The Bahamas is moving to increase cruise ship passenger spending in the island this year, as new data shows a big drop in passenger spending in 2019 with the trend continuing in 2020 with COVID-19. 

The Bahamas is targeting a US$400 million increase in annual cruise passenger spending, which comes against the revelation that more than 40 per cent of cruise ship passenger spent less than US$50 in the capital, Nassau during 2019 and even less during the COVID-19 period when cruise shipping was halted.

The additional $400 million in spending by cruise ship passengers in Nassau being targeted, is projected to be generated by increasing the average per capita spend by cruise passenger by US$100 per head. 

Data from The Bahamas’ Ministry of Tourism for 2019 revealed that 43 per cent of cruise passengers, who disembarked in Nassau/Paradise Island port – more than four out of ten – spent less than US$50 during their visit to the island.

Eighteen per cent or almost one-fifth of the passengers ended up spending less than US$20 after leaving the ship. 

The Cruise Expenditure Survey Brochure, produced by the Ministry’s Research and Statistics Department revealed that the average per capita spend by cruise passengers in 2019, the last full year prior to the COVID-19 pandemic, was lower than it had been six years earlier in 2013.

The data showed that the average per capita spend, was on the way up prior to COVID-19. 

Redeveloped Nassau cruise port catalyst for increase passenger spending 

Nassau Cruise Port executive Michael Maura told The Nassau Tribune that the redeveloped cruise port in Nassau with its focus on local culture, history, food and entertainment will help achieve this increased per capita passenger spend while also enticing local residents back downtown at night.

He revealed that the number of cruise ships wanting to overnight in Nassau in 2022 was ten times what the cruise port had enjoyed in any previous year. 

Maura attributed this to the value being added by the cruise port’s redevelopment adding  “What I mean by that is Nassau as a destination has been competing with St Maarten, where the reported passenger spend was getting close to US$200 per passenger and the US Virgin Islands, which was over US$150-US$170 per passenger. We felt one of the reasons a transformation was required for Nassau’s harbour and cruise facility was that we kind of need to freshen up, and offer those passengers something new and interesting.” 

The port executive advised that Nassau’s cruise port is a catalyst for property owners and business owners on Bay Street to invest in their businesses and keep pace with the brand new facility that the port will be in a year’s time.

“We do believe that collectively as a destination we can get more from those passengers and, more importantly, those passengers get more value from us through the investments we’re making,” Maura told The Nassau Tribune.

The Tourism Ministry report was silent on how many cruise passengers remain onboard their vessels while docked in Nassau, concentrating only on those that disembarked and the 10.3 per cent increase in total spending in the Bahamian capital to $325.78 million in 2019.

Most of that latter figure was lost in 2020 due to the cruise industry’s nine-month shutdown from mid-March. 

Working with the wider tourism industry 

Maura added that the Nassau Cruise Port would work with the wider tourism industry to more than double passenger spend.

“Our objective is to encourage every passenger to spend $100 more than they’ve historically spent, which will get is closer to what those ports in St Maarten and St Thomas have enjoyed. If we are successful, what that means as a destination once we get close to four million passengers per year, that’s a $400m increase in spending per year. That’s our goal, but I think it will take a few years. We’ve got to get the port completed and we have to support our partners downtown,” Maura explained.  

In concluding, Maura pointed out that Nassau Cruise Port’s upgrade is focused on “this theme of authentically Bahamian”, and supporting “unique” products and services offered by others that “can only be found in The Bahamas.

“We really want to create an exciting and enjoyable destination, especially at night, to get people to come downtown at night. By doing this, it will help merchants and vendors downtown and give them confidence to reinvest in their businesses and reinvest in downtown.”