2.5 m cruise passengers for JA under 5-year pact with Carnival
Government yesterday signed a “facility fee agreement” with Carnival Cruise Corporations – operators of Carnival Cruise Lines – which will guarantee the island 2.5 million cruise passengers over the next five years.
Under the agreement, there will be a fixed passenger fee for each year of the contract, and, in return, a guaranteed minimum of 500,000 cruise passengers per annum to Jamaica with a minimum of 80,000 specifically to the port of Montego Bay.
The agreement will generate minimum passenger fee revenues of US$17.75 million for the Port Authority over the five-year period.
Robert Pickersgill, the transport minister, who signed on behalf of the Government of Jamaica, said the pact, referred formerly to as a “head tax” agreement and now as a “facility fee” or “user fee”, has been used in Jamaica from the early 1980s as an incentive to encourage various cruise lines to increase their visits and/or passenger counts to the island. The minister said, however, that yesterday’s signing will address the past weaknesses of previous agreements and will guarantee future growth in cruise passenger revenue for the Port Authority, and the country in general.
“This is the first contract being entered into by Jamaica with a cruise shipping line which guarantees delivery of any number approaching 500,000 visitors per year over a five-year period,” Pickersgill said at the signing ceremony at the Jamaica Pegasus Hotel in Kingston.
The Port Authority of Jamaica was given the responsibility to handle the operations of cruise shipping in 2001, and, according to Pickersgill, $426 million is being spent on the development, upgrade and security of local cruise shipping facilities.
“Some $236 million have been spent on the physical works and promotion programmes since the Port Authority has taken charge of the sector. It plans to spend $190 million more in the 2004/05 fiscal year,” Pickersgill said.
The minister announced that preliminary works is now being done on a number of projects, including the development of Navy Island as a private island for cruise passengers, expansion of the ports of Montego Bay and Ocho Rios and the dredging of the Port Antonio Harbour to facilitate larger vessels.
The Port Authority is also planning to build a cruise ship facility in Lucea, Hanover.
Pickersgill told the signing ceremony that among the benefits from the increased revenue at the ports will be the security programme being implemented in response to the impending July 1 deadline for the International Ship and Ports Facility Security Code (ISPS).
In keeping with new security rules laid down by the United States Government after the September 11,2001 terrorist attacks, countries must upgrade their shipping ports to meet with standards under the ISPS Code.
The ISPS Code was developed at the 22nd session of the International Maritime Organisation, where the members of the organisation unanimously agreed to implement a range of new security measures for ships and port facilities and to shore up those already in place.
According to Pickersgill, security measures to be put in place at local ports include:
. X-ray units with the capability to inspect containers and bulk cargo;
. X-ray units for hand luggage;
. Closed-circuit television surveillance;
. Underwater surveillance cameras;
. Floating barriers;
. Regular marine and coast guard patrols; and
. Secured ground transportation for visitors.