Mayor: We Are To Blame For Cuts

December 6, 2011

Bermuda’s failure to make its two major ports accessible to mega-ships is the real reason cruise lines are beginning to give the island a wide berth, Hamilton Mayor Charles Gosling told the hospitality industry website “Travel Weekly” today [Dec. 6].

While industry columnist Phil Reimer has suggested Bermuda’s restrictions on gaming when ships are visiting the island may have sparked an industry-wide backlash, Mr. Gosling says it is the island’s failure to keep its cruise ship infrastructure current which has led to the cuts.

Mr. Gosling said recent announcements by both Carnival and Holland America that they were cutting back on their scheduled visits to Bermuda in 2012 owed to the fact larger ships can only berth in Dockyard — far from the shopping in Hamilton and historical and cultural sites in St. George’s.

“We had very lengthy discussions, going back some 14 years, about changes coming in the cruise industry, about its moving away from smaller — say, 800-passenger — ships to much larger ships,” the Mayor told “Travel Weekly’s” Donna Tunney. “St. George’s and Hamilton have not listened to that argument, but the government decided to develop the Royal Naval Dockyard for Panamax ships, using King’s Wharf and Heritage Wharf.”

Ms Tunney said Hamilton and St. George’s can now only accommodate vessels up to 720 and 900 feet long, respectively — far smaller than the industry norms.

“The town cuts could be dealt with,” Mr. Gosling said. But he added that widening the St. George’s Harbor cut “could have a serious environmental impact, bringing ocean swells into the harbor. The residents don’t want it. I would be very surprised if it ever happened.”

But he said if Two Rock Passage was widened to allow for Panamex cruise ships — so-called because they are the largest capable of travelling the Panama Canal — “we would build a transportation hub in Hamilton, and St. George’s is close by.” .

Mr. Gosling said Government is continuing studies on the costs and logistics of widening the Hamilton cut, adding the necessary dredging work could be completed in two years.

The Full Travel Weekly Report Appears Below

Not ready for big ships, Bermuda suffers drop in cruise visits

If Bermuda failed to anticipate facing a significant loss of cruise business next year, it has no one to blame but itself.

That’s the view of the mayor of Hamilton, the one Bermuda official who had the chutzpah to say what many others were no doubt thinking last month as three Carnival Corp. brands announced significant cutbacks in visits to the island.

“We had very lengthy discussions, going back some 14 years, about changes coming in the cruise industry, about its moving away from smaller — say, 800-passenger — ships to much larger ships,” said Mayor Charles Gosling, a former president of the Bermuda Chamber of Commerce. “St. George’s and Hamilton have not listened to that argument, but the government decided to develop the Royal Naval Dockyard for Panamax ships, using King’s Wharf and Heritage Wharf.”

According to Laurence Jacobs, transportation coordinator for the Bermuda Department of Tourism, the maximum ship length the two Dockyard berths can accommodate is 1,020 feet. With some mooring modifications and minor dredging, he said, ships up to about 1,100 feet could be berthed there.

“We are considering that for the future,” he said.

Royal Caribbean’s Freedom-class ships are in that size range. The Freedom of the Seas is 1,112 feet long; Oasis-class vessels are 1,187 feet long.

The problem is that the dockyard is located at the far west end of the island, not in convenient proximity to the tourist enclaves of Hamilton and St. George’s.

But those two ports can only accommodate vessels up to 720 and 900 feet long, respectively. A more challenging obstacle to reaching those ports is the narrow cuts the ships must sail through to access the harbors.

“The town cuts could be dealt with,” Gosling said. But he added that widening the St. George’s Harbor cut “could have a serious environmental impact, bringing ocean swells into the harbor. The residents don’t want it. I would be very surprised if it ever happened.”

Hamilton Harbor is protected by two sounds, however, and there is a proposal to widen that cut, known as Two Rock Passage.

“If we could do that, we would build a transportation hub in Hamilton, and St. George’s is close by,” he said.

Gosling said he and others are working to get approval to widen the Hamilton cut, and government and community meetings are scheduled for this month. He anticipated that plans could be in place by the end of 2012, with construction completed two years later.

There are other challenges in Bermuda, including public transportation service from the dockyards into the towns. Even when big ships call, service is spotty and typically rife with problems.

On virtually all of Bermuda’s local media websites, comments posted by residents and tourists alike voice the frustrations that result from unreliable bus service, too few buses and expensive taxi fares.

Two high-speed ferries from the dockyard into the two towns are available.  One ferry accommodates 350 and the other 700 people, which is not always sufficient to transport cruise passengers in a timely manner.

Capacity cuts

Bermuda officials and business owners are still digesting the negative economic impact that will result from the capacity reductions announced in recent weeks by Princess, Carnival and Holland America Line, all Carnival Corp. brands.

