The North American cruise industry contributed $32.4 billion to the U.S. economy in 2005, 7.9% more than in 2004. It was the smallest year-over-year increase in four years, according to an annual study on the economic impact of cruising commissioned by the International Council of Cruise Lines.

The annual survey, conducted by Business Research and Economic Advisors, found that passenger embarkations increased by 6.3% in 2005, compared with a 13.9% increase in 2004. But growth in spending exceeded the growth in embarkations. Per-passenger spending increased 7.3%, double the 3.6% increase reported for 2004.

The study said the reduced rate of growth was largely due to a reduction in capacity expansion. While the size of the North American fleet did not change from 192 vessels, the study said, larger new-builds added 2.2% to the capacity for a total of 245,755 lower berths. Overall occupancy rose to 106% in 2005, due in part, to passenger rescheduling after a number of cruises were canceled during the hurricane season.

"Last year was challenging due to weather disruptions and fewer new ships delivered," said ICCL President Michael Crye in a press release. "Through those challenges, however, the cruise industry remained a robust economic resource in 2005, benefiting the U.S. economy with $32.4 billion -- $4 billion more in goods, services and wages than it spent in 2004."

The cruise industry as a whole, including passenger and crew direct spending, was responsible for contributing a total of $16.2 billion to the U.S. economy last year, the study said. That figure was $1.5 billion, or 10%, more than in 2004. Nationally, the cruise industry supported more than 330,000 jobs and contributed to a total of $13.5 billion in wages and salaries.

The study said that direct economic benefits to the U.S. economy derived from five main sources:

• Spending by cruise passengers and crew for goods and services associated with a cruise, including travel to the port of embarkation and pre- and post-cruise vacations;
  
   
• Shoreside staffing by cruise lines for U.S.-based headquarters, marketing and tour operations;
  
   
• Purchase of goods and services necessary for cruise operations, including food and beverages, fuel, hotel supplies and equipment, navigation and communication equipment, etc.;
  
   
• Payments for port services at U.S. homeports and ports-of-call; and
  
   
• Maintenance and repair of cruise ships at U.S. shipyards and capital expenditures for port terminals, office facilities and other capital equipment.