Carnival UK is projected to contribute more than £2.5 billion to the overall UK economy over the next five years, according to an independent study.

The figure is disclosed in the group’s first independent Economic Impact Report, which highlights the links between the group’s cruise operations and the potential for local, regional and UK-wide economic growth.

Carnival UK and P&O Cruises president Paul Ludlow said: “As the largest cruise operator in the UK, we are extremely proud that our organization will be contributing over £2.5 billion to the UK economy over the next five years.”

The new research, commissioned independently from WPI Economics, is the first of its kind to be independently researched and audited, using data from across parent company Carnival Corporation’s entire UK-based operations.

Founder of WPI Economics, Matthew Oakley, said: “The benefits of Carnival UK’s operations provide a significant boost to Southampton’s economy and flow far beyond it out into the rest of the United Kingdom.”

Key findings include the following:

Southampton turnarounds

Each time one of the Corporation’s largest ships homeports in the UK, it contributes up to £2.5 million to the economy from supply chain and guest spending. This turnaround value equates to £505 million per year.

Over the next five years, the combined value of the UK economy is projected to exceed £2.5 billion.

Travel agents

Carnival’s contribution extends to every local authority in the UK, with the company’s cruise bookings made through local travel agencies generating over £100 million annually in travel agent commission fees.

Tourism

Cruise ship visits often precede repeat holidays taken in the UK by international guests.

The potential future value from returning international visitors created by Carnival is predicted at £147 million annually.

Local presence

Based on the employment of 1,650 full-time employees at Carnival UK’s headquarters in Southampton, the business contributes £351 million in Gross Value Added to the local economy.

Maritime Minister Mike Kane said that the maritime sector is determined to support growth in coastal regions and has set out ambitions to welcome 50 million international visitors per year by 2030, many of whom can come from the maritime sector.

According to Kane, the report’s findings uncover the vital role the cruise sector plays in supporting this ambition.

The report may be found here.