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Council reviews cruise-ship agreements and rising wharfage revenue
Summary
Staff reported that cruise-ship visits produced about $1.6 million in wharfage revenue in FY24‑25 and described a proposed five‑year preferential access agreement with Carnival that would reserve Wednesdays beginning Oct. 1, 2027, with passenger charges tied to occupancy and a guest code of conduct.
City staff presented the harbor’s annual cruise-ship report and discussed a proposed five‑year preferential access agreement with Carnival Cruise Lines intended to limit very large ships and stabilize weekly scheduling.
“they've agreed to pay a passenger service charge in the amount of $1.50 when this commences, which this will begin 10/01/2027,” staff (S4) said describing terms in negotiations with Carnival; staff also noted Carnival would be limited on Wednesday visits to a vessel no larger than the 'sunshine' class. Finance/harbor staff (S8) reported that cruise-ship wharfage revenue totaled about $1.6 million in the year and that average passengers per arriving vessel have increased to roughly 3,500, boosting harbor revenues.
Why it matters: staff said cruise‑ship receipts now account for about 20% of harbor operating revenues, and changes in vessel size or frequency materially affect harbor operations, infrastructure demands and local businesses that rely on passenger traffic.
Council discussion focused on scheduling, the guest code of conduct Carnival agreed to include in the contract, and the city’s ability to cap weekly visits (the existing ordinance caps a maximum of three ships per week). The annual report was received and filed; staff said the proposed Carnival agreement would return for formal action.
