CRUISE ACTIVITY IN BARCELONA. Impact on the Catalan economy and socioeconomic proile of cruise passengers (2014)
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1 CRUISE ACTIVITY IN Impact on the Catalan economy and socioeconomic proile of cruise passengers (2014)
2 CRUISE ACTIVITY IN 2014 Impact on the Catalan economy and socioeconomic proile of cruise passengers 1. Introduction Context Purpose of the study Economic impact of cruise activity at the Port of Barcelona Overall results Impact on the city of Barcelona Key figures Distribution of initial spending from cruise activity (by spending agent) Multiplier effects Catalyst effects Socioeconomic proile of cruise passengers Socio-demographic characteristics of cruise passengers Cruise passengers and cruises Cruise passengers and their relationship with the city Main conclusions Methodology of the study on the impact of cruise activity Methodology of the study on the proile of cruise passengers Port de Barcelona Turisme de Barcelona 3
3 1. Introduction 2. Economic impact of cruise activity at the Port of Barcelona IS THE LEADING CRUISE PORT IN EUROPE AND THE MEDITERRANEAN AND THE FOURTH CRUISE PORT WORLDWIDE 1.1 Context Cruise activity is a dynamic element for tourism and for the economy of cities like Barcelona. With 2.5 million cruise passengers per year, Barcelona has become the leading cruise port in Europe and the Mediterranean and the fourth cruise port worldwide. Barcelona stands out for its role as a turnaround port (the site where all the operations for the start and end of the cruise take place). TYPE ACCORDING TO CRUISE OPERATIONS AT THE PORT OF (2014) 48% 52% Transit Turnaround 2.1 Overall results The study by the University of Barcelona shows that cruise activity in Barcelona generates total turnover of 796 million, contributes million a year to Catalonia s Gross Domestic Product (GDP) and helps to maintain 6,759 jobs. Direct expenditure arising from cruise activities amounts to million a year, split between three main spending agents: shipping companies (121.2 million), cruise passengers (315.8 million) and crews (5.5 million). This initial expenditure generates an indirect and induced turnover of million, which puts the total turnover of the cruise activity at 796 million. It also generates income of 152 million in State and regional taxes and tourist tax. STOPPING OVER AT THE PORT, VISITING THE CITY AND CONTINUING THEIR JOURNEY ON BOARD THE CRUISE SHIP. BEGINNING AND ENDING THEIR CRUISE IN THE CITY, WHERE THE SHIP HAS ITS HOME PORT ECONOMIC IMPACT OF CRUISE ACTIVITY AT THE PORT OF : OVERALL RESULTS RECEIVES ABOUT 800 STOPOVERS PER YEAR AND ITS REPRESENT 31% OF THE TOTAL FOR SPAIN The cruise sector has expanded greatly in our city over the last 20 years. The 1992 Olympic Games placed Barcelona on the global tourist map, leading to the arrival of the i rst cruise ships in the city. However, the great boost to cruise activity in the city came in PROGRESSION OF CRUISER TRAFFIC AT THE PORT OF ( ) 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 Turnaround Transit SHIPPING COMPANIES M Direct effect + Indirect and induced effect = Total billing Initial spending M CRUISE PASSENGERS M CONTRIBUTION TO GDP M EMPLOYMENT INCOME M PERSONS EMPLOYED 4,026 CREW 5.5 M Indirect or induced turnover produced M CONTRIBUTION TO GDP M EMPLOYMENT INCOME 80.9 M PERSONS EMPLOYED 2,733 = = = Total billing 796 M CONTRIBUTION TO GDP M EMPLOYMENT INCOME M PERSONS EMPLOYED 6, Purpose of the study The study, commissioned