cruise industry review

Assignment#1

Relationship between the cruise industry and marine environment

Xu Linlin( Paris)

IE:14596968

Tutor: Dr Mark Seabrook-Davison


Abstract

The cruise industry is one of the fastest growing segments of the global tourism

industry. The world’s fleet of 283 ships had a total capacity of 438,595 in 2013

(Kleeman, 2014) and in 2013 36.2 billion profits were produced from 20.9 million

passengers. According to the data analysis from Cruise Lines International

Association (CLIA) show that cruise industry contributed 117 billion to the global

economy and provided 900,000 job opportunities in 2003 (Cruise Lines International

Association, 2015). The paper will discuss how to develop a sustainable cruise

industry from the perspective of the environment. The remainder of this paper is

organized as follows. First, it will provide an introduction about the cruise industry.

The concern here is to show how fast the industry is growing and the potential of the

future development of the industry. Next, based on a review of the previous literature,

this paper will discuss the relationship between the cruise industry and the

environment. This will be followed by a presentation of solutions for these

environmental issues. Finally, the paper will finish with the conclusion and the

limitations.

1. Introduction

1.1 The development of the cruise industry overview

The history of the cruise industry could be dated from 1840, since at that time

Samuel Cunard took a steamship across the Atlantic with 63 passengers on the boat

(Gulliksen, 2008). The model of the early cruise industry is to transport passengers or

goods from the departure location to the destination (Ackerman, 2015). The modern

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cruise industry can be tracked back to the 1960s, the sole transport change is to

provide pleasure voyages where passengers would experience accommodation and

diversity recreational activities such as spa, swimming pool, casino during their cruise

tourism. The initial purpose of the innovation is to provide resort experience for

customers. According to the distance cruise liners are separated into two parts: short-

duration cruises and large international cruises (Sun, Jiao, & Tian, 2011). In recent

years, cruise industry explores new marketing offering choices such as polar

expedition, whale or dolphin watching, river cruising, and sailing (Dowling, 2006;

Showker, 2010).

The cruise industry experienced the fastest growth over the past 20 or so years

(Gulliksen, 2008). As Kleeman (2014) pointed out in his recent research study, $36.2

billion benefit was produced by 20.9 million passengers in 2013 and figure 1 shows

the growth of the global cruise passengers in the recent five years.

Figure 1: the growth of the global cruise passengers.

2013 2014 2015 2016 201719.50

20.00

20.50

21.00

21.50

22.00

22.50

23.00

23.50

24.00

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Table one highlights the distribution of the top ten source countries’ and the number

of passengers in cruise industry worldwide. As the figure illustrates the American

cruise industry occupies the main markets at 51.7%. However, the 184.6% increase

in growth of the cruise industry in Scandinavia & Finland shows the powerful

marketing potential of the cruise industry. This is followed by Australia which has a

growth number of 130.3%.

Table 1: Top 10 source countries, cruise passengers, 2013

Source: Global cruise industry. Geography Bulletin, 46(1), 28

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Since 1990, the average annual growth rate for the industry growth is seven percent,

which is contributed to by the baby boomer generation (Kleeman, 2014). As recent

research by Cruise Lines International Association (CLIA) elucidated that the cruise

industry contributes 117 billion for the global economy and provided 900,000 job

opportunities in 2003 (Cruise Lines International Association, 2015). The cruise

industry also plays a significance role in the New Zealand tourism industry, and the

profit of the cruise industry is 116 million in the recent tourism season of 2012-2013

with 129 cruises and 211,400 visitors (Tourism New Zealand, 2015).

1.2 Relationship between the cruise industry and marine environment.

The cruise industry has not only have contributed to global tourism it has also had an

influence on the marine environment. A plethora of environmental issues such as

pollution and sewage have destroyed the sustainable balance of the marine industry.

