City Hopes Project Will Keep Cruise Ship Industry Afloat

by 10News.com

SAN DIEGO -- Tourists hitting the high seas pump $500 million into San Diego's economy every year, but in 2009 San Diego's cruise ship industry took a hit.

Business owners said sales increase 30 percent when a cruise ship unloads thousands of passengers. The Port of San Diego said one cruise ship puts about $2 million into the local economy every time it docks.

Vendors along the Embarcadero said they noticed a dip this year, and some told 10News they depend heavily on the foot traffic generated by the people getting off and on the cruise ships.

The owners of Destinations in Seaport Village told 10News they see a 30 percent jump in sales whenever a ship is in port. "It's always extremely busy, super crowded," said Destinations salesperson Melissa Cena.

Some pedicabs focus all of their business in the cruise ship docking area. One pedicab can take home $150 off one cruise ship.

"I'd say 90 percent of the business that I do is from the cruise ship," said pedicab driver Roy Grant.

Grant said he never leaves the Embarcadero when ships are in.

In 2008, 279 cruise ships dropped off 991,000 passengers on the Embarcadero. But in 2009, only 224 ships came in and unloaded 813,000 people.

"And that has to do with competition. It has to do with our construction. It has to do with market trends," said Jackie Williams of the Port of San Diego.

Those market trends said fewer people were interested in going to Mexico, which is San Diego's primary cruise ship destination.

To boost traffic, the Port of San Diego is building a temporary terminal next to the current B Street terminal. Once completed, B Street will be torn down and a new one built in its place. When both are completed, up to three cruise ships could dock in the area at one time.

The project could be a big boost to businesses and San Diego.