Monday, May 13, 2013

Cruise Ship Financial Impact

Estimates Contradicted By Experience

The local Daily had a front page story about the boost the city sees from cruise ship tourists. In that article Port Authority boss, Bernie Dumas is quoted as saying visitors are expected to spend between $60 and $70 during a visit to Nanaimo.

The article then claims the expected economic impact to hit as much as $700,000 with an estimated 8,800 cruise ship tourists visiting this week. In what can be classed as 'typical' of the guesstimates we hear about economic impact the simple math of these statements just doesn't add up. At $60 per each of 8800 visitors the total spend would be $528,000 while a $70 spend per each visitor would be $616,000. This is somehow rounded up to $700,000 for the purpose of explaining the value of cruise ship visitors.

Comparing the Estimates From NPA With The Experience

In the same article the Daily reports the experience of a few random tourists their reporter interviewed. Their claim of what they spent comes nowhere near close to what Mr. Dumas claims.

A couple from Philadelphia said they drove around and went shopping, but did not buy anything. They described the city as a big empty port, reminding them of a quaint, small fishing town.

Another couple from Atlanta said their purchases included coffee, a granola bar and a book. They commented that travelers are not likely to purchase food either, as the food on the ship is of such high quality and of course if free, as part of the cruise.

There is an old principle in the retail business, and that is you can not sell from an empty shelf. Through the eyes of a tourist I have to wonder what they see on the Nanaimo retail 'shelf'. Since there is also only one chance to make a good first impression, I wonder just what impression we are making as passengers disembark and are greeted by our less than inviting industrial waterfront yards.

allvoices

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