South Florida Cruise Business Hits Choppy Seas

The cruise industry is growing, but not at Port Everglades. About 3.4 million passengers came through Fort Lauderdale in the year ended September 30, slightly fewer than the number five years ago. And next summer, only one large ship will sail from of the world’s No. 3 cruise port, down from three this past summer.

Port officials attribute the falloff to a decline in the day-cruise business, competition from new gambling venues on land and consumer clamor for European rather than Caribbean vacations.

Cruise ships play a key role in South Florida’s economy. They employ nearly 5,000 people at Port Everglades, according to a recent study, and nearly half of all passengers stay overnight in Fort Lauderdale. The industry also generates jobs in local businesses that supply the cruise ships.

That business is becoming more important to Port Everglades as its single-day cruise business struggles. The number of day-cruise passengers has declined by half from its peak of 1.4 million in 2004.

The exit of the St. Tropez gambling ship in mid-2005, combined with new competition from land-based casinos such as the Seminole Hard Rock Hotel & Casino, has taken a toll.

At the Port of Palm Beach in Riviera Beach, Oceans Casino Cruises stopped its gambling cruises in September after an eight-month test of the market. It cited “racetrack-based casinos,” such as the Isle of Capri in Pompano Beach, and the general expansion of slot machines in its decision to pull out.

Oceans’ move leaves the Palm Beach Princess, another day-cruise ship, as the primary cruise option at the Port of Palm Beach, which draws multiday ships only occasionally.

About 566,408 passengers used the port in the year ended Sept. 30, a 4.4 percent decline from five years ago. Miami, the world’s No. 1 cruise port, saw passenger traffic increase a modest 2.4 percent in the same period.

Weaker sales of Caribbean cruises have hurt port performance lately. Hurricanes disrupted cruises to the area in 2004 and 2005, leaving lingering concerns. Also, the Caribbean is popular with middle-income households, which have been hit disproportionately by rising gas and mortgage costs. Cruise lines have responded by putting more ships in Europe for longer periods.