The revenue generated by each cruise passenger in Barcelona has grown by 20% in Barcelona in two years.
Article from CruisesNews magazine
A new study on the economic impact of cruises confirms a growing local benefit thanks to the qualitative improvement of the Port of Barcelona as a homeport and the higher spending by cruise passengers compared to conventional tourists. 73% of the benefit is concentrated in the city of Barcelona, but the remainder is distributed throughout Catalonia.
Any cruise line knows that including Barcelona in its itineraries guarantees added value. It's a very attractive European stopover and serves as a draw when used as a home port, thanks to its growing international air connections and the positive image the city has projected worldwide since the 1992 Olympics. And any cruise passenger also knows that it's one of the best-prepared cities in the world to receive even the largest ships of the moment, with its eight terminals offering all the comfort and technology. But some Barcelona residents and local politicians—who aren't cruise passengers themselves—think differently. In recent years, they've perceived a sense of saturation due to the more than 2.6 million cruise passenger movements annually. To combat this aversion, the sector has been working since 2015 to highlight the benefits it brings to the city. A new report (with 2016 data) presented in January by CLIA Spain and conducted by the University of Barcelona supports this argument with data: in just two years, the revenue generated by each cruise passenger in Catalonia has grown by 20%. Each ship that docks leaves €1.4 million in the region.
2.1M cruise passengers arrive in Barcelona and for each cruise passenger who visits the city, a direct revenue of €296 is generated.
The figures are not easy to interpret because the volume of cruise passengers in Barcelona has remained practically stable since 2011 at around the aforementioned figure. This includes an average annual increase of 0.8% in cruise passengers (2.1 million after eliminating the double counting of travelers who begin and end their voyage in the same port) and a 0.2% increase in total cruise passenger movements. However, it is worth remembering that 2014 was the weakest year for the sector (2.36%), due to adjustments in Mediterranean supply during the economic crisis. Beyond the overall volumes, one figure stands out as particularly striking: the 28% increase in homeport passenger movements in just two years.
In 2016, the Port of Barcelona's cruise activity generated a total revenue in Catalonia of €1,083 million, equivalent to €518 per cruise passenger.
While cruise passenger numbers recovered in 2016 (2.68 million, reaffirming Barcelona's position as the leading European port and fourth in the world for the sector), the overall increase was 14%. Transit passengers fell by 1%, with the remaining passengers driving the overall growth. Homeport cruisers have been the Catalan port's strategic focus in recent years, as their longer stays in Barcelona result in a greater economic impact. Their presence is also less intensive than that of port calls, where, with an average visit of four hours (according to the report), their presence tends to be concentrated in the already crowded central district of Ciutat Vella.
The study, conducted by the AQR-Lab Knowledge Transfer Laboratory at the University of Barcelona, with support from the Port of Barcelona, aims to shed light on all the aspects that make the cruise industry an economic engine. Alfredo Serrano, director of CLIA Spain, emphasizes the importance of significantly improved economic results even without a parallel increase in passenger volume. This improvement in the quality of users of the Port of Barcelona means that each cruise passenger has a total economic impact of €518, compared to €433 just two years ago.
Direct and Indirect Costs:
The figure includes the direct impact (spending by travelers, crew, and the shipping company in the city), the indirect impact (spending generated through the demand for services and goods from businesses benefiting from the activity), and the induced impact (resulting from the subsequent consumption expenditure by employees in these other sectors, both directly and indirectly). To calculate this volume of activity, data provided by the port itself, the city council, the shipping companies, Idescat (the Catalan Institute of Statistics and Censuses), Customs, and other sources were taken into account.
The volume of traffic decreases, and the role of the Port of Barcelona as a home port is strengthened. The latter has a greater impact on the economy.
The total estimated economic impact in 2016 reached €1.083 billion, of which €619 million was direct spending and €464 million was indirect and induced spending. The direct spending consisted of €465 million from cruise passengers, €147 million from cruise lines, and €6 million from crew members. The final figure includes €206 million in state and regional taxes and €1.6 million generated by the tourist tax levied on all cruise passengers docking in Barcelona. This tax (instigated by the city council) aims to mitigate the externalities or side effects of the tourism boom, which until mid-2017 was viewed critically by the city council led by Ada Colau. Since last summer, the city's stance has shifted somewhat, as the attack on Las Ramblas (to a lesser extent) and the political crisis surrounding the Catalan independence movement have reduced visitor numbers and begun to worry the authorities.
