John Sharp is a statewide enterprise reporter for AL.com. Contact me at [email protected] or on Twitter @JohnSharp99.
Pictures of the Alabama Cruise Terminal on Tuesday, Oct. 3, 2023, in Mobile, Ala. .Twelve years ago, the Carnival Elation set sail out of the Alabama Cruise Terminal for the last time leaving city leaders perplexed and holding the bag on what was quickly shaping up to be a massive waterfront boondoggle.Fast forward to this month, and a light is shining on the finality of the cruise terminal’s debt ahead of Friday’s.
, the city anticipates receiving a rough estimate of $3 million each year from a combination of wharfage, parking fees, and other income the cruise terminal brings in from hosting events and conferences during the off-season. Wharfage is the fee charged to dock the cruise ship at the Alabama Cruise Terminal.
The agreement with Carnival Cruise Line could last to 2029, or almost up to the time that the terminal’s debt is paid off. The five-year agreement for the Carnival Spirit is a first in the 20-year relationship between Mobile and the Miami-based cruise giant. The agreement includes two one-year renewals with the company.
Before the pandemic, the city was getting around $6 million a year in annual gross revenues from wharfage and parking fees alone. That was reflected in having the Carnival Fantasy operating for 12 months out of the cruise terminal. The Fantasy operated out of Mobile from 2016-2020,. Most of those excursions out of Mobile were to Cozumel and Progreso, Yucatan.
“They could give a 100-day notice if we are not showing demand and they have that right,” Clark said. “We need this thing for a long time.”Clark and his staff are focused on marketing and are making digital awareness and Google Analytics a key strategy in attracting people online to Mobile and a vacation aboard the Carnival Spirit.
“Cruising from Mobile is not just waving a wand and people show up,” he said. “We know demand is extremely strong for the Spirit. It’s the best ship we’ve had, and it has the best itineraries. We had talked before to Carnival about wanting to have a ship with new itineraries and that cruising is strong in Mobile, and demand is there. So far, so good in that theory.”Mobile’s interest in generating more cruising business is getting noticed, industrywide.
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