By
Alex Smith |
Carnival UK, the operating company for P&O Cruises and Cunard, is projected to contribute more than £2.5 billion ($3.39 billion) to the overall UK economy over the next five years.
The figure was shared in Carnival UK’s first Independent Economic Impact Report, which investigated the links between the group’s cruise operations and the potential for local, regional and UK-wide economic growth. The research was commissioned independently from WPI Economics, the first of its kind to be researched and audited using data from across parent company Carnival Corporation’s entire UK-based operations.
“As the largest cruise operator in the UK, we are extremely proud that our organisation will be contributing over £2.5 billion to the UK economy over the next five years,” said Paul Ludlow, president of Carnival UK and P&O Cruises. “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.”
The report also found that each time one of the corporation’s largest ships stops in Southampton to embark new guests, it contributes up to £2.5 million ($3.39 million) to the economy from supply chain and guest spending. With over 700 calls to the UK in 2024, carrying almost two million guests from across the brands, annual impact equates to £505 million ($685 million) per year.
“Our maritime sector is instrumental in building a diverse, resilient tourism sector and Carnival UK’s economic report is critical in setting out the multimillion-pound and widespread impacts generated across the UK’s economy,” said Mike Kane, UK minister for Aviation, Maritime and Security. “We are determined to support growth in coastal regions and have set out our ambitions to welcome 50 million international visitors per year by 2030 - many of which can come from maritime. These findings uncover the vital role the cruise sector plays in supporting this ambition, helping local businesses and economies while also opening up the UK to international visitors, often in hard-to-reach destinations unserved by other forms of tourism.”
Carnival cruise bookings made through local travel agencies generated over £100 million in agent commission fees, while employment of 1,650 full time employees at Carnival UK’s headquarters in Southampton contributes £351 million in Gross Value Added to the local economy.
“Associated British Ports (ABP) warmly welcomes Carnival UK’s report,” said Alastair Welch, regional director for Southampton at ABP. “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 research also found that the potential future tourism value from returning international visitors created by Carnival Corporation’s cruises is predicted to benefit the economy by £147 million annually.
“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,” said Matthew Oakley, founder of WPI Economics. “From the investment in skills through to the boost to tourism now and in the future, these impacts make an important contribution to growth.”
The full report can be found via WPI Economics’ website.