by the Port of Barcelona and Turisme de Barcelona, consists of two parts. The i rst, conducted by the University of Barcelona, sets out to analyse the impact of the cruise activity generated by the Port of Barcelona in the city and throughout Catalonia, using 2014 data. The report calculates the economic impact of the cruise sector through its contribution to Gross Domestic Product (GDP), employment, labour income and tax income. It also assesses the catalytic effects on the economy. The second, conducted by the Instituto DYM, focuses on the study on cruise passenger proi les and analyses the demographic characteristics of cruise passengers, types of cruise and their relationship with the city in general. The study was drawn up on the basis of surveys made with cruise passengers in the Port of Barcelona itself. CRUISE ACTIVITY AT THE PORT OF CONTRIBUTES MILLION TO CATALONIA S GDP AND PROVIDES 6,759 JOBS Tax revenue generated STATE AND REGIONAL TAXES M TOURISM TAX 844,643 4 Port de Barcelona Turisme de Barcelona 5
4 2.2 Impact on the city of Barcelona 2.4 Distribution of initial spending from cruise activity (by spending agent) WHAT STAYS IN? 33.3% ACCOMMODATION 24.4% RESTAURANTS 75% OF THE TOTAL EFFECT STAYS IN THE CITY OF M DIRECT CONTRIBUTION TO GDP 5,039 JOBS CRUISE PASSENGERS M 15.5% 15.4% 11.4% TRANSPORT SHOPPING EXCURSIONS 75% OF THE TOTAL EFFECT OF CRUISE ACTIVITY STAYS IN THE CITY OF 2.3 Key figures ECONOMIC IMPACT PER DAY, SHIPPING COMPANIES AND CREWS ARE THE MAIN SPENDING AGENTS OF CRUISE ACTIVITY SHIPPING COMPANIES M 30.2% SHOPPING AND FUEL SUPPLY SERVICES 19.2% PROVISIONS 18.8% TERMINAL SERVICES 11.3% TRAVEL AGENCIES AND TOUR OPERATOR SERVICES 8% PORT AUTHORITY SERVICES 4.6% SHIPPING AGENT SERVICES 3.5% WASTE TREATMENT AND COLLECTION The arrival of cruise ships at the Port of Barcelona represents 2.2 M DAILY BILLING IN CATALONIA of which 1.7 M DAILY BILLING IN 2.8% BERTHING AND PILOTAGE SERVICES 1.1% CREW MOVEMENT 0.5% HEALTH CARE FOR PASSENGERS AND CREW ECONOMIC IMPACT PER CRUISE SHIP 50% 40% RESTAURANTS SHOPPING Each cruise ship that stops over at the Port of Barcelona generates 1 M IN BILLING 0.5 M IN CONTRIBUTION TO GDP 9 JOBS 0.2 M IN TAX INCOME CREW 5.5 M 10% TRANSPORT CRUISES REPRESENT A DAILY BILLING IN CATALONIA OF 2.2 MILLION 6 Port de Barcelona Turisme de Barcelona 7
5 FOR EVERY 100 OF DIRECT EXPENDITURE CRUISES DO NOT ONLY BENEFIT THE TOURISM SECTOR 80 ADDITIONAL BILLING 2.5 Multiplier effects The multiplier effects arising from cruise activity almost double the economic impact attributed to the three main spending agents. 80 are generated in additional indirect and induced turnover for every 100 of direct expenditure; every 100 of GDP generated directly creates an additional 83 of GDP; there are 68 more jobs created for every 100 direct employees. MULTIPLIER EFFECTS OF CRUISE ACTIVITY AT THE PORT OF FOR EVERY 100 OF DIRECT CONTRIBUTION TO GDP 83 MORE IN ADDITIONAL CONTRIBUTION TO GDP FOR EVERY 100 JOBS 68 ADDITIONAL JOBS The cruise sector does not benei t only typical tourist activities, but also generates signii cant positive effects for other sectors. This can be seen in the distribution of jobs and billing activity caused by cruise activity. CROSS-CUTTING EFFECTS OF CRUISE ACTIVITY: JOB CREATION AND BILLING BY SECTOR CRUISE ACTIVITY IS CRUCIAL FOR CREATING AND MAINTAINING INTERNATIONAL AIR ROUTES 80% OF EMBARKING PASSENGERS USE THE AIRPORT 2.6 Catalyst effects DYNAMISING EFFECT FOR -EL PRAT AIRPORT The cruise traffic has increased Barcelona