Yes, unfortunately everyone needs a passport even small children!!!
If I were you I would book the land separate from the sea, I found it to be cheaper that way than doing an actual land and sea package!
If you do this, you can stay at a moderate for a cheaper price!!!
No matter what you decide you will LOVE the cruise

! I cannot wait to do a 7 day cruise!!!! We are trying for next June!!!
The excursions are great on Castaway Cay!!! The stingray one in particular!
In Nassau, we just caught a taxi to a beach on Paradise Island and had a great day on the beach!!
On Board do not miss the Mickey 200 it is a blast. Our family has won it twice!

Also the scavenger hunt on board is great!!!
The cruise is great and worth every penny!!!