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THE booming £1 billion cruise market will reach US penetration levels by 2010, according to Passenger Shipping Association director Bill Gibbons.

Figures released last week confirmed the industry had attracted more than one million passengers in 2003, but Gibbons said the next target should be to mirror US levels of cruising.

In the US, one in 40 people has cruised while in the UK the figure stands at just one in 60. To reach US levels, the UK market would have to top 1.5 million. PSA figures predict the market will reach 1.3 million people by 2008 - a 34% growth.

The PSA’s Annual Cruise Review outlined the 17th successive year of growth for the sector, with a 12% rise to 1,053,727. A 10% growth is predicted for this year.

However, numbers booked through the trade fell from 82% to 78% between 2002-03, with the PSA blaming competition from direct-sell agencies. Gibbons said the PSA will place more emphasis on encouraging agents to switch-sell to cruising.

“Travel agents are losing a lot of business elsewhere and are under threat from the low-cost airlines. They should move into cruising in order to protect and expand their business,” he said.

The average sale dropped 5% last year to £1,052, with total revenue hitting £1.014 billion.

Growth will face a blip next year when MyTravel’s Sun Cruises withdraws from the market, although Gibbons said this drop will be “quickly absorbed” by other operators entering the sector. P&O Cruises, Thomson, Royal Caribbean and Princess Cruises are all increasing UK capacity next year.

Ultra-luxury cruising - ships with less than 1,100 passengers and costing at least £350 a day - saw a 70% rise last year to 18,400. Gibbons said the PSA will work to differentiate luxury cruise products from mainstream cruising.