Cayman’s leading private sector cruise tourism advocacy group has written a letter to the country’s governor, premier and all the members of the Legislative Assembly urging the government to unite to build a cruise ship berthing facility as quickly as possible.
The letter, dated 14 February from the Association For The Advancement of Cruise Tourism in the Cayman Islands, was signed by Robert Hamaty, Gene Thompson, Kevin Doyle and Ronnie Anglin. It stated that since 2006, cruise passenger arrivals decreased from 1.9 million people to 1.4 million, a drop of 27 per cent. The association attributed at least some of the decrease to not having a cruise berthing facility and noted that the new Royal Caribbean mega ships like the Oasis of the Seas and Allure of the Seas will not stop in Grand Cayman because of that.
“It would be good to remind those involved in this decision-making process that one of these mega ships has sailed within sight of Cayman every week on its way from Falmouth in Jamaica to Cozumel in Mexico since the beginning of 2010 and hasn’t called on Cayman simply because we do not have any berthing facilities,” the letter stated. “Based on the guest spend that we know about from these 6,500-guest capacity ships, Cayman has so far lost approximately $100 million in direct spending … from their passengers alone.”
The association stated that cruise passengers at a port with berthing facilities spend an average of US$100 per person, which is much higher than the average spending at ports with no berthing.
“This reduced revenue spend can be largely attributed to the 45-minute round trip that it takes the tenders to ferry passengers,” it stated, adding that in addition to that, many cruise tourists go back on board their ship after a shore excursion and never come off again, implying that they would return to shore more often if Cayman had cruise berthing facilities.
The letter argued the decline of cruise ship passenger arrivals on Grand Cayman had caused large reductions in local jobs and severely reduced working hours and take-home pay for many Caymanians.
“These adverse effects have been felt across our services industries, including the building trade, utilities providers and product wholesalers,” the letter stated. “Not even government is immune as it has experienced a major drop in duties and fees attributable to the cruise tourism industry.”
The association said Cayman remained “in the grip of an economic perfect storm of recession, inferior cruise berthing infrastructure and the rise of regional competition”.
“This was largely avoidable and caused, to a great extent, by the constant delays in having cruise berthing facilities built since 2003,” the letter stated, adding that Cayman could not afford any further delays.
“Speed is truly of the essence to save many local businesses and people’s livelihoods.”
Although the letter does not mention China Harbour Engineering Company by name, or the current proposal from that company to build a cruise berthing facility, the association seems to approve of that plan.
“From what we have seen so far, the privately financed port development plan that the honourable premier is presenting does offer Cayman an opportunity to quickly have a world-class cruise berthing facility that has the ability to create a hugely positive turnaround in our cruise tourism industry and our economy,” the letter stated. “Such an opportunity should not be lost. This plan does not appear to impact adversely on the Cayman government’s finances, which is precisely what is needed at this time when government is under pressure and endeavouring to maintain solid fiscal controls.”
The association also pointed out that under the current proposal, control and security of the port remains with government.
“In the best interest of the Caymanian people and businesses, we urge all factions of government to come together and unite in a collective responsibility to ensure that this most essential cruise berthing development proceeds without any further unnecessary delay.”
The cruise berthing facility project has been in the works for almost nine years. Tampa-based Misener Marine Construction Inc. was originally slated to build the facility, but after the change in government in 2005, Atlantic Star Ltd. was chosen to develop the project. After another change in government in May 2009, Dart Group subsidiary DECCO was chosen to develop the port. When negotiations with DECCO collapsed, a framework agreement with Italian-based company GLF Construction Corporation was signed in December 2010. Although GLF progressed planning to the point that it said it could start construction on the project by the end of May 2011 Premier McKeeva Bush terminated the framework agreement, saying he wasn’t convinced GLF could secure the necessary funding to finance the project.
In June 2011, Mr. Bush signed a ministerial-level memorandum of understanding with China Harbour Engineering Company to finance and build the berthing facility. At the time, then Port Authority of the Cayman Islands Board Chairman Stefan Baraud stated in a meeting that in his opinion, China Harbour was not prepared to commence the project in a timely manner.
Speaking about that on Saturday, Mr. Bush said China Harbour has offered enough to make it worth the delay.
“It will take more time, but the country will get more out of it,” he said.
In addition to developing the cruise berthing facility in George Town, China Harbour has agreed to make $3 million worth of improvements to Spotts Dock, which is used for cruise ship passenger disembarkation during times of rough weather in George Town. China Harbour has also agreed to construct a cruise ship dock in West Bay near the Turtle Farm.
“China Harbour’s proposal is the best one that has been put forward,” Mr. Bush said. “It’s better than what DECCO had put forward and it’s better than what GLF put forward.
“No one has offered this country what they’re offering.”
