It’s an unfortunate event for the local San Diego economy, but it was just announced that The Holland America cruise-line, The Oosterdam, which in the past has made regular cruises to Mexico and it’s Riviera destinations including Cabo San Lucas, Mazatlan, Puerto Vallart, Manzanillo and Acapulco will no longer be setting sail out of downtown San Diego after April of 2002.

It has nothing to do with San Diego as a city, ” the city and port have been wonderful for us and our operations,” the cruise-line said in a statement.  San Diego will still be host to ships sailing to Hawaii, South Pacific, and Panama Canal.

The reason the Carnival Elation and Oosterdam won’t be heading to the Mexican Riviera is the recent violence and prolonged economic downturn in Mexico right now.   People don’t feel safe going to Mexico right now so they are choosing not to book those destinations and sales are way down in that region.

How does this affect Downtown San Diego?

The port of San Diego  states that an estimated $2 million in revenue is contributed to the local economy every time a ship begins and ends it’s cruise  in downtown San Diego.  Ouch!!!  At the peak of the cruise-ship industry in San Diego, we saw 255 ships doc at the Embarcadero.

This year we are expected to see that number fall to an uncomfortable 103 cruiseships.  These two ships made up a total of 26 voyages to the Mexican Riviera from San Diego so the loss for San Diego is estimated to pencil out to approximately $52 million.

The only good news is that both Carnival and Holland America ships are keeping San Diego active on their radar for future business.  If Mexico is able to calm down and start to draw tourism again, it is likely we will see the return of these two lines.  This is just one more reason how the economies of our neighbors directly effect us.  Maybe this will work out for the best for the construction of the North Embarcadero visionary project.

Do you think it is safe to travel to Mexico right now?  Do you have any recent experiences you would share?