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. • The determining variables that influence cruise passengers' spending decisions in Uruguayan ports are analyzzed. • Two models are applied to analyze separately the probability of spending and the amount spent. • Passenger characteristics such as nationality, occupation, and travel group size significantly influence spending decisions. • The port of disembarkation (Montevideo or Punta del Este) is one of the key factors shaping spending behaviour. • The results provide input for local stakeholders to increase the economic impact of cruise tourism.