PRESS ROOM

Latest News from Antigua and Barbuda

PUERTO RICO BACK ON STREAM
ANTIGUA AND BARBUDA TO BENEFIT

Following average annual growth in cruise ship passengers to Puerto Rico of less than 2% since 2001, the FCCA reached an agreement with port officials from Puerto Rico during Seatrade, that will re-institute San Juan as a major home port and port of call with significant benefits for Antigua and Barbuda and other Eastern Caribbean cruising destinations.

The cruise lines’ business models shifted significantly following 9/11 to address potential passengers’ fear of flying. In addition, high cruise ship fees and tariffs set in San Juan resulted in a major dispute with the FCCA, which further encouraged the drive/cruise sector to emerge as the leading sector, with Miami and over 30 other mainland ports courting the drive, park and cruise visitor.

The impact on San Juan included significant reductions in cruise ship calls particularly during the summer months when they received considerably reduced calls from even their major partner lines, Carnival and Royal Caribbean Cruises, despite sizeable investments by these lines in onshore infrastructure. This has had a similarly detrimental effect on the Eastern Caribbean summer business since cruise lines have been departing from Miami to the Western Caribbean reaching only as far as St. Maarten.

Recognising the damaging impact on its economy, Puerto Rico’s legislature had finally decided to fight for an increase in its share of business by striking a deal with FCCA member cruise lines. Puerto Rico’s new governor, Acevedo Vila, together with PR Tourism and the Florida-Caribbean Cruise Association, announced a new $10.7M incentives package to attract cruise ships. With seven piers and the capacity to dock 12 cruise ships simultaneously, Puerto Rico is seeking to maximise its infrastructural and geographical advantages.

The deal, devised by the new Government elected November 2004, is expected to considerably boost summer business to the Eastern Caribbean which is relying heavily on the re-emergence of Puerto Rico as a hub port.

Minister Lovell, Minister of Tourism, noted the opportunities of this new development to Antigua and Barbuda. “We are very encouraged by this announcement and have been working closely with the FCCA to ensure that our port is integral in the development of new itineraries out of Puerto Rico. We have approached our discussions with cruise lines as partners to ensure that the cruise lines, the destination and ultimately the passengers achieve a positive result through the negotiation of agreements of benefit to all parties.” Mr. Lovell continued “We have been anticipating this development following careful analysis of trends in the industry and are positioned to increase year round business from Puerto Rico, as well as benefiting from the new ten day cruises departing from New York and seven day Florida itineraries.”

Antigua and Barbuda hosted 375 cruise ships in 2004, an increase of 26% over 2003. 

30th March, 2005

Digital Photo compliments Ministry of Tourism

1. Discussions at the Antigua and Barbuda booth at Seatrade 2005 (L-R: Hon. Harold Lovell- Minister of Tourism; Cameron Fraser- Managing Director, Antigua Pier Group; Horace Horde-Royal Caribbean Cruise Lines)

 

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