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MSC Cruises Breaks Ground on Second Bahamas Private Island

MSC Cruises has broken ground on a second private island in The Bahamas, joining Ocean Cay in a cruise-wide push to control shore-excursion revenue that travel agents can no longer divert to independents.

Itinerary

  1. MSC Cruises has broken ground on a new private island in The Bahamas, its second in the archipelago after Ocean Cay.
  2. The announcement, reported by Caribbean Journal, gives no opening date, investment figure or ship-deployment plan.
  3. Royal Caribbean operates Perfect Day at CocoCay and Disney operates Castaway Cay and Lookout Cay at Lighthouse Point as comparable private destinations.
  4. Onboard and shoreside spending on Caribbean sailings with a private-island call routinely exceeds $100 per passenger per day, per industry earnings disclosures.
  5. Ocean Cay MSC Marine Reserve opened in late 2019 on a former sand-extraction site under a lease MSC acquired in 2015.

MSC Cruises has begun construction on a new private island destination in The Bahamas, marking a second privately controlled port for the cruise operator and reinforcing an industry-wide push to capture the shore-excursion wallet.

The announcement, reported by Caribbean Journal, offers no opening date, project budget or berth capacity. MSC joins Royal Caribbean Group, operator of Perfect Day at CocoCay, and Disney Cruise Line, which runs Castaway Cay and the newer Lookout Cay at Lighthouse Point, in scaling the owned-island model that has reshaped cruise economics over the past decade.

What does a second MSC island mean for sellers?

Captive destinations have become the cruise sector's most concentrated revenue lever outside the base fare. When a ship calls at a private island, excursion revenue that would otherwise flow to independent operators, taxi drivers and local restaurants stays inside the corporate parent.

For travel agents, that math reshapes the sell. Carnival Corporation, Royal Caribbean and Norwegian Cruise Line Holdings have all reported in earnings filings that onboard and shoreside spending routinely exceeds $100 per passenger per day on Caribbean itineraries that include a private-island call. Agents who once bundled third-party tours in Cozumel or St. Thomas now face a narrower shelf on private-island days.

What does MSC already operate in The Bahamas?

MSC's existing Bahamas property, Ocean Cay MSC Marine Reserve, sits on a former industrial sand-extraction site the line redeveloped after acquiring the lease in 2015. The island opened to guests in late 2019 and has since anchored MSC's shorter Eastern Caribbean loops out of Miami and Port Canaveral.

A second island signals MSC intends to move beyond a single-destination model, giving the line flexibility to offer seven-night itineraries that include two private-island calls — a structure that has lifted average ticket prices at competitors.

What remains undisclosed in the announcement?

The Caribbean Journal dispatch does not specify:

  • The island's location within the archipelago
  • Construction timeline or scheduled opening
  • Capacity limits for concurrent ship visits
  • Which MSC ships will deploy there
  • Whether MSC will sell day-passes or restrict access to MSC passengers

How does this reshape distribution?

Private islands have a second, less-discussed effect on sellers: they compress optionality. On a non-captive port call, an advisor can steer a client toward independent operators, often at lower cost and higher commission to the agent. On a private-island call, the cruise line owns the beach, the water-sports concession and most food-and-beverage outlets, and outside operators are barred from the property.

That shifts the conversation toward base fare plus pre-booked packages, where MSC and its rivals have steadily raised prices. Royal Cariban's CocoCay charges separately for the Thrill Waterpark, the helium-balloon ride and premium cabanas — a pricing structure MSC has partially mirrored at Ocean Cay.

What should travel sellers watch next?

MSC has not filed detailed project documents publicly available to trade observers, and the groundbreaking announcement carries no financial disclosure. The next data point will be an opening timeline and ship-deployment plan, both of which will determine whether the second island becomes an additional yield lever for MSC or a duplicate anchor that splits demand across the line's existing Caribbean footprint.

via Google News: Cruise industry (Source)

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Tom Whitfield

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Staff writer covering media and advertising at Travel Trade Desk.

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