Port of Galveston has announced that Royal Caribbean International’s commitment to building a $100 million cruise terminal at Pier 10 is a “gamechanger” for its economy.
According to Galveston, the annual impact from the new terminal includes:
- 1,320 new jobs · $60.7 million in personal income
- $1.4 billion in local business services revenue
- $5.6 million in state and local taxes
The new terminal will also be a “major revenue generator,” the Port of Galveston said in a press release.
The third terminal at Galveston – which will be a base for the 5,400-passenger Allure of the Seas – was designed specifically for Royal Caribbean’s Oasis-class ships. The construction of the terminal is set to begin in April 2021, for its opening in fall 2022 after its construction was put on hold due to the pandemic.
“The new terminal will generate millions of dollars in ground rent and other revenues for the port, which we’ll reinvest in infrastructure and capital improvements as outlined in our Strategic Master Plan. These investments will grow our port business, create more good-paying jobs and stimulate the local economy,” the port wrote.
According to the press release, the city will also receive “new, unrestricted revenue that could give it the opportunity to lower property taxes, a move that all property owners would support.”
“The port will pay the city at least $300,000 a year. Based on passenger volume, we expect this amount to increase if annual passenger numbers at the new terminal grow beyond 600,000,” it said.
The port also estimates that port-operated cruise parking sales tax revenue paid to the city will grow to more than $1 million a year when the cruise business is back to pre-pandemic levels.
“This doesn’t include sales tax that the city receives from privately operated cruise parking businesses,” the Port of Galveston wrote.
The port emphasized that local stores, restaurants, hotels, attractions and services businesses will also benefit as more cruise passengers and crew members would be buying goods and services in Galveston.
“This will generate more jobs, sales and hotel tax revenues and business growth,” the port wrote.