Cruising Along on Bumpy Seas

The North American cruise line industry generated a $35.1 billion economic impact last year, according to a new study commissioned by the Cruise Lines International Association.

The number was down 12.8 percent, but the association is seeing positive signs this year as the economy recovers.

"Last year was tough for everyone,” CLIA president and CEO Terry Dale said. “We are encouraged that the current economic climate is showing signs of improvement and cruise lines have been reporting strong activity thus far in 2010.”

While the cruise industry is seeking growth overseas in locations such as Europe and Asia, it is still heavily based in North America, the report shows. U.S. ports embarked 8.9 million passengers and accounted for nearly 66 percent of the worldwide total, based on figures for CLIA's membership, which includes the vast majority of cruise lines.

The cruise industry was challenged by the state of the economy in 2009, which prompted price cuts to encourage traffic.

Despite the 12.8 percent drop, the cruise industry has outperformed the national economy and the travel and tourism sector over the past decade, CLIA said. Between 2000 and 2008, annual direct expenditures of the cruise industry had increased by 85 percent, nearly double the 48 percent increase in annual personal consumption expenditures and the 40 percent increase in annual direct output of the travel and tourism sector.

The cruise industry outperformed several other segments of travel and tourism, including traveler accommodations, air transportation, and other transportation, the report said.

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