There are some statistics that should help explain the definition of pollution. A 3,000-

passenger cruise ship will produce amounts of waste during one week as follows: 1

million gallons of "gray water", 210,000 gallons of sewage, 25,000 gallons of oily

bilge water and 50 tons of garbage and solid waste (Ackerman, 2015). Johnson

(2002) adopted a life-cycle analysis (LCA) method to categorize the impact of the

cruise industry in terms of five elements: infrastructure, operational, distribution,

waste, and destination environments. The cruise ship report from the Friends of the

Earth showed test information from 16 major cruise lines and analyzed four

environmental factors: sewage treatment, air pollution reduction, water quality

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compliance, and transparency. The table 2 indicated that the final grade they got is

very low and the change of improvement to protect the environment has gone down

compared with last year (2013). This data advises that the way in which the

development of the sustainable cruise industry is taking longer than expected. This

paper will review previous studies about the causal relationship between the cruise

industry and the marine environment to attempt to give some advice for the

sustainable development of the cruise industry.

Table 2: 2014 Cruise ship report card chart

Source: Friends of the Earth. (2015). Cruise ship report card 2014. Retrieved from

http://libcloud.s3.amazonaws.com/93/ac/7/4988/Cruise_Ship_Report_Card_2014.pdf

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http://libcloud.s3.amazonaws.com/93/ac/7/4988/Cruise_Ship_Report_Card_2014.pdf


2. Discussions

2.1Pollution issues in marine industry

Notwithstanding the dramatic increasing economics contributed by the cruise

industry, a plethora of environmental issues that are the influence of its associated

activities ought to be given consideration and receive attention by the general public.

As the data shown by Butt (2007) illustrates although the cruise industry contributes

one percent to the global economic, it generates 25 percent of the waste all around

the world. The cruise ships will produce large amounts of waste through their daily

operations, for example, the sewage from daily use, the air pollution from the energy

it uses, the oil spills that will lead to the death of sea life, increasing amount of

dumping of garbage into the ocean (Copeland, 2007).

There are three kinds of water problems (gray water, black water, and bilge water)

are caused by the dumping from the ships and vessels (Ackerman, 2015). Gray

water is a kind of reusable wastewater from the bathroom and clothes washing

equipment (Environmental Protection Agency, n.d., c). Black water is a kind of

hazardous sewage produced by bathroom and kitchens (Environmental Protection

Agency, n.d., c). Bilge water is a kind of mixed water which is a combination of the

water that has spilled or leaked out from the underneath the vessel or ship

(Environmental Protection Agency, n.d., c). The dumping of these three kinds of

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water represents a definite threat to the marine environment. A case study following

the Prestigo oil spill showed the significance of the influenced of the dark water. The

Prestigo oil spill occurred 19 November 2002. The Prestigo was an oil tanker, which

after an accident, sank into the Galician sea along with 50,000 tons of heavy oil. The

effect of this oil spill from the surface of the sea surface to the sea floor not only had

an affect on the marine eco-system it also affected the offshore environment. For

example, the yield of the Norway lobster, which is a kind of territorial species, was

decreased (Sánchez, 2006).

In addition, a plethora of previous literature and practices provide evidence regarding

the salient positive relationship between the cruise industry and the marine

environment. The other case study from three Danish ports showed the negative

effect on the urban air and individual health caused by the air pollution from the

ships. Saxe and Larsed (2004) utilized the operational meteorological air quality

model to calculate the air quality of the urban area to show that the emission of

vessels generates 65% of the carbon dioxide of these port cities. The significance of

the plastic debris dumped by the vessels and its influence on the marine environment

is another issue that should receive more attention. There are at least 267 species in

the world that have died as a result of ingesting the plastic debris, including 64% of

all sea turtle species, 23% of the seabird species, and 13% of all marine mammal

species (Derraik, 2002). The polychlorinated biphenyls, a kind of chemical element

produced by the plastic debris, will disturb the productivity of seabirds such as

shearwaters (Derraik, 2002).

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2.2 Literature reviews of development sustainable cruise industry from an

environmental perspective

These previous environmental pollution cases and the increasing number of cruise

passengers serve as reminders that individuals should develop a sustainable cruise

industry even though it is a newest potential membership in the tourism industry.

Three element of sustainable cruise industry should be considered, including the

environment, the economy, and the social quality (Ackerman, 2015).

