Carnival UK cruise ships bring £2.5m to Southampton each trip

Carnival UK (CUK) has commissioned its first economic impact report, completed by an independent company, which revealed the figure in the documents published today.

The study showed that on average, a turnaround of a CUK ship in Southampton adds nearly £1.9million to the economy, rising to £2.5million for “larger ships”.

Across all ship sizes in CUK’s eight brands, turnarounds in Southampton contribute £505million annually.

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The study also found that the employment of 1,650 full time employees in the firm’s Southampton headquarters contributes £351million alone to the local economy in direct gross value added.

Carnival UK's headquarters in Southampton. This makes CUK the biggest private-sector employer in Southampton.

Over the next five years, the combined value to the UK economy is projected to exceed £2.5billion.

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Paul Ludlow, president of CUK and P&O Cruises, said that the cruise industry has been a “tremendous growth story” over the past 20 years.

“Southampton has grown with us over the years,” he explained.

“As this industry has grown larger and larger, so has the infrastructure of Southampton.

"We’ve seen transport systems and suppliers in the region grow as we’ve grown, and I think we have this relationship in the city where we understand one another.”

Southampton is the 'start and end' of holidays

Carnival UK runs P&O Cruises and its ship Arcadia. (Image: NQ) Paul explained that Southampton is the "start and end of many people's holidays", and for international visitors it is "equally their first touch point of the UK".

He said he wants to work with other stakeholders in the city, such as Southampton City Council, to give tourists the "best experience they can have" to encourage them to come back.

This has piqued the interest of local authorities figures, who have shown a "real eagerness" to understand the cruise business, Paul said.

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Darren Paffey, MP for Southampton Itchen, is one of these stakeholders, who said that CUK choosing Southampton as a home port is “a vote of confidence” in “our city” and “our people”.

Darren Paffey MP said he recently met with representatives from each cruise company that has made Southampton its home port. (Image: NQ) “As this report shows, each time a ship docks in our city, it brings in money to our local economy and helps support businesses and jobs,” he said.

“It’s why I’ll continue to champion the contribution they make to the city and wider region.”

Mr Paffey also said he met recently with representatives from all of the cruise lines that have made Southampton their port of choice.

Paul explained that local people with “entrepreneurial” qualities have also been able to prosper with the grown of the cruise industries, such as cruise parking businesses.

“We’re talking about hundreds of thousands of people moving through Southampton every single year. It’s great to think we’re part of the success story of this city.

When asked about the next step, Paul said that all stakeholders need to continue to work “in harmony to forecast passenger numbers” so that “everyone wins” when moving people through the city towards cruise terminals.

'We're proud to be playing such a vital enabling role' - ABP

ABP director Alastair Welch said that case studies clearly demonstrate the huge value the cruise industry can bring. Associated British Ports’ regional director for Southampton, Alastair Welch, said: “The numbers and case studies clearly demonstrate the huge value the cruise industry brings to Southampton, the wider Solent and indeed throughout the UK.

“At the Port of Southampton, Europe’s number one port for cruise turnaround calls, we’re proud to be playing such a vital enabling role in delivering such significant economic growth, jobs and social value in the city and region in which we operate.”

The independent Economic Impact Report was commissioned by CUK and completed by WPI Economics.

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The founder of the consultancy company Matthew Oakley 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.”

CUK operates eight cruise lines: Aida, Carnival, Costa, Cunard, Holland America, P&O Cruises, Princess Cruises and Seabourn.