Avalon’s Smaller-Ship Agreements Are a Better Story Than Its Cruise Rebound

Avalon has commitments from two cruise operators to bring smaller ships to the island, even as its average cruise arrival has grown to 3,625 passengers. That is the decision I’d pay attention to. More calls make a tidy annual headline. Getting vessel size written into port agreements is a more concrete way to manage how cruise tourism fits the town.

A regular caller that typically carried more than 4,000 passengers made its last scheduled visit in September. Avalon’s largest frequent caller, responsible for 36 arrivals during the fiscal year ended June 30, 2026, has its final scheduled visit in December and is not scheduled to return beginning in January 2027.

“We do recognize that the larger ships present certain challenges,” Finance Director Matthew Baker told the City Council on Nov. 3, when it received and filed the annual cruise ship report.

The report does not establish that large ships caused safety problems. Baker reported no safety or security incidents during the fiscal year. But a city should not need an incident before deciding what scale of cruise visit it wants to accommodate.

The arrival rebound needs some context

Avalon received 121 cruise ship visits during the fiscal year, up from 101 a year earlier. More calls during seasonal fleet transitions and fewer weather-related cancellations drove the increase.

That was a recovery from a particularly weak comparison. Excluding the pandemic, fiscal 2024-25 had the city’s lowest arrival count in a decade.

September and October calls increased to 23 from 11, while March and April arrivals rose to 29 from 23. Weather cancellations that could not be rescheduled fell to four from nine. Those details matter more than a simple claim that cruise business is booming.

Average passenger loads rose from 3,519 to 3,625 per arrival. The city expects that trend to reverse under the smaller-vessel agreements.

These passenger counts come from manifests submitted to the Harbor Department when ships arrive. The city measures occupancy against published vessel capacity, generally based on two passengers per cabin. Additional guests in cabins can therefore push reported occupancy above 100%.

Avalon also has limits on when ships can call. A council policy established in 2024 caps summer cruise visits at three per week unless the harbor master and city manager authorize an exception. Weekend visits require approval as well.

The harbor master may consider repositioning calls, infrequent visitors and vessels carrying 1,000 passengers or fewer. The requested day, holidays, events, harbor activity and public safety impacts all factor into those decisions. Vessel size belongs in that discussion alongside the number of calls. Three visits do not describe the same passenger load when the ships are substantially different sizes.

The financial stake is substantial

Cruise ship revenue supplies approximately 24.4% of Harbor operating revenue. According to Baker’s staff report, cruise passengers also represent more than one-third of all city visitors and generate an estimated $25 million in taxable sales for local businesses. That gives the smaller-ship decision some weight.

A passenger wharfage increase from $5 to $7.50, effective Jan. 1, 2026, generated an additional $548,672.50 for Harbor Fund capital maintenance and improvements. The council approved the increase on Sept. 3, 2024, following a staff rate analysis.

The previous rate had been unchanged since July 1, 2020. Earlier increases followed a March 2017 municipal code amendment providing for annual 50-cent steps from $2.50 to $5.

Baker said wharfage has been the fastest-growing revenue source supporting Harbor operations and accounts for most of the Harbor Fund’s revenue growth, following earlier rate increases and higher occupancy. The reported financial figures exclude wharfage collected for the hospital project.

Higher rates do not establish that smaller vessels will leave the harbor financially unchanged. I still favor making ship size part of the agreement rather than judging success by how many passengers can be delivered.

If those agreements work as Avalon expects, a future report may show fewer passengers per arrival. That would be the city getting what it negotiated, not a number it needs to fix.