How Cruise Lines’ Private Ports Impact Host Countries

Cruise lines are investing heavily in private destinations to capture more revenue from activities like alcohol sales and rentals. These destinations offer a controlled environment that many customers prefer over traditional ports. While there is some benefit to local economies through head taxes, existing local businesses may suffer. Customer demand is driving these investments, with companies like MSC and Carnival spending millions on new projects. However, there is local pushback, as seen in the Bahamas and Haiti, where economic and political issues arise.

What is one of the main reasons cruise lines invest in private destinations?

• To provide a controlled environment that matches customer expectations

• To avoid docking fees at public ports

• To capture a larger share of revenue from onboard activities

• To reduce travel time for passengers

How do local governments benefit from cruise lines' private destinations?

• Through direct investment in local infrastructure

• Through increased tourism at public ports

• By receiving a head tax from travelers

• By gaining access to cruise line facilities

What is a potential downside for local merchants when cruise lines build private destinations?

• Limited access to cruise line facilities

• Loss of business from diverted passengers

• Increased competition from cruise line shops

• Higher taxes imposed by local governments

Which cruise line is building an eco-friendly private island with a focus on wildlife?

• Royal Caribbean

• Norwegian

• MSC Cruises

• Carnival

What challenge did Royal Caribbean face at its private port in Haiti?

• A shortage of supplies for tourists

• Protests related to a presidential election

• Technical issues with docking facilities

• A hurricane damaging the port