Sample assignment on impact of cruise tourism in coastal areas

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Title:Sample Assignment onImpact of Cruise Tourism in Coastal Areas
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Impact of Cruise Tourism in Coastal Areas

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Executive Summary
In recent years, the new form of coastal tourism has earned a well-deserved reputation.
The purpose of the report is to find the economic, social and environmental impact of cruise
tourism in coastal areas. The study assesses the industry growth, trends, impact of cruise
tourism and tourism related developments along coastal areas. The study traces the origin of
coastal transformation with particular focus on the real estate and construction boom in
coastal areas. Despite large number of economic benefits received by coast the areas also
suffers from many problem such as loss of marine resources, pollution of marine water
resources, air pollution, climate change, loss of cultural resource and public access etc. The
given report also focuses on challenges and opportunities for maritime and coastal tourism.
The reports builds on information collected from various sources such as journal, books and
online articles. The report recommends need of a sustainable tourism strategy in collaboration
with government, industry and community.

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Table of Contents
Executive Summary...................................................................................................................... 3
Introduction .................................................................................................................................5
Recent trends in Coastal Cruise industry ........................................................................................ 5
Impacts of cruising in coastal areas.............................................................................................. 10
Issues and challenges facing the cruise industry............................................................................ 13
Recommendation........................................................................................................................ 16
Benefits of sustainable coastal tourism......................................................................................... 19
Conclusion................................................................................................................................. 19
References ................................................................................................................................. 21

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Introduction
Cruise industry is one of the sectors that have grown by 2,100 percent since their start.
Since the beginning of 1960, there has been rising trend in the cruise ship tourism. For the
period 1990-2007, the cruise passenger annual growth rate has increased to 70 percent. The
average annual growth rate of cruise tourism is almost twice the rate of growth of the tourism
industry. The growth rate of cruise tourism is expected to continue in future (FCCA, 2008).
Cruise tourism is new phenomena with serious impacts on three pillars of sustainability, i.e.,
economic, social and environmental. The increase in cruise ship traffic and infrastructure has
identified negative impacts such as incompatible development, loss of culture, pollution, and
wear and tear. The cruise market is continued to grow irrespective of its negative impact
because regulation in response to these issues is still under development. The revenue of the
cruise industry is 3 percent of the total international tourists receipts (Kester, 2002). Four
cruise lines, i.e., Carnival, Royal, Caribbean, and P&O., dominate the cruise industry. The
most famous cruise destination of the world is Caribbean, Bahamas because of its proximity
with the world’s largest cruise market (Orams, 2002). The report will study the recent trends
and development in the cruise industry. In relation to this, the given research will analyze the
various impacts of cruising on coastal areas and challenges faced by them. As the ship order
and number of passenger grows, the significant impact is seen on socio-cultural, economic,
political and environmental factors. The report also proposes recommendation for building a
sustainable future for cruise destination.
Recent trends in Coastal Cruise industry
The cruise ship industry is one of the fastest growing segments in the tourism and travel
industry. The growth of the cruise industry can be measured from different aspects such as
demand, supply and output of the sector.

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The Table 1 and Figure 1 describe the continuous increase in cruise passenger arrivals and
growth in the number of passengers for the period 1997-2007.
Table1: Cruise Passenger arrival rate, 1990-2007
(Source: CLIA 2008)

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Figure 1: The growth of the number of international cruise passengers
(Source: CLIA 2008)
The average annual growth rate of the number of international cruise passenger is 7.4
percent for the period 1990-2007. It can be derived from the Table 1 the participation of
North American passenger is more than 80 percent but is in declining trend. The cruise
industry shows high demand from new sources such as Europe and Asia (Brida and Zapata,
2010)
Presently, the tourism development trend emphasizes on increasing passenger capacity or
building larger vessels of cca 3.000 (Passenger shipping association, 2006). Hence, the trend
to increase the guest capacity will mark the future of cruise tourism industry. It will also have
many different impacts on the respective ports and coastal areas. The most intensive tourism
region worldwide is Mediterranean. It is the most growing region with increasing cruise
activity; accounting for 18 percent of the world cruise market in 2006.The rapid growth of
cruising tourism has increased competition and put high pressure on coastal resources and
infrastructure. An increasing number of new generation cruise ships have created large
environmental burden on local communities. The increasing cruise ship resorts have limited
the economic benefits to local people residing in coastal areas (Caric, 2011).
Cruise ship vacation is the rapid growing segment in the leisure travel industry. The ship
size, number of cruise, passenger, ports and revenues all are on rising trend. Since 2006, the
number of people took cruise vacation rose half million crores. The industry has witnessed
dramatic increase in number and size of cruise ships. Nearly 88 ships have been introduced,
and 200 large cruise ships are in service pipeline. The ship size has also increased from 500-
800 to accommodate passenger. The Royal Caribbean is the biggest cruise ship with the

