Cruise
Control
By Carla Lucchetta
Contributing writer
When the cruising season ends in September, the city is
expected to report its 19th straight year of revenue growth
from the industry. Last year, more than a million Alaskan
cruise passengers contributed $508 million to the B.C. economy—most
of it in Vancouver. The cash infusion included everything from
pilot and berthing fees to provisions for the ships and
passenger spending on shore.
Already ranked the third most popular cruise destination,
the Alaska trip is expected to become even more popular. In
fact, Seattle has spent considerable time and expense courting
cruise line business in recent years. Last year, Norwegian
Cruise Lines’ Norwegian Sky—the vessel recently involved
in an accident near Victoria that injured several people—made
history by being the first Alaska cruise to call the Port of
Seattle home.
With bigger plans in the works in Seattle, Vancouver risks
losing ground to its neighbour to the south, which is more
determined than ever to claim the title "Gateway to
Alaska."
Although Alaska cruising began in the 1950s, the industry
didn’t take off until the 1980s, when major international
cruise lines such as Holland America and Princess Cruises
entered the market. Vancouver has been the home port for
Alaska cruises since the beginning, in large part because of a
piece of outdated 1886 U.S. legislation. Intended to protect
the American shipping industry, the law restricts cruise ships
built and registered in Europe from sailing directly from one
U.S. port to another without making a foreign stop in between.
Since Alaska and Seattle are both U.S. ports, cruises must
either originate from Vancouver or, if they begin in Seattle,
stop in Vancouver or Victoria on their way north. Because
Vancouver is closer to Alaska, cruise lines that start here
are able to offer more Alaskan port stops and land tours,
making it the preferred embarkation point.
Tired of being left out of the loop, Seattle port and
tourism officials began dreaming up improvements to Bel Pier
in 1996, when they had yet to attract even one cruise line.
Adopting an "If you build it, they will come."
philosophy, the port began renovations in 1998 and
subsequently secured a four-year contract with Norwegian
Cruise Lines. The work was completed prior to the start of the
cruise season in May.
Luring business away from the Port of Vancouver, which has
had years to perfect its berthing practices and train
employees about the cruise industry, hasn’t been easy. The
Port of Vancouver began a major renovation last year,
allocating $89 million to build a new and longer berth at
Canada Place to house even the largest ships by 2003.
Currently, there are two berths at that location and two
further east at Ballantyne Pier, although Canada Place is the
more attractive embarkation site, closest to five-star hotels,
restaurants, shopping and tourist attractions. Once
renovations are completed, space for passengers, baggage and
truck, bus and taxi access will be expanded. Another challenge
for Seattle is a 1995 Canada-U.S. open-skies agreement that
allows more direct and frequent flights to Vancouver from
American cities, which helps attract passengers for pre- and
post-cruise stays.
One factor working in Seattle’s favour, however, is that
Americans—who make up the majority of the Alaska cruise
market—believe it’s easier to fly to Seattle to begin
their cruises. Given the popularity of Alaska cruises, Seattle
predicts business will spill over to that city. And although
they know they’ll never corner the market, they’re making
inroads in roundabout ways.
Before her inaugural voyage to Alaska at the end of May,
Royal Caribbean International’s Radiance of the Seas spent
most of the month sailing on three- and four-day mini-jaunts,
dubbed "pocket cruises" by the industry. Round-trip
from Seattle, with stops in Vancouver and Victoria, travellers
paid as much as $1,829 (U.S.) and as little as $379 U.S., not
including airfare, for the privilege of travelling aboard one
of the largest, most extravagant new vessels.
It was the first time Royal Caribbean International had
offered pocket cruises—designed to whet the appetites of
novice cruisers—although Norwegian Cruise Lines began
Pacific Northwest excursions out of Seattle Port last year.
Next year they’ll be joined by Holland America’s version.
A passenger survey report commissioned two years ago by an
alliance of interested parties in B.C., including Tourism
Vancouver, the Vancouver Port Authority and the Vancouver
Airport Authority, identified "in-transit"
passengers—those who board the ship in a port other than
Vancouver, as in the "pocket cruises"—as the
biggest growth sector in the Alaska cruise industry. Although
Tourism Vancouver officials are quick to point out that these
passengers spend money in Vancouver during their day-long port
stays, what they neglect to mention is the loss of coveted
pre- and post-cruise dollars spent on hotels, restaurants,
shopping sprees and sightseeing trips. While "pocket
cruises" add length to the cruise season, they also give
Seattle a chance to show itself off, and its new Bel Pier
digs, to cruise lines and their clients, giving them a taste
of what Seattle-based excursions have to offer.
At the same time, after many years of trying to update the
U.S. law requiring foreign port stops, Seattle officials are
taking a new tack. A U.S. Cruise Vessel Act recently passed
will allow foreign-flagged cruise ships into the U.S.
port-to-port market, provided they have a contract with a U.S.
shipyard to build ships that, in time, could replace those
that are foreign-made. Doug Williams, media officer for Port
Seattle, says a coalition of ports and travel industry members
is working to put the plan into effect. If the U.S. starts
building luxury ships, it could result in new itineraries,
thereby luring new business.