Airport s intercontinental connections. The importance of Barcelona as a home port and the fact that 80% of embarking passengers arrive by plane has been crucial for the establishment and maintenance of international routes. Air Canada, American Airlines and Delta Air Lines are some of the cruise market-oriented companies that have consolidated their presence in Barcelona Airport. In 2014 cruises generated revenue of 21.8 million directly at Barcelona Airport, contributing 9.5 million directly to GDP at and generating 80 direct jobs. This direct effect causes multiplier effects throughout the economy, which translate into 39.1 million of total billing, a total GDP contribution of 18 million and 198 jobs in Catalonia. IMPACT OF CRUISE ACTIVITY AT AIRPORT 39.1 M TOTAL BILLING 18 M CONTRIBUTION TO TOTAL GDP 198 JOBS IN CATALONIA OF THE JOBS CREATED, 2,764 ARE IN OTHER SECTORS SUCH AS LOGISTICS, FOOD OR CHEMICALS Effects on tourism sectors Accommodation services Catering services Retail Passenger land transport Travel agencies and tour operators 3,995 jobs in tourism sector 59% of total jobs created 6,759 jobs created 339 M billing in tourism sectors 796 M TOTAL BILLING 42.6% of total turnover EFFECTS ON LAND TRANSPORT The cruise business also has important effects on the land transport of passengers, since it represents a stable and continuous demand throughout the year for all branches of the sector (taxi, bus, car hire, etc.) and makes it possible to sustain the activity and jobs of small companies in the sector. IMPACT OF CRUISE ACTIVITY ON PASSENGER LAND TRANSPORT Effects on other sectors (non-tourism) Storage and transport-related activities Manufacture of food products Metalworking industry Waste management and sanitation services Medical services Other sectors 35.7 M TOTAL BILLING 20.6 M CONTRIBUTION TO TOTAL GDP 492 JOBS IN CATALONIA 2,764 jobs in non-tourism sectors 41% of all jobs created 457 M billing in non-tourism sectors 57.4% of total turnover DOES NOT INCLUDE ECONOMIC ACTIVITY RELATED TO EXTERNAL COMPANIES LINKED TO AIRPORT SERVICES (AIRLINES, SHOPS, PARKING, CAR RENTAL, ETC.). 8 Port de Barcelona Turisme de Barcelona 9
6 3. Socioeconomic proi le of cruise passengers GENERATION OF NEW INVESTMENTS Between 2000 and 2014 the Port of Barcelona directly invested 109 million in infrastructure for cruise ships. 86% of this investment is private. The Port has six cruise terminals, with a seventh coming on stream in 2018, which represents an investment of 30 million. 3.1 Socio-demographic characteristics of cruise passengers Data from the Instituto DYM study show that cruise passengers arriving in Barcelona usually travel with their partner and their average age is 50. This type of visitor has a high purchasing power. The importance of Barcelona as a turnaround port has led several shipping companies and other businesses in the sector to locate their head ofi ces in the city. The stability and good prospects for cruise activity at the Port of Barcelona generate and consolidate new businesses and attract new investments. THE ROLE OF AS A TURNAROUND PORT ENCOURAGES INTERNATIONAL AIRPORT CONNECTIONS AND ATTRACTS INVESTMENTS CRUISE INFRASTRUCTURE INVESTMENTS IN THE PORT OF ( ) GENDER AGE ANNUAL HOUSEHOLD INCOME 0.1% % MEN 43.6% WOMEN 1.1% 7.2% 27.5% 28.5% 21.2% 14.4% AGE & OVER % OVER 200, % 150, , % 100, , % 75, , % 50,001-75, % UNDER 50,000 INCOME 70,634 Approximate average calculated from the midpoint of each range. Excludes DK/NA SOUTH TERMINAL TERMINAL B