Cruise lines have invested $1.5bn since 2019 to expand private stops in the Caribbean, with at least 15 islands and beaches acquired spanning across different countries.
Companies like Carnival Corp., Disney Cruise Lines, Norwegian Cruise Line, MSC Cruises, and Royal Caribbean Cruises are actively acquiring more land for private stops, with Royal Caribbean’s Perfect Day at CocoCay yielding high returns.
Royal Caribbean’s Perfect Day at CocoCay, a private island offering various activities for cruise ship passengers, generates estimated returns of 40pc or more on investment.
The island, located 55 miles from Nassau, attracts 9,500 passengers daily who spend on activities like hot air balloon rides and zip-lines, contributing to its financial success.
Caribbean nations are now seeking fairer deals for cruise giants’ private destinations, as seen with the Bahamas renegotiating a deal with Royal Caribbean for its new Royal Beach Club Paradise Island in Nassau.
Despite controversies and challenges, private island and beach stops have played a crucial role in reviving cruise lines from the pandemic, with the Caribbean being a significant revenue source for companies like Royal Caribbean, Carnival, and Norwegian.
Carnival Cruise Line manages and operates private destinations like Half Moon Cay where they control all aspects, including shore excursions and food outlets, paying taxes to the Bahamian government.
Carnival is developing Celebration Key on Grand Bahama Island in partnership with the local community to create over 1,000 jobs through Bahamians running the food outlets and shore excursions.
Disney struck a deal in 2019 to build a complex at Lighthouse Point in the Bahamas, an ecologically sensitive area rich in endangered corals and marine life.
Despite conservationists’ concerns, Disney received tax exemptions and other perks from the government for the development.
In return, Disney donated land for a protected area, agreed to pay for seabed usage, and committed to increasing ports of call to Nassau and Freeport.
