A decades-long debate about the real economic value of cruise tourism has been resurfaced following the release of the Cruising for Impact report by the World Travel & Tourism Council (WTTC).
Positioned as a data-driven assessment of the cruise sector’s global contribution, the report highlights a key finding: more than 60% of cruise passengers return to destinations they first discovered by sea, according to data from the Cruise Lines International Association (CLIA). WTTC frames this as evidence of cruising’s role not just in introducing travelers to new places, but in sustaining long-term tourism demand and future visitor pipelines.
Yet, the report has gained mostly positive traction worldwide, a voice from the Caribbean, one of the world’s most cruise-dependent regions, is urging a deeper, more grounded discussion.
A Valuable Report
The WTTC report arrives at a time when destinations worldwide are reassessing tourism through the lenses of sustainability, economic resilience, and community benefit. By leveraging CLIA’s extensive global dataset, WTTC, the global tourism authority for the private travel and tourism sector, provided one of the most comprehensive recent snapshots of cruise tourism’s contribution.
However, stakeholders such as MacLellan & Associates believe additional regional context is essential.
Robert MacLellanManaging Director of his consulting and real estate firm, welcomes the report’s intent but questions its balance. Interests of hotel developers and cruise companies do not always see eye to eye.
Who is Robert MacLellan?
Robert MacLellan is based in Bermuda and has over 40 years’ experience in the hospitality industry, employed initially in operations management positions by major international companies, including Forte Hotels, Holiday Inns, Loews Hotels, and P & O Princess Cruises. His property development experience was gained with Stanhope Properties PLC in London, where he was Managing Director of their leisure, retail and property management division and with Road Chef Motorways PLC, a catering/retail/hotel/fuel distribution company where he was also Managing Director. He directed worldwide cruise ship operations as Vice President of Hotel Services at Ocean Cruise Lines.
Robert has managed hotels and marinas in Bermuda, St. Thomas, Jamaica, the UK, and Spain, and traveled extensively in Europe, the Caribbean, North and South America, South East Asia, and the Middle East. His previous consultancy involvement includes working on US and Caribbean assignments during the 1980’s for Eric Bernard Associates, based in Palm Beach, Florida, followed by a period as Operations Consultant with the Aspect Group in London, working on timeshare, golf, and mixed-use resort assignments in the UK and Spain.
“I found this month’s report rather biased,” MacLellan told eTurboNews. “This is particularly so, given its significant reliance on data from the Cruise Lines International Association.”
A Changing Cruise Model
MacLellan’s concerns stem largely from the cruise industry’s evolution over recent decades.
Today’s ships are no longer simply transport vessels—they are floating mega-resorts designed to capture as much passenger spending as possible within their own ecosystems.
“Ships now have multiple restaurants, bars, shops, casinos, spas, and water parks,” MacLellan explained. “All of this creates a direct disincentive for passengers to spend time—and money—ashore.” He also points to operational practices that reinforce this shift.
“Ships ban bringing duty-free liquor, such as local rum onboard in calling ports, often on ‘security’ grounds. At the same time, they operate their own retail outlets selling exactly those kinds of products. That’s not a level playing field for local businesses.”
The Reality of Onshore Spending
The question of how many cruise passengers actually spend in destinations remains one of the most contentious issues in the debate. While industry data often presents relatively strong spending figures, MacLellan, as a hotel consultant, challenges their accuracy in real-world settings in his region.
“The average spend per cruise ship passenger quoted in some reports seems very dubious,” he said. “From what we hear on the ground, the reality is far more modest.” Drawing on personal feedback from local operators, he adds: “Most taxi drivers in the Caribbean will tell you that the average purchase per person ashore is more like ‘two beers and a T-shirt.’” This stands in stark contrast to stay-over visitors.
“How does that compare,” he asks, “with a guest staying in a hotel or villa—paying for accommodation, dining, car rental, excursions, and entertainment over several days? The difference is enormous.”
A 2025 report from the World Bank reinforces this disparity, estimating that cruise visitors generate between $37 and $139 per visit in the Caribbean, compared to more than $1,600 for stay-over tourists.
Excursions and Economic Leakage
Another area of concern is the structure of shore excursions.
“Commissions for shore excursions have risen from around 10% in earlier years to as much as 50% in St. Lucia today,” MacLellan noted. “That inevitably pushes prices up and makes it harder for local operators to remain viable.” The consequences, he says, are visible.
“A smaller percentage of passengers now go on excursions, and an increasing number don’t go ashore at all in certain ports. That’s a fundamental shift in how cruise tourism interacts with local economies.”
The Return Visitor Question
Global authorities such as WTTC and CLIA emphasize that cruising plays a crucial role in destination discovery, with more than 60% of passengers returning to places they first visited by ship.
Gloria Guevara, CEO of WTTC, recently explained to eTurboNews: “Not every destination is the same. Even within Mexico, some destinations rely on the cruise industry, while others see it as their biggest advertising value for future repeat customers.
MacLellan agrees this is an important metric—but believes it needs deeper analysis. “The key question is not just whether they return,” he said. “It’s how they return.”
He continues: “Discovery is valuable, no doubt. But from an economic standpoint, a day visitor and a week-long visitor are completely different propositions.”
Such an analysis, he suggests, would strengthen—not weaken—the WTTC’s work by providing a clearer picture of long-term value creation.
Taxation, Costs, and Local Impact
MacLellan also highlights what he sees as a structural imbalance between cruise lines and land-based tourism businesses.
“Cruise ships often benefit from offshore tax structures and very low wage costs for much of their crew,” he said. “Meanwhile, hotels and tourism businesses in the Caribbean pay local taxes, employ local staff, and contribute directly to national economies.”
He adds that the disparity extends to taxation policies.
“Cruise ships currently pay very low port taxes per passenger in many Caribbean countries, especially compared to regions like Alaska or the Mediterranean,” he explained. “At the same time, stay-over visitors are heavily taxed through airport fees, hotel taxes, and VAT.”
Those local contributions, he emphasizes, have a multiplier effect.
“When you employ local staff and pay local taxes, that money circulates within the economy. That’s a critical difference.”
Competition in peak season
One of MacLellan’s most pressing concerns is the impact of cruise tourism on the viability of land-based tourism.
“The Caribbean has the highest density of cruise operations in the world, particularly during the winter high season,” he said. “That’s exactly when hotels depend on strong occupancy and rates to remain profitable.” He warns that this creates a challenging dynamic.
“In many ways, the current cruise model represents unfair competition for onshore accommodation providers,” he said. “And because ships can reposition seasonally, they don’t carry the same long-term investment risks as hotels.”
He adds: “This has implications not just for existing properties, but for future development. Investors look at these dynamics very carefully.”
A Call for Policy Recalibration
Despite his criticisms, MacLellan is clear that he is not advocating against cruise tourism itself. “This is not about being anti-cruise,” he said. “There are certainly regions where cruise tourism still delivers strong benefits.” However, he believes the Caribbean requires a more balanced approach.
“I really encourage governments, as well as organizations like the Caribbean Community, the Caribbean Tourism Organization, the Caribbean Hotel and Tourism Association, and the WTTC, to re-evaluate this imbalance and adjust policies going forward.”
He concludes: “The goal should be to ensure that tourism—whether cruise or stay-over—delivers sustainable, long-term benefits to the people and economies of the region.”
WTTC Reopened the Tourism Conversation on Cruising for Impact
WTTC’s Cruising for Impact report has succeeded in placing the cruise sector firmly back into the global tourism conversation—highlighting its scale, connectivity, and potential to drive future travel demand. It’s understood that every region has different views and challenges, and WTTC has always recognized this.
