Joint Interim Committee on Cruise Ship Development Holds Hearing
Thursday, August 25, the Joint Interim Committee on Cruise Ship Development will meet in Corpus Christi to discuss the potential economic benefits of establishing a cruise ship industry in South Texas. As chairman of the committee, I have the privilege of working to bring this important industry to South Texas as well as to highlight the many economic growth opportunities that exist in our area. Along with the significant population in the region and its surrounding areas, the Texas coast offers a robust tourism industry, a wealth of natural resources and a number of ports which could be used to host a cruise ship line. Moreover, as one of the fastest growing areas of the state, South Texas is in a unique position to benefit from – as well as support – the development of a cruise ship industry in the area.
As a reminder, the Speaker of the House assigns each committee interim charges outlining the policy objectives for each committee. In certain cases, a special joint interim committee consisting of members from both the Texas House and Senate is formed to study a specific subject matter or legislative proposal. Together with the Lt. Governor, the Speaker of the House appointed the Joint Interim Committee on Cruise Ship Development to identify the different options that exist for developing a cruise industry in the South Texas area between Calhoun County and Cameron County. As part of this discussion, the committee will review the impact that expanding the state’s cruise ship industry might have on the Texas economy. According to a 2015 report released by the Cruise Line International Association (CLIA), the largest cruise industry trade association, the cruise ship industry has grown 68% in the last decade, making it one of the fastest growing segments of the tourism economy. The CLIA reported that in 2014, the cruise industry contributed $21 billion in direct spending to the United States economy and accounted for 373,738 jobs and $19.4 billion in wages.
In Texas, the cruise industry generated $1.3 billion in direct spending as well as over 22,000 jobs and $1.4 billion in wages and salaries in 2014. Of the $1.3 billion in total direct spending, tourism-related industries such as travel agencies and hotels received $569 million. In addition, $481 million of the overall spending was spent on businesses categorized under six additional industry segments, including food processors, advertising agencies, machinery manufacturers and petroleum refiners in the manufacturing sector, management and technical consulting companies in the non-manufacturing sector, and insurance carriers. The other remaining industries that saw a positive economic impact included wholesalers of products that were purchased by the cruise lines, software publishers and communication companies, apparel manufacturers, and navigation equipment.
According the report, these numbers make the Texas cruise industry the third largest in the country behind Florida and California. However, it is important to note that Texas has only one active cruise ship terminal located in Galveston. By comparison, Florida is home to five active cruise ship terminals while California has four active terminals. As such, one of the major discussion points of the upcoming hearing will be how the addition of a second cruise ship terminal located in South Texas would benefit the state’s economy.
I look forward to showcasing the strong benefits of bringing the cruise industry to the Coastal Bend during the upcoming hearing. To find additional information visit the Joint Interim Committee to Study the Development of a Cruise Industry. If you would like to learn more about the cruise industry, please feel free to visit the Cruise Line International Association.
If you would like to follow the Texas House and learn more information on news, committees or other aspects of the legislative body, visit Texas House of Representatives. The site features live streaming from committee hearings as well as access to a number of other resources. You can also follow the Texas Senate.
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. 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 (Part) County. He can be contacted at todd.hunter@house.state.tx.us or at 512-463-0672.
