Cruise activity in Barcelona generates total turnover of € 796 million and contributes € 413.2 million a year to Catalonia’s Gross Domestic Product (GDP), according to the results of a study commissioned by the Port of Barcelona and conducted by the University of Barcelona’s AQR-Lab Laboratory of Applied Economics in collaboration with Barcelona Tourism.
The study, presented today by Sixte Cambra, President of the Port of Barcelona, Jordi Suriñach, Director of the University of Barcelona’s AQR-Lab Laboratory of Applied Economics and Professor of Applied Economics, with Jordi William Carnes, Director-General of Barcelona Tourism in attendance, calculates the direct impact(1) of the key stakeholders in cruise activity, the indirect(2) and induced(3) impact, as well as the catalyst effects of this sector on the economy.
The report reveals that direct expenditure arising from cruise activities amounted to € 442.5 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 € 353.5 million, which puts the total turnover of the cruise activity at € 796 million.
The study also highlights that the volume of activity represents a contribution of € 413.2 million to Catalonia’s GDP and maintains 6,759 jobs. It also generates tax income of € 152 million in State and regional taxes and in tourist tax. Barcelona is the main beneficiary of this activity, since 75% of the total effect stays in Barcelona (a € 313.4 million contribution to GDP and 5,039 jobs in absolute terms).
Port President Sixte Cambra underscored the significant contribution of the study “to assessing the real economic and social dimension of a traffic segment which in recent years has become very important as a source of investment, employment and economic activity”.
To make these figures easier to understand, the explains that the arrival of cruise ships at the Port of Barcelona entails a daily turnover of € 2.2 million in Catalonia (€ 1.7 million of which in the city of Barcelona). In other words, every cruise ship that stops over in the Port of Barcelona generates, on average, a total turnover of one million euros; it contributes half a million euros to Catalan GDP and maintains nine jobs (seven of which in Barcelona). In addition, each cruiser stopover contributes € 200,000 in tax revenues (VAT, income tax and corporation tax).
Multiplier effects on various sectors
The research by the University of Barcelona also highlights the important multiplier effects arising from cruiser activity, which almost double the direct impact attributed to three main spending agents. € 80 are generated in additional indirect and induced turnover for every € 100 of direct expenditure; every € 100 of GVA generated directly creates an additional € 83 of GVA; and for every 100 direct employees there are 68 more jobs thanks to the indirect and induced impact.
In addition, the study shows that, far from benefiting only from typical tourist activities, the cruise sector generates significant positive effects in other sectors of the economy. This multiplication of benefits to different economic segments is based on the distribution of jobs that arise from cruise activity: while 3,995 jobs are generated in tourism sectors, the remaining 2,764 occur in sectors as diverse as logistics, food manufacturing, the metal industry, chemical industries, medical services or waste management and sanitation services, inter alia.
Profile of the cruise passenger
Thanks to the data provided by Barcelona Tourism based on surveys of more than 3,100 cruise passengers during 2014, the study identifies a detailed profile of cruise passengers visiting Barcelona. On the basis of this profile and the fact that in 2014 the Port of Barcelona recorded a total of 2,364,292 cruise passenger movements, it is worth noting that cruise passengers who visit the city and do not stay overnight spend an average of 4.3 hours in the city, which represents 57.5% of passenger movements (1,360,271 people).
Moreover, passengers in turnaround (who start and end their journey in Barcelona) that stay overnight in the city remain an average of 2.6 nights and account for 23.9% of cruise passenger movements (565,400 people) while the remaining 18.6% corresponds to passengers that embark and/or disembark directly with no overnight stays and without visiting the city (438,621 people movements).
Cruise passengers arriving in Barcelona usually travel in pairs to visit the city, go shopping, visit cultural sites and enjoy the food. 94% of cruise passengers that stay the night in the city lodge in a hotel (compared to 47.5% of tourists on holiday in Barcelona). The study also specifies the average cost of different types of cruise passengers: sight-seeing cruise passengers (who visit the city but do not stay overnight) spend € 53 on average; tourist cruise passengers (who do spend the night in Barcelona) spend € 202 per day compared to holiday tourists in the city (who stay in a hotel), who spend an average of € 156.
