11/02/12, 00:43:08 EST

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Portland sees cruise ship surge

morningsentinel.mainetoday.com

Ken Kantro and other merchants in Portland's Old Port noticed more customers coming from cruise ships this year than ever before -- and they had plenty of money to spend.

"We are all pleased," said Kantro, who owns Lovell Designs, a jewelry store on Exchange Street. "It enables us to stay in business and pay our employees."

City statistics confirm the merchants' observations. This year, 32 cruise ships called on the port, carrying 48,768 passengers, an increase of nearly 18,000 from a year ago. The total broke the previous record of 45,225 passengers, set in 2005.

City officials say that next year is sure to bring even more passengers. Thirty-one ships have already booked for the 2008 season.

Portland's cruise business surged even though it was a down year for the industry in the North Atlantic market, which includes New England, Quebec and Canada's Maritime Provinces, said Amy Powers of CruiseMaine USA, which helps Maine's 12 ports market themselves to the industry.

Other Maine ports did well this year, with several seeing more ships than ever. Statewide passenger statistics are not yet available, but a record number was expected, based on advance bookings.

Ninety cruise ships visited the state's top cruise ship destination, Bar Harbor, nearly a 25 percent increase from last year. Belfast, Bucksport, Camden, Castine and Rockland, served by the small ships of American Cruise Lines, each drew a record number of vessels.

"Overall, we are doing very, very well as a state," Powers said.

Powers said Maine is benefiting from its proximity to East Coast population centers. The rising cost of fuel is becoming a major concern for cruise lines, she said, and shorter itineraries lower that cost. Also, many passengers don't want to travel too far from home.

Worldwide, 84 percent of the 12.6 million people who were expected to travel on cruise ships in 2007 live in North America, according to the Cruise Lines International Association.

"Americans are comfortable cruising to American ports," said John Henshaw, executive director of the Maine Port Authority, which spends about $70,000 a year to market the state to cruise lines.

Portland is reaping the benefits of an improved marketing campaign that focuses less on advertising Portland's appeal and more on the amount of money the lines can save by calling on Portland, said Jeff Monroe, the city's ports and transportation director.

In the past, he said, cruise lines created itineraries based on key ports that they believed would sell the best. Some of the ports were so far apart that a ship had to travel full-speed to make a port by nightfall, Monroe said.

He said Portland worked with other ports, particularly Halifax, to develop new itineraries that let cruise lines call on the same number of ports but travel at slower speeds so they can reduce fuel costs.

"We were able to say, 'There is a better way you can do this,' " Monroe said.

In some cases, the savings amounted to $400,000 over a four-week period, said Sandra Needham, executive director of Discover Portland & Beyond, a nonprofit organization that markets Portland to cruise ship lines.

The group was created three years ago. The city pays for half of the $50,000 annual marketing budget. The rest is funded by a coalition that includes the Convention & Visitors Bureau of Greater Portland, the Portland Downtown District, the Freeport Merchants Marketing Association and the Kennebunk-Kennebunkport Chamber of Commerce.

The state of New Hampshire joined the coalition this year. Many cruise ship passengers take trips to the White Mountain National Forest and ride the Cog Railway up Mount Washington.

Powers, of CruiseMaine, said cruise ship visits are likely to continue to increase statewide.

Visits to Portland are expected to increase after the city redevelops the Maine State Pier, she said, and Royal Caribbean Cruise Lines is adding Rockland to its schedule for 2009. The company plans to have Grandeur of the Seas and Jewel of the Seas, both of which carry about 2,500 passengers, visit Rockland once each that year.

Big cruise ships haven't visited Rockland before, and other cruise lines will likely follow Royal Caribbean's lead and put Rockland on the schedule, Powers said.

Rockland does not have a deep-water berth, so the ships will have to anchor in the harbor and send passengers ashore on tenders, which is done in Bar Harbor. Powers said the midcoast has a lot of potential as a cruise ship destination because the region offers many options for tourists.

Monroe said a major cruise line is considering using Portland as a home port for a large vessel in 2009. He declined to name the company.

Monroe said the city's pitch highlights the increased availability of low-cost air service at the Portland International Jetport, the port's lower fee and labor costs, and the port's proximity to Portland's airport and train station.

In addition, Portland is closer to Canadian destinations than the ports of Boston and New York, which are Portland's competitors for the lucrative home port business.

Serving as home port would generate more money for the city, Monroe said. Last year, cruise ships paid about $340,000 to the city for fees and services. In addition, a cruise ship line buys supplies such as food and fuel from businesses in its home port city.

 Printable Version  | published Nov 27, 2007