TERMINAL A 3.2 Cruise passengers and cruises NORTH TERMINAL TERMINAL C PALCRUCEROS TERMINAL One of the main reasons for choosing a cruise is the itinerary or destinations that it includes. Most cruise passengers embarking in Barcelona arrive in the city by plane (80.2%). There are several types of cruise, depending on price and service: standard, premium or luxury ACCOMPANYING PERSONS Multiple choice TRANSPORT USED TO GET TO Data on embarking passengers REASONS FOR CHOOSING A CRUISE Data on cruise in turnaround 76.4% PARTNER 80.2% PLANE 69.9% DESTINATION/ STOPOVERS 14% PUBLIC INVESTMENT BY THE PORT OF 109 M TOTAL INVESTMENT 86% PRIVATE INVESTMENT BY OPERATORS 16.0% 12.2% FAMILY AND/OR CHILDREN FRIENDS 9.9% 7.0% TRAIN OWN VEHICLE 23.2% 12.4% VISIT DURATION 1.7% ALONE 2.9% OTHER 10.3% PRICE 0.9% CO-WORKER 8.2% CITY/PORT OF DEPARTURE 0.5% OTHER 5.9% SHIP/COMPANY/ REPUTATION THE STABILITY AND GOOD PROSPECTS FOR CRUISE ACTIVITY GENERATE AND CONSOLIDATE NEW BUSINESS 5.7% 3.4% OFFER GIFT/ PROMOTION 10 Port de Barcelona Turisme de Barcelona 11
7 COST OF THE TOURISM/CRUISE PACKAGE COST 2,380 PACKAGE 1,640 (WITHOUT TOURIST PACKAGE) EXCURSIONIST (NO OVERNIGHT STAY) Day visitors TOURIST (WITH OVERNIGHT STAY) STANDARD 1,189 PACKAGE 1,217 (WITHOUT TOURIST PACKAGE) 4.3 HOURS STAYED IN THE CITY 2.6 NIGHTS STAYED IN THE CITY PREMIUM 3,916 PACKAGE 3,950 (WITHOUT TOURIST PACKAGE) 3.3 Cruise passengers and their relationship with the city LUXE 6,535 PACKAGE 7,058 (WITHOUT TOURIST PACKAGE) In 2014 the Port of Barcelona recorded 2,364,292 cruise passenger movements. Those who visit the city without an overnight stay spend an average of 4.3 hours in Barcelona and represent 57.5% of passenger movements (1,360,271 people). Passengers in turnaround (who start and end their itinerary in Barcelona) who stay the night in the city remain an average of 2.6 nights and account for 24% of cruise passenger movements (565,400 people). The remaining 18.6% corresponds to passengers that embark and/or disembark directly without an overnight stay and do not visit the city (438,621 people). TYPE OF DEPENDING ON THEIR RELATIONSHIP WITH THE CITY 1,360,271 (57.5%) 565,400 (23.9%) CRUISE PASSENGERS PROVIDE HIGH-SPENDING TOURISM IN THE CITY S CONSOLIDATION AS A TURNAROUND PORT HELPS TO ATTRACT CRUISE PASSENGERS WHO SPEND MORE TIME IN THE CITY AND SPEND MORE HIGH-SPENDING TOURISM: DAILY LEVEL OF EXPENDITURE OF IN THE CITY 87.8% 79.9% 75.3% 73.3% 18.9% 202 SPENDING TOURIST CRUISE PASSENGERS (WITH OVERNIGHT STAY) COMPARISON: AND CITY HOLIDAY TOURISTS All costs include accommodation 202 SPENDING TOURIST CRUISE PASSENGERS (WITH OVERNIGHT STAY) TOURIST (with overnight stay) BEACH / SEAFRONT 94% STAY IN HOTELS 3.9 STARS CATEGORY STROLLING SHOPPING CULTURAL FACILITIES AND MONUMENTS BREAKFAST / LUNCH / DINNER 53 SPENDING EXCURSIONIST (NO OVERNIGHT STAY) Day visitors 52.3% 32.6% 38.5% 22.2% 156 SPENDING HOLIDAY TOURIST IN THE CITY (STAY OVERNIGHT IN HOTELS) 0.9% BEACH / SEAFRONT SHOPPING STROLLING 47.5% STAY IN HOTELS 3.5 STARS CATEGORY Cruise passengers arriving in Barcelona want to get to know the city, go shopping, visit cultural sites and enjoy the food. The most visited sites are the Ramblas, the Gothic Quarter, Eixample and the seafront. Cruise passengers are good prescribers of Barcelona: more than 90% want to return and 99.7% recommend the city to friends and acquaintances. ACTIVITIES BY IN EXCURSIONIST (no overnight stay) Day visitors CULTURAL FACILITIES AND MONUMENTS BREAKFAST / LUNCH / DINNER 15.6% NIGHTLIFE (BARS, DISCOS ) 0.0% NIGHTLIFE (BARS, DISCOS ) WITH TRAVEL TO OR FROM PORT WITH NO CITY VISIT NO VISIT NO OVERNIGHT STAY 438,621 (18.6%) 3.9% 3.3% 1.8% TOURIST ATTRACTIONS ORGANISED VISITS VISITING FAMILY, FRIENDS 3.7% 3.6% 1.9% TOURIST ATTRACTIONS ORGANISED VISITS VISITING FAMILY, FRIENDS TOTAL MOVEMENTS OF 2,364, % 0.0% TOURISM / TOURIST BUS SNACK / COFFEE / DRINK 2.3% 1.9% TOURISM / TOURIST BUS SNACK / COFFEE / DRINK 0.2% PHOTOGRAPHY 1.3% PHOTOGRAPHY 12 Port de Barcelona Turisme de Barcelona 13