Princess, which called at Bermuda 10 times this year, will visit just twice in 2012.

Carnival pulled into port 16 times this year; in 2012 it will make one call.

HAL is repositioning the Veendam away from Bermuda altogether in 2013, after serving the destination on regularly scheduled cruises from New York since 2010.

“These were unrelated, independent decisions made by each of these brands on Bermuda deployment,” said Jennifer De La Cruz, Carnival Cruise Lines’ director of public relations.

The three lines each cited different reasons for their actions. Princess said that it is boosting its presence in Alaska next summer. Spokeswoman Karen Candy said, “As we have increased our capacity in Alaska for 2012, we don’t have a ship sailing to the Caribbean out of New York for the summer 2012 season. As a result, our visits to Bermuda have decreased.”

Princess will send two ships to Bermuda next fall: the 3,100-passenger Caribbean Princess on Oct. 29 and the 2,600-passenger Grand Princess on Nov. 14.

Holland America’s plans for the Veendam aren’t yet known.

“The 2012 season will mark three years of Bermuda cruising roundtrip from New York, and in 2013 other destinations are being considered as part of our overall global deployment,” the cruise line said in a statement, adding that it would “continue to call in Hamilton occasionally on other itineraries.”

From Carnival’s perspective, De La Cruz said, “We would like to have a significant Bermuda program. However, there are currently only two berths that can accommodate our ships. These berths are contracted to other cruise lines, which leaves us with very limited availability.”

Generally, she said, berths are only available to Carnival very early or very late in the season, or for weekend arrivals, which “do not provide our guests with as favorable an experience as they would receive otherwise.”

That’s because, among other things, weekend shopping is limited in Bermuda, since stores in the Royal Naval Dockyard are the only ones open on Sundays.

On the bright side

Even so, all is not lost.

Transport Minister Derrick Burgess noted in a speech to the Bermuda House of Assembly last month that while the drop in cruise ship visits will affect local revenue — an estimated $3 million will be lost as a result of Carnival’s action alone — some 160 cruise calls will be made to the destination next year. The final schedule is due out later this month.

The government estimates that cruise passengers will still contribute close to $80 million to the economy in the form of government taxes, retail purchases and shore excursions.

Royal Caribbean’s 2,500-passenger Enchantment of the Seas will visit Bermuda on six- and eight-day cruises out of Baltimore, and its 3,100-passenger Explorer of the Seas will call there on five-day cruises from Cape Liberty.

The 2,000-passenger Celebrity Summit will include Bermuda on its seven-day sailings from Cape Liberty, and Holland America’s 1,350-passenger Veendam will continue to call there on seven-night cruises from New York through the 2012 season.

Norwegian Cruise Line will have the greatest presence in Bermuda in 2012. Its 2,400-passenger Norwegian Gem and 2,240-passenger Norwegian Star, both sailing from New York, will call at Bermuda. The 2,240-passenger Norwegian Dawn will offer Bermuda cruises from Boston.

The destination’s cruise season begins in April and typically ends in late October or early November.

Burgess acknowledged the berths dilemma.

“The premium berths are from Monday to Friday, between mid-May and Labor Day,” he said. “This is when demand for cruises to Bermuda is at its highest and cruise lines can charge higher ticket rates. Our long-term cruise partners, Royal Caribbean and Norwegian Cruise Line, currently occupy these premium cruise berths, leaving the less desirable berths available for other cruise lines.”

Burgess said inadequate public transportation and Sunday store closings are “a challenge,” and that “a lack of activity on weekends impacted [passengers’] perception of Bermuda.”

Burgess also said in his speech that he would consider working toward changing the country’s casino regulations, since allowing cruise ships to keep their casinos open while in port might go a long way toward assuaging other frustrations.

Changing the casino rules would take time, however, and not all of Bermuda’s lawmakers support the idea.

“Clients love Bermuda”

Agent Patrick Theberge, owner of Cruise Vacations Inc., in Medford, Mass., said he was surprised to learn some of the lines were cutting capacity in Bermuda.

Theberge, who served on the advisory committee for the recent redevelopment of Boston’s Black Falcon Cruise Terminal, said Bermuda bookings are very strong in New England.

“I have many clients who book a Bermuda cruise every single year, often on the same ship, the same week, even in the same cabin,” he said. “They’re like the vacation renters you see down on Cape Cod, the people who rent the same cottage every year. That’s what it’s like. It’s a regular thing for a lot of people in the Boston area.”

Moreover, Theberge said he doesn’t typically hear complaints from clients about Bermuda.

“I rarely get a complaint, and if I do it’s usually about the ship, not the destination,” he said.

