Avalon Increases Cruise Ship Wharfage Fees: Impact on Passengers and the City
Starting Jan. 1, 2026, the city of Avalon will raise its wharfage fee for cruise ship passengers from $5 to $7.50, following a unanimous vote by the City Council. This increase is aimed at covering the city’s capital expenditures for maintaining harbor facilities. The fee applies to all cruise ship passengers disembarking on Catalina Island, excluding crew members. The city expects this adjustment to generate an additional $900,000 annually, helping fund crucial harbor improvements and operations.
The decision comes after a financial analysis conducted by Avalon city staff, which found that the current fee structure was insufficient to cover the increasing costs of maintaining the harbor. According to the city, the $2.50 per passenger increase is seen as a necessary step to ensure that the Harbor Fund is reimbursed proportionally based on usage. City Finance Director Matthew Baker emphasized that the goal is to keep the fees cost-based while supporting maintenance projects for harbor infrastructure.
In addition to raising the fee, the City Council also eliminated a marketing incentive that previously returned 50% of wharfage fees for cruise lines that brought a second ship to Avalon for 50 or more visits annually. This incentive has not been utilized since 2019 and current cruise schedules indicate that no cruise line would qualify for it moving forward.
While this fee increase provides Avalon with the funding needed to maintain and improve its harbor, it will likely have an impact on cruise operators and passengers. Cruise lines will need to adjust their pricing or absorb the increased costs, which may lead to slightly higher ticket prices for passengers visiting Catalina Island.
However, the city has ensured that cruise operators have adequate time to adjust, with the fee change not taking effect until 2026. This advance notice allows cruise lines to accommodate the new rate in future bookings and pricing models.
For Avalon, the financial benefits are clear. The increased revenue will be crucial in keeping its harbor facilities safe, accessible and capable of handling the thousands of visitors who pass through each year. By implementing a proportional fee structure, Avalon aims to ensure that its harbor remains functional and welcoming for cruise passengers while safeguarding its long-term infrastructure needs.
As the 2026 deadline approaches, the city plans to periodically review rates to ensure the Harbor Fund remains adequately reimbursed. These changes are part of a broader initiative to support the tourism industry on Catalina Island, ensuring that both the city and its visitors benefit from well-maintained and modernized harbor facilities.
In the long run, Avalon’s decision to increase its wharfage fee will not only sustain its harbor operations but also potentially enhance the experience for passengers, offering them better services and facilities as they enjoy their visit to Catalina Island.