8 4. Main conclusions INTEND TO RETURN TO ON HOLIDAY IN THE COMING YEARS ASSESSMENT ASPECTS OF (SCALE FROM 1 TO 10) Cruiser activity at the Port of Barcelona: Tourist cruise passengers (With overnight stays) Excursionist cruise passengers (no overnight stay) Day visitors Generates annual turnover of 796 million in Catalonia (2.2 million each day). Contributes 413 million to Catalonia s GDP. 52.5% VERY LIKELY 39.0% 7.9% 0.2% 0.0% 0.4% MAYBE, MAYBE NOT QUITE LIKELY NOT VERY LIKELY NOT DK / NA FAIRLY LIKELY ARCHITECTURE CULTURE / MUSEUMS ENTERTAINMENT RESTAURANTS CHARACTER AND FRIENDLINESS HOTELS / ACCOMMODATION SHOPS HOTELS / ACCOMMODATION ARCHITECTURE CULTURE / MUSEUMS ENTERTAINMENT RESTAURANTS CHARACTER AND FRIENDLINESS SHOPS Generates 152 million in tax revenue. Maintains nearly 7,000 full-time jobs. Provides fl ight connectivity to Barcelona airport. Generates economic stability and encourages new businesses in other sectors of the city. Benei ts sectors linked to tourism and to other industrial and service sectors. Cruise-goers usually travel with a partner, are very interested in getting to know the city and are good prescribers (more than 90% want to return and recommend the city to friends and acquaintances). 91.5% OF CRUISE PASSENGERS INTENDS TO RETURN TO OF ACCOMMODATION OF SHOPS OF RESTAURANTS BEACHES OF BARS PUBLIC TRANSPORT OF ACCOMMODATION OF SHOPS OF RESTAURANTS BEACHES OF BARS PUBLIC TRANSPORT Cruise-goers that spend the night in Barcelona spend more money in the city than other holiday tourists and value the culture and architecture offered by the city. Barcelona s consolidation as a turnaround port increases the quantitative impact (higher spending by the various agents) and qualitative effects (investment attraction and catalyst effects). ARE GOOD PRESCRIBERS OF THE CITY: 99.7% RECOMMEND AS A TOURIST DESTINATION OF BARS INFRASTRUCTURE SIGNS / INFORMATION GENERAL CLEANLINESS AIR QUALITY PUBLIC SAFETY ACCESSIBILITY NOISE OF BARS INFRASTRUCTURE SIGNS / INFORMATION GENERAL CLEANLINESS AIR QUALITY PUBLIC SAFETY ACCESSIBILITY NOISE ECONOMIC STABILITY IN OTHER SECTORS OF THE CITY PROVIDES FLIGHT CONNECTIVITY TO AIRPORT Cruiser Activity at the Port of Barcelona ANNUAL BILLING IN CATALONIA 796 M DAILY BILLING IN CATALONIA 2.2 M MAINTAINS NEARLY 7,000 FULL-TIME JOBS CONTRIBUTION TO CATALAN GDP 413 M 89% OF CRUISE PASSENGERS EXPECTATIONS OF THE CITY WERE MET BENEFITS SECTORS LINKED TO TOURISM AND TO OTHER INDUSTRIAL AND SERVICE SECTORS TEND TO TRAVEL WITH A PARTNER AND SPEND MORE THAN CONSIDERABLE INTEREST IN GETTING TO KNOW THE CITY: ARCHITECTURE AND CULTURAL VALUES THE ROLE OF AS A TURNAROUND PORT CONTRIBUTES TO ATTRACT INVESTMENTS AND PROMOTES INTERNATIONAL AIRPORT CONNECTIONS GOOD PRESCRIBERS more than 90% WANT TO RETURN AND RECOMMEND TO FRIENDS AND ACQUAINTANCES 14 Port de Barcelona Turisme de Barcelona 15