But the mayor's party (Barcelona en Comú) has always been particularly critical of the cruise industry, even though it only contributes 2.1 million passengers (19% of whom are domestic, including Catalans) to the total of 30 million tourists who stay overnight or take day trips to Barcelona each year. This is why this study has been conducted since 2015, when Colau became mayor and targeted cruise ships—critically—despite that year being the lowest in the decade for cruise passenger numbers. The industry is trying to respond with data to these more or less explicit accusations, which focus both on an alleged excess of passengers and on an environmental problem. In this regard, a 2017 study by Barcelona Regional attributed 1.2% of the city's pollution to cruise ships, less than that generated by ferries or cargo ships, which are already far less than traffic on the city's streets (59%). The port is working to reduce the environmental impact of cruise ships by encouraging the arrival of future vessels powered by liquefied gas.
The higher quality of that traveler who starts or ends their route in BCN translates into an average impact of €518 per passenger.
On the economic front, the report emphasizes that each cruise passenger visiting the city generates a direct revenue of €296 (a total of €465 million) across excursions, hotels, apartments, restaurants, commerce, transport, and cultural activities. Their spending is proportional to their use of the city.
One in four do not visit Barcelona.
This section is especially relevant because it confirms that 4% of travelers remain on the ship during the stopover (because they already know the destination or don't feel like disembarking) and 21% embark or disembark without visiting. In other words, one in four do not set foot in the city, which significantly reduces the supposed saturation figures cited by the city council.
Even that 21% spends an average of €25 (on transportation). Meanwhile, the 48% who visit the city without staying overnight and spend 4.3 hours spend €57 (direct spending), and the 27% who stay an average of 2.8 nights spend €230. From this snapshot emerges a first relevant comparison: despite representing only 8% of holiday tourists, cruise passengers who stay overnight "account for 20%" of the total spending in that holiday segment, Serrano points out.
Each cruise ship that stops in Barcelona generates: €1.0M revenue – €0.5M of GDP – 9 jobs.
Thus, while the average tourist spends €50 per day on accommodation and €68 on general expenses (excluding transport, lodging, and tour packages), staying in mid-range 3.5-star hotels, a cruise passenger staying overnight in the city spends €110 and €105 respectively, and sleeps in 3.9-star hotels. Quite a few stay in luxury establishments.
The economic impact is growing without gaining passengers thanks to the 28% growth as a home port since 2014.
In this context, it's worth noting that after Spaniards, American passengers are the second largest group of cruise ship users in the city (18%). However, they represent only 8% of overall leisure tourism. Furthermore, they are the most cost-effective tourists, spending an average of €187 per day, compared to €138 for the average traveler of all nationalities. Focusing on the impact of cruise passengers staying in Barcelona at the beginning or end of their voyage, they account for 1.2 million hotel overnight stays annually, out of the 5.1 million total overnight stays by leisure travelers. That's almost one in four.
Cruise ship spending in the city directly impacts the most central and visited districts (Eixample and Ciutat Vella, 30% and 27% respectively), but also leaves 43% in the rest of the metropolis, especially in neighborhoods with tourist attractions. One of the city's objectives is precisely the decentralization of tourism.
Continuing with the section on direct expenses, those handled by shipping companies translate into supplies of food, fuel, port services, crew movement and medical assistance, tour agencies, consignees… The crew's spending has an impact on consumption in restaurants and bars, commerce and transport.
Multiplier effect: 1.75. For every €100 of direct spending, an additional €75 of spending is generated.
The study, led by Professor of Applied Economics Jordi Suriñach, also highlights that for every €100 of direct spending, an additional €75 is generated. Overall, the total revenue generated in Catalonia was 36% higher than in 2014. This significant increase is due to both the greater proportion of homeport users and the increase in individual spending (whether on a stopover or turnaround), the increase in overnight stays, and the increased spending by cruise lines on supplies, among other factors. Specifically for cruise passengers, direct spending per passenger grew by 23%, compared to 16% for both direct and indirect spending, resulting in a total of €518 per person, representing an average increase of 20%.
Each cruise ship that stops in Catalonia generates: €1.4M in revenue – €0.7M of GDP – 12 jobs.