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capacity to accommodate 3,634 passengers plus with an additional crew of 1500 members.
The top ten cruise destination hold the 90 percent of cruise ships. The Caribbean is a favorite
tourism destination among tourist. After the 9/11 attack, the cruise tourism attraction has
shifted from Mediterranean to Caribbean region. The Caribbean region is capitalized to be a
safe and terror-free travel destination. It is worth noting that despite 9/11 attacks, the SARS
virus and economic recession there have been raising trend in cruise tourism. The consumer
interest is continued to be strong despite high pressure on travel cost. The travel cost has
increased due to the economy and fuel costs
Figure 2: The top ten cruise geographical destination
1. Caribbean (41), 2. Mediterranean (19), 3. Europe (9), 4. Alaska (9), 5. Mexico-
West (8), 6. South America (6), 7. South Pacific (3), 8. Canada-New England (1) and
10. Bermuda (2).
Source: (CLIA 2007)
The recent trend shows that 77 percent of past cruise vacationer and 50 percent of
vacationer who is yet to express cruise experience, express interest to do so in next three

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years. As described in figure 2, Caribbean region, has high potential growth as the local
governments are developing and investing the large amount of money in building quality
infrastructures to attract the cruise ships and passenger arrivals. Few governments have
developed marketing strategy to encourage cruise line by paying them the monetary incentive
on arrival of each passenger. Moreover, marine and coastal tourism is the largest segment in
the tourism industry. The visitors after 9/11 attacks for economic convenience and security
opt for prepaid packages on cruise ships and resorts. The trend is expected to increase as
there is an increase in urbanized population particularly in US, Europe and Asia. The rise in
income of the middle class would like to seek nature and hence choose coastal cruise tourism.
The coastal region of Panama, Costa Rica is experiencing rapid development in marine
and coastal tourism because of the proximity with North America. The regions are also
known as vacation homes and are experiencing the boom of the coastal tourism and resort
developments. However, it has caused many environmental, social and cultural impacts on
coastal regions. In 2007, Costa Rica government took the initiative for sustainable tourism
development and for making the country carbon neutral by the end of 2023. The region has
high resort development in the Pacific Coast. The new variant to the latest trend in coastal
development is residential tourism. Currently, the development of resort complexes is the
hottest trend. However, the new model of combining resort with vacations homes has the
serious impact on environment and local community. The biggest challenges face by coastal
resort developer is on land ownership, displacement of locals, water, environmental
destruction and global warming (Global trends in coastal tourism, 2007).
The impressive growth rate in cruise tourism is expected to record 25 million cruise
passenger by 2015. However, the Asia Pacific market share is less but the trend is likely to
change as soon the barriers to entering the market will be removed by regulators. The climate

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and time of year are important factors in choosing a cruise destination. The Asia Pacific
region is a rare tourism destination but the volume of cruise tourists is constantly increasing
from last few years. The cruise tourism is segmented into four: luxury, premium,
contemporary and budget. The period 2006-2010 has seen the fast growth in contemporary
followed by luxury segment. The two segments hold the specialization in items of itineraries
and ships. Hence, this trend makes the cruise segment move up for the resort development
(Kim, 2012).
Impacts of cruising in coastal areas
Coastal areas are highly biodiversities transnational areas between land and seas. The
coastal area is surrounded by the richest ecosystems of the earth such as mangroves and coral.
Also, they are densely populated due to rapid urbanization process. The half of the world
population lives near coastal area. At the same time, coastal areas are a favorite destination
place. Moreover in much coastal area tourism is the most vital economic activity. For
example in Mediterranean region tourism is the only activity for its island like Malta, Cyprus,
etc. However, Cruise tourism has both positive and negative aspects on the environment,
economic and on society.
Economic analysis- Cruise tourism seems to have direct and indirect effect on the
economy of the region. The arrival of any cruise ship and passenger has the considerable
change in the destination and local communities. Cruise tourism is most likely to benefits
industries like transportation, tour operators, and specialist shops. The other business like
hotel, liquor stores and casino may not see significant gains from cruise tourism. Cruise lines
create direct economic impact, who sells goods and services to cruise vessel, passengers and
crew members. The expenditure of cruise is related to vessel, crew expenditure and support
services expenditure. The indirect contribution to government revenues are taxes, duties on

