The Development of an Industry: The Value Proposition of Mega Pier 2

The popularity of Curaçao as a cruise tourism destination has increased significantly in the last decade, with the picturesque image of the Handelskade “liked” the world over. From 2012 to 2014 alone, the number of passengers has seen an increase of 150,000, bringing the number of cruise visitors to approximately 600,000 at the end of 2014 – an increase of 30%.

TEXT PRISCILLA LOTMAN

Though Curaçao is still often referred to as “the island next to Aruba,” that perception is changing as the island is being cast as the “best-kept secret in the Caribbean.” Kevin Sheelan, the CEO of Norwegian Cruise Line Holdings, has labeled the island as a “quality destination,” and the customers of Royal Caribbean International ranked Curaçao as one of their favorite destinations. A dedicated Ministry of Economic Development, input from the Curaçao Ports Authority (CPA) and the expectation that cruise lines will plan additional routes for more of their larger vessels to visit the island in the future, provides enough impetus to build a second mega pier.

Though Curaçao is still often referred to as “the island next to Aruba,” that perception is changing as the island is being cast as the “best-kept secret in the Caribbean.”

The Rif Seaport Curaçao
The construction of the pier will start at the end of 2015 or early 2016. However, the project is in progress and construction of the landside development will start next year. CPA and the project team are meeting with Royal Caribbean International and Carnival Cruise Lines in December 2014 to negotiate the possibility of getting the companies onboard for the project as financial stakeholders. “Subsequently, local investment institutions will be approached for the remainder of the funding,” said Vernon Huerta, chairman of the project team. The total cost of the project is currently estimated at USD 50 million.

The Rif Seaport project has two main components; the mega pier and the upland development. The upland development will include cruise facilities, which will be a public area dedicated to showcasing the island. The collaboration of CPA and the project team with the Punda merchants and other local entities is a key to ensuring the upland development will add value for the arriving tourists and the stakeholders in the project, as well as the island as a whole.

With a construction period of approximately 18 months, cruise passengers and locals alike should be enjoying the area in 2017. An important objective is to move the so-called “security line” to the edge of the pier to ensure the cruise village could also be enjoyed by the local community. “In addition to the landside development being an attractive entertainment area, we have always looked at it as a logistical center,” said Humberto de Castro, managing director of CPA. “The Rif Seaport is not the destination, Curaçao is. Tourists will always be encouraged to explore the island; whether via a tour or simply strolling down the walking path to Punda, and the upland infrastructure will be the logistical hub.”

With a construction period of approximately 18 months, cruise passengers and locals alike should be enjoying the area in 2017.

Curaçao’s Cruise Tourism Industry
According to the Business Research and Economic Advisors (BREA), a market research firm specializing in the travel and leisure industry, a cruise passenger spends USD 70 on average in Curaçao. This results in the annual revenue of USD 40 million a year from cruise tourists for the island. According to de Castro, this number excludes the so-called “head tax” and piloting costs. Though this is significantly lower than the income from stay-over tourists, it is still a notable contribution to the overall income of the island. “Every tourist is an opportunity to expose our island,” said de Castro. “The opportunity here lies in impressing each tourist enough for them to consider visiting the island once again for a longer period of time or recommending it to their friends and family.”

The goal for Curaçao’s cruise industry, de Castro added, is to increase the number of cruise visitors to 1,000,000 per year and increase their spending from USD 70 to USD 100, on average. “This is an attainable target based on the growth we’ve been experiencing in the industry,” he said. With the building of a second mega pier, the government and CPA are anticipating what the cruise industry will look like 10 to 20 years down the road and working on preparing the island for the subsequent increase of vessels and tourists.

Since the Southern Caribbean is becoming a desired destination, the itineraries of the larger vessels, in particular, are increasing from 7 to 10 days. The second mega pier will be able to handle larger vessels, such as the Freedom Class ships of Royal Caribbean, and approximately 8,000 passengers on any given day. “To meet the requirements of this growth, the Rif Seaport project team is speaking to its stakeholders, taxi’s, tour operators, catering companies, Punda shop owners and the customs authority, amongst others, to ensure the island is ready for this in 2017,” said Huerta

The Environmental Impact
The Superior Producer, a freighter that sank in 1977 just outside the harbor and now a popular dive location, is situated near the planned area for the second mega pier. There have been many discussions about how this unique diving spot will be preserved. “We are working with Carmabi to ensure that we address each issue that is related to the environment for this project,” emphasized de Castro. Using sound-depth measuring devices, the project team has confirmed that the wreck is located deeper than where the pilings will be placed. De Castro added, “At the moment there is every indication that the sight will remain intact. Together with Carambi, the project team and CPA intend to look into the possibilities of anchoring the wreck during the construction period to minimize any movement due to vibrations.”

Another consideration is the state of the mangroves near the Rif Seaport area. At the moment, superfluous sewage, due to occasional power outages, is being dumped in the mangrove area. The result is a breeding nest for mosquitos. According to de Castro, Carmabi is currently battling this problem. He went on to add, “We should not be polluting this area. We need to consider other options, such as holding tanks, for the management of this waste.” CPA and Carmabi are both determined to find a solution. Preserving the island’s environmental state is and will always be a vital undertaking for the population as a whole and will ensure the island maintains its beauty for all to enjoy for decades to come

Conclusion
Tourists, whether they arrive by plane or on a ship, come to Curaçao for its pristine waters, cultural experiences and its historic downtown area. To remain competitive and continuously develop the reputation of the island in the tourism industry, infrastructure developments are necessary. The second mega pier, according to CPA and the project team, is unambiguously part of this development. Stakeholder collaboration, environmental considerations and consensus are all vital to the success of the Rif Seaport project and its goal to be a valuable addition to the island.