Even venerable cruise ship destinations can get stale if they don’t freshen their product, a top official of the Royal Caribbean Cruises Ltd. told a gathering of Chamber of Commerce members Friday.
"Don’t take anything for granted," warned Michael Ronan, RCCL vice-president of government relations, at the annual luncheon meeting of the St. Thomas-St. John Chamber of Commerce at Coral World.
He said the fact that the cruise ships are 100 percent full, "could allow you to sit back and think ‘all’s right with the world.’"
Ronan described how RCCL had at great expense moved a mega-ship around Cape Horn (because it was too big to go through the Panama Canal) to the Mexican Riviera, which includes Acapulco and Puerto Vallarta on the country’s west coast – only to move it back a year later because the market didn’t support those destinations "though they were also well-established."
Leading with an apology for bringing up what has always been a sore point on St. Thomas, Ronan said, "You need some sort of water transportation."
He said vessels buzzing about Charlotte Amalie harbor taking passengers from one destination to another would add a whole new element to the island while reducing pressure on infrastructure.
St. Maarten, which Ronan indicated was the territory’s stiffest competition in the region, already has three drop-off points in their harbor, which brings customers to three different business areas to shop and eat.
"It’s a no-brainer," he said.
Ronan also said Main Street needs to be "pedestrianized," something that has been done in many major shopping areas elsewhere.
"In other areas of the world this has been done successfully … allowing people to move freely, thus maximizing their enjoyment," he said.
Ronan was met with applause at both suggestions by chamber members who have wrangled unsuccessfully for years with both of these hot-button issues.
He also said it would smart for the private sector to open a regular dialogue with the cruise ship industry. He said though government had a place in the discussion it was much more important and effective for the business people to be the larger voice.
"You need a private working group," he said.
Ronan gave the example of Mexico where he said all the chambers of commerce in the country had joined as one unit to meet regularly with the cruise lines.
While expressly trying to avoid negativity, Ronan said he couldn’t help but point out several other ominous signs that could point to trouble for St. Thomas and St. John. He spoke of Atlantis Submarine leaving, as well as another sailing shore excursion moving elsewhere.
When one chamber member pointed out that the "season" had gone from 11 months to maybe a few as five in recent years, Ronan countered, "Alaska has never had more than a 20-week season."
Ronan pointed out that several local jewelry stores have operations in Alaska that operate successfully during those 20 weeks. He said it was up to the business people to rework how they operate in order to function in the new realities, which include economic downturns, new competition in the market and new ships that can take passengers farther faster.
Europeans avoiding U.S. territories because of complicated visa requirements and a new law being considered that would require ships cruising the east coast of the U.S. and the U.S. islands to use a lower sulphur, higher cost fuel were among other issues Ronan said the U.S. Virgin Islands would be wise to consider in its long-term planning.
On the up side, Ronan said St. Thomas was still high on the list of preferred destinations among cruisers – a population that is growing. Also, he said, only 30 percent of Americans have passports, which will keep them coming to destinations under the U.S. flag for awhile yet.
But, he said, "St. Maarten is nipping at your heels."