The original non-binding memorandum of understanding with China Harbour expired at the end of November 2011, but was extended to 31 March, 2012, to allow for an independent business-case study to be conducted.
Mr. Bush said a draft framework agreement has been drawn up that details the specifics of the deal between the government and China Harbour.
Mr. Bush said he was hopeful that construction on the berthing facility could start in April 2012.
“The first dock could be built by May-June, 2013, God willing,” he said.
Related Videos
When I was there last week there were four ships both days. How many ships do you want? Is it really worth 300 million dollars to try to get the big ones to come to a dock?
I would hope someone on the decision board is also taking into account the affect this enormous berthing facility – and the dredging it will require – will impact the island’s reef system.
Yes, megaships equate to more foot traffic per day on the island (or at least once per week as identified at the start of this article), but Cayman’s global reputation as a world class diving location should not be thrown out the window to benefit the few businesses located at the harbour. It is tantamount to cutting off your nose to spite your face.
I have frequent cause to interact and talk with tourists visiting the island, and Cayman’s boutique appeal is almost always mentioned. Where is the committee who should be protecting that appeal, and fighting to keep this gem from becoming Cancun?
Building the berthing facility is one thing but I understand China Harbor will also have a large merchandising facility which will absorb the money that could have been spent in Georgetown. Look at the experience Turks and Caicos had with this – all the jobs and profits went to China and that country was left poorer. Nassau has a similar arrangement which has left Bay Street starving but at least the jobs in the Bahamas go to Bahamians. Too bad we can’t revisit the agreement with Dart. That would be better for Cayman. If this agreement with China Harbor goes forward, the only business which will benefit on Cayman is the shutter industry – Georgetown will need a lot of those as the businesses close down.
What if the honorable and distinguished Mr. Ezzard Miller doesn’t like the deal? Do we know how China Harbor Engineering will react to incendiary threats of burning down any parks they may sponsor in the future?
Doesn’t anyone read the news anymore? The cruise industry is down, big time, and by the time a berthing facility is built it will be down even more. And now Costa Cruise lines (Carnival) has had another big blow at sea with a fire onboard. This makes people more and more leary of taking a cruise, especially these lower cost ones.
One mega ship will not make up the cost to the people and the environment and the general atmosphere of Cayman if this is implemented, especially in the George Town area.
How sad that they’ve been discussing this for 10 years, and still no cruise ship berthing dock. Had they reached a decision way back then — we’d have it right now and the mega ships would not be passing us by. And more and more will be bypassing Cayman. Baffled what you have forgotten is that yes, the cruise ship business is down right now — how long do you think it’s going to take to build this thing? At least 2 years, but with the way things go in Cayman, likely 3 or more. By then, it is hopeful the economy will be improved. But regardless, we need it NOW. One mega ship represents hundreds of thousands of dollars in revenue lost. Must break the merchant’s hearts watching it sail by. China Harbour should NEVER have been selected — but that’s another story.
Forget about the berthing state of the art facility, extend the dock. Let us try to stop reaching beyond our means and get something done!
Overheard whilst walking on the beach last week I would love to get into town before we leave to do some shopping but there are too many cruise ships in so I won’t get a chance coming from a stay-over tourist.
A common statement –
My preference would be for the South Sound option as I am concerned with digging a hole in the sand along the reef off George Town. As the sand moves up and down 7 mile beach it will continue to refill the dredged out area. No one seems to have an answer to that problem but this situation needs to be dealt with before construction.
Gee, didn’t that developer guy offer to build the harbor on the East End? I believe it was on his dime too. Pretty sure last thing I remember is that he’s a local with local ties, and local employees. When do we stop being like the Americans and start using what we have here, with the people we know here, for the benefit of the people here?
Before investing millions to build a dock, consider where tourism is heading. Yesterday’s generation were fascinated with ships while today’s generation Facetime with friends around the world. Tourism will move in into the virtual world. If I live in Canada and can go to a Caribbean virtual theme park down the street or even in my home, why would I want to travel thousands of miles away from the safety of home. In the next fifty years tourists will travel to resorts on orbiting space stations, the moon and Mars. We must also consider that society is changing, alternate lifestyles with desires for casinos and clothes optional beaches. Can we tolerate two men kissing in George Town or nudists walking 7-mile beach? Will the adults of tomorrow spend 10 for a beer to watch turtles swim?
Cayman Mermaid, I hate to disagree with you but I don’t think our government or our merchants will get much of the revenue a mega ship brings in. How much do the cruise ships pay the government per passenger? Pennies, I think. Much of the money spent goes back to the shipping line for tours booked on board and the shopping money will go to China Harbor’s shops and restaurants, including the development at Spotts. I still think downtown Georgetown will be out of business.