Question

how the limitization of cruise ship increases the market of a place

Answer 1

Cruise ships are large passenger ships used mainly for vacationing. Unlike ocean liners, which are used for transport, they typically embark on round-trip voyages to various ports-of-call, where passengers may go on tours known as "shore excursions". On "cruises to nowhere" or "nowhere voyages", cruise ships make two- to three-night round trips without visiting any ports of call.

The cruise industry has evolved rapidly over the past decades, with the building and operation of ever-larger cruise ships being a key factor in this growth. This study examines whether the observed increases in vessel size are supported by the fundamentals of economies of scale, as allegedly occurs with container ships; in other words, we inquire whether increases in ship size imply decreases in the average costs per passenger. We attempt this by developing a detailed cost model for cruise ships, distinguishing among three types of costs: capital costs, operating costs and voyage costs. The quantification of these costs allows the determination of potential savings due to the presence of scale. In parallel, we analyse the sensitivity of each cost category to parameters such as sailing speed and distance travelled. The research provides an assessment of the direction the cruise industry is heading, as regards the scale of vessels in operation: our findings suggest that economies of scale are realised only up to a certain ship size, which today stands at 120,000 gross tons. For larger cruise vessels, average costs (per passenger) increase and dis-economies of scale start to set in.

Cruise ships generate a number of waste streams that can result in discharges to the marine environment, including sewage, graywater, hazardous wastes, oily bilge water, ballast water, and solid waste. They also emit air pollutants to the air and water. These wastes, if not properly treated and disposed of, can be a significant source of pathogens, nutrients, and toxic substances with the potential to threaten human health and damage aquatic life. Cruise ships represent a small — although highly visible — portion of the entire international shipping industry, and the waste streams described here are not unique to cruise ships. Particular types of wastes, such as sewage, graywater, and solid waste, may be of greater concern for cruise ships relative to other seagoing vessels, because of the large numbers of passengers and crew that cruise ships carry and the large volumes of wastes that they produce. Because cruise ships tend to concentrate their activities in specific coastal areas and visit the same ports repeatedly (especially Florida, California, New York, Galveston, Seattle, and the waters of Alaska), their cumulative impact on a local scale could be significant, as can impacts of individual large-volume releases (either accidental or intentional).