The research conducted by the University of Barcelona highlights some of the catalyst effects of cruise activity on the Port. The impact on El Prat airport is an emblematic case, since Barcelona’s importance as a homeport for cruisers and the fact that 78% of cruise passengers in turnaround use the plane has been decisive in creating and maintaining international flights (such as those from the US, Canada and also the Emirates for the Australian market).
The cruise sector also has significant effects on the land transport of passengers, since it provides a stable and continuous demand throughout the year for all branches of passenger transport. Furthermore, the sustained demand helped maintain jobs for transport firms that are not specific to the tourism sector.
This study takes into account other qualitative factors such as concentration and the environment.
Regarding concentration, Jordi Suriñach pointed out that “the fact that Barcelona is a homeport and therefore most passengers start and/or end their cruise at the port, means that their visit and/or stay in the city is drawn out for more hours and days”. Regarding the 1.1 million cruise-goers in transit (with a stay in the city about 4 hours) Mr Suriñach pointed out that this is manageable because stopovers are booked two years in advance, which makes it possible to know in detail how many cruise passengers will be in the city every day of the year. This forward planning makes it easier to manage and organise the flow of cruise passengers with the city.
As far as environmental impact is concerned, the report notes that cruisers generate 1.2% of the NOx present in the air of Barcelona and less than 0.2% of the solid particles in suspension in the city’s air. President Sixte Cambra announced that the Port is preparing a specific study on the effects of cruise activity on the Catalan capital, the results of which will be announced in the coming months.
Conclusions of the study
Cruiser activity at the Port of Barcelona:
• generates annual turnover of € 796 million in Catalonia (2.2 million each day);
• contributes € 413 million to Catalonia’s GDP;
• generates € 152 million in tax revenue;
• maintains nearly 7,000 full-time jobs;
• provides connectivity flights to Barcelona airport and economic stability in other sectors of the city;
• not only does it benefit the sectors linked to tourism but also to other industrial and service sectors;
• corresponds to a profile of cruise passenger that usually travels as a couple, with considerable interest in getting to know the city and is a good prescriber (90% want to return and recommend the city to friends and acquaintances).
About the Port of Barcelona
Barcelona is the top cruise port in Europe and the Mediterranean and occupies fourth place in the world cruise port rankings (preceded only by three Caribbean ports located in the state of Florida: Miami, Port Everglades and Port Canaveral). € 109 million were invested in cruiser infrastructure between 2000 and 2014 at the Port of Barcelona, which now has six international cruise terminals.
The Port is planning a seventh installation (Terminal E), to be built and managed by Carnival Corporation, one of the world’s leading cruise operators, with an investment of € 30 million.
1 Direct impact: measures the direct impact of the costs incurred by the main players in cruise activities (shipping companies, cruise ships and crews).
2 Indirect impact: measures the effect generated by the increase in expenditure by these players on production and employment of the direct and indirect providers (i.e., over the entire supply chain as a result of the intersections between sectors).
3 Induced impact: measures the effect on production and employment generated from the income gained from direct and indirect employment, and its subsequent application to consumption.
The enclave increased the volume of vehicles by 18%
The Port Authority of Barcelona recorded, through September 2015, an increase of 9% in the traffic of containers full of imports and exports. Specifically, containerized import cargo increased 9.6% to over 366,000 TEUs, while containerized export cargo grew 8.7%, reaching 480,314 full TEUs. In addition, specialized port terminals in Barcelona transported, through September, 632,893 vehicles, a figure 17.8% higher than the same period of 2014.
Moreover, the volume of goods transported along the Motorway of the Sea from the port of Barcelona increased 20% between January and September 2015, a total of 100,666 ITUs. This result implies that, so far this year, short sea shipping lines at the Catalan Port have managed to divert more than 100,000 trucks from the roads to maritime transport, according to the data provided by the Port Authority of Barcelona.
The service of the O3 alliance formed by shipping companies UASC, CMA, CGM and China Shipping which stops in Barcelona now connects India and the Middle East with North America from East to West.
The Port of Barcelona received the stop-off of the containership ‘Al Rawdah’ affiliated to the MINA/MAX2 service of the Ocean Three alliance formed by UASC, CMA, CGM and China Shipping. This stop-over is an improvement in the connectivity of the Port of Barcelona as the service which to date only operated in Barcelona from East to West (from India to North America) now also does so from West to East (from North America to India).
