Passengers disembark the Astor Cruise Line Vessel at Berth 2, Kingston Wharf. The German cruise vessel transported 590 passengers to Kingston on January 14, 2006. The Cruise Lines International Association says prospects for market growth for the Caribbean lie in Europe and Asia. - File

Cruise lines and their passengers spent US$17.6 billion (€12.91 billion) in the United States in 2006, while New York and Hawaii were among the fastest growing embarkation points for cruise travellers, according to a just released study.

Direct spending related to the cruise industry increased 9.0 per cent in 2006 - down slightly from 10 per cent growth the year before because of a slower rate of capacity growth and a drop in consumer spending, according to a report from the CruiseLines International Association (CLIA).

The report showed that 12 million passengers took cruise vacations worldwide in 2006, with United States passengers making up 78 per cent of those travellers.

Seven ships were added last year, and about 30 more are slated to be built by the end of 2011 as cruise lines anticipate there will be enough demand to fill some 80,000 new berths.

Over the last few years, the cruise industry has had to answer questions about safety aboard ships stemming from several incidents, including passengers' bouts with stomach illness, a ship fire and traveller disappearances. It also must deal with the yearly hurricane season and higher fuel costs.

Demand has slowed in the key Caribbean market but the industry has seen potential for growth in the Europe and Asia markets.

Cruise association President Terry Dale noted that industry surveys show only about 17 per cent of Americans have taken a cruise, meaning there should be enough demand to meet the increased supply of berths.

Barely scratched the surface

"As an industry, we've barely scratched the surface," Dale said. "There's such potential for us to continue to grow."

Florida - home base for Carnival Corporation and Royal Caribbean Cruises Limited - led with nearly 56 per cent of all embarkations and the top three cruise ports in 2006. The Port of Miami, Port Canaveral and Port Everglades accounted for more than 4.4 million passenger embarkation's, the study showed.

The Port of Galveston in Texas ranked fourth with 617,000 embarkations, an increase of 16 percent from the year before.

New York ranked sixth with 536,000 embarkations in 2006, up 45 per cent, with the opening of the Brooklyn Cruise Terminal.

The port in Honolulu also showed substantial growth, with passenger departures reaching 318,000, a jump of 34 per cent.

"We've literally brought cruising to the backyards of millions of Americans," Dale said. "It makes it much more accessible for folks and, as a result, you don't have additional costs to fly. It just makes the experience that much more affordable."

The success in New York and Hawaii were in contrast to a nearly 77 per cent drop in passenger embarkations in New Orleans, whose port was hit hard by Hurricane Katrina in 2005. About 72,000 cruise passengers began their trip in New Orleans in 2006, down from 308,000 the year before, the report showed.

Other ports that saw a drop in embarkations were Boston, down 22 per cent with 62,000, and San Diego, down 23 per cent with 180,000.

The study was done by Exton, Pennsylvania-based Business Research and Economic Advisors, which gathered and analysed data for the Fort Lauderdale, Florida-based cruise association.

- AP