Independent study shows Carnival UK drives multi billion pound contribution to UK economy

Carnival UK, the operating company for P&O Cruises and Cunard, is projected to contribute more than £2.5 billion to the overall UK economy over the next five years.

The figure is disclosed in the group's first independent Economic Impact Report which highlights the links between the group's cruise operations and the potential for local, regional and UK-wide economic growth.

The new research, commissioned independently from WPI Economics, is the first of its kind to be independently researched and audited, using data from across parent company Carnival Corporation & plc's entire UK-based operations.

Key findings include:

Southampton turnarounds: Each time one of the Corporation's largest ships homeports in the UK (ie returns to Southampton and departs with new guests) it contributes up to £2.5 million to the economy from supply chain and guest spending. With over 700 calls to the UK in 2024, carrying almost two million guests from across the brands, this turnaround value equates to £505 million per year. Over the next five years, the combined value to the UK economy is projected to exceed £2.5 billion.

Travel Agents: Carnival's contribution extends to every local authority in the UK, with the Corporation's cruise bookings made through local travel agencies and over £100 million generated annually in travel agent commission fees, underpinning the strength of their high street presence.

Tourism: visits on cruise ships often precede repeat holidays taken in the UK by international guests. The potentialfuture tourism value from returning international visitors created by Carnival Corporation's cruises is predicted to benefit the economy by £147 million annually.

Local presence: based on employment of 1,650 full time employees at Carnival UK's headquarters in Southampton, the business contributes £351 million in Gross Value Added (GVA) to the local economy.

Carnival UK & P&O Cruises president, Paul Ludlow said: "As the largest cruise operator in the UK, we are extremely proud that our organisation will be contributing over £2.5 billion to the UK economy over the next five years. This is particularly important given our impact in the Solent where we are the largest private sector employer in Southampton, especially at a time when economic growth is of utmost importance to the country."

Maritime minister Mike Kanesaid: "Our maritime sector is instrumental in building a diverse, resilient tourism sector and Carnival UK's economic report is critical in setting out the multimillion-pound and widespread impacts generated across the UK's economy.

"We are determined to support growth in coastal regions and have set out our ambitions to welcome 50 million international visitors per year by 2030 - many of which can come from maritime. These findings uncover the vital role the cruise sector plays in supporting this ambition, helping local businesses and economies while also opening up the UK to international visitors, often in hard-to-reach destinations unserved by other forms of tourism."

MP for Southampton Itchen, Darren Paffeysaid: "This is a highly competitive global industry, so when a cruise line chooses Southampton, as Carnival has done, it's a vote of confidence in our city, our port, and our people. As this report shows, each time a ship docks in our city, it brings in money to our local economy and helps support businesses and jobs. That's why I was pleased to meet recently with representatives from all the cruise lines that have made Southampton their port of choice and it's why I'll continue to champion the contribution they make to the city and wider region."

Associated British Ports' regional director for Southampton, Alastair Welch said: "ABP warmly welcomes Carnival UK's report. The numbers and case studies clearly demonstrate the huge value the cruise industry brings to Southampton, the wider Solent and indeed throughout the UK. At the Port of Southampton, Europe's number one port for cruise turnaround calls, we're proud to be playing such a vital enabling role in delivering such significant economic growth, jobs and social value in the city and region in which we operate."

Founder of WPI Economics, Matthew Oakley,said: "The benefits of Carnival UK's operations provide a significant boost to Southampton's economy and flow far beyond it out into the rest of the UK. From the investment in skills through to the boost to tourism now and in the future, these impacts make an important contribution to growth."

The report may be found at : http://wpieconomics.com/wp-content/uploads/2025/06/More_than_the_trip_of_a_lifetime_Carnival_2025.pdf

Ends

For further press information please contact: Michele Andjel, michele.andjel@carnivalukgroup.com - 07730 732072

Notes to editors

Carnival UK is proud to be part of Carnival Corporation & plc and its UK base in Southampton is home to the strategic maritime functions that support this global business. These functions continue to grow, directly increasing the importance of the Southampton headquarters, located in the heart of the Solent region, and providing a further significant boost to UK plc. Carnival UK (P&O Cruises and Cunard) operates 11 cruise ships from its headquarters in Southampton,

Methodology

The full methodology is set out in the report, but a summary of how the numbers are calculated is set out below.

Gross Value Added (GVA): WPI Economics developed a model which draws on sectoral GVA estimates for the UK and its regions, obtained from the Office for National Statistics (ONS) for 2022. This is supplemented by the Annual Business Survey for 2022, giving more detailed sectoral contributions which feed into the calculations.

Employment: Employment data was sourced from the ONS Business Register and Employment Survey and Northern Ireland Statistics and Research Agency for 2022 and has been converted into Full-Time Equivalent (FTE) terms.

Turnaround: WPI Economics split ships out by size (small, medium, and large), and identified for each size category:

1. The average spend on port services per turnaround

2. The average fuel spend per turnaround

3. The average value of the domestic supply chain spend on goods being loaded onto the ship per turnaround

4. The average passenger spend per turnaround, which was split into overnight and day turnaround spending.

   1. Overnight spending was calculated for all those domestic passengers travelling from more than three hours away, and all international passengers, with day spending calculated for all other passengers.

These elements of turnaround value were summed together to give a total turnaround value per small, medium, and large ship in Southampton. For the combined turnaround figure for CUK and Carnival Corporation in the UK, we also include turnarounds in Dover. For each size category, we follow the same steps as those set out above. For the combined data, the average turnaround figure is £1.8m rather than £1.9m for CUK alone, given the larger proportion of smaller ships in the combined data set.

Destinations: For the seven destinations considered (Southampton, Dover, Edinburgh, Invergordon, Greenock, Belfast and Liverpool) they looked at each ship size category at the spend on port services per visit and added it to the passenger spend per visit. The passenger spend per visit was determined through an estimate of 66% of visitors leaving cruise ships per visit on average, and the average spend of a day visit.

Tourism: WPI Economics determined the average proportion of international passengers per ship size and calculated the annual number of international passengers from this. Six in ten of international cruise passengers are expected to return to visit the country after their cruise. This data covers all of Carnival Corporation's cruise brands that call in the UK. They used an average length of stay for international visitors combined with the average daily spend of an overnight stay to get the average value of an international visit. This was then applied to the proportion of international passengers expected to return at some point in the future for a visit to give a total future tourism benefit created annually by each ship size category.

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