The proliferation of private ports and islands run by cruise companies in the Caribbean has only continued to grow in recent years since Royal Caribbean opened the first, ‘Perfect Day at Coco Cay,’ in 2019.
If you’ve wondered why they’ve become so popular as alternatives to port calls in actual ports and cities, the answer is three-fold, but the big two are big ships and big bucks. The third is that many cruise passengers are happy to have a relaxed day at the beach rather than a hectic call in an overcrowded port.
The big ships aspect seems obvious; a ship with three thousand or more passengers arriving in a small port can overwhelm local facilities and require passengers to pass through immigration and other checks on the way out. In some places, such as Falmouth, Jamaica, it’s led to development of whole alternatives on-shore to the actual town.
That’s some of what’s driving the popularity of three and four-day cruises from southern ports that include mainly stops at private destinations. Industry experts say they are breaking records.
The big money aspect is less obvious until you think about it. When a cruise ship arrives at a private island, it doesn’t pay government taxes or port fees, and any revenue from restaurants or other facilities that are not included in fares go to the company, rather than to local entrepreneurs.
“Perfect Day at CocoCay has been a game changer for both our guests and our business,” according to a statement by Royal Caribbean CEO Jason Liberty. As evidence that the $250 million that went into the private port has paid off, RC reports that since 2019 its expenses are up 34%, but its ticket revenues are up 43%, an industry-leading result.
