Key West is currently at the center of a significant decision regarding a request by the cruise piers owner for expansion of cruise ship operations, a request that has sparked intense debate among residents, environmentalists, and politicians. 

The decision to allow larger and more cruise ships to come to Key West now rests in the hands of Florida Governor Ron DeSantis. The Governor’s decision will have major implications for the local environment and economy and the future of cruise tourism in the region. 

DeSantis Faces Tough Key West Decision

Since the COVID-19 pandemic, Key West’s residents have actively sought to limit the size and number of cruise ships visiting their shores. Concerned about the environmental impact, they successfully passed three ballot measures in 2020 to cap daily passenger arrivals at 1,500. 

However, in a contentious move, the decisions were overturned by the state Legislature in 2021, with Governor DeSantis’ approval, signing a law preventing such local ballot measures from limiting marine commerce. While that seemed to be the end of the saga, a new issue has now arisen.

Mark Walsh, a hotelier overseeing Key West’s cruise ship port, has asked for state permission to expand the possible number and size of cruise ships arriving at the cruise port. While the expansion raises economic opportunities for Key West and its residents, it also carries significant environmental risks.

According to the New York Times, The governor himself has called the reefs a state treasure and will decide with his cabinet in December 2023 if Walsh can proceed with the expansion. Bearing in mind that Walsh already has a permit to allow larger ships, which expires in June.

In essence, it means that even if DeSantis allows the expansion, it will merely be a continuation of the current situation. The denial of the permit will mean that the number of cruise ships sailing to Key West could be seriously limited.

At the core of the issue lies the fact that cruise ships cause significant disruption to the waters around the port due to their deep draft and the relatively shallow water level in Key West. 

The propellers lift sediment and sand from the ocean floor. This sediment clouds the water, reducing the sunlight crucial for coral health. When this sediment settles, it can blanket the coral, obstructing their access to sunlight and smothering them. 

Community Pushback In Key West

The expansion of cruise tourism in Key West faces fierce opposition from locals, and, on the other hand, a significant part of the local population is eager to see an increased number of cruise passengers arrive in Key West.

Safer Cleaner Ships, an activist group, has been at the forefront of battling against the damage cruise ships are doing to local coral reefs. While the group opposes large cruise ships from entering the waterways around Key West, it does welcome smaller cruise ships.

Safer Cleaner Ships states on its website: “The truth is, sensible limits on cruise ships in Key West will protect our coral reef and the tourist economy that depends on it. We will keep fighting to limit large cruise ships and defend the will of the people of Key West.”

“Our opponents said we wanted to ban cruise ships, but that was never true. Dozens of the world’s most beautiful cruise ships qualify to call on Key West under the voter-enacted size limits.”

Those who want to see more cruise ships arrive do so mainly because they feel their business is hurting. Local tour operators report a significant decrease in business, with some experiencing up to a 40% downturn, attributed to the reduced number of cruise ship visits. This decline is particularly felt by companies directly linked to the cruise industry. 

However, this trend might be influenced by other factors, especially considering that Key West is scheduled to welcome 342 cruise ship calls in 2024. A number that can hardly be called a downturn. Contrary to the belief that the city’s financial health heavily relies on cruise ship tourism, Key West emerged as one of the strongest economies in Florida post-pandemic.

Governor Ron DeSantis, who has received substantial campaign donations from Mark Walsh, owner and operator of the cruise pier in Key West, is now faced with a challenging decision. He must weigh the protection of Key West’s delicate coral reefs against the interests of his campaign contributors.

Galveston Wharves is gearing up for a record-breaking 2024, with more passengers and ships sailing from the port than ever. The projected numbers were revealed in the budget meeting held by the port authorities on November 28. The budget projects operating revenues of more than 70 million USD.

​The robust financial outlook sets the stage for significant expansions and enhancements across the port. This includes the recent updates to Terminal 25 in preparation for the arrival of Carnival Jubilee, and the new Cruise Terminal 16, which will likely be used by MSC Cruises, underscoring Galveston’s growing prominence as a major cruise port.

Unprecedented Growth for Galveston Wharves

Galveston Wharves CEO Rodger Rees revealed the financial outlook for the port for 2024, one that promises to be a year of significant financial windfalls and growth for one of the fastest-growing US cruise homeports. 

Although Galveston does have a relatively large sector involved in cargo and industry, the cruise portion of the port’s activities promises to be the fastest-growing sector in 2024.

The port anticipates a 30% increase in cruise passengers by the end of 2023, propelled by the addition of a third cruise terminal, higher occupancies on larger ships, and an increase in sailings.

The surge in passenger traffic – from one million in 2022 to an estimated 1.4 million by the end of 2023 – is expected to continue into 2024, with a projected 14% increase to 1.6 million passengers. The passengers will arrive in Galveston during one of the 388 expected cruise calls in 2024.

All in all, the new budget for 2024 projects an operating revenue of $72.5 million. This is then broken down into $35.5 million in operating expenses, and a net income of $37 million.

Enhancing Terminal Capacity for Larger Vessels

Several major developments are central to this growth. The expansion of Cruise Terminal 25 and the introduction of Carnival Jubilee later this year play a major role in the financial gains for 2024.  A significant investment of $53 million is being channeled into upgrading Cruise Terminal 25, to accommodate Carnival Jubilee, larger than any of the current Carnival ships at Galveston Wharves​.

In tandem with these developments, the construction of a new terminal for Royal Caribbean International has been completed. This $125 million, 161,334-square-foot facility has, despite some early start-up problems, been operating successfully with Harmony of the Seas sailing year-round from Galveston.

Plans are also in motion for the construction of a $140 million fourth cruise terminal and additional parking at Pier 16, marking another milestone in the port’s ongoing expansion​. The Pier 16 cruise terminal will likely be used by the third-largest cruise operator worldwide, MSC Cruises. 

Rodger Rees, Galveston Wharves port director and CEO: “We’re reaping the rewards of our long-range plan to increase revenues and reduce costs to reinvest cash reserves in port improvements.”

“Next year will be a landmark year in the port’s 198-year history thanks to $42.3 million in state grants, the support of our Wharves Board and City Council, investments by our cruise partners and hard work by our great staff.”

Other investments and changes that Galveston Wharves is making include internal roadway improvements, and the expansion of the Express Lot for onsite parking at cruise terminals 25 and 28.

As the port gears up for a record-breaking year, the developments mean more options, larger ships, and enhanced services for guests, making Galveston an attractive destination for cruise passengers and a viable alternative to the massive cruise ports in Florida.