However, in regard to the limitations in terms of the context of this paper, will highlight

the sustainable cruise industry from the environment perspective. The sustainable

environment focuses on the reduction of pollution and waste with respect to the

environment in order at the same time to protect the environment from the point of

view of a long-term perspective (Environmental Protection Agency, n.d., c).

Sustainable tourism can be defined as considering the economic aspect, the

environment and the social situation to develop a long-term meaningful industry

(Ackerman, 2015). According to these two significant terms, the definition of a

sustainable cruise industry should combine a sustainable environment and a

sustainable tourism industry together. It should highlight the enhancing of economy

while at the same time decrease the pollution of the environment.

In recent years, the association representing cruise lines has played a significant role

in regard to building sustainable cruises. CLIA (2015) adopted a number of methods

for the different cruise lines to help reduce the ongoing pollution to the environment.

Firstly, CLIA cruise line members employed a revised waste management policy

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required it to match American laws. Secondly, CLIA Alaska adopted a new

wastewater statute. Thirdly, CLIA Germany hosted “Environment Day”to discuss

effective methods in terms of protecting the environment (Cruise Lines International

Association, 2015). This paper will discuss the different methods about how to

develop a sustainable cruise industry from the perspective of the operator, the

destination, and the laws and regulations.

2.3 The operator perspective of sustainable cruise industry

According to Johnson (2002 the cruise operator would be considering the following

elements to build a sustainable cruise industry.

a. Control the number of passengers. The passenger is a main source of waste so

controlling the number of passengers in some fragile terrestrial destinations will help

reduce the pollution.

b. Build rehabilitation projects at the destination. The most salient example from

Holland American Line involved restoration of the Cayman coral reef ecosystem even

though only 5–30% of the restored reef has survived (Friends of the Earth, 2015).

c. Environmental management. The members of the cruise industry cooperate to

build some operating standards, for example, the Bluewater Network Petition built by

The United States Environmental Protection Agency in 2000. The original proposal or

purpose is to highlight the negative impact of the waste on the marine industry as

well as on individuals (Buckley, 2012).

d. Technological improvements. The new and innovative electronic propulsion

systems are a good example as they increase maneuverability and saving energy.

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Gas turbines not only reduce the noise of operation they also reduce emissions up to

90% (Cruise Lines International Association, 2015).

e. Rewards. The operators could establish rewards for the individuals who provide

some effective advises to protect the marine environment.

2.4 The destinations perspective of sustainable cruise industry

The environmental sustainability strategies and management methods should be

adjusted depending on the situation of the cruise tourism destination. The Cayman

Islands relatively limited carrying capacity is for the purpose of protecting the

environment (Johnson, 2002). What is more, some economic measures could be

employed to fine members who are polluting the environment. In 1988, Holland

America Line were fined US$ 2 million because of illegal dumping of oily bilge water

into Alaska’s Inside Passage (Environmental Protection Agency, 2012). Bermuda

limited the number of cruise ships by imposing a passenger head tax

(U.S.$63/person). The head tax was utilized to protect the environment (Johnson,

2002).

2.5 The laws and regulations pertaining to a sustainable cruise industry

The laws and regulations are an extremely powerful method to establish to built

industry standards and limit the activities of the cruise industry. Even though the

history of the cruise industry is only around twenty years certain laws and regulations

were brought about by the social media and the public to legislate state-specific laws.

The 1973 International convention for the prevention of pollution from Ships

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(MARPOL) was set up by The International Maritime Organization (IMO) that

organization focuses on global vessel safety and marine pollution (Johnson, 2002).

This convention covered six of the various kinds of pollution from vessels including

sewage, garbage, air emissions, noxious liquid, harmful substances, and oil. In July

2001, state-specific laws that restrict the dumping of wastewater from vessels were

established in the Alaska, California (Environmental Protection Agency, 2012).

