New Bermuda cruise investments pegged at $250 Million

By Shanieka Smith

Features Writer

#Bermuda, May 27, 2022 – An infrastructure project in Bermuda is set to benefit from a $250 million investment from a cruise industry stakeholder. The news was announced by Transport Minister Lawrence Scott, who also gave the impression that the project may start as early as next year if the Cabinet approves the idea. Before going in front of the Cabinet, however, the $250 million proposal would be vetted by technical officers and the Economic Development Committee.

The cruise entity, which is unnamed, has also pitched a memorandum of understanding (MoU) to the Government where it offers to create a direct and clear path to jobs to Bermudians aged 18 and older.

“From what I have seen, it does not encompass one part of the island. It will transition to all of the island – and St George’s would feel the love,” said Scott, who also revealed that the East End would benefit too.

If approved, it would be the first major cruise infrastructure project since Heritage Wharf, opened at the Royal Naval Dockyard in 2009.

There is added hope and benefits for Bermuda if the idea is approved by Cabinet, especially considering that the Old Town has not earned much from cruise tourism for the past 25 years. This is due to its limited capacity to host large vessels, and the need for increasingly large ships.

After the project was discussed at the annual Seatrade global cruise conference last month in Miami, representatives from the port authorities of Baltimore and Boston were willing to add their “negotiating strength and influence with airlines,” said the minister. This is to aid in increasing Bermuda’s cruise capacity.

“The more cruise calls they have, the more attractive they are to airlines and the more seat capacity they build,” Scott added, highlighting that Boston and Baltimore are home ports. He said the US ports are ready to boost their numbers if the Bermuda cruise investment is fulfilled.

Additionally, Scott said cruise representatives in Miami predicted a better season than officials in Bermuda were expecting for this year. “We were informed by the cruise industry that our projected 50 per cent occupancy for this current season is below what they’re projecting, which is closer to 80 per cent,” he said. If the better predicted numbers are accurate, there may be an extra tax gain of $20 to $30 million for the Government’s Consolidated Fund.

As with the predictions, the transport ministry is projecting more than 1 million visitors to Bermuda for 2025-26. Besides, passengers have had money left in their pockets since the current passenger numbers were being boosted by trade lost to the pandemic. The minister said cruise demand has come back “faster than anticipated.”