursion and are back on board by dinnertime. And even the little spent ashore is minimized by “pay to play” agreements that compel onshore tour operators and retail businesses to pay to do business with the cruise lines.
HEED THE warning
Cruise Industry Tactics
A cruise industry tactic is to work behind the scenes promising economic benefits while downplaying negative impacts. The industry works to get a foot in the door with local businesses and organizations. They will ask to start small - maybe a pilot program to start. They will lobby local and Commonwealth officials promoting their agenda, outside of the public eye if possible. Once a program is initiated, they count on the revenue streams created to make is hard to back out. Businesses are pitted against citizens allowing them to continue to operate and expand. This is bad business, see Community Impacts for more.
