Amid Doom and Gloom, a Ray of Hope in California
San Diego Business Journal
It is easy to be pessimistic about the economy these days, with stock market shifts, earnings reports up then down, retail sales plummeting and unemployment climbing. In California, we are in the midst of unprecedented challenges, as evidenced by months of tense budget negotiations and the issuance of IOUs for only the second time in our state's history. Gloom and doom predictions cloud our late summer. But, a recent bright spot has emerged in a potentially overlooked industry that is contributing greatly to our local economy and our ports — the cruise industry.
Our state ports, including the Port of San Diego, and the cruise industry continue to serve as catalysts for economic stability and growth in California. A report issued recently by Cruise Lines International Association, the trade association for the North American cruising industry, shows that cruising generated $2.2 billion in direct spending for California in 2008.
The activities associated with cruising generated stable jobs for 49,682 Californians, totaling nearly $2.6 billion in wages. California's four main ports — San Diego, San Francisco, Los Angeles and Long Beach — generated an estimated 1.8 million passenger and crew visits, which produced an estimated $149 million in on-shore spending. All in all, California remains the second most important state for the cruising industry behind Florida.
Leader In Innovation
Our state has a proud history of being a leader in innovation and technology. In San Diego, our biotech industries have driven life sciences advancement. Similar leadership has been demonstrated statewide by our entertainment industry, high-technology sector and agricultural communities. Today, we recognize that our strength goes beyond those industries and embrace the cruise industry and our ports as yet another source of jobs and economic expansion for our state.
California is home to cruise line headquarters, including Princess Cruises, Cunard Line, Crystal Cruises and Uniworld Boutique River Cruise Collection. In addition, three cruise lines call San Diego their seasonal homeport, including Carnival, Celebrity Cruises and Holland America. Last year, the state's four major cruise ports generated 1.4 million passenger embarkations, an impressive 16 percent of the total U.S. number.
That influx of visitors to our port cities brings valuable dollars to our local economy, benefiting a wide range of sectors. Among those reaping the most rewards are our travel agents, local hotels, food processing plants, ship repair companies, advertising agencies, insurance companies, and entertainment and amusement industries.
Even during these uncertain economic times, the impact of the cruise industry went far beyond the California borders. The total gross output in the United States was $40.2 billion, a 6 percent increase over 2007. Nationwide, the industry generated 357,710 well-paying jobs for a total of $16.2 billion in wages and salaries. The total economic impacts affected virtually every industry in the United States, with a focus on seven sectors that are the backbone of our economy — manufacturing, professional and technical services, travel services, financial services, airline transportation, and wholesale trade.
California is a world-class cruise and tourist destination. The unique beauty of our geography positions us to remain a leader in the tourism industry. However, this must be accompanied by continued commitment to our ports and all they have to offer — jobs and economic expansion.
Assemblyman Nathan Fletcher represents California's 75th District.