Miller: "There was another six months of study and outreach before we published our plan for a new cruise terminal in the middle of the historical district."

Pineault: “The local community has been very receptive to the cruise sector so far"

Download the entire Spring 2011 issue of Dream World Cruise Destinations.

Spring 2011

Public relations is a local imperative for cruise destinations

Tony Peisley reports on port and destination PR, learning that spreading the good word about the cruise sector is a local as well as a global imperative.

Tony Peisley reports on port and destination PR, learning that spreading the good word about the cruise sector is a local as well as a global imperative.

“Maine is a state which is rightly very aware of the need to conserve and protect the environment,” says CruiseMaineUSA Coalition Director Amy Powers, “but there are some conservation and environmental groups out there which spread ill-informed propaganda about cruising and other tourism.
“The media pick up on this, and can influence public opinion – and then we see administrations coming up with new priorities which change their relationship with us and with the cruise industry.”
The problems that cruising’s growth and consequent higher profile has created by attracting the heightened attention of environmental lobby groups and the regulators has been increasingly well documented on a global level – as have been the efforts of Cruise Lines International Association (CLIA) and the European Cruise Council (ECC) to fight the sector’s corner.
But less well appreciated is that individual ports and destinations are facing similar issues at a local level. It is becoming clear that they – either separately or as part of a regional grouping – also need a strategy to pre-empt similar problems as they grow their own cruise traffic.
CruiseMaineUSA’s experiences, and those of other cruise ports in North America, are not yet those of every destination – but there are still lessons to be learned for others which are in a similar situation, or may be in the near future.
Last year’s events at the CruiseMaineUSA member port of Rockland was a case in point.
“Some of the people in a new administration there had chosen to take the information on the cruise sector from ill-informed sources,” says Powers. “The result was a move to raise fees and to impose a restriction on the number and frequency of calls made by large- and medium-sized cruise ships.”
Initially the problem was the sudden raising of the per-passenger fee from $1 to $6 (including a new $2 charge to help fund waterfront development). It affected what would be only the second call at the port by Royal Caribbean International’s Jewel of the Seas – which was scheduled for October 2010 on the understanding that the fee was $1.
After some heated exchanges the new higher fee was waived for this one call and then, after representations from the local business community led by the Penobscot Bay regional Chamber of Commerce, the restrictions on large/medium ship calls were dropped by the city council after a narrow three-to-two vote.
“There is now a new mayor and administration in Rockland, which is moving forward in support of the cruise sector,” says Powers, “but damage was definitely done by the whole episode.”
Chamber of Commerce Director Shari Closter says she was concerned about the “negative thought process and assertions made about the cruise ships in the community”, pointing out that the larger vessels were “an important tool for economic development”.
“We look at what happened in Alaska and see how precarious the position of a cruise destination can be,” says Powers.
The cruise port of Charleston appears to have recognised that same fact, not surprisingly given the way the more vocal, extremist end of the environmental lobby seems to have been given free rein in the op-ed pages of the local newspaper (The Post & Courier).
In fact the whole tone of its reporting of the sector could hardly be described as positive. Some sample headlines during 2010 give the flavour: “Smoke from Charleston’s cruise ships is a cause of concern”; “Parade of cruise ships causes concern”; “Some see economic boom, others see unwelcome invasion”.
And this comment from one contributor (a Charleston physician) appears to sum up a view held by at least some of the local community: “I’d like to be able to marvel at the occasional cruise ship instead of having it morph in my mind’s eye into a sickening vulture picking away at Charleston’s historic flesh.”
Or does it?
A strictly unscientific scan through the online forums that follow the newspaper’s stories suggest a majority supporting the cruise sector for its economic benefits and arguing that the pollution accusations are misdirected.
This is certainly the view of South Carolina State Ports Authority (SCSPA) Marketing, Public Relations and Planning Director Byron Miller who believes that there is wide local support for the sector in Charleston. He says the SCSPA has taken all possible steps to keep the locals onside as the port grows its cruise traffic.
“We started 18 months ago with a plan for a new terminal at Union Pier. We have had our existing terminal for about 38 years.
“In 2002 we started getting regular turnarounds (from Norwegian Cruise Line) in addition to port-of-call visits, but these were seasonal – maybe 35 a year. So when Carnival Cruise Lines announced it was going to homeport here year-round from 2010, we knew it was going to put us into a different league.”
The port handled 67 cruise calls in 2010 and expects 89 in 2011, significantly increasing the level of economic benefit from the most recent annual figure of $37 million (plus 400 jobs) in 2010. This should also increase cruising’s current 8% contribution to the port’s revenues.
“We carried out an internal analysis on how we could improve our existing terminal to handle the extra traffic but then decided we needed a master plan for the whole port area,” says Miller.
“We held public meetings at which it was suggested to us that we look at all our land and property, which covers 60 acres.
“There was another six months of study and outreach before we published our plan for a new cruise terminal in the middle of the historical district.”
