[Congressional Record Volume 145, Number 70 (Friday, May 14, 1999)]
[Extensions of Remarks]
[Page E974]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       THE POSITIVE ECONOMIC CONTRIBUTIONS OF THE CRUISE INDUSTRY

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                          HON. CARRIE P. MEEK

                               of florida

                    in the house of representatives

                          Friday, May 14, 1999

  Mrs. MEEK of Florida. Mr. Speaker, I rise today to discuss a matter 
of importance to the nation and to my district in South Florida. A 
brochure prepared by PricewarehouseCoopers (PmC) provides considerable 
detail regarding the enormous positive economic contribution which the 
cruise industry provides throughout the United States.
  This study concluded that the cruise industry is responsible for 
creating jobs in every state in the country. These are good jobs that 
provide families all over America with security and with the 
opportunity to prosper and to grow. Secondly, it is significant to our 
national economy that billions of dollars in U.S. products are 
purchased by the cruise industry each year. As this industry continues 
to grow and to prosper, more U.S. companies will benefit from expanded 
business.
  The study concluded that the total economic impact of the cruise 
industry in 1997 was $11.6 billion. Of this, $6.6 billion was the 
direct spending of the cruise lines and their passengers on U.S. goods 
and services. An additional $5 billion was expended by cruise industry 
U.S.-based goods and service providers. Therefore, each year the total 
impact of the U.S. cruise industry is $11.6 billion, and these 
purchases occur in every state in the country. This PwC study also 
revealed that the cruise industry, through its direct employment and 
the jobs attributable to its U.S. supplier base, totalled 176,433 jobs 
for U.S. citizens in 1997. The cruise industry has been growing by 6-10 
percent every year. For Americans, that can mean 10,000-17,000 new jobs 
each year.
  In my home state, where there are five major ports of cruise 
passenger embarkation, the industry employs 58,876 people. In addition, 
millions of dollars are spent in purchases of products as varied as air 
travel, land transportation, hotel and lodging, food and beverages, 
business services, banking services, longshore and port services, 
floral services, and tableware and linens.
  The PwC study also revealed that the cruise industry in 1997 paid 
over $1 billion in various federal taxes and user fees, and local state 
fees and taxes.
  In the past, cruising was perceived as a vacation available only to 
wealthy American families. But, in fact, last year over 909,000 
Floridians took a cruise vacation, and these passengers included 
retirees, newlyweds, bank clerks, teachers, families and children from 
every income bracket. This is because the cruise industry has been able 
to provide a safe and enjoyable vacation experience at a price which is 
competitive with other land-based destinations.
  In summary, Mr. Speaker, the cruise industry is good business for all 
of America. It creates jobs and generates significant revenue for the 
U.S. economy every year.
  Finally, I want to introduce into the Congressional Record the 
following statistics which illustrate the cruise industry's revenues 
and expenditures in 1997. These figures represent the economic impact 
of the North American cruise industry.
  Direct spending of the cruise lines and their passengers on goods and 
services produced in the United States in 1997: $6.6 billion.
  Total economic impact of the cruise lines, their passengers, and 
their U.S. suppliers in 1997: $11.6 billion.
  These expenditures generated jobs in the U.S.: $176,433 U.S. jobs.
  Direct industry expenditures included purchases from major U.S. 
industries, such as airline transportation, food and beverages, 
business services, energy, and financial services.
  This economic impact touched upon virtually every segment of the U.S. 
economy. Those industries most heavily impacted upon are summarized 
below:

Airline Transportation: $1.8 billion.
Transportation Services: $1.2 billion.
Business Services: $1.0 billion.
Energy: $988 million.
Financial Services: $698 million.
Food & Beverages: $607 million.

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