Focusing on employment, sectors directly related to tourism (tour operators, accommodation and food services, transportation, etc.) account for €494 million in revenue (46%) and 5,555 jobs (61%). In sectors not directly involved (food, energy, metallurgy, waste management, etc.), revenue reaches €589 million (54% of the total), and employment totals 3,501. The report concludes that for every €100 of revenue generated in the tourism sector, another €119 is generated in the remaining industrial and service sectors. And for every 10 jobs in the tourism sector, another 6 are created in the other sectors.
Impact on wages and jobs
Among the sectors that benefited the most were the food and beverage industry (69 million) and the energy sector (64).
In the Catalan economy, cruise ships contribute €562 million to GDP and €274 million in wages, while focusing on Barcelona specifically, this figure rises to €411 million in GDP and €205 million in wages. Analyzing the impact of each cruise line, the study examines the 758 lines from 2016 and concludes that each one represents €1.4 million in revenue in Catalonia (€1 million in Barcelona), €0.7 million in GDP, 12 jobs, and €0.3 million in tax revenue.
Tax revenue generated: €206 million in state and regional taxes and €1.6 million in tourist tax revenue.
Prepared to illustrate the impact of job creation in this sector, Suriñach emphasized that without the 6,809 jobs generated in 2016, unemployment in the city would have been 12.5% instead of 11.5%. These are compelling arguments that the sector now wants to disseminate widely.
Escala
Barcelona, which aims to be the voice of the industry, businesses, and economic actors regarding cruise tourism, while also prioritizing citizen participation.
One in four cruise passengers do not visit the city: 4% stay on the ship and 21% go directly to embark or disembark.
This new digital venture involves companies and associations that want to increase "the recognition of the sector so that it is appreciated as it deserves" - they highlighted in their presentation - and the people of Barcelona themselves who will share their personal or professional experience with the world of cruises in Barcelona, as protagonists.
Its creators hope the channel will highlight the positive contribution of the tourism sector in the Catalan capital, whether through videos, personal stories, or informative content. They also aspire to provide a communication channel for businesses, operators, and citizens who, until now, have had little opportunity to make their voices heard. This format will also include local industry data, environmental, labor, and social information, as well as much other information intended to make this type of holiday travel more accessible to the public, "avoiding stereotypes" and distorted information.
The cruise ship passenger's impact is also crucial to Barcelona's hotel industry, where they account for 1.2 million overnight stays annually.
For the time being, the channel will be structured into sections such as On Deck (related to the business), Towards Sustainability, Making Stopovers (its local horizons, such as visits to regions outside Barcelona), and People (for example, the staff involved in all ground support). Anyone interested in more information or participating can contact info@escalabarcelona.com.
Barcelona to Concentrate All Cruise Ship Arrivals at the Adossat Dock.
Friction between the Port of Barcelona and Ada Colau's city council has been evident since the new mayor took office in 2015 and declared her intention to curb the sector's growth. But after months of negotiations and attempts at rapprochement, tensions seem to be easing, opening the door to important projects for the city. Last January, both parties reached agreements they described as "historic" regarding the reorganization of port areas. Essentially, these agreements will concentrate cruise terminals and some ferry activity at the Adossat Dock, freeing up port space for greater public use.
For the public, the redevelopment of the Moll de la Fusta and the Columbus promenade, located in front of the sea, will be even more visible to Barcelona residents, as well as the future Nova Bocana, next to the W Hotel, which will incorporate more educational uses, as explained in a conciliatory tone by the mayor and the president of the port, Sixte Cambra.
For the cruise industry, these agreements mark a turning point in the development of the sector. The relationship between the city council and the port had been characterized by a clear lack of municipal support for any signs of growth or improvement. Initially, the council advocated for curbing passenger volume (2.6 million annually) and demanded a reduction in pollution generated by the industry. The new commitments include conducting further studies and maximizing control over emissions of polluting waste, with a focus on clean energy.
The final
straw in the already strained institutional relations was the recent announcement a few months ago of a future terminal in the Adosado area, to be operated by MSC Cruises. The city council initially rejected the project, despite its potential to boost Barcelona's activity as a home port (with cruises beginning and ending in the city), at the expense of mere stopovers (less profitable and sustainable) of a few hours. With the new plans, this terminal appears more viable, as the enormous dock is slated to expand with two state-of-the-art terminals.
