Port Canaveral has a $6 billion annual economic impact. Here's what it means

The economic engine that is Port Canaveral has shifted into overdrive, according to a new study released Wednesday.

The study found that the port is having an estimated economic impact of $6.06 billion this year, primarily along the Space Coast and in the Orlando area, based on data already compiled and projections for the rest of the year. That's up 57% from the $3.85 billion economic impact in 2018, when the study was last done.

The report shows that Port Canaveral is fully recovered from a 16½-month cruise shutdown during the COVID-19 pandemic.

Port Canaveral in 2022 became the world's busiest cruise port in terms of passenger counts, surpassing Miami, and Port Canaveral's cruise operations were a big part of the boost in economic impact.

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Here are some of the findings of the study, which was presented to Canaveral Port Authority commissioners at their meeting on Wednesday:

What are other bottom-line numbers?

  • Total direct and spinoff jobs generated by port operations: 42,666 (up from 32,650 in 2018).

  • Total wages from those jobs: $2.10 billion (up from $1.32 billion in 2018).

  • Total state and local tax revenue generated: $189.51 million (up from $107.24 million in 2018).

At least a dozen sectors of the economy benefited from activity at Port Canaveral, including construction, manufacturing and wholesale trade, in addition to the more obvious ones like transportation, accommodations and recreation.

In presenting his company's report to port commissioners, Business Research and Economic Advisors principal Richard Higginson described the port as "running like a tremendous machine. You guys weather the storm tremendously" in recovering from the COVID-19 shutdown.

How big a factor were cruise operations?

The MSC Meraviglia came into Port Canaveral on Tuesday, heading for a port-of-call stop at Cruise Terminal 10.
The MSC Meraviglia came into Port Canaveral on Tuesday, heading for a port-of-call stop at Cruise Terminal 10.

Big, representing 66% of the total economic impacts, compared with 20% for cargo, 8% for real estate, 5% for government organizations working at the port (including public safety, Department of Homeland Security and military) and 1% for recreation.

Direct spending by cruise lines, cruise passengers and ship crew members totaled $2 billion, with a similar amount for spinoff economic impacts from the cruise sector.

In all, it is expected that the total passenger movements at Port Canaveral (embarking, disembarking, port-of-call, and single-day) will be 6.5 million during 2023. That is an increase of about 36% from the 4.8 million passenger movements in 2018 study.

How big a deal is the port for overall tourism in Brevard County?

Space Coast Office of Tourism Executive Director Peter Cranis said there is no doubt that Port Canaveral's growth "is having a significant benefit to the tourism economy in Brevard," including for hotels, restaurants, retailers and attractions.

Cranis noted that the Office of Tourism is making a push to get more cruise passengers to stay on the Space Cost overnight before or after their cruises.

How much do ship passengers and crew typically spend while on the Space Coast?

The study found that the embarking passengers on a cruise from Port Canaveral spend an average of $462 if they are staying in the area one or more nights before or after their cruises. About 57% of the 3 million embarking passengers will have a pre-cruise or post-cruise overnight stay averaging 2.3 nights. They will spend most of their money on accommodations, food and beverages, and tours and attractions. The 3.0 million embarking passengers is up 44% from the 2018 study.

If they arrive here on the day of their cruise, they spend an average of $75. Their largest expense typically is parking.

Additionally, about 26% of passengers boarding a multiday cruise from Port Canaveral fly into the region for their cruise, and spend an average of $316 per person on airfare.

Passengers arriving on a ship making a port-of-call stop at Port Canaveral spend an average of $88 if they go ashore, mostly on tours, attractions and ground transportation. About 80% of the estimated 369,000 port-of-call passengers go ashore, and the rest stay on the ship.

Crew members who go ashore spend an average of $110, mostly on food, beverages, retail purchases and ground transportation. About 29% of 1.2 million ship crew members arriving at Port Canaveral will go ashore.

Annual passenger counts of more than 154,000 on the Victory Casino Cruises ship that sails from Port Canaveral also add to the economic impact.

Contact Berman at  dberman@floridatoday.com, on Twitter at @bydaveberman and on Facebook at www.facebook.com/dave.berman.54

This article originally appeared on Florida Today: How Port Canaveral's $6 billion economic impact spreads across Florida

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