9 5. Methodology of the study on the impact of cruise activity 6. Methodology of the study on the proi le of cruise passengers The study, prepared by the University of Barcelona, calculated the total economic impact generated by cruise activity of the Port of Barcelona from its direct, indirect and induced effects. The calculation was based upon the quantii cation of spending generated by each of the main groups involved in cruise activity, compiled from information provided by shipping companies and their suppliers, cruise passengers, Barcelona airport and the various associations related to passenger transport. Study on the proi le of cruise passengers analyses the demographic characteristics of cruise passengers, type of cruise and, generally speaking, their relationship with the city. The study was drawn up on the basis of surveys made on cruise passengers in the Port of Barcelona itself. Produced by the Instituto DYM and commissioned by Turisme de Barcelona. UNIVERSE Specii c multipliers from the input-output tables of the Catalan economy, produced by Idescat, were used to translate this spending in terms of impact on GDP, employment and tax income. Individuals of 15 or older, beginning or ending a cruise, or stopping over, at the Port of Barcelona GEOGRAPHICAL AREA CALCULATION OF TOTAL IMPACT OF THE PORT S CRUISE ACTIVITY AGENTS DIRECT SPENDING SOURCES Cruise Terminals of the Port of Barcelona (A, B, C, North, South) and Palacruceros (D) SAMPLE 2014 Tourist Survey by Barcelona City Council / 2014 survey on CRUISE 3,130 people PASSENGERS by Turisme de Barcelona / Questionnaires to suppliers of SHIPPING COMPANIES CRUISE PASSENGERS CREW goods and services / Focus groups with Shipping agents and Cruise terminals and Airways Development Committee / Financial Statements / Bibliographical sources / Other sources of information ASSOCIATED SAMPLING ERROR +/- 1.79% INDIRECT AND INDUCED EFFECTS Input-Output Table of the Catalan economy TYPE OF SAMPLE Stratii ed according to type of cruise passengers depending on the type of stopover (embarking, disembarking and transit) and cruise category (standard, premium and luxury) TOTAL ECONOMIC IMPACT TYPE OF INTERVIEW BILLING GDP EMPLOYMENT TAX INCOME WAGE INCOME Computer-assisted personal interview, CAPI system COMPLETION OF FIELD WORK March - December 2014 DATA PROCESSING Direct or initial effect Indirect or intersectorial effect Induced effect The results are weighted and applied to the universe of cruise passengers at the Port of Barcelona in 2014 according to: Measuring the direct spending made by the main agents of the activity under study. As a result of direct spending, supply sectors generate a series of indirect effects through the purchases they make in other sectors of the economy to produce goods and services demanded by the agents. Multipliers derived from the Input-Output tables are used to calculate these. This is the multiplier effect of the economy. This corresponds to the effect of consumer spending produced by income from work generated by the two above effects. - Type of cruise passenger, according to type of stopover: embarking (615,377 cruise passengers, 26%), disembarking (607,110 cruise passengers, 25.7%) and in transit (1,141,805 cruise passengers, 48.3%) - Category of the cruise, using 2014 cruise forecast provided by Turisme de Barcelona: standard (1,993,088, 84.3%), premium (291,501, 12.3%) and luxury (79,703, 3.4%) 16 Port de Barcelona Turisme de Barcelona 17
10 Publication edited jointly by the Port of Barcelona and Turisme de Barcelona Studies made by AQR-Lab (University of Barcelona) and Instituto DYM
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