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goods and services, taxes on tickets, souvenirs, alcohol, restaurant, etc. In 2000, the total
revenue generated worldwide by cruise industry was US$16.4 million. The revenue from the
industry benefits the government and citizens of the country. The cruise tourism also creates
employment opportunities for the local people. The positive impact of sustainable tourism is
contribution to government revenues, increase in foreign earnings, employment generation
and business opportunities. However, in recent time cruise industry has become a lobbying
group in port destination by creating their private island property for each cruise line. The
community people are restricted to enter in these private islands and hence it reduces the
economic benefit for local tourism (Brida and Zapata, 2010).
Environmental Impact- Cruise tourism creates pressure on resources that are in short
supply such as energy, food, water and soil. A study conducted by British Airway has
exposed the environment impacts done by cruise tourism. To serve cruise line destination,
modification are done to the natural environment that result in loss of habitat and explosion
of local construction. The operational impact on the environment is accidental or deliberate
physical damage of marine ecosystems. The cruise tourism can lead to loss of biodiversity,
for example, competing with wildlife for habitat and natural resources. The various types of
waste and damage produced by 3,000-passenger cruise ship are:
Type of waste Description and damage for ship with 3000
passengers
Solid waste It is glass, paper, aluminum, steel cans
aboard a ship.
Blackwater It includes sewage water from toilets,
medical facilities. It also contains harmful

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bacteria and diseases. The damage accounts
for1500-3000 gallons per day.
Gray water - It includes waste generated from laundry
and cleaning activities. The damage done by
ship is minimum 90000 gallons per day
Bilge water and Hazardous wastes -Contains medical waste, chemicals, batteries
and others
Air pollution -Diesel burn produces harmful chemical in
air.
The other types of environment impact are degradation of irrigation land, erosion of soil
and destruction of plants and degradation of geological, historical sites. As per the report
from Oceana the fuel consumption of cruise ship is equivalent to 12000 vehicles. The spillage
and illegal dumping of waste by cruise ship contain toxic substances, organic residues that
adversely affect the sensitive areas considerably. However, the large proportion of legislation
on waste generated by cruise ships has been made a decade back. It is difficult to apply
legislation because many ship sale under flag of convenience. Recent, MARPOL convention
is introduced as a framework to prevent the marine pollution from ships. The MARPOL has
six annexes to regulate the dumping from ships. MARPOL for special ecological areas has
set strict criteria on waste dumping (Protecting the world’s oceans, 2013).
Social and Cultural effects- Cruise tourism has rapidly grown as the favorite type of
vacation space. In addition to economic displacement and health and ecological impact, the

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development of cruise tourism result in behavioral transformation. The largest social issue
faced by local community is change of local identity and values. Tourism has commercialized
the local culture, tradition, festivals to conform to cruise tourist expectation. To meet the
tourist expectation, the destinations are modified. The standardization factor damages the
beauty of diverse cultures. To adapt to tourist demands, craftsman make changes in design of
their product. It results in cultural erosion. The cultural clashes also arise because of
economic inequality. The destinations are at the risk of losing cultural authenticity in the
process of commercializing culture traditions. The local residents of destination Caribbean
have adopted the habits and patterns of the tourist. A common problem faced by many
destinations is people pollution. Nova Scotia, a small island destination experiences shortage
of public transport during peak season of visitors (Brida and Zapata, 2010).
Issues and challenges facing the cruise industry
Demand for innovation in shore excursions- The innovative shore excursion is in great
demand among tourist. The success of continuous growth in the cruise industry goes to
innovative shore excursions to attract cruise line and cruise passengers. Shore excursion is an
integral part of cruise experience; it helps the passengers to understand the destination visited.
Cruise lines often try to differentiate on providing distinctive itineraries according to
passenger preferences. Cruise line select port of call to meet the passenger expectation. In
recent years, the cruise lines are expanding shore excursions to match with the active lifestyle
of tourists. The tour operators are adding traditional activities such as nature walks and city
tours. The cruise industry has seen a dramatic increase in family cruising. Therefore, cruise
lines are continuously expanding the myriads activities and facilities. It is a challenge for the
cruise line to continue provides the new experience by creating innovative shore programs,
designs especially for cruise passenger and experienced travelers.

