Including the Canary Islands, Spain is the second largest destination market for cruise passengers in Europe behind Italy, with some 6.67 million cruise passengers visiting Spanish ports in 2017. This is slightly more than 15% more than in 2015.
Article from CruisesNews magazine
Furthermore, 1.45 million passengers embarked on cruises from Spanish ports in 2017, just over 12% more than in 2015. Again, the second country only behind Italy.
Passengers from Spain have increased by 9.5% since 2015, reaching 510,400. Although Spain participates in all aspects of the cruise industry, passengers and cruise line spending account for more than 77% of the industry's direct expenditures in Spain.
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Direct spending by the cruise industry
Cruise tourism generated 1.48 billion Euros in direct spending in Spain in 2017, almost 7.5% of the industry's direct spending across Europe and an increase of 12% compared to 2015.
This increase is primarily the result of the double-digit growth experienced by both embarking and stopover passengers in Spain, with the consequent increase in spending. As shown in the chart, the expenditures were mainly distributed across the following segments: passengers and crew, ship construction and repair, cruise line purchases, and company employee salaries.
Cruise Line Purchases:
Cruise lines spent an estimated €511 million, 34% of the total, with Spanish companies in support of their administrative and operational activities. Cruise line spending in 2017 increased by 12% compared to 2015. These purchases included a wide range of products and services and generated spending in most of the country's major industries. Among the main industries that benefited from cruise tourism spending were:
Food and beverage manufacturers received €29 million in purchases of provisions consumed on board cruise ships by passengers and crew. This represents an 11% increase compared to 2015. This growth is primarily due to the increase in passengers throughout Spain.
– Manufacturers of other non-perishable goods in Spain supplied approximately €152 million worth of goods to the cruise industry. These were primarily fuels, lubricants, and other chemical products, such as paints and cleaning products.
– Producers of capital goods, mainly electrical and non-electrical machinery used on board cruise ships and in administrative offices, received 34 million Euros from cruise companies operating in Europe.
An estimated €136 million was spent in businesses and ports on transport and services. This includes spending on utilities, travel agent commissions, port fees, and inland transport. This represents a 12% increase since 2015 and is directly related to the number of passenger visits throughout Spain.
– The cruise industry spent 57 million Euros on financial and other services, including: insurance, advertising, engineering and other professional services, IT and maintenance, and market research and direct marketing services.
Cruise Passengers and Crew:
Passengers and crew spent an estimated €628 million in ports of embarkation and port calls, representing 42% of total cruise industry spending in Spain. This is 15% more than in 2015.
The 510,400 passengers originating from Spain and the 1.45 million cruise passengers who embarked from Spanish ports accounted for almost half of all passenger spending in Spain. They spent an estimated €277 million on airfare, port taxes, accommodation, food and beverages, excursions, and other purchases in ports of embarkation. The average expenditure per passenger in ports of embarkation was €154.
Approximately 75% of passenger embarkations were from Barcelona or Palma de Mallorca.
An estimated 6.67 million cruise passengers visited Spanish ports of call. The top four destinations in Spain accounted for approximately 75% of port visits:
• Canary Islands: 1,977,868
• Balearic Islands: 1,372,853
• Barcelona: 1,271,864
• Cádiz: 387,107
These visits generated an additional €321 million in spending on tours, excursions, food, drinks, and other goods. On average, each passenger spends €48 at each port of call.
It is estimated that 3.42 million crew members arrived at Spanish ports in 2017 and spent approximately €30.4 million. Crew members who disembarked at the various ports of call spent an average of €22 each.
Cruise line employee compensation:
Cruise lines spent an estimated €37 million on compensation for employees residing in Spain during 2017.
This expenditure represented 2.5% of the total cruise industry spending in the country. Cruise lines employ approximately 1,200 people residing in Spain, including those in their administrative offices and crew members on board their ships.
