MercoPress. South Atlantic News Agency

Buenos Aires cruise season begins November 5.

Next November 5 with the arrival of the “Amsterdam” and “Saga Pearl” the official 2004/05 cruise season will be inaugurated in Buenos Aires which this summer expects to receive over 50,000 cruise visitors.

According to the Buenos Aires City Tourism Office and the Metropolitan Economic Office the 54 cruise calls will represent for the Argentine capital 15 million US dollars between October and April 2005 since the average visitor spends two days in Buenos Aires with a per capita daily expenditure of 130 US dollars.

However less conservative estimates indicate over 20 million US dollars since most cruise visitors prefer to stay overnight in a luxurious Buenos Aires hotel (four, five stars), and they spend an average 71% above the regular tourist.

This sum does not include all the cruise vessel costs of calling into Buenos Aires port, which is estimated can average 80,000 US dollars for a medium cruise vessel, plus the purchasing of supplies such as food, water and fuel.

"A huge export of services which can't be quantifiable in detail but certainly triggers a great activity for the city's economy", said Santiago Díaz Mathé local manager of one of Buenos Aires cruise agencies.

But Buenos Aires cruise operators also have some complaints.

First of all the fact that during the 2003/04 season Argentine authorities without previous warning decided to incorporate VAT to the landing fee which "increased costs and bites into the financial equation of the cruise industry that plans activities with one and two years anticipation".

A second claim is the lack of sufficient dredging in the access to Buenos Aires.

"Next November 26 "Queen Elizabeth II" with 1,791 passengers and a crew of 1,003 will be calling in Montevideo, Uruguay, but will miss Buenos Aires because the access canal is not deep enough", explained Mr. Diaz Mathé.

In reply to the industry's complaints Argentine port authorities have anticipated that if necessary private contractors will be called in to help with the dredging of the access canal to the port of Buenos Aires.

"If the government dredges are not repaired on time, we will contract private companies for the job since the development of the cruise industry is not a local Buenos Aires city issue but essential for a national tourism policy", highlighted Luis Angel Diez, head of the Argentine Ports Administration.

Mr. Diaz Mathé also revealed that the largest and most modern cruise in the world "Queen Mary II" with 2,600 passengers and 1,290 crewmembers is scheduled to visit South America for the 2005/06 season but will not be calling Buenos Aires for the same reason.

"We're discussing with her agents to have the "Queen Mary II" call into Ushuaia", indicated Mr. Diaz Mathé who said that Ushuaia is Argentina's main "cruise city" with over 200 calls scheduled for this coming 2004/05 season.

Another controversial issue is the Buenos Aires cruise terminal which was awarded for three years to a private company until a new and more appropriate building was finished. The new terminal does not exist and the administrators of the current terminal are now negotiating an extension of the concession contract for another two years.

As to the new international security regulations apparently the Buenos Aires cruise terminal last July received the International Maritime Organization certification

Mr. Diaz Mathé also revealed some interesting facts about the cruise industry: according to the World Tourism Organization and Cruise Line International, the industry will be catering 13 million people in 2005; South America receives only 1,5% of that figure which gives an idea of the growth potential; 25 different cruise agencies operate with vessels calling in Argentina; besides Buenos Aires and Ushuaia, other call ports are Puerto Madryn, Mar del Plata, Bahía Blanca and Camarones; Argentine cities will have to improve services and increase capacities because the average cruise vessel will be transporting 1,000 visitors equivalent to the arrival of five Jumbo aircrafts.