[Congressional Record (Bound Edition), Volume 145 (1999), Part 8]
[Extensions of Remarks]
[Page 11199]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 11199]]


               IMPORTANCE OF THE AMERICAN CRUISE INDUSTRY

                                 ______
                                 

                          HON. SONNY CALLAHAN

                               of alabama

                    in the house of representatives

                        Wednesday, May 26, 1999

  Mr. CALLAHAN. Mr. Speaker, I take this opportunity to make our 
members aware of the American cruise industry's importance to the 
nation and its maritime industry.
  Recently, PricewaterhouseCoopers (PwC) completed an economic study 
that provides considerable detail regarding the enormous positive 
economic contribution which the cruise industry provides throughout the 
United States. This study concluded the cruise industry is responsible 
for creating jobs in every state in the country. It is important 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 prosper, more U.S. companies will benefit from expanded 
business.
  In my district in Alabama, millions of dollars are spent every year 
on maintenance and repair of cruise ships at Atlantic Marine and Bender 
shipyards in Mobile. Hundreds of people are employed in this work and 
it is an important contributor to our local economy.
  The PwC study showed that the total economic impact of the cruise 
industry in 1997 was $11.6 billion. Of this, $6.6 billion was 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 services providers. Therefore, in 1997 the total 
impact of the U.S. cruise industry was $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, totaled 176,433 jobs 
for Americans in 1997. The cruise industry has been growing by 6-10% 
every year. For Americans, that can mean thousands of new jobs each 
year.
  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.
  Many have considered the cruise industry to benefit a select few in 
highly localized areas, but this study reveals the industry touches 
virtually every segment of the American economy. It is an essential 
component of the American maritime infrastructure. Those industries 
most heavily impacted are summarized below:
  Airline transportation--$1.8 billion; Transportation services--$1.2 
billion; Business services--$1.0 billion Energy--$998 million; 
Financial services--$698 million; Food & beverage--$607 million.
  Mr. Speaker, the cruise industry is a growth industry that is not 
only purchasing goods and services from around the country but is 
helping to grow the U.S. national economy and its maritime 
infrastructure.

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