Cruise terminal referendum to be held by end of 2024: Cayman News Service

(CNS): As the Ministry of Tourism and Ports pushes for a new cargo terminal, the government announced late Wednesday that it will hold a referendum on whether the Cayman Islands should also build a cruise port, possibly before the end of the year. Referendums in other countries are often held at the same time as elections to save money. However, while the next general election in the Cayman Islands is not until April next year, UPM has apparently decided to hold this vote separately.

The government’s press release highlighted the decline in cruise passenger numbers and the impact that this has had on small business owners who rely on the cruise industry, and made it clear that Tourism and Ports Minister Kenneth Bryan supports the construction of a cruise terminal – because he is New cargo terminal.

“While cruise berths are clearly critical infrastructure necessary to support the viability of the cruise tourism industry, we must first consult with our constituents before making this decision,” he said in the release.

However, many welcomed the reduction in the number and size of cruise ships visiting Grand Cayman and believed that to help affected business owners, the government should help renegotiate the proportion of tours and attractions paid by cruise lines, which currently take the lion’s share, leaving travel agencies struggling to earn scraps.

The release stated that cruise passenger arrivals have dropped significantly since cruise ships returned to the Cayman Islands after the pandemic ended in 2022. During the nine months that the port was open in 2022, cruise passenger numbers were 743,394, and for the full year of 2023, there were 1.2 million passengers, which is the lowest passenger arrival number in more than two decades.

A total of 634,212 cruise passengers arrived aboard 197 ships from January to June 2024, a further decrease of 108,341 passengers compared to the same period in 2023 and a 37% decrease compared to the same period in 2019.

The release states that Cayman’s cruise industry is primarily serviced by Caymanian-owned small and micro businesses, with a higher proportion of Caymanian entrepreneurs employed in public transportation, water sports, retail and tour operations than in the overnight tourism industry.

“These businesses have invested heavily in inventory, human resources, service contracts, and fleets of ships and buses in the hope that cruise tourism will return to pre-pandemic levels,” the release stated. “The dramatic drop in visitor numbers has not only adversely impacted these businesses, but also negatively impacted the government’s revenue from the departure tax on each passenger.”

It also cited the threats made by major cruise lines for years that passenger numbers would fall further without berthing facilities because the turnaround time required to transfer passengers from ship to shore by dinghy would be impractical.

They also point to the cruise lines’ tendency to build larger ships with more than 6,000 passengers, which they say would make passenger transfers via tenders completely unfeasible. Many ports in Europe In particular, due to issues such as pollution and a decline in the quality of life for residents, cruise ships are being restricted or banned altogether.

Minister Bryan Always advocate for a referendum Giving voters a chance to have their say on the matter, he said, “In the absence of a clear decision on the issue of cruise ship berthing, it will be virtually impossible to develop a viable cruise tourism policy to guide the industry in the long term or provide any meaningful guidance to those who serve the cruise industry. Therefore, a core decision is needed from the people of the Cayman Islands to facilitate strategic planning for the future of the cruise industry.”