The MINA service (Middle East – Indian Subcontinent – North America)/MAX2 makes a regular trip once a week and connects the ports of: New York, Norfolk, Savannah, Miami, Tangier, Valencia, Barcelona, Livorno, Genoa and Malta, Eastwards; and Khor Fakkan, Jebel Ali, Port Qasim, Nhava Sheva, Mundra, Jeddah, Port Said East, Livorno, La Spezia, Genoa, Fos, Barcelona, Valencia and Tangier Westwards.
This new service strengthens the Port of Barcelona as a distribution hub to the hinterland of cargo from North America bound for the Middle East and India.
Aena announced (11-May-2015) the relaunch of a special check-in system for cruise passengers arriving at Barcelona El Prat Airport. Air France-KLM , British Airways and Iberia have 14 counters in T1 designated to checking-in the luggage of passengers arriving to Barcelona by cruise ship then travelling by air to other destinations. Passengers arriving at the Port of Barcelona have shuttle buses to transport them directly to the airport. The initiative will last until 30-Oct-2015
Fruit Logistica has also served to promote exports between Mercabarna companies, in order to grow and gain competitiveness.
The Port of Barcelona participated in the month of February in Fruit Logistica, the world's largest fresh produce trade fair, where it promoted the integrated logistics chain it offers with Mercabarna and private operators, in this case the shipping company Grimaldi. As part of this global service, Barcelona provides complete connectivity, supply and distribution solutions to meet the needs of its European import and export customers and the logistics operators specialising in fresh produce.
One of the main goals of the Port’s commercial team at this fair was to promote short sea shipping services (SSS) between North Africa and the Catalan capital, as well as reefer shipping services (refrigerated containers) which connect Barcelona with the rest of the world and place it as an entry point to Europe for fresh and off-season produce originating
in America and Africa.
Regarding Mercabarna, at the fair the organisation showed foreign importers the combination between increased supply and variety of fruits and vegetables in Europe – which is currently to be found in Mercabarna – and logistics solutions adapted to fresh produce, so that these perishable foods arrive in the best conditions.
Currently, Mercabarna fruit and vegetable employers export mainly to Europe, but also want to attract importers from the USA, the Asian continent, and the United Arab Emirates. Therefore, from the Mercabarna Export cluster, work was also conducted to streamline road transport through groupage (grouping of loads from different wholesalers in the same lorry for the same destination) and is collaborating with logistics operators specialising in air transport, able to adapt their services to the specific characteristics of fresh produce.
Fruit Logistica had more than 2,600 exhibitors from 84 countries and over 62,000 visitors.
Cambra guarantees that the port will not be obliged to invest in the Accessibility Fund.
The president of the organization, Sixte Cambra, gave a very positive assessment of the activity conducted in the enclave during his presentation to the Barcelona Chamber of Commerce last week. There has been a total of 46.3 million tonnes, driven by developments in containers, reaching 1.9 million TEUs (Twenty-foot Equivalent Unit), up 10% compared to 2013.
In this segment, Sixte Cambra emphasized the record high set in 2014 in transporting containers full of imports and exports, with growths of 12 and 7%, respectively.
The export and import traffic of TEUs shows an 8% improvement on the results of 2007, which had been the best historical record to date.
The evolution of exported TEUs stands out, increasing to 43% compared to 2008. The president of the port demonstrated the economic contribution that the enclave represents for the internationalization of the Catalan economy and the competitiveness of the territory’s business network. An analysis of the traffic also reveals the good behaviour of liquid bulk, closing the year with 12.9 million tonnes, a 21% increase. Bulk solids reached 4.8 million tonnes, up 9%, while auto transport grew 6% with 748,000 vehicles transported through the port facilities. Short sea routes represented traffic of 112,507 tonnes, 10% more than 2013.
According to the Barcelona Chamber of Commerce, the port "remains unaffected" by the Accessibility Fund, and shall not have to provide investment to this new financial instrument. Cambra explained that the ports that have already committed projects in their own entrances shall not have the obligation to allocate 50% of their profits to the fund.
Two days after the president of State Ports, José Llorca, announced the agreement which specifies the new regulation, which must be passed in the first half of the year, Cambra took the opportunity of the presentation to show that the negotiation conducted with the Ministry of Development has managed to solve the initial differences caused by the adoption of the draft legislation in July.