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Service standards- The future challenges for the cruise line industry is to continue
provide service that differentiate their brand from other cruise lines. The cruise line success
and reputation are highly dependent on the standards and the variety of on-board service
provide by a cruise vessel. The most common service is fine dining, spa facility, shore
excursions, entertainment offers and extraordinary services. As the cruise industry expands,
30-40 percent of experienced tourist expects the development and increase in the level of
service standards.
On-board revenues- The decline in cruise ticket prices is posing a challenge for the
cruise line to discover the new source of revenue. The cruise lines makeup revenue out of
impulse purchases by travelers at on-boards bars, the art functions or the stores. Providing
high variety of on-board service is crucial to the success of the cruise line. In recent years,
cruise line such as Sea Dream, River Sea is offering distinctive amenities in voyages. The
future challenge for the cruise line is to offer services that are compelling and different from
other brands.
Fuel saving and environment issues- The biggest challenge for the cruise industry is to
maintain a balance of cost, customer preferences, regulation and innovation in technology.
The great challenge and problem for the cruise line is raising fuel cost. The large cruise line is
very sensitive to the problem of fuel cost. The small ships are not much affected by rising
fuel prices as they spend less time cruising and burning fuel. However, many cruise lines are
looking at new fuel conservation measures. The cruise lines are now using software plans to
plan voyages and maximize fuel efficiency. The newly built cruise vessels save lot of energy
by equipping with flat-screen televisions and using LED lights in place of standard lights.
The environment challenges in the cruise industry are related to air pollution, black water,
wastewater, solid waste, hazardous disposal of chemicals and coral reefs.

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Creating demand ahead of supply- The increasing popularity of cruising vacation is
posing a challenge for land based tours. The cruise lines are facing scarcity of highly skilled
and experienced sales force to create demand for cruising. Hence, the healthy growth of the
cruise industry is dependent on the creation of continuous demand, high consumer
satisfaction rate and improvement in the economy (Challenges and Future Trends: Ports and
Passengers in Europe, 2007).
The European Union has identified some of the key challenges and problems faced by
coastal tourism: the private and public entities involved in coastal tourism lacks effective and
coordinated governance. Carbon Dioxide emissions issues drastically affect the coastal
regions and island destinations. The change in climate leads to increase in coastal erosion.
Hence, it requires high cost for coastal protection. The tourism infrastructure is at risk and
needs to be protected. The coastal tourism has limited availability of a specific sector related
information; also it restricts networking opportunities for SME in cruise tourism. The
challenge for the industry is a requirement of high skill people to meet the demand of visitors.
The coastal cruise tourism has harmful effects on marine tourism includes threatening of
habitat, exploitation of endangers species, marine littering and creating the problem of fresh
water scarcity. The increase in economic use of coastal and seas for aquaculture, energy
production and marine transport intensifies the competition for space.
The rising growth of cruise shipping sector is a challenge in terms of safety, security, air
emission, energy efficiency, and on-board waste and increasing port congestion. The Europe
is the most attractive cruise destination of the world, but the coastal infrastructures are not
adequate to meet the need of the cruise industry (European commission, 2013).
The continued growth in the cruise market requires cohesive approach from the tourism
industry. The challenges faced by sector are ensuring adequate infrastructure and transport

