Port Canaveral is approaching a record fiscal year for revenue driven by the return of the cruise industry in a big way, but it doesn’t hold a candle to what officials expect for 2023.
The 2022 fiscal year ends on Sept. 30, and the port is projecting to bring in more than $122 million in revenue, mostly driven by more than $94 million from cruising. The port’s previous record was set pre-COVID in 2019 when it brought in more than $106 million, so already the port is setting the bar higher.
“July was an exceptionally strong month,” said Port Canaveral CEO Capt. John Murray at the port commission meeting Wednesday. “I can say that our our numbers have really ticked up in the number of passengers that are flowing through the port. So it’s been a good year.”
That includes 674 ship calls through 10 months of the FY 22 with more than 3.2 million multiday passengers, Murray said.
But the 2023 fiscal year is projected to blow this year out of the water.
The initial FY 23 proposed budget has total operating revenue is targeting near $154 million, which would be more than $32 million more mostly driven by a projected $124 million from cruises alone.
That’s because 2023 will see more ships calling, and even a new cruise line calling the port home, but also the port is now projecting 100% passenger occupancy after conservative 50%-75% projections in the last year.
That includes an expected 909 multiday calls from cruise ships, which is a combination of 810 homeport calls and 99 calls from ships visiting from other ports like New York. In 2023, the port expects 112 more homeport calls than it will see this year.
Both Royal Caribbean and Carnival Cruise Line plan to keep three ships year-round augmented with seasonal sailings from a fourth. That includes Royal’s Wonder of the Seas, the newest Oasis-class ship arriving in November.
Carnival leads the way with 264 expected home port calls while Royal will add another 231, although Royal will also have 58 port of call visits. Disney sailing the new Disney Wish and keeping the Disney Fantasy year-round is slated for 157.
MSC Cruises will keep one ship sailing year-round trading between MSC Meraviglia and MSC Seaside for 73 homeport calls as well as 15 port of call visits.
Norwegian Cruise Line is increasing its presence at the port with 63 homeport calls from seasonal service among three vessels including new ship Norwegian Prima arriving this December. The line will also make 11 port of call visits.
The new cruise line for the port is Marella, which will begin sailing from the port in April 2023 with the Marella Discovery making 22 homeport calls. The line, which is part of TUI U.K. and Ireland tours, caters to British travelers. The 69,130-ton ship debuted in 1996 as the Royal Caribbean Splendour of the Seas before being sold in 2016 to TUI Cruises.
The jump in cruise revenue accounts for a full year of cruise activity, something the port has not had since the 2019 fiscal year as the COVID-19 pandemic struck halfway through FY 2020 shutting the cruise industry down for nearly a year and half. The first ships did not return to sailing until summer 2021 and cruise lines only in the past few months have returned the majority of their fleets to full activity.
Port Canaveral has also been welcoming the newest and biggest ships among the major cruise lines of late, bringing in more passengers than years past when its ships were smaller capacity. It also has revamped several of its six cruise terminals.
While cruise continues to drive the economic engine of the port, its other ventures have climbed as well with FY 2022 projected to end with a record $17.7 million from cargo, $4.3 million from leases, and nearly $4.1 million from parks and recreation, which includes funds generated by Jetty Park.
2023 expects cargo revenue to climb to more than $18.5 million with nearly $4.5 million from leases and more than $4.2 million from parks and recreation.
With the rise in revenue, the port does project to spend more on expenses. It’s slated to stay under budget for FY 22 with just over $97 million spent, but plans on increasing expenses to nearly $109 million in 2023.
That leaves the port with a projected operating revenue of $45.4 million. On top of the increase is more than $20 million from leftover federal COVID rescue act funds and interest income. Take away $12.1 million on debt interest, but then add $23.3 million of federal and state capital contributions in the form of grants, and the port ends up with a change in net position of $76.8 million.
The shift is a major change from the lean budgets the port endured during COVID, and Port Commissioner Wayne Justice wanted to point out where the windfall would be heading.
“It’s really hard when we don’t have money, but it’s just as hard when we have a lot of money,” he said.
The port plans on paying down some of its debt, but a good portion is headed toward finishing projects such as the upgrades to Cruise Terminal 10 and reconstruction of North Cargo Berth 3.
“What are we doing with this additional revenues? We’re reinvesting it in this infrastructure,” said port CFO Bill Poole. “It’s that $76 million across the spectrum of the projects that we’re going to be doing next year.”
Commissioner and treasurer Robyn Hattaway praised the board’s approach with the extra funds, especially the cargo investments as part of a statewide effort to address supply chain issues, and paying down the debt.
“It may be the biggest pay down we’ve had ever, so I appreciate that,” she said. “The fiscal conservative management we had that got us through COVID, and now doing the right thing in paying off those bills.”
