With an eye to brand development and future profitability, cruise lines are continuing to develop Caribbean destinations themselves or partner in port development projects which will positively impact their earnings.

Locally, the Falmouth pier developed by the Port Authority of Jamaica (PAJ) in partnership with Royal Caribbean Cruise Limited (RCCL) in 2011 is the one with which locals are most familiar.

The PAJ’s investment was estimated at US$167 million, along with RCCL’s US$102 million — US$46 million in the first phase. This included a terminal building housing customs, immigration and port security, restaurant services, retail shops, and a transportation centre.

Across the Caribbean region other ports and destinations are being developed, including a private Caribbean island by MSC Cruises.

The line recently announced plans for the Ocean Cay MSC Marine Reserve in the Bahamas, set to open in December 2017.

On December 16 Prime Minister Perry Christie and MSC Cruises Executive Chairman Pierfrancesco Vago signed a 100-year lease agreement, allowing the line to occupy and develop the island. Development cost is estimated at US$200 million.

Researchers at Coastal Systems International Inc, writing in their

Perspectives Newsletter, say cruise lines are finding financing for destination development based on high annual growth levels of at least seven per cent.

Coastal says while the Caribbean region — long the world’s largest and most economically important cruise market — is poised to continue capturing the majority of global cruise passengers; it needs a significant expansion of port and tourism capacity to accommodate the demand.

“The typical cruise ship carrying 2,550 passengers and 480 crew members conservatively generates over US$285,000 in passenger and crew expenditures during a single port-of-call visit. Based on these significant operational revenues, cruise destination developers and the cruise lines have been successful in securing financing for large-scale, multi-million dollar development projects,” Coastal systems said.

Another development in the works is Harvest Caye in Belize which is expected to open on February 16, the product of Norwegian Cruise Line. The cruise line purchased 75 acres on two adjoining islands in southern Belize in 2013 for development into what has been described as a luxury cruise port.

Caribbean360.com reported on January 4 that the cruise line is spending upwards of US$50 million on the project that will include a marina, a beach, a lagoon for water sports, a floating pier, and an island village.

In Tortuga as well, Caribbean360 said the Carnival Corporation is planning a US$70-million project on the island off the northern coast of Haiti noting that the line has previously invested millions in facilities in the ports of Grand Turk, Amber Cove, Mahogany Bay, and Half Moon Cay, Bahamas.

Carnival Cruise Line has additionally sent a proposal to the government to build a private port on Grand Bahama, Caribbean360 stated.

The Falmouth development in Jamaica is projected to include – in subsequent phases – on-site attractions, cultural experiences, hotel and residential developments. RCCL said it intends to bring to the port eight million cruise ship passengers over 10 years.