Published January 2004

Snohomish County Business Journal/JOHN WOLCOTT Holland America’s cruise-ship business in Seattle is expected to have nearly a half-billion-dollar impact on the state and regional economy this year when the company adds a second ship to its Southeast Alaska route. Plus, seven other Holland America ships will stop for provisions in Seattle, like this one, the MS Maasdam, on its way to the Panama Canal.

Holland America to add ship, boost to region

By John Wolcott
SCBJ Editor

When Holland America adds a second ship in Seattle in 2004 — the new 1,848-passenger MS Oosterdam will join the 1,380-passenger MS Amsterdam — the cruise line will contribute $456 million directly and indirectly to the Washington state economy, primarily in the Puget Sound area.

Company executives, speaking recently to a shipboard luncheon meeting of the Public Relations Society of America, said the presence of the company in Seattle has been a major new contribution to regional tourism.

“Holland America is anchored firmly in Seattle,” said A. Kirk Lanterman, the company’s chairman and CEO. “With 12 ships and 14,700 employees worldwide — 1,300 locally — we impact the local economy by almost half-a-billion dollars, which is a huge growth since we located our worldwide headquarters here in 1983 with only two ships. We will have two additional new ships in our fleet by January 2006.”

The recent luncheon gathering was on board the MS Maasdam, which stopped in Seattle on its way to a Panama Canal tour, but the two Holland America ships assigned to homeport in the Puget Sound will be carrying nearly 75,000 guests on tours of Alaska.

Along with the spending those guests do locally, Holland America’s impact on the Puget Sound economy includes maintaining corporate offices in Seattle, local payroll, provisions for the company’s ships, crew spending, port fees and taxes, plus marketing and sales expenditures, Lanterman said.

Holland America began cruising regularly from Seattle to southeast Alaska in 2002 with weekly departures aboard the MS Amsterdam. In 2003, the ship sailed for 21 cruises between May and the end of September, plus five other Holland America ships made stops in Seattle for Pacific Northwest and Panama Canal cruises.

Interest in Seattle-based cruises is expected to grow considerably this year when the second ship is added to the Alaska cruise season and new trips are offered to Hawaii and South America, Lanterman said. The MS Oosterdam, the newest ship in the fleet, will sail 20 roundtrip Alaska cruises this year, as will the MS Amsterdam. Seven other ships also are expected to stop in Seattle.

Holland America’s cruise spending touches more than 1,200 vendors across the state, spending $130 million to run its headquarters, maintain and refurbish its ships and provision its local fleet. An additional $46.5 million goes to 1,300 full-time employees for local salaries. Using a 2.5 multiplier, the overall economic impact on the state from the cruise line’s presence in Seattle in 2004 is estimated to be $456 million.

The direct economic impact of the 47 cruises in 2004 will total $25 million in local spending, including $5.5 million spent in local shops, restaurants, hotels, museums, local sightseeing attractions and taxicabs. Port fees, charges and taxes are estimated at $4.2 million; fuel costs will total $6.6 million; and general maintenance costs will approach $2.2 million — including $5,000 in flowers from local florists and having the nine cruise ship pianos tuned regularly throughout the season.

Provisions for each ship every two weeks on turn-around visits to Seattle cost $2.7 million to $3.3 million each sailing season. The MS Amsterdam, for instance, requires 15,000 eggs and 1,000 gallons of milk each week from local farmers. Local growers provide 30,000 pounds a week of fresh produce. Stock Pot, a Woodinville food company, sends 250 gallons of soup stock each week to each ship in Holland America’s fleet.

After its Panama cruise in May, the MS Veendam will stay in Seattle for a scheduled $4 million, 10-day dry dock servicing at Todd Shipyards.

Don Welsh, senior vice president of sales and marketing for the Seattle Convention and Visitors Bureau, told the group that Seattle and the Puget Sound area have unique scenery and attractions that will continue to increase the importance of tourism in the region, including attracting more cruise-ship passengers to the Northwest.

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