Assessing the direct economic value of cruise tourism in a port of call: The case of Funchal on the island of Madeira

Abstract

In recent years, the economic relevance of cruise tourism has increased considerably. However, there are still many doubts regarding the real economic value of this industry in a port of call. This paper presents a methodology to estimate the total expenditures carried out in a port of call. The port of Funchal on the island of Madeira was used as a case study, given the great relevance of the cruise tourism industry to this port of call. A combination of several methods, and of secondary and primary data, was used to assess the total expenses of the cruise passengers, crew members, and cruise lines. Results reveal that, although cruise tourism has an important role in the economic development of the island of Madeira nowadays, several strategies should be adopted to increase this relevance. Therefore, the paper ends with some implications for increasing the direct economic value generated by cruise tourism.

Expanding our understanding of cruise visitors' expenditure at destinations: The role of spatial patterns, onshore visit choice and cruise category

“…Although this is not necessarily a limitation, this outcome reinforces the debate surrounding the (dis)advantages of this form of tourism (Vayá et al 2018), considering that the expenditures of cruise passengers in a port of call are only part of the overall economic benefit that this industry generates (Dwyer and Forsyth 1998;Gouvela and Eusébio 2018).…”

An assessment of factors for the cruise port of call selection: The modified fuzzy Analytic Hierarchy Process

“…For developing a dedicated cruise terminal, Lee [ 30 ] emphasized the significance of four kinds of facilities, including port-related facilities (docking facilities, energy supply facilities, and search and rescue systems), tourist-providing facilities (hotels, shopping centers, and recreational areas), information technology facilities (communication networks, and telecommunications infrastructure), and customs, immigration, and quarantine (CIQ) facilities. Additionally, to enhance a cruise port’s attractiveness, cruise vessels should be serviced with: basic supplies [ 24 ], maintenance and repair services [ 10 ], shops and foreign exchange bureaus [ 31 ], and tourism information offices [ 32 ]. The port government’s organizational policies applying to the cruise industry are also imperative to grow the cruise tourism industry [ 33 ].…”

“…Recommendations include diversifying onshore tourism programs and securing government policy support [ 5 ]. Gouveia and Eusébio [ 10 ] advocate for local businesses’ involvement through innovative approaches. However, with limited empirical comparisons, existing studies often rely on perspectives from cruise operators (COs) or port operators (POs).…”

Cruise spillovers to hotels and restaurants

“…This raises important questions about the long-term impact on a destination's onshore tourism industry. The question of economic impact of cruise lines has been investigated in many studies (Braun et al, 2002;Zapata, 2010a, 2010b;Chang et al, 2016;Chase and Alon, 2002;Dwyer et al, 2004;Dwyer and Forsyth, 1996;Gouveia and Eusébio, 2018;MacNeill and Wozniak, 2018;Marušić et al, 2008;McKee and Chase, 2003;Pratt and Blake, 2009;Vayá et al, 2018). However, the different and sometimes conflicting findings in the literature imply the question remains relevant.…”