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Comments (20)

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  1. Shaking the Head says:

    Buy 3 or 4 ocean capable fast ferries that can handle North Shore in anything but a Hurricane and you don’t need to destroy Two Rock or Town Cut. Just contract directly with the manufacturer, buy what Bermuda needs and cut out the “middle man” for the best deal. Ever thought about the cross Channel ferries used in the UK? This is a $20 million solution at best and leaves the charm of Bermuda intact.

    • Mad Dawg says:

      Ah, let’s'cut out the middle man’, shall we? would make a nice change after some of the side-deals local politicians supposedly negotiated for themselves in recent years …

      • Triangle Drifter says:

        No!!! Say it isn’t so!!! Not Bermuda polititians! They would not do that. They would not deceive us. They would not take a cut for things like motoryachts, NY city apartments, golf course side houses on exclusive islands, things like that. No…none of our polititians would do that.

        • Mad Dawg says:

          That’s right they wouldn’t do that. Like they wouldn’t deceive us if they had to.

  2. Hudson says:

    OK, but this is giving only 1/2 the picture. Sure, it would be nice to get the “mega ships” into the Harbour, but really, Bermuda’s ENTIRE infrastructure can’t deal with the volume. Anybody remember tourists waiting for literally hours for a bus this summer?? Helloooo? I think that how we deal with tourists when they arrive on the Island has had a very major impact on these decisions too. I just got off a cruise last month — not every port can handle the ships, and tenders are often used. Also, there some other destinations where the ship’s berth wasn’t actually where the shopping was, but the taxi ride or ferry ride to get there was US $7 and service was immediate. No waiting. No attitude. Just service. That is where Bermuda loses I’m afraid.

  3. Graeme Outerbridge says:

    Once again the Mayor is wrong on a major issue. Bermuda does not need the large cruise ships rammed down their throats in Hamilton. The environmental damage would be huge,plus the scale of these ships is to large for Hamilton. May next year cannot come quick enough, to clean out City Hall^^

    • Triangle Drifter says:

      And where do you propose to find these smaller ships capable getting into Hamilton & St Georges? The only ships this size anymore are the ’boutique’ ships catering to the very wealthy. Those ships are not coming to Bermuda except on one off visits. There is nothing exclusive about Bermuda anymore.

      The Panamax ships are the Walmarts of the seas. That is where the market has gone. Volume. They make their money off things like the onboard casinos & 35-40% commissions paid to them for shore excursions.

      • The One (Original) says:

        Triangle you are correct – and thats why we should put any money we might find into redeveloping our tourism product for air arrivals. Let the Trailer Parks of the seas bypass us. If Bermuda developed a product we’d get visitors staying in hotels once again. As I said below, car rentals, gaming, a night life, a good attitude. We need these things or else we are finished.

  4. ap says:

    other issues in our society need to be addressed and money spent on before we go blowing up damn islands! leave the cruise ships up dockyard and privatize the ferry services. by privatizing the ferry services, ferries can be ran all day and night and none of this last ferry to dockyard at 6:30 bullcrap. a ferry should be leaving dockyard and town every 15 mins and should run right up until 12 midnight. as hudson stated above, even if u could get two cruise ships through two rock, could hamilton really handle 6000 passengers that much better than dockyard to justify the widening ?

    CALL AN ELECTION PAULA! Bermuda needs change

  5. The One (Original) says:

    If we had the $70 Mill (which really means twice that with overruns and kick backs) to widen the cuts, we should build a hotel with it and get some REAL tourists here who actually spend money. Tell the cruise lines to go somewhere else and take their redneck low class non spending passengers with them.

    • Triangle Drifter says:

      Bermuda can’t even fill the beds it has. Who is going to invest in more hotels to have more empty beds?

      • The One (Original) says:

        Bermuda will have to develop an actual product and grow the tourism business (if in fact they want to be in the business). They will have to provide the normal services that other destinations do – such as car rentals and gaming. Bermuda can no longer sell themselves because they are the friendliest people – its a crock.

        • Ride says:

          @The One(Original)

          Gaming and car rentals? Are you serious?

          Car rentals, we are speaking of either US tourist that have much wider and straighter roads than Bermuda, drive on the opposite side of the road, and have ever seen nor transited a round-about. Or European tourist that have the same road experience with some also driving on the opposite side of the road. Not to mention the grossly different speed at which they are accustomed to travelling along with the abundance of sharp and hidden entries onto the motorway from nearly every connecting street and driveway. You have got to be kidding. Car rentals for tourist in Bermuda is a death warrant for all but the SUV crowd. Also, where are tourist going to drive in these cars? Where are they going to park them?