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facility for visitors, and regulating entry customs procedures at ports. Maintaining the quality
of onshore excursions and providing comfortable passenger transport into city centers are the
few challenges of coastal cruise industry (sector Marketing, 2014).
Currently, the cruise industry lacks a proper regulatory framework. The key problem is
that the system is insufficient to address above concerns. Presently, MARPOL 73/78, the
International Convention for the Prevention of Marine Pollution, establishes standards and
guidelines for cruise ships. The guidelines of MARPOL are insufficient for dealing with
waste generated by ships. Hence, it can be concluded that regulatory control instruments are
not sufficient to address environmental problems.
A major problem in the cruise industry is highly geographically and economically
concentrated representing few major corporation such as Carnival, Royal Caribbean and Star
Cruises. The lobbying power of corporate cruise giant has granted them tax incentives and
other savings that result in competiveness of cruise prices (Caribbean Cruise Ship Tourism
and the Environment: a Policy Proposal, 2010)
Recommendation
It is recommended to adopt a new model or approach to sustainable coastal tourism
development. Tourism is the fastest growing industry in the world. It is an important source
of revenue, employment generation and wealth in many of the countries. However, the rapid
expansion of industry has detrimental impacts on environment and social-cultural in many
regions. Coastal tourism is the important segment of the tourism industry. The key product of
coastal cruise industry is natural resources. The primary aim of sustainable tourism is to
promote triple bottom-line focused business. The purpose of sustainable practice is to prove
all sectors of industry with establish guidelines that seek to reduce the negative impact of the

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industry. Through generating sustainable coastal tourism practice the impact on the
environment, socio-cultural and economic can be minimized.
The environment impact can be minimized by generating sustainability as follows:-
Investment in Waste Management Technology- The cruise produce the massive amount
of waste in the seas, it is important that they soon implement the effective waste management
systems to minimize the negative impact on the environment. The investment in waste water
treatment such as ULTRA-SEP 10000 is one of the solutions to eliminate the problem of the
large amount of waste water released in the ocean. The system processes ten cubic meters of
bilge water per hour. The system is now carrying certification from United States Coast
Guard. The companies such as PyroGenesis Inc. have developed a plasma energy technique
that converts wastewater into gas and is then fully treated in a separate chamber before
releasing it. The impact on the environment will greatly be minimized if all cruise line invests
in such technologies.
Developing Environmental programs- The cruise line should adopt aggressive
environment programs of waste reuse and recycling, waste stream management and programs
on shore side disposal. However, many cruise lines have introduced environment programs
on board that are in compliance with environment standards set by International Maritime
Organization (IMO), MARPOL and International Council of Cruise lines (ICCL). The cruise
line should build programs and implement the best practice to eliminate the waste from the
ocean.
Urgent requirement of Certification- An immediate need for governments, NGO, and
business and communities is present to adopt sustainable tours practices. Therefore, it is
necessary to develop certified programs that can apply to all coastal regions. The certified

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programs will ensure the public that the cruise line are meeting the stringent environment
standards. It will create a competitive advantage for the cruise line in the form of improved
community relations and increase in goodwill of corporate. The certification program will
decrease the chance of lawsuits on cruise corporations. Certification programs are essential to
encourage consumers for sustainable production and consumption practices. Till now, there
are 60 environmental certification programs providing sustainable practices.
Community Involvement and development- Coastal tourism is a positive phenomenon
that binds people and community in the islands. It is essential to involve local communities
for the success of sustainable tourism. The development of community is the cornerstone of
any sustainable cruise tourism endeavor. The key component of community development is
to provide sufficient physical infrastructure to attract tourist and simultaneously benefitting
the local community. The local community and civic should fight for the preservation of the
environment. Cruise line should redistribute the benefits generated by business with local
community.
Education and training to visitors and local- It is important to educate visitors and local
to respect the local heritage, values, tradition, crafts and arts. The culture and tradition of the
coastal region can be preserved only through sustainable management of natural resources.
Developing long term goals- The government of coastal regions should develop a long-
term vision of tourism in their respective islands. The government should work on the new
source of revenue for the country and should not rely only on tourism for economic
development.
Conservation of resources-The aim of sustainable tourism is to maximize benefits for all
stakeholders. The number of traveler support environment programs that minimize pollution,

