Cruise Ship Industry in Texas
The cruise ship industry is a year-round vacation option that has a positive economic impact. This industry has grown each year for over 20 years. During the interim (2016), the Texas Legislature developed a Joint Interim Committee, composed of House of Representative and Senate members, to study the cruise ship industry’s impact. The Committee also included a study on the projected growth of cruise industry in Texas and the economic impact it could have.
Nationally, the cruise industry currently serves 13.6 million passengers annually. The Interim Study Report projects the number of passengers per year will increase to over 20 million and up to 24.5 million people by the year 2036. Texas, Louisiana, and Florida make up the Gulf/Caribbean Region of the cruise industry. This Region served 9.7 million out of the 13.6 million passengers last year. Also, 48% of the cruise passengers reside in this region.
Texas has one major port for cruise ships in Galveston. This port has seen continuous growth each year. In 2010, the Port of Galveston served approximately 900,000 passengers. In 2016, this port served over 1.7 million passengers. 1.1 million of those passengers are Texas residents.
Population growth, a strong consumer market, and good air and roadway connections are projected to drive significant growth in the Texas cruise industry. The Interim Study forecasts the number of passengers to grow from 1.7 million passengers annually to 3-4.6 million passengers annually by 2036.
To enable this projected growth, Texas must develop another cruise home port. There are several benefits of having another cruise port. Another port could provide better access to ships, enable the industry to meet the demand, and create openings for other markets. It also provides competition to other cruise lines allowing diversification in opportunities for the consumers, cruise lines, and itinerary planners. The Texas cruise industry created over 22,600 jobs and produced $1.42 billion in job income. The projected growth will greatly increase these opportunities, as well.
Another cruise ship port will stimulate more positive economic impact across Texas. Cruise passengers and crew members spend money at all stops before and after a cruise. Homeport passengers typically spend $105, overnight passengers spend over $250 prior to embarkation, and the crew members spend around $30 prior to each embarkation. A weekly cruise ship with 3,200 passengers produces around $100 million per year in a community and state. Last year, the Texas cruise industry generated $1.33 billion in direct spending benefitting the state overall.
If you have questions regarding any of the information mentioned in this week’s article, please do not hesitate to call my Capitol or District Office. Please always feel free to contact my office if you have any questions or issues regarding a Texas state agency, or if you would like to contact my office regarding constituent services. As always, my offices are available at any time to assist with questions, concerns or comments (Capitol Office, 512-463-0672; District Office, 361-949-4603).
– State Representative Todd Hunter, District 32
Rep. Hunter represents Nueces County (Part). He can be contacted at todd.hunter@house.texas.gov or at 512-463-0672