This will involve converting an existing warehouse, relocating all cargo and freight train operations away from that district, opening up public access to the waterfront and reclaiming the natural shoreline.
“The year-long outreach included 70 public meetings with up to 200 people coming along. They were split about 50:50 between those very interested in seeing the cruise business grow and those who had some level of neighbourhood concerns.
“We also invited groups, including historical preservation ones, to come and see the current terminal and how it operates.
“Also, in addition to putting information on our website, we mailed several thousand downtown residents to come to the meetings and/or send in their comments. They were also sent updates on what is happening in the cruise business.” Elected officials and neighbourhood leaders were invited onboard visiting ships to witness the environmental management programmes in operation.
“We heard some concerns from special interest groups – often those with very narrow agendas – and, although we were able to deal with some on traffic or noise issues, others are just simply opposed to the cruise business per se,” continues Miller.
“Overall, though, we have been encouraged by the neighbourhood input and last year we set up the Cruise Neighbors Advisory Council, consisting of five neighbourhood associations and a regional association. All have been exceptionally supportive of our plans.”
This proactive stance appeared to have paid off when the terminal plan received the unanimous endorsement of the city council, and it should be operational late next year.
But if anyone thought that any cruise tourism development plans are home and hosed in Charleston, they were quickly disabused at the end of 2010 when the Historic Ansonborough Neighborhood Association passed resolutions recommending the city regulate the cruise industry and limit homeporting calls to two a week, using such emotive language as “How many ships and passengers are appropriate to dump on Ansonborough?”
At the same time the Southern Environmental Law Center came out against having the cruise terminal at Union Pier and complained – in The Post & Courier – that the port’s response that “if sued, it will yank the entire overdue plan to redevelop the site” represented a threat.
“There are a couple of rabble rousers who can create a lot of noise, but they are the minority,” says Miller. “A local pollster has assured me that 99.9% of the public would prove positive about the cruise business, even if they do not fully understand everything about how it works.”
Part of the challenge is to educate them, which is why the port has an open-house media policy.
“Charleston has three major network affiliates, a daily newspaper and a daily business publication. Anyone from these is welcome to come down and see that the terminal works well for the business we have, but that it was built for a different time. We need a new facility to serve the next 30 years.
“Local retail groups are very keen on the cruise business as they recognise that we are importing wallets into the local economy.”
The 2010 economic impact study commissioned by the SCSPA was designed to highlight this. The study showed that two-thirds of passengers visiting Charleston as a port of call visited the city, half of them on organised tours and half independently. Spending by all passengers (embarking as well as transit) was $5.5 million, while crew spent $2.6 million and the cruise lines $14.1 million. Nearly 80% said they would be likely to return and 90% said they would recommend the city to friends and relatives.
Embarking passengers spent $1.1 million on hotels, with 45% of them choosing to overnight in the city.
“Hoteliers are generally supportive,” says Miller. “We also know from the surveys that the ships are bringing in many (44%) first-time visitors to Charleston, and serve as an introduction to the city which will encourage passengers to return for a longer stay.
“There are one or two hoteliers who say they do not see the benefits; but when we check the statistics we see that our passengers stay in their hotels, too.”
CruiseMaineUSA has also been very proactive in the communities of its 12 port members. Part of Maine Tourism, and with a range of associate members including airlines, the media and government departments, it has been a separate association for nine years – during which time its ports have seen their combined total of cruise calls more than double, including an 18% hike from 281 in 2009 to 332 in 2010. Passenger numbers were up last year, too – rising 16% to 267,000.
Bar Harbor remains the busiest, topping 100 calls for the first time in 2010, while Portland remains second with its calls having doubled since 2003 to more than 70 last year, bringing 76,000 passengers. It also has American Cruise Lines homeporting two of its coastal cruise ships.
Maine was one of only five US states to see economic impact from cruising rise during 2009, when numbers generally slipped back as cruise deployments switched from North America to Europe.
“Our member ports vary from deep draft, shallow draft and those very shore-excursion focused,” says Powers. “This means that what we do for them and our other members – which includes towns, chambers of commerce and retailers – will vary.
“Across the state we find strong general support for cruise tourism but, without doubt, there are some people and groups that are influenced by the ill-informed.
“We have been running tours onboard ships for several years to show the efficiency of their wastewater or solid waste disposal, and we target people who have already expressed concerns – some from conservation groups – as well as high school or college students and others who we know will spread the word.
“We know how impressed they will be, as the systems on ships are usually way ahead of anything on land.
“Bar Harbor has just 5,000 permanent residents and – being an island which is 70% national park (Acadia) – it has a problem dealing with its own waste, so it made sense to show officials there how a Holland America Line ship (Eurodam) handled it for a similar number of people onboard.”