Ship Repairs:
The cruise industry spent an estimated €306 million with Spanish shipyards, primarily for the maintenance and repair of existing vessels. However, Spanish shipyards have recently received orders for the construction of several new ships. This represents approximately 21% of the cruise industry's total spending in Spain and a 21% increase since 2015.
The economic benefits of cruise tourism:
The €1.48 billion in direct spending by cruise tourism in Spain during 2017 generated an estimated 31,233 jobs (direct, indirect, and induced). This represents a 9.3% increase compared to 2015.
Direct economic impacts
The direct economic impacts of the cruise industry in Spain stem from a wide range of activities, including:
– Employment in port services and the cruise industry;
– The transport of cruise passengers from their place of residence to the ports of embarkation.
– Travel agent commissions.
– The cost of excursions and pre- and post-cruise stays in port and non-port cities in Spain.
– Spending on consumer goods in Spanish port and non-port cities.
– Purchases of consumer goods by cruise lines from various Spanish companies.
The 12,718 direct jobs generated by cruise industry-related spending paid €416 million in employee compensation. These jobs include employees of cruise lines, direct suppliers to cruise lines, and employees of establishments that provide goods and services to cruise passengers. The total impact of direct employment has increased by 9.8%, and the impact of wages has increased by 12%, since 2015.
Direct jobs generated by the cruise industry are found on cruise ships, in manufacturing plants that provide goods consumed by cruise ship passengers and crew, and in metallurgical structural products and machinery used in ship construction and repair, as well as in tour operators that offer shore excursions purchased by cruise passengers.
During 2017, Spanish manufacturers employed approximately 2,900 workers, representing 23% of direct employment, to supply the cruise industry with a wide range of products. These workers were paid €103 million in wages, which also accounted for 25% of direct compensation impacts.
– Capital goods manufacturers accounted for 77% of direct manufacturing impacts in Spain. Companies in this segment of the manufacturing industry employed approximately 2,230 workers in 2017, primarily in the production of metal products and machinery. Employees in this industry received €71 million in compensation.
A total of 671 jobs were created in consumer goods industries, which in turn generated €32 million in employee income. These workers primarily produce food, beverages, and other items used and consumed on cruise ships.
The Transportation and Utilities sector employed approximately 3,503 workers, representing 28% of total direct employment, in support of the cruise industry. These included truck drivers delivering goods to cruise ships and tour operators providing shore excursions for passengers. Employees in the energy and communications industries were also included. Collectively, these workers received €139 million in wages, accounting for 33% of the direct compensation impact in Spain.
Financial companies and business service providers employed an estimated 1,306 people. These included employees of insurance companies and advertising agencies, market research firms, software development companies, engineering and management consulting firms, law firms, and accounting advisors. Their total compensation is estimated at €35 million.
The wholesale and small retail trade sector employed approximately 1,940 workers, representing 15% of the direct employment impact.
These employees were paid wages and benefits totaling €35 million.
More than 800 workers were employed in hotels, restaurants, and leisure businesses as a direct result of passenger spending as part of their cruise vacations.
These workers were paid an estimated €22 million in wages and benefits.
Cruise lines employed approximately 1,200 Spanish residents in their administrative offices and as crew members on board their ships.
The agriculture, mining, and construction sectors accounted for 23 jobs, paying just over €1 million in wages and benefits.
Finally, an estimated 984 jobs were generated in other sectors of the Spanish economy, primarily in private and public services, which generated €50 million in revenue. These included photographers, healthcare workers, and social service providers, among others.
Indirect and Induced Economic Impacts:
The indirect economic benefits derived from the cruise industry result in part from additional spending by cruise industry suppliers. For example, food processors must purchase raw food for processing; utilities, such as electricity and water, are needed to operate and process equipment and raw materials; transportation services are required to deliver finished products to cruise lines or wholesalers; and insurance is needed for property and employees. Consequently, indirect jobs are generated in virtually all sectors, with a concentration in the sector that produces goods and services for these companies.
