Cabinet Approves Cruise Berthing Referendum

By: Public Relations

Cabinet has granted approval for a referendum to determine whether cruise berthing infrastructure should be provided to support the cruise industry in the Cayman Islands. This decision is based on the need for government to address the ongoing reduction in cruise passenger arrivals and the knock-on effects impacting Caymanian owned businesses and the local economy.

Since cruise ships returned to the Cayman Islands in 2022 following the end of the pandemic, cruise passenger arrivals have significantly declined, registering 743,394 for the nine-month period that the port was open in 2022 and 1.2million for the full year in 2023 – the lowest passenger arrivals in over two decades.

From January to June 2024, a total of 634,212 cruise passengers arrived aboard 197 ships, which is a further decline of 108,341 passengers compared than the same period in 2023 and 37% less than the corresponding period in 2019.

The Cayman Islands cruise sector is predominantly serviced by Caymanian-owned small and micro businesses and employs a higher ratio of Caymanian entrepreneurs in public transport, watersports, retail and tour operations than the stayover tourism sector. These businesses have invested significantly in inventory, human resources, service contracts, and fleets of boats and buses, hoping for a rebound to pre-pandemic levels of cruise tourism. The stark decline in visitor numbers, as well as having an adverse effect on these businesses, is also negatively impacting government revenues earned per passenger from departure tax.

Cruise lines have expressed that passenger numbers could be expected to decline without berthing because the turnaround time required to transfer passengers from ship to shore via the current tender operations was impractical. Additionally, cruise lines have moved on from the Oasis class ships to the newer, larger Icon class which carry more guests, making the transfer of passengers by tender completely unfeasible.

Minister for Tourism and Ports, Hon. Kenneth Bryan, who has consistently advocated for a referendum to give voters the chance to record their view on the matter said, “In the absence of a definitive decision on the question of cruise berthing it is near impossible to craft a viable cruise tourism policy that directs the industry over the long term, or to provide any meaningful guidance to those servicing the cruise sector. Consequently, a core decision from the people of the Cayman Islands is required to facilitate future strategic planning for the cruise industry.”

The Minister went on to state that ‘Although it is evident that cruise berthing is a critical part of infrastructure needed to support the cruise tourism sector in order for its viability, this decision cannot be made without first obtaining the electorate’s views on the matter”.

No date has been set for the referendum, but it is anticipated that it will be held before the end of year.