In America, some federal agencies have jurisdiction over the cruise industry. For

example, the National Oceanic and Atmospheric Administration reported the

important of marine debris (Butt, 2007). From the perspective of pollution from

sewerage, The Federal Water Pollution Control Act is a part of American law to limit

the polluting activities in the nation’s streams, lakes, and coastal areas (Johnson,

2002). The Research and Sanctuaries Act seeks to solve the issues related to solid

waste by passing certain legislation (Dowling, 2006).

3. Conclusion

The data in the CLIA 2014 annual report disclosed that between 2015 and 2050, in

terms of the development of the future market, $25 billion will be invested and there

will be 55 new ships (Cruise Lines International Association, 2015). According to the

previous literature and practice, in regard to the tremendous potential in relation to

the development of the cruise industry, the emphasis on sustainable development is

the initial strategy. The details regarding the methods for developing sustainable

cruises should combine a mixture of measures such as setting up relevant laws and

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regulations, enhance marine technology in reference to providing solutions for the

waste problems, and also should educate individuals about the importance of

protecting the environment. However, since this paper only discusses sustainable

development from the perspective of the environment, the future research should

explore the development of the sustainable cruise industry from the point of view of

the economy and the social aspect.

REFERENCES

Ackerman, L. M. (2015). Consumer Perceptions of Sustainability in the Cruise Industry.

Buckley, R. (2012). Sustainable tourism: Research and reality. Annals of Tourism Research, 39(2), 528-546.

Butt, N. (2007). The impact of cruise ship generated waste on home ports and ports of call: A study of Southampton. Marine Policy, 31(5), 591-598.

Cruise Lines International Association. (2015). CLIA 2014 annual report. Retrieved from http://test.cruising.org/docs/default-source/annual- reports/clia-2014-annual-report-final.pdf?sfvrsn=2

Cruise Lines International Association. (2013). 2013 North America cruise industry update. Cruise Lines International Association, Retrieved from http://www.cruising.org/sites/default/files/pressroom/CruiseIndustryUpd ate2013FINAL.pdf

Copeland, C. (2007). Cruise ship pollution: Background, laws and regulations, and key issues. Congressional Research Service, Library of Congress.

Fujita, R., Lynham, J., Micheli, F., Feinberg, P. G., Bourillón, L., Sáenz‐Arroyo, A., & Markham, A. C. (2013). Ecomarkets for conservation and sustainable development in the coastal zone. Biological Reviews, 88(2), 273-286.

Gulliksen, V. (2008). The cruise industry. Society, 45(4), 342-344.

Johnson, D. (2002). Environmentally sustainable cruise tourism: a reality check.

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http://www.cruising.org/sites/default/files/pressroom/CruiseIndustryUpd

http://test.cruising.org/docs/default-source/annual-%20reports/clia-2014-annual-report-final.pdf?sfvrsn=2

http://test.cruising.org/docs/default-source/annual-%20reports/clia-2014-annual-report-final.pdf?sfvrsn=2


Marine Policy, 26(4), 261-270.

Kleeman, G. (2014). Global cruise industry. Geography Bulletin, 46(1), 28.

Liu, B., & Pennington-Gray, L. (2015). Understanding the Cruise Industry’s Responses to Health-Related Crises: A Case Study Approach.

Marafa, L. M., & Chau, K. C. (2014). Framework for sustainable tourism development on coastal and Marine zone environment. Tourism, Leisure and Global Change, 1(1).

Petrick, J. F., & Durko, A. M. (2015). Segmenting Luxury Cruise Tourists Based on Their Motivations. Tourism in Marine Environments, 10(3-4), 149-157.

Schaafsma, M., & Turner, R. K. (2015). Valuation of Coastal and Marine Ecosystem Services: A Literature Review. In Coastal Zones Ecosystem Services (pp. 103-125). Springer International Publishing.

Showker, K. (2010). The unofficial guide to cruises. (14th ed.). Hoboken: John Wiley & Sons, Inc.

Sun, X., Jiao, Y., & Tian, P. (2011). Marketing research and revenue optimization for the cruise industry: A concise review. International Journal of Hospitality Management, 30(3), 746-755.

Tourism New Zealand. (2015). Cruise new zealand 2013 economic impact report.

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