“When it comes to handling solid waste, they (the cruise lines) are the experts,” says Bar Harbor Planning And Development Director Anne Krieg. “We thought the ship visit would be a great way for citizens – and especially those linked to the cruise industry or solid waste issues – to learn the efficiencies that are in place onboard.
“Also our city’s Cruise Ship Committee was about to conduct its year-end review, so getting insight into cruise ship operations was timely.”
Says Powers: “It is frustrating to have to keep doing this, but the fact is that – despite the best efforts of the lines themselves – their message does not really get across: simply because no-one believes it if it comes straight from them. People have to see for themselves.” This echoes the current CLIA policy of finding independent experts with credibility to put the cruise sector’s case.
Bar Harbor will again be the busiest of the Maine cruise ports, with between 105 and 110 calls this year. They will include 24 double ship calls and seven triple ship calls, meaning that it could have up to 35,000 visitors in town on a single day. With Acadia attracting 2 million a year, that is at least another 5,000 per day.
“We have been working with the town, port, park and lines to make this cruise growth work for Bar Harbor,” says Powers. “This has been challenging, sometimes frustrating, but ultimately rewarding.”
There was some local unrest a few years ago over congestion caused by cruise visitors, so consultants Bermello Ajamil & Partners were brought in to produce a plan for sustainable cruise tourism growth. It included a new traffic flow programme that, says Powers, has been successfully implemented.
Ensuring the maximum economic benefit from such tourism is one key way of persuading local communities – particularly those in the retail sector – to support its growth.
“In conjunction with the University of Maine we are running a webinar 60 days before the main season begins,” she says. “This will include the call schedules, so retailers know when they need to lay on transfers between the port and their stores.
“We will also provide information on the passenger/crew demographics and advise retailers what they should be looking to sell, and how they should be looking to sell it. We have already advised those selling local handicrafts to get rid of window clutter and have the craftsperson working in the window instead.
“There have also been discussions about local communities’ capability to provide information packages for pre- and post-cruise passengers in hotel rooms. These should highlight options to extend their stay, and also offer discount coupons for local stores and attractions.”
The university has carried out a couple of local economic impact studies, one in Bar Harbor back in 2002 and the latest on Portland in 2008. Powers says that these suggested that the CLIA national statistics are understating the total impact, partly because of an underestimate of passenger spending ashore.
One of the authors of the two studies, Associate Professor of Economics Todd Gabe, says: “In both ports there is a growing recognition of the importance and potential of cruise tourism, but it is more advanced in Bar Harbor – partly because its economy is very seasonal.
“The real spike for retailers is in July and August. Only a handful of ships call then so, with most coming in September and October, the growth of cruise tourism has meant that shops which used to close for the season on Labor Day or maybe Columbus Day now stay open until immediately after the last scheduled ship visit.
“Bar Harbor merchants see the cruise ships as tacking on a couple of months to their usual season.
“Portland is different as it is the largest city in Maine and has a year-round economy. Retailers open year-round anyway, but they are less used to dealing with cruise visitors.
“The location of the port and the nature of the town or city also makes a difference. In Bar Harbor visitors either dock or tender right into the centre of a town that clearly caters to tourists. It has a shopping and dining infrastructure that has been built up with them in mind.
“The Portland community has not yet really been impacted by cruise tourism, so there has been little public comment; but Bar Harbor is more clearly affected, and the local media has generally been positive so far.
“There has been some negativity from local B&B owners. They see cruising as a threat, not just because of the competition but also because their guests’ experience could be damaged by the influx of visitors when the big ships come in.”
Professor of Economics Jim McConnon, a co-author of the study, says: “Bar Harbor retailing is very dense and diverse – almost like a mall. Portland is more metropolitan, and it’s simply not as focused on tourism. There is also a two-lane highway that has to be crossed from the port to reach the main retail sector.
“When people get off the ships to travel independently there is not a lot of infrastructure to help them penetrate the retail areas.
“Talking to the passengers, several different groups said that they were interested in either the historic architecture or the food sector, and would have appreciated the option of walking tours; but at that time – 2009 – there were none.
“Since then an entrepreneur has set up foodietours.com to do high-end culinary art tours and, although initially aimed at general tourists, he has since focused on cruise passengers.”
The port authority has also innovated by introducing the option of self-tour technology which will direct visitors and give them a tour commentary.
“We see a lot of opportunities in the coastal communities to connect cruise passengers with agri-tourism – either the fibre arts or culinary tours,” says McConnon. “There are now signs that local groups are beginning to recognise this as an opportunity, and specific agri-tourism excursions would certainly improve the port’s linkage to the local and regional community.
“I work closely with the business community to help them improve their profitability and – looking at the study results and talking to business leaders – it was pretty clear there was something of a disconnect with the cruise sector.
“So we instigated the webinar when we presented the Portland study to the stakeholders.