Induced economic benefits stem from the spending activities of people directly and indirectly employed as a result of the European cruise industry. This spending provides jobs in retail, consumer goods production, housing, and personal and health services.
Combining direct and induced factors, which include the elements mentioned above as well as employee compensation, the total reached approximately €2.77 billion.
As shown in the table, an estimated 18,515 indirect and induced jobs were generated across Spain by the cruise industry in 2017. These jobs generated €543 million in employee compensation. Compared to 2015, the impact on indirect and induced employment increased by 9%, and the impact on compensation rose by 12%.
The financial and business services sector accounted for 27% of the impact on indirect and induced employment and 28% of the impact on compensation paid, with an estimated 4,929 jobs and €153 million in wages and benefits. The indirect impacts measured in this sector are concentrated primarily in insurance, legal, accounting, and other professional services.
The private services sector and public administration in Spain benefited from just over 3,386 indirect and induced jobs and €118 million in wages. These sectors accounted for approximately 18% of direct and induced employment and 22% of wages. The
transport and public utilities sectors in Spain benefited from 2,580 indirect and induced jobs, representing 14% of the total impact on direct and induced employment. This reflects the strong links between industries within the transport sector, as well as the intensive use of a variety of transport services to supply businesses with the consumer goods needed for retail. These workers were paid an estimated €99 million in wages.
The agriculture, mining, and construction sectors accounted for 14% of employment impacts, with an estimated 2,576 jobs and €50 million in wages, representing 9.2% of total indirect and induced wages.
The indirect and induced impacts of cruise industry spending generated over 2,204 jobs in the manufacturing sector during 2017, accounting for 12% of total indirect and induced employment impacts.
Fifty-four percent of these jobs were in consumer goods industries, with approximately €64 million in wages paid.
Wholesale and retail trade accounted for 2,104 jobs and €37 million in employee compensation, representing 11% and 6.8% of the totals, respectively.
The hospitality sector benefited from 736 direct and induced jobs and €23 million in compensation. This represents 4% of direct and induced employment and 4.2% of the impact on wages. Jobs in the hospitality sector were concentrated in hotels and food and beverage establishments.
Total Employment Impacts
As shown in the table, an estimated 31,233 total jobs, comprising direct, indirect, and induced employment, were generated across Spain by the cruise industry in 2017. Workers in these jobs earned €959 million in wages. The impact on total employment and wages in Spain in 2017 increased by 12%.
Total output(1) in 2017 for Spain was €4.25 billion, representing approximately 8.9% of total output across Europe.
– Financial and Business Services accounted for 20% of the impact on employment with an estimated 6,235 jobs and 183 million Euros in remuneration.
– Transport and public services accounted for 19% of the total impact on employment, with an estimated 6,083 jobs affected, including administrative staff and cruise line personnel based in Spain. These workers received €238 million in wages.
– Manufacturers in Spain employed more than 5,100 workers, 16% of total jobs, and were paid 167 million Euros in wages and benefits.
– The private services and public administration sector, as well as wholesale and retail trade, has accounted for more than 4,000 jobs, representing 14% and 13% of the totals respectively.
– The agriculture, mining and construction sectors accounted for 8.3% of total employment, generating 2,599 jobs and paying 51 million Euros in wages and benefits.
– The hospitality sector accounted for 5% of the total labor and wage impact, with an estimated 1,549 jobs and a total of 44 million Euros in wages.
Cruise lines directly employed 1,248 Spanish residents in their administrative offices and on board their ships. This figure represents the direct economic impact, as direct employment and compensation are only provided to cruise line employees.
Thus, in Spain, just over 21 jobs were generated for every million euros of direct spending by the cruise industry. Furthermore, the average salary for jobs created by the cruise industry was approximately 30,700 euros.
Considering the direct impact of 12,718 jobs and 416 million euros in employee compensation, the economic effectiveness factors for the cruise industry in Spain were 2.46 for employment and 2.30 for compensation.
