Senate Concurrent Resolution (SCR) 5 the cruise industry bill, was filed as the Senate companion to House Concurrent Resolution (HCR) 29 which I was proud to have the opportunity to file for the 82nd Regular Legislative Session. These resolutions were filed as a result of numerous town hall meetings which I had the pleasure to host throughout District 32. The most common theme I received at town hall meeting after town hall meeting was why has the cruise industry not been expanded to the South Texas coastline?
The discussion about bring the cruise industry to the South Texas coast has been on the minds of people for many years. SCR 5 will hopefully help bring the cruise ship industry one step closer to recognizing that the South Texas coastline is a great location to open additional ports of departure leaving out of Texas. SCR 5 specifically calls for the Lieutenant Governor and the Speaker of the House of Representatives to provide for a joint interim legislative study to analyze the development of a cruise industry on the Texas coast between Calhoun and Cameron Counties and review its potential economic impact.
According to a cruise industry overview performed by the Florida-Caribbean Cruise Association, a record number of an estimated fifteen million passengers took cruises in 2010. Of that fifteen million, approximately eleven million were out of North America. This increase in passengers has resulted in a large impact on the annual occupancy of the cruise ships. The cruise industry has also added twelve new ships to their lines. Following historical data since 1980, it is estimated that the annual increase of passengers is around 7.4%. The recent large annual increase shows a clear desire of people to take advantage of sea travel.
Utilizing a 2009 economic report compiled by the Cruise Line International Association, North American cruise lines, their employees and passengers produced approximately $35 billion in gross economic output in the United States. The cruise industry also generated 313,998 jobs paying out $14.23 billion in wages and salaries. During this same period, the cruise industry direct spending was an estimated $17.5 billion dollars. Additionally, it is projected that a cruise ship requires 950 crew members and that those crew members spend over $300,000 in onshore spending in the ship’s U.S. homeport. It is clear that the cruise industry represents a possibly significant economic boost to South Texas if the cruise industry would choose to locate a departure port out of one of the ports located south of Calhoun County and north of Cameron County.
By providing a state interim legislative study, the State of Texas can begin to outline not only the benefits of the economic impact that can be generated in South Texas by the development of the cruise industry, but also the benefits South Texas offers to the cruise industry. Using 2010 census data, South Texas is home to over two million people, as well as having a close proximity to over two million people in the San Antonio area and a North Mexico market which has been virtually untapped by the U.S. cruise industry. At the end of the day, South Texas represents one of the fastest growing regions in the state. Along with the population in South Texas and its surrounding areas, the region offers a robust tourism industry, a wealth of natural resources and three major deep water ports which could be used to host a cruise line.
As the discussion of the cruise industry in South Texas moves forward, I will keep you informed. Please do not hesitate to call my offices if you have any questions regarding SCR 5. As always, my offices are available at any time to assist with questions, concerns or comments (Capitol Office, 512-463-0672; District Office, 361-949-4603).
