UMaine Economists Find Portland Cruise Ship Passengers Generate $5.8 Million-$8 Million
Contact: Todd Gabe, 207-581-3307
ORONO, Maine — Research by two University of Maine economists shows that spending by cruise ship passengers delivered $5.8 million to $8 million to the Portland area last year, representing an expanding revenue source that could increase if cruise ship visits to the city continue to increase.
The spending estimates are conclusions drawn from surveys of nearly 1,300 passengers disembarking in Portland last fall for shopping, sight-seeing and dining in or around Portland.
Economists Todd Gabe, associate professor of economics and a fellow with CenTRO (Center for Tourism Research and Outreach) at the University of Maine, and Jim McConnon, Extension specialist and professor of economics, with assistance from several UMaine students, conducted the research in September and October of 2008 at the request of the city of Portland, which funded the study. The city is assessing the economic impact of the cruise ship industry on the region and establishing a baseline as it develops strategies to maximize the economic benefits and diversify its economic base.
“The Portland waterfront is a vital economic engine for the state and regional economies,” says Assistant City Manager Pat Finnigan. “Having the solid, current data, which this report provides, will help us develop long term strategies to maximize the impact of the cruise industry. The scheduled, reliable delivery of tourists to the city during the summer and fall is an opportunity we need to make the most of.”
Gabe and McConnon presented their findings Tuesday in Portland at a meeting among the Maine Port Authority, regional tourism leaders and maritime-related businesses, including port agents, pilots and stevedores who serve the cruise industry. The cruise season begins today with the first of two cruises scheduled to dock.
The researchers found that the typical cruise ship passenger spends $80 per day in the Portland region, and that amount swells to $110 if cruise-ship sponsored tours are taken into account. These figures are used to estimate the total spending of 48,000 passengers from 32 ships that docked in Portland last year.
“The cruise ship industry generates between $5.8 and $8 million in sales, 69-96 jobs and between $2 million and $3.2 million in wages and salaries for the Portland region,” Gabe says.
“Tourists arriving by water represent a growing new market of often first-time visitors for the state,” McConnon notes.
Portland’s cruise ship passengers tend to be older, well-educated, affluent and veterans of previous ocean cruises. Many are from states west of the Mississippi River, notably California, Texas, Arizona and Missouri. Maine’s traditional tourist profile has been the vacationer who drives here from nearby New England states.
Cruise ship dockings are increasing each year. This year, 45 ships with nearly 70,000 passengers are expected in Portland. Next year, 68 ships are scheduled, more than doubling the number of ships visiting Portland in two years.
Gabe and McConnon have completed several past studies on the cruise industry and have published journal articles on the topic. In 2002, they studied the economic impact of cruise line visits to Bar Harbor.