02/13/2024
How much money do cruise ships contribute to the city of Key West
The exact amount of money cruise ships contribute to Key West isn't a straightforward answer. It depends on various factors, including:
Direct Revenue:
Dockage fees: Cruise lines pay the city per passenger based on ship size and stay duration. Estimates range from $1-$4 per passenger, but specifics depend on individual agreements.
Passenger facility charges (PFCs): Federal fees on cruise passengers, with an 8% share returned to the city for port improvements. In 2022, Key West received over $1.8 million from PFCs.
Indirect Revenue:
Sales taxes:- Passenger spending in Key West generates significant sales tax revenue for the city. Estimates suggest average spending of $100-$200 per person.
Other fees:- Garbage disposal, security fees, etc., may contribute additional income.
Challenges in Calculation:- Fluctuating numbers: Passenger volume and spending habits vary by season and economic conditions.
Indirect effects:- Assessing economic ripple effects, like job creation in tourism-related businesses, is complex.
Negative impacts:- Potential environmental damage and strain on infrastructure needs to be considered.
Current Landscape:- Key West voted in 2023 to limit large cruise ships, significantly impacting future contributions.
Debates about cruise ship impact on the city's character and sustainability continue.
Further Resources:-
City of Key West Cruise Ships / Marine Services: https://www.cityofkeywest-fl.gov/158/Cruise-Ships-Marine-Services
Key West Island News: Key West cruise ships | Imagine the crowds if there were still three ships a day: https://www.keywestislandnews.com/2023/02/key-west-cruise-ships/
While it's challenging to pinpoint an exact figure, understanding the different avenues of contribution and ongoing debates can provide a clearer picture of the complex relationship between cruise ships and Key West's economy.