          Gaming is neither a magic bullet, either. Does the honeymooning couple want to come here to spend their days in the timeless time capsule of a casino? What about families, or golfers, or scuba divers, or fishermen. They want to be out and about. To do things that allow them to see the Island. Bermuda’s drawn is the Island, its surrounding waters, and its history.

          Allow businesses to open on Sundays like another other day. This will give tourist further opportunity to spend in Bermuda. Create a immersive recreations of colonial life in St. Georges. Blacksmiths, working unloading dock, court skits, doctor patient skits, candy and mineral store, colonial restaurant, and so on: have these with the employees in costume and performed in buildings so tickets can be sold for showings or items purchased. Sort out transportation. Get the taxi services on the internet so tourist can see there are other options then those given to them by the cruise liners. Bermuda vacation feedback website where tourist can praise and shame their experience on the island. Collect this data to improve the product. Business with consistent negative ratings get less advertising on the site and so on. Recreate some moments in Bermuda’s naval history. Tickets on a privateer’s ship that attacks and loots a ship of an enemy nation. Tickets on the enemy nation ship.

          We need a group of initiatives that collectively combine to offer a buffet of exciting activities. Many smaller things to do. There is no big ticket fix. Get creative people.

          Ride

          • The One (Original) says:

            Ride: None of what you said is a reason not to rent cars. Bermuda has gotten away with it so far but may not be able to much longer since we have to be competitive. You can rent cars in Cayman, Jersey, Guernsey – and I have done so in each of these small islands. Why not Bermuda? When any of us go to the states we drive in the other side, go round rotaries the other way. Just because we don’t rent cars now you shouldn’t think that Bermuda is special. We have to be COMPETITIVE. In addition, I never said gaming was a cure all – but it should be an option. How much further do you honestly want Bermuda to sink before we offer a competitive product? Bermuda is like a woman who used to be beautiful but is losing her looks. She better up her game or she’ll be alone.

            Lastly – your idea that car rentals are a death warrant is the funniest of all. Currently we rent scooters – they are the death warrant if anything. Most tourists rent one never having ridden a motorised cycle ever. The same cannot be said for cars. You are obviously not someone who likes to think outside the box. Unfortunately we need to or we will sink into the Atlantic.

            Again: Just because we’ve never rented cars don;t think that we won;t have to at some time in the future. Saying it would be impossible is incredibly narrow minded. You have tunnel vision at its worst.

  6. ganja mon says:

    It take a Gosling to tell us what even E. Brown told us 4 years ago for you Tea Party UBP fans to understand why the ships are moving away from Bermuda.

    Now that the time for change is here we realize we are years behind. smh

    • Mad Dawg says:

      Er – ganja mon – what about the PLP MPs who voted against it? Are they UBP Tea Party fans as well?

  7. My two cents says:

    NO! WE ARE NOT ALL TO BLAME!! I am so sick and tired of the blame, stress, and burden falling on the average man! We have taken enough cuts, blame etc. for all the problems the world over! This is the hospitality, governments, and individuals with bad/hostile/angry attitudes fault! Everyone wants to take a large paycheck home but they don’t want to bother with the work! Stop blaming the average man that is just trying to get by. Enough is enough do your freaking jobs people. Stop talking and start doing!!!

  8. RobbieM says:

    Government Statistics – Facts and Figures

    1998 Cruise Visitors 188,300
    Air Arrivals 368,800
    2010 Cruise Arrivals 347,900
    Air Arrivals 232,300

    1998 # of beds = 7,472
    2010 # of beds = 5,722

    1998 visitor expenditure cruise = $64.9 million
    Air = $266.4 million
    2010 visitor expenditure cruise = $61.00 million
    Air = $322.9 million

    With almost double the # of cruise passengers in 2010 compared with 1998, Bermuda took in less money! Factor in inflation at 2-3% per year for 12 years and one can see that the cruise passengers are not contributing much of anything to Bermuda. Factor in the wear and tear on facilities used by them, we probably come out at a net loss overall!

    Do we really need more cruise passengers? NO!!!

  9. got my ticket says:

    Whats wrong with putting ships in the great sound and using tenders? They do it in the caymans and other caribbean destinations? just dont make it some huge long ride like veendam’s

  10. Grubster says:

    Hamilton Harbour is beautiful, but what does Bermuda do with the prime waterfront sites? Build car parks. I have had 5 sets of visitors here this year, all spending money in shops, restaurants and taxis and all of them have wondered why there isn’t the kind of cafe culture (as in Europe) along the waterside in Hamilton. Yes you can eat in Pickled Onion, Flannagans etc on the balcony, but it really isn’t the same. Bermuda has missed an opportunity to really develop the waterfront.
    Plus what is the problem with gaming being allowed whilst a ship is in port?