‘Our organisation will contribute more than £2.5 billion to the UK economy,' says Carnival UK cruise boss Paul Ludlow
Going on a cruise is a great way to relax and discover different destinations but you could also be doing your bit for the UK economy, say Carnival UK.
Research by the cruise company, which has brands including P&O Cruises, Carnival Cruise Line, Princess Cruises, Holland America Line and Seabourn under its umbrella, was carried out by independent research group WPI Economics.
The analysis by WPI Economics looked at the hundreds of calls that Carnival UK cruise lines made to the UK in 2024 to calculate the economic benefits these cruises brought to the UK economy, in terms of money that goes towards supply chains, fuel, port fees and taxes as well as job creation and passenger spend while in port.
Carnival UK and P&O Cruises president Paul Ludlow said the brand wanted to get under the surface of Carnival's operations and identify the areas where its business activities generate impact for the economy and society.
He told The Independent: 'The single biggest reason people are happy to spend money to go on a cruise is the value gap.
'You could compare what you get for your money against a normal holiday, when you think about the quality, choice, enrichment, and like-for-like experiences. There is a quality guarantee.
'The economic benefits are felt not only in Southampton - where Carnival UK has its headquarters - but also in the wider UK economy.
'It's crucial for policymakers to recognise the value that cruise provides, and the potential for this to grow sustainably in the years ahead.'
Here is how your cruise holiday could help the UK economy.
Turnaround
The busiest cruise passenger terminal in the UK is Southampton and money is generated for the economy every time a ship departs from and arrives at the port – known as a turnaround.
Money that you spend on accommodation if travelling to a port the night before or restaurants and transport such as trains or taxis all feed back into the local economy.
The analysis by WPI Economics suggests that a ship home-porting in Southampton contributes between £1.9 million for smaller vessels and up to £2.5 million to the economy on each visit from supply chain and guest spending.
With more than 700 calls to the UK in 2024 by Carnival UK brands, carrying almost two million guests, this turnaround value equates to £505 million per year.
Over the next five years, the combined value to the UK economy is projected to exceed £2.5 billion, according to the report.
Ludlow added: 'We are extremely proud that our organisation will be contributing more than £2.5 billion to the UK economy over the next five years.
'This is particularly important given our impact in the Solent where we are the largest private sector employer in Southampton, especially at a time when economic growth is of utmost importance to the country.'
Destinations
Passengers also spend money in the ports that a cruise ship visits.
The research estimates that 66 per cent of passengers get off a ship to explore a port.
The report suggests £54 million is spent annually by passengers on visits to destinations including Southampton, Dover, Edinburgh, Invergordon, Greenock, Belfast and Liverpool.
This spend averages at £280,000 per UK destination visit. Of the total, £28 million is spent in Scotland.
Another £147 million of future tourism value is created every year by international visitors who have previously taken a cruise that calls in the UK with a Carnival brand and later return to the same destinations, the report suggests.
Job creation
From head office to call centre staff, almost 1,900 people are employed by Carnival Corporation in the UK, with 1,650 full-time employees based in Southampton.
This is estimated to provide £351 million in direct gross value added for the UK economy.
Other cruise brands such as MSC Cruises and Royal Caribbean will also have an economic impact from the jobs they are creating in the UK.
Matthew Oakley, founder of WPI Economics, said: 'The benefits of Carnival UK's operations provide a significant boost to Southampton's economy and flow far beyond it out into the rest of the UK.
'From the investment in skills through to the boost to tourism now and in the future, these impacts make an important contribution to growth.'
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