So why is Seattle going so far to get a piece of the
action? The worldwide cruise industry is big business,
competitive and innovative. The North American market alone
consists of 34 cruise lines operating 130 ships, with 30 new
vessels and 48,000 berths due to be added by 2002. There is an
embarrassment of itineraries to choose from, all designed to
keep companies viable and add market share.
Cruisetours, as they’re called, are available in
choose-your-own packages, with every possible scenario for
length of trip, ports of call, pre- and post-cruise
stop-overs, shore excursions, and land-sea tours. Travellers
can go as near as the Inside Passage and Glacier Bay, travel
further north to the Fjords, or as far into Alaska—by ship
and rail—as Fairbanks, and beyond. Princess Cruises, for
example, has built signature lodges to accommodate its
land/sea offerings, and in addition to Alaska, has sidetrips
to the Canadian Rockies.
Over the course of a couple of decades, the cruise industry
has become a vital part of this city’s tourism profit.
Reportedly, each cruise ship contributes $1.5 million to the
B.C. economy as it passes through the Port of Vancouver from
May to September. The ships also employ crew, medical and
transportation professionals; cruise line agents; ship
chandlers and suppliers; ship services and repair people;
stevedores;—not to mention extra staffing by hotels,
restaurants and shops near Canada Place.
To stay on top of this wide-reaching industry, marketing
representatives from Tourism Vancouver meet with the cruise
lines to brainstorm promotional and cruise itinerary ideas,
and take part in trade shows. They work closely with
organizations like the Pacific Rim Cruise Association to
present events like Cruise-a-thon and Cruise Fest, which
attract thousands of travel-trade professionals who sell
cruise packages, ideally with all the Vancouver extras. Hotel
sales and marketers conduct their own meetings to firm up
promotional packages. "The U.S. is a large tourism market
for us and the only way to be effective is to work with tour
operators that already have the reach," says Dayna
Lembcke, manager of marketing development and leisure travel
for Tourism Vancouver.
Asked if she’s worried about Seattle encroaching on
Vancouver’s business, Lembcke says this city has many
factors in its favour, besides being closer to Alaska.
"We are way ahead of the game because of our many years
as home port to the Alaskan cruises. Vancouver scored very
high ratings in our 1999 passenger survey," she says,
adding, "We don’t take this position for granted."
On a Saturday in May at the Canada Place berth, as many as
half the passengers on a pocket-cruise from Seattle to
Vancouver and Victoria remain on board. The open area pool on
Deck 11, shielded from the outside breeze, is full of swimmers
and sunbathers. Some passengers are using the fitness centre,
mini-golf and basketball court for kids, while others wander
the halls, familiarizing themselves with the nooks and
crannies of the enormous ship. The duty-free shops and casino
are closed until sailing, but the gift shop, coffee bar,
restaurants and lounges are doing brisk business. One couple
on their first cruise say they briefly ventured into Vancouver
but returned to the ship, reasoning that they’ve already
paid for an all-inclusive trip.
Mike Strange, a repeat cruiser who often takes half-price
"repositioning tours"—when a ship moves to another
part of the world at the end of a tour season—is treating
his family to this mini-cruise and has no interest in
disembarking. "I don’t care where I am," says
Strange, who hails from McMinnville, a small Oregon community.
"Vancouver is just another big city."
Doug Williams, spokesman for Port Seattle, says this year’s
pocket cruises are booked solid, evidence that efforts to
attract the elusive younger market are working—cruising the
world has traditionally appealed to older, retired, moneyed
folks.
The impact of these mini-trips has yet to be felt. But with
the addition of pocket cruises next year by Seattle-based
Holland America and Seattle’s ambitious plan to bring
cruise-ship building to the United States, Vancouver may well
be in the position, in the next few years, of defending its
territory and its revenue.
What sounded like good old-fashioned American hype a few
years ago is quietly coming to fruition, starting now.
It’s a sunny Saturday afternoon at Vancouver’s
waterfront, clear but breezy. The North Shore mountains are
visible up to their snowy peaks, and a wind is lightly
rippling the water.
Lining the walkways around Canada Place, friends and family
wait to wave bon voyage to Alaska-bound passengers boarding
two enormous cruise ships tied up on either side of the white
sails—Holland America’s Zaandam and Royal Caribbean
International’s brand new Radiance of the Seas.
At 962 feet long and more than 90,000 tons, the latter is a
veritable floating island that skims under the Lions Gate
Bridge. Capable of carrying 2,100 passengers, Radiance offers
a Vegas-style casino, opulent atrium lit up to the 13th deck,
rock-climbing wall, children’s playground, daycare,
miniature golf course, Internet café and library, running
track, theatre and cabins with private balconies.
Radiance is one of seven new ships to arrive in Vancouver
this year, five of them in their inaugural year. Two,
including Radiance of the Seas and Celebrity’s Infinity, are
substantially larger than their predecessors, with more space
per passenger.
The size of the new ships testifies to the strength of the
Alaskan cruise industry, from which Vancouver—home to 26
cruise ships—has reaped large profits.