International Cruise Activities: The distribution of GDP and National Income

Abstract

This study examines the economic impact of international cruises and the distribution of the Gross Domestic Product (GDP) and National Income (NI) among the countries which are included in the itineraries. Difficulties arise especially when part of the activity is carried out in international waters or Exclusive Economic Zone (EEZ) areas.
Research that has been conducted calculates the economic benefits of consumption in cruise ports, without estimating the overall and final contribution to GDP and National Income.
The aim of this paper is to separately assess the value-added generated and the final impact on the GDP and National Income of the economies of all countries, both those that participate in international cruise programs and those that do not participate but receive part of the income generated.
A practical example of application is provided, showing the alternative options for the distribution of GDP and the corresponding distribution of National Income, considering various criteria such as the headquarters of the shipping company, the ports of call, the distribution of the voyage according to territorial waters, etc.
The article emphasizes the necessity of developing a specific methodological framework for the proper distribution and recording of the socio-economic impact of international cruises at the national and transnational level, contributing to the reliable formulation of sustainable and fair tourism policies.
The contribution of this paper compared to prior research in the field is the ability to assess the GDP and the NI produced by the cruise activity in each country involved in the cruise industry.
JEL Classifications: C670, E010, L830
Keywords: Cruise, GDP, GNI, Economic impact, System of National Accounts.