The main product for cruising is the cruise (which includes accommodation, sea transport and meals, which make up the product, without being separable from the main production process). CLIA thought, the largest economic and statistical organization for the cruise sector, does not report GDP at the country level, but at the global or regional (i.e. North America, Europe, Rest of World) level. Countries that participate in international cruises measure the economic impacts of cruises with the Income Approach and the Expenditure Approach. In essence, the impact of the cruise on Gross National Income is estimated.

The question that prompted us to conduct this research is whether and how to estimate the impact on the GDP of each country participating in international cruises. The Income and Tourism Expenditure approaches are useful and cumulatively provide the economic impact of the industry on the economy of each country. However, the ability to calculate at the GDP level, in combination with Gross National Income, will highlight the degree of participation and benefits of cruising in each country.

• The purpose of this research is therefore to clarify and explain the methodology of GDP allocation (e.g. Flag-state, when in international waters and destination when within the jurisdiction) of the total GDP produced by international cruises, applying it with a concrete example and states the relevance and implications of such an approach.