The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Cruise passenger arrivals to Nassau as a “first port of entry” fell by more than 40,000 persons in 2018, it was revealed yesterday, just as Cabinet was debating who should get the port deal.

Newly-published Ministry of Tourism data revealed that such arrivals fell by 1.5 percent year-over-year compared to 2017, dropping from 2.637m to 2.597m, even though total cruise passenger numbers visiting The Bahamas grew by 5.4 percent to 4.878m.

The data indicates that the reduction in “first port of call” visitors to Nassau was offset by a corresponding increase in those taken to the Family Islands, which is where the cruise lines have their private islands.

In particular, the Berry Islands, which is where Royal Caribbean’s Coco Cay location is based, saw a 17.4 percent year-over-year increase in “first port of call” visitors, who rose by over 100,000 - from 561,409 in 2017 to 659,203 last year.

Bimini also enjoyed a 37.7 percent increase, but the biggest jump was experienced in Eleuthera, which is home to Princess Cruise Lines’ Princess Cay and other private island-type destinations. First “port of call” visitors to Eleuthera more than doubled year-over-year, increasing by 104.9 percent from 171,406 to 351,159.

The significance of this data is that it suggests the cruise lines are further increasing reliance on their private islands as their “first port of call” in The Bahamas, which gives them first shot at mining the spending of their passengers.

Second and third-call destinations typically see reduced cruise passenger spending compared to their inaugural touchdown in The Bahamas as wallets and credit cards have already been given a good work-out.

This results in fewer dollars being spent with Bahamian merchants, attraction, tour and excursion providers in Nassau, with most of the industry’s economics again accruing to the cruise lines who control most of the activities that occur on their private islands.

“The increase in cruise arrivals to Nassau/Paradise Island in December 2018 was not enough to counteract the previous decline in cruise arrivals to the island for the year by first port of entry,” the Ministry of Tourism said in analysing its data.

“For this reason, cruise arrivals to Nassau/Paradise Island declined by first port of entry. However, when Nassau/Paradise Island is reviewed on its own without the rest of the Bahamas, and all the ports of entry (first, second and third) into the island are taken into consideration, cruise arrivals increased by 0.8 percent.”

Turning to the bigger picture, the Ministry of Tourism added: “Cruise arrivals started the year off strong in the month of January 2018, but poor weather which caused rough seas in both February and March significantly impacted the overall cruise arrivals during the first quarter.

“During the months of January to December 2018 cruise arrivals (first port of entry) to The Bahamas overall were up in every month of 2018 except February and March.

“By the end of December 2018, cruise arrivals (first port of entry) to the Bahamas were up in the Berry Islands, Bimini, Eleuthera, Grand Bahama, and Inagua (this island does not normally receive cruise arrivals.”

The Ministry of Tourism’s data was released on the same day that Cabinet was due to discuss who should be selected as the preferred bidder to manage/operate Nassau’s cruise port.

Tribune Business understands that at least two of the bidders made hour-long presentations to the Cabinet the week before to justify why they should be chosen. They were Global Ports Holding, which has partnered with BISX-listed Arawak Port Development Company and CFAL, and Port of Nassau Partnership - the alliance between the Bahamian investment group headed by ex-Family Guardian president, Gerald Strachan, and the four cruise lines - Carnival, Royal Caribbean, Disney and Norwegian.