“Although there was an economic impact in Portland of up to $8 million in 2008 ($11 million including wages for the 96 jobs generated), the retailers needed to develop some marketing and merchandising skills to better meet the needs of this particular kind of customer.
“We also identified a need for greater local co-operation to help cruise passengers manoeuvre through the community and learn all that it has to offer. Their level of penetration into the city itself needs to improve.
“Most of the independent passengers were staying on the shipside of the town, where most of the retailers there were just offering F&B. Because of this the local community has the impression that all passengers want to do is get off, buy a drink and then go back onboard.
“Talking to passengers, they were going back to the ship having spent less than they had budgeted – i.e. wanted – to spend, because they had not been given the information or direction to explore further.
“That was the backdrop to our contacting the Small Business Development Center, an educational programme set up to work with retail communities adversely affected by the recession. There was a clear opportunity as we had consumers wanting to spend more, but not being able to.
“We formed a partnership and brought CruiseMaineUSA and others onboard to develop a programme. It was initially targeted at Portland retailers to help them tap into this market more effectively, but is now extended to retailers at all 12 Maine cruise ports via the webinar.
“One of the reasons the Portland City government part-funded the impact study was to educate the population about the factors driving the development of a mega port. Currently they have one cruise berth, and they had sourced start-up funding to develop a new $4.8 million mega berth at Ocean Gateway Terminal. But they had run out of money and were casting around for ways to complete.
“The issue was clouded by the multiple usage of the waterfront, with oyster fishing an important local industry and a range of recreational activity based there, too.
“The government recognised that the economic benefit of what they were planning was important to the community – hence our study. They have since raised the funding through a state bond issue, and the berth will be opened later this summer.”
McConnon is also encouraged by the new interest in the cruise sector from the Portland Business Association, Portland Chamber and Portland and Beyond, which are all studying its potential economic benefits.
It is the greater economic benefits from homeporting which are behind Quebec’s new drive to become as much a base for cruise ships as it is already a popular transit port.
With the backing of regional and local government, Quebec City has launched a $1.9 million project to boost the number of homeporting passengers in order to generate more stays in the city and the Charlevoix region and more arrivals into its international airport.
As well as stimulating more spending by cruise lines (on fuel, repairs and maintenance) this should boost visitor spending, as embarking passengers spend an average of $460 compared with port of call passengers, who spend $102. This accounts for a major share of the $84 million annual economic impact from the sector.
In 2010 the port handled more than 100,000 cruise passengers for the first time, with 42,000 of the 102,000 homeporting, compared with just 33,000 in 2009.
The economic development agency Quebec International is overseeing the project and its Tourism Development Director, Marie-Louise Pineault, is charged with maximising the potential economic benefits and ensuring the various partners work more efficiently together to increase the promotion of cruising.
She is keenly aware of the importance of retaining the support of the local community as the number of calls and visitors grows. “The local community has been very receptive to the cruise sector so far,” she says.
“Last September we had a general meeting where citizens could air their concerns about things like congestion. But, overall, we do not have negative pressure of any kind, as the general population seems to have a good opinion of cruising.”
As an example she says that Ross Gaudreault, the just-retired Chairman and CEO of the Quebec Port Authority, was a very popular man just because of the way he had brought cruise ships to the city.
“We have no environmental pressure groups challenging our project, and there are no tensions with the local media, which continues to support the sector.
“The tourism ministry sources the economic data, and we have money in our budget to survey passengers to learn about them and what they want from us.
“We are working with the hotels to improve the pre- and post-cruise offers, and we also want to improve the information available to those visiting the port who want to explore independently.”
She also says that there are close communications between all the stakeholders. This, as Amy Powers points out, is a vital aspect when spending money on such promotional projects. “One of our problems comes when places look for quicker growth over shorter periods than is reasonable,” says Powers. “If one new ship comes, they expect others to immediately flock in; but that is just not how it happens.
“It takes a long time to have a quantitative impact on traffic and revenue, and they have to understand that.”
Both public and politicians have to be educated about this aspect of cruise tourism – which happened in reverse in Alaska, where it took three years for the negative impact of its increased passenger tax to be reflected in reduced cruise tourism.
But the message did get through. Last summer Jan Hill – the Mayor of Haines, one of the Alaskan ports which suffered from the downturn – personally greeted every visiting cruise ship and welcomed its passengers as they stepped ashore. She even transported some to their tour buses on her own golf cart.
This involved spending all day at the port but, as Mayor Hill says, “Cruise tourism plays a huge role in our economy and, when passengers travel through Southeast Alaska, they enjoy themselves so much that they show up again as independent travellers. So I will definitely be meeting them again this summer.”