Cruise passengers’ expenditure in Uruguay: A cross-section data analysis

In recent years, the cruise industry has gained relevance in Uruguay's political debate, but the impact this activity has on the Uruguayan tourism economy is still unclear. This study analyzes one of the components of the economic impact of cruises on a destination: the expenditure of cruise passengers who disembark at Uruguayan ports. To this end, two cross-sectional regression models are estimated to explore the extensive and intensive spending decisions of cruise passengers who disembark at the ports of Punta del Este and Montevideo. The paper shows that the nationality of the interviewee, the port of disembarking and whether they travel in a group, are the most important variables in explaining individual spending behavior. Based on the economic analysis, the study suggests some management recommendations that destination policymakers could implement to improve the economic benefits of cruise tourism in Uruguay.