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Cruise concessions

Premier Dr. Ewart Brown's announcement on Friday on concessions to the cruise ship industry suggests that Bermuda's "cruise policy", as it currently stands, is in tatters.

The question now is whether the proposals being made will improve the situation.

It is no surprise to see Government seeking financial support from the cruise lines for the Bermuda Music Festival, because it must be clear that this year's edition is going to cost a small fortune that will not be offset by ticket sales.

It should come as even less as a surprise to those who watch the cruise industry carefully, because Norwegian Cruise Line's sponsorship, along with the $275,000 donation to the St. George's Foundation and the Bermudian Heritage Museum also "announced" on Friday, were already agreed to last November when NCL signed a new ten-year agreement with Government.

That flies in the face of Dr. Brown's suggestion in his statement on Friday that "in return for allowing controlled on-board revenues to occur", the major cruise lines ... are expected to participate in a number of activities and events".

This is not a quid pro quo – NCL had already agreed to these concessions, including a programme to encourage dining.

Still, the most controversial proposal concerns allowing gambling to take place on board the ships while they are in port.

Because casino gambling is illegal in Bermuda, cruise ships have not been allowed to open their casinos in port. In general, they have not been allowed to offer "full entertainment" either, in a bid to protect what little night-time entertainment still takes place in Bermuda.

Dr. Brown now seems to have guaranteed the cruise lines that they can keep their casinos open, although it is likely that this is a decision that would have to be approved by Parliament, and if that's the case, one wonders if all Government MPs will support it.

Either way, some will see this as the thin edge of the wedge, and the beginning of legalised casino gambling in Bermuda. Certainly, once passengers are allowed to gamble while on the port, the argument that hotel guests should be allowed to gamble in their hotels will be easier to make.

Leaving the moral arguments surrounding gambling aside, it seems likely that allowing gambling and shipboard entertainment in port will result in even fewer passengers sampling Bermuda's nightlife, and the contributions that the lines are making, or will make, to events like Destination Dockyard and Harbour Nights will not redress the balance.

For some years now, Dr. Brown has been able to use massive increases in cruise arrivals to claim that the tourism industry has rebounded.

Now he says that shifts by cruise lines to Europe and Bermuda's "comparatively" high operating costs make it harder for the Island to attract smaller ships to Hamilton and St. George's, and therefore concessions must be made.

That may be so, but it is not what he was saying earlier this year.

In fact, in February, he said that despite a "planned" reduction in cruise visitors this year, those visiting the Island would stay longer and would contribute more to the economy.

He also said extra buses and ferries would be laid on to ensure that the Dockyard-based tourists can get to Hamilton for shopping dining and Wednesday Harbour Nights. So far, that has patently not been the case. Tourist-related businesses in Hamilton and St. George's say this has been the worst season in memory.

Dr. Brown said on Friday that the cruise concession package is a "win-win". It feels more like "spin-spin".