Colau emphasized that “the port and the city must understand each other,” because this area represents 2,000 hectares, 20% of the city, and is an important part of its economy. And the president of the Port Authority of the Balearic Islands (APB), Sixte Cambra, stressed that cruise activity and the benefits it generates are not just a business for the port, but for all of Barcelona, due to its economic impact and its leading role in Europe.
Cruise terminal reorganization project:
Reassessing Uses:
Going into detail, the objective of reducing maritime traffic at the docks closest to the city has resulted in an agreement that involves eliminating the cruise terminals at the Barcelona docks (when the concession for the north and east alignments ends in 2026) and at the Spanish docks (Maremagnum and Drassanes terminals, around 2022-23, as soon as the expansion of the Adosado is completed). The South Terminal at the Barcelona dock will disappear when the space currently occupied by a cargo terminal at the Adosado is freed up.
The relocation, which frees up space for public use and removes the fences separating the ferry area, primarily affects the operations of small and some medium-sized luxury yachts, which used these entrances next to the World Trade Center building to dock in Barcelona, as well as Baleària ferries. From this entire area, any passenger could easily walk to the city center. In contrast, from the Adosado area, the most common options are to take a taxi, bus, or shuttle.
The Adosado planning:
The new plan definitively limits the number of terminals at Adosado, the very large dock accessed via the Puente de Europa (Europe Bridge). Once the third and fourth phases of the dock extension are completed, there will be a maximum of seven terminals. Currently, there are four terminals for large ships at this dock, and a fifth (dock E) is under construction by the Carnival group.
It is noteworthy that the city council considers this number of terminals a reduction and a setback. The Deputy Mayor for Urban Planning, Janet Sanz, believes that this puts a "ceiling on the growth" of cruise ship passengers. However, in practice, there will be fewer terminals but with much greater capacity for large ships and passengers. Of the three that will disappear, one had hardly any activity, and the other two were much smaller than the new ones to be built in the Adosado area. The port therefore maintains the possibility of gaining passengers, although its objective is not to grow but to be more "sustainable, to reduce the seasonality of its offerings, and to strengthen itself as a home port," Cambra emphasized. In fact, in 2017, the number of cruise passengers grew by 1%, at the expense of a 13% increase in users during the low season and a 2% decrease during the high season, thus redistributing tourist flows.
Despite representing only 8% of holiday tourists, cruise passengers who stay overnight in the city account for 20% of the total spending by holiday tourists in Barcelona.
Regarding its commitment to reducing so-called "environmental externalities," the port has proposed implementing stricter controls and protocols on ship emissions and commissioning specific long-term impact studies. Its challenge is to accommodate the large cruise ships already ordered by major shipping lines that are powered by liquefied natural gas, which requires a dedicated refueling station for this fuel.
For the city council, it is also crucial to assess traffic patterns originating from or destined for the Adosado area in order to implement measures that prevent traffic congestion in the Drassanes district. The council aims to reduce the feeling of overcrowding on La Rambla by focusing on cruise ship passengers. According to the most recent statistics, La Rambla currently welcomes between 200,000 and 300,000 pedestrians daily. The average number of cruise ship passengers in the city each day is around 7,100, but many of them take excursions by coach or taxi to tourist areas.
A €140 million investment.
As Sixte Cambra explained, the expansion plans for the Adosado dock, already planned before the decision was made to consolidate cruise activity in that area, will have multimillion-euro budgets. Once again, mixed financing will be used: Public investment will amount to €94 million (€40 million already underway), while private operators who choose to relocate their operations there or ultimately manage the terminals will contribute approximately €47 million.
The board of directors of the Port of Barcelona approved the tender for the third phase of the expansion last October. The city council is represented by one member (out of 15) but has become a key stakeholder after asserting that the future of the coastline, which is undergoing rapid development 25 years after Barcelona began its expansion towards the sea, must necessarily be guided by the interests of its citizens.
President Cambra highlighted the “satisfaction” of both parties because the agreements “are compatible” with Barcelona’s leading position in the cruise industry, whose figures have remained stable for a decade. In fact, the number of port calls is decreasing, but not the number of passengers, because the trend is to accommodate fewer ships, but of a newer generation and larger size.
