Transport co-ordinator Larry Jacobs believes the imminent major cutback in the number of cruise ships docking in Hamilton may have a positive impact on business in the capital.

Cruise visitors who arrive at Dockyard and take a ferry to Hamilton were more likely to spend time and money and have a meal than passengers whose ship was moored alongside Front Street, said Mr. Jacobs, who works for the Ministry of Tourism and Transport.

Plans for the 2008/09 cruise ship schedule, which included no contract ships docking in Hamilton and a reduced number stopping in Dockyard and St. George's, were revealed by Government at a Chamber of Commerce meeting earlier this month.

"Not having a high number of cruise ships available in Hamilton will impact the Corporation's revenue by reducing the amount they receive in port dues," Mr. Jacobs said.

"Beyond that, we believe not having cruise ships docked directly adjacent to Front Street could have a positive impact. Our experiences have shown that when there are larger ships at Dockyard people will still visit a destination if there is a reason for them to do so.

"Currently, the 650-passenger Bermudian shuttles cruise visitors to and from Dockyard and Hamilton and the 350-passenger Warbaby Fox shuttles cruise visitors from Dockyard to Hamilton and St. George's.

"We have found that many of these cruise visitors will actually spend more time and money, including having lunch, because their ship is not as easily accessible."

And Mr. Jacobs believes passengers will still visit and spend money in Hamilton regardless of where their ship disembarks.

"There are 25 daily ferry trips from Dockyard to Hamilton not including the Bermudian, which makes an additional four trips. Our ferry service makes it easy and cost effective for cruise visitors to travel from Dockyard to Hamilton or St. George's."

Mr. Jacobs said there were two factors why there will be fewer cruise ships stopping in Hamilton in 2008 and beyond.

He pointed out that, firstly, the cruise lines are selling their older and smaller ships and moving them to new emerging markets.

The Norwegian Crown and the Empress of the Seas will move to other markets next year.

In addition, Mr. Jacobs said that Bermuda cruises face competition from destinations such as Alaska and Europe.

With a favourable exchange rate, the strong euro has resulted in European land-based holidays being expensive for the North American market.

Cruises, however, are sold in US dollars, which makes a cruise less expensive than a land-based holiday. Consequently, cruise lines have been redeploying ships to Europe in increasing numbers. Indeed, the Azamara Journey will be re-deployed there in 2008.

Resulting from this, there will be no contract ships calling in Hamilton for 2008.

But he added: "However, we have secured 11 occasional calls for 2008 for Hamilton.

"Simply, there are no smaller cruise ships that are available that can safely and reliably dock in Hamilton for 2008. The Corporation of Hamilton has known for a number of years that there will be fewer cruise ships available to dock in Hamilton."

Mr. Jacobs went on to explain why contract cruise ships will be docking in St. George's as opposed to Hamilton, which can take the same size ship.

The Norwegian Majesty is under contract to dock in St. George's through 2009 and next year Norwegian Cruise Line will also deploy the Norwegian Dream to St. George's for three days.

"St. George's relies more on cruise ships than Hamilton for their livelihood so the cruise product is important to them," said Mr Jacobs. "Also, Norwegian Cruise Line was asked if they would like to spend at least one day in Hamilton. Their preference was a three-day stay in St. George's."

Mr. Jacobs said the decline in the amount of cruise ships could offer an opportunity to redevelop the waterfront in Hamilton.

"In 2005 the Premier established the Waterfront Task Force, including members from the private sector, the Corporation of St. George's, the West End Development Corporation (Wedco) and the Corporation of Hamilton," he said.

"For the six months the Corporation of Hamilton declined to participate on the Task Force. It was made clear that in the future the number of cruise ships in Hamilton and St. George's would decrease and the opportunity would exist to redevelop the waterfronts at each port.

"The Corporation of St. George's has been working on their plans as has Wedco.

"The expansion of the Hamilton Ferry Terminal is an important element of the plan to provide more ferry service to Hamilton for commuters and visitors. This will be difficult to achieve if cruise ships continue to line Front Street.

"We see an opportunity for Hamilton to develop a first-class waterfront experience, something that would be difficult if not impossible if cruise ships continue to block the waterfront."

Mr Jacobs said that plans were under way to develop a second cruise pier at Dockyard for 2009. He claimed that this pier would be able to dock the same large ships that currently call in at Dockyard.

Also, Cabinet will be requested to approve a feasibility study for a cruise pier in the Murray's Anchorage area. He said: "It is not our plan to increase the number of cruise visitors moving forward but to re-deploy then away from Hamilton and St. George's because of the move towards larger cruise ships."