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waste and energy consumption. The travelers by helping cruise industry can preserve natural
resources and continue enjoy the exponential growth of the industry.
Expansion of local business opportunities- The collaboration of the cruise line with local
business provides an opportunity to the indigenous community to participate in the tourism
industry (Sustainable tourism and the Cruise line industry 2005).
Benefits of sustainable coastal tourism
There are numerous benefits of sustainable coastal tourists. The sustainable coastal
tourism contributes to government revenues, generates foreign exchange earnings,
employment generation and contributes to local economies. The social-culture benefits of
sustainable practice are an initiative to strengthen communities, improves the preservation of
culture and traditions. The sustainable tourism encourages social involvement and stimulates
feeling of pride in local residents for national heritage. The sustainable practices benefits
visitors in the form of unspoiled nature, clean environment, and safety and ensure authentic
local culture and traditions. The sustainable tourism contributes directly to conservation of
natural resources and habitat (Sustainable Development of tourism 2012).
Conclusion
Hence, it can be concluded that cruise tourism is the largest generator of revenue and
jobs in the world. However, the cruise industry puts strain on the natural resources of coastal
regions. The pressure is evident in all areas such as environment, social and the economy.
The negative impact across all areas becomes essential for the cruise industry to adopt
sustainable practice for long-term success. The significant growth in the industry and number
of visitors makes it necessary for all stakeholders to adopt sustainable practices. In the
future, it is expected that more than 10 million people will travel by cruise. The cruise

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industry is growing by 6.6 percent. It is one of the favorite segments of tourism. The cruise
industry has made a significant impact on natural and cultural systems. Hence, it is essential
for the industry to develop practice that minimizes the harmful impacts. Recently,
governments, NGO, business local community have partnered to develop environment-
friendly programs. As discussed in the research, the key recommendations will further guide
the progress of industry are: advancement in technology and creating mutually cooperative
relationship among all stakeholders. The collaboration among all parties is necessary for the
success of any sustainable tourism initiative. The governments and organization are
recommended to establish a code of conduct for tourism at all levels. The state should
develop similar programs and initiatives for ensuring consistent practice around the world.
Hence, it is critical for the cruise industry to make substantial changes in the business
processes so as to maintain the well-being of local residents and their natural resources.

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References
Brida, J. And Zapata, S. (2010). Cruise tourism: economic, socio-cultural and Environmental
impacts. Int. J. Leisure and Tourism Marketing, 1 (3), 205-226.
Caribbean Cruise Ship Tourism and the Environment: a Policy Proposal. (2010). Retrieved
October 19, 2014, from http://cynthiaord.com/wp/portfolio/2010/11/08/caribbean-cruise-
ship-tourism-and-the-environment-a-policy-proposal/
Carll, H. (2011). Cruising Tourism Environmental Impacts: Case Study of Dubrovnik,
Croatia. Journal of coastal research, 61, 104-113.
Challenges and Future Trends: Ports and Passengers in Europe. (2007). Retrieved October
19, 2014, from http://www.port-net.net/studies/pdf_s/study_04_5.pdf
European /commission. 2013. Retrieved October 19, 2014, from http://ec.europa.eu/smart-
regulation/impact/planned_ia/docs/2013_mare_005_coastal_tourism_en.pdf
Florida Caribbean Cruise Association FCCA. (2008). Cruise Industry Overview. Retrieved
October 19, 2014 from http://www.f-cca.com/research.html
Global trends in coastal tourism. (2007). Retrieved October 19, 2014, from
http://www.responsibletravel.org/resources/documents/reports/Global_Trends_in_Coastal
_Tourism_by_CESD_Jan_08_LR.pdf
Kester, J.G.C. (2002). Cruise tourism. Tourism Economics, 9 (3), 337–350.
Kim, C. (2012). Cruise tourism Current situation and trends in /Asia and Pacific. UNWTO
Asia Pacific Newsletter, 25, 4-42.

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Orams, M. (2002). Marine Tourism: Development, Impacts and Management. USA:
Routledge
Protecting the world’s oceans. (2013). Retrieved October 19, 2014, from
http://oceana.org/sites/default/files/o/fileadmin/oceana/uploads/europe/reports/cruise_ship
s_eng.pdf
Sector Marketing. (2014). Retrieved October 19, 2014, from
http://www.tourismnewzealand.com/sector-marketing/cruise/
Sustainable Development of tourism. (2012). Retrieved October 19, 2014, from
http://sdt.unwto.org/en/content/coast-project
Sustainable tourism and the Cruise line industry. (2005). Retrieved October 19, 2014, from
https://extranet.kenanflagler.unc.edu/kicse/ORIG%20Shared%20Documents/Sustainable%
20Tourism%20and%20the%20Cruise%20Line%20Industry.pdf

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