cruise market med 0907

SARA CANEVELLO – IIC, Port Net Malta Workshop “Port, Tourism and Culture”, Attard, September 5, 2007

Sara Canevello

IIC Genova

“Cruise and Tourism in

the Mediterranean –

Latest Developments”

ISTITUTO INTERNAZIONALE

DELLE COMUNICAZIONIPROJECT PART-FINANCIED

BY THE EUROPEAN UNION

2

SARA CANEVELLO – IIC, September 5, 2007

World Cruise Destinations

Africa;

Alaska;

Antarctica;

Asia;

Australia/New Zealand;

Bahamas, Bermuda;

Baltic;

Britain – Ireland;

Canada;

Caribbean;

Central America;

Europe (Northern Europe);

Florida;

Hawaii;

Mediterranean;

Mexico;

Middle East;

Panama Canal, Polynesia;

South America;

South Pacific;

USA.

Transatlantic cruises;

River cruises;

New destinations:

China, Dubai, Mauritius (Costa) etc…

3


The Mediterranean contest

The classical itineraries in the Mediterranean Area can be divided into two groups:

Eastern Mediterranean:

Croatia (Dubrovnik, Split, Pola, Zadar, Rovinj , Kotor ecc…) Greece and its islands

(Mykonos, Santorini, Rhodes, Corfu, Crete, Katakolon, Piraeus, etc…) Turkey,

(Istanbul, Kusadasi, Izmir, etc..) Cyprus (Limassol), Malta (La Valletta), Egypt

(Alexandria) and new destinations i.e. Libya (Tripoli).

Western Mediterranean:

Spain (Barcelona, Almeria, Malaga, Alicante, Balearic Islands), France, (Marseille,

Nice, St. Tropez, Cannes), Italy (Genoa, Savona, Rome (Civitavecchia), Naples,

Venice, Leghorn, Bari, Palermo, Messina) Tunisia (La Goulette -Tunis), Algeria

(Algiers), etc…

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Strength points of the Mediterranean

• Strategic position among Europe, Asia and Africa;

• Greek, Roman and Egyptian history and culture;

• Archaeological sites, churches, museums and palaces;

• Exciting contrast of ancient and modern art;

• Beautiful natural landscapes;

• Pleasant climate;

• Diversification of the product (Caribbean: gambling cruise/ sun & beach).

5


The Mediterranean contest

16 Millions cruise passengers in the Med (2006) !

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The cruise sector peculiarity

In the latest 30 years the cruise sector has been

characterized by a peculiarity:

It’s the SUPPLY that establishes the DEMAND!

The cruise market is able to saturate the continuous supply

of berths as soon as the new cruise ships are put on duty!

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The Mediterranean cruise market dimension (SUPPLY)

Cruise ships fleet operating in the Mediterranean

New constructions from 2008 until 2010 in the world

ca. 50 ships

ca. 30 ships

Within 2010 the European shipyards will deliver 10 big cruise ships every

year and many of these units will be used in the Mediterranean Sea,

enhancing therefore the number of calls.

8


The Cruise ships order book (SUPPLY)

$ 828m Aker Yards 3.643158.000Independence of the Sea

Royal Caribbean

$ 570m Fincantieri3.100116.000-Princess Cruises

$ 50m (estimated)

Irving Shipbuilding

1658.700-Pearl Seas Cruises

$602m Fincantieri3.100116.000VenturaP&O Cruises

$ 425m Aker Yards 2.56890.000MSC PoesiaMsc Cruises

$ 550m Aker Yards3.300133.500MSC FantasiaMsc Cruises

$ 450m Fincantieri2.04486.000EurodamHolland America Line

$ 641m Meyer Werft2.850118.000Celebrity Solstice

Celebrity cruises

$ 584m Fincantieri2.974112.000Carnival Splendor

Carnival Cruise Lines

$378mMeyer Werft2.05068.500-Aida Cruises

REPORTED PRICE

YARDLOWER BERTH

GTNAME OF THE SHIP

LINE

2008 cruise ships deliveries:

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The tourism market dimension (DEMAND)

Source: WTO (World Tourism Organization)

10


The forecasts of tourism market dimension (DEMAND)

Source: WTO (World Tourism Organization)

11


The cruise market dimension (DEMAND)

• Fast and fundamental change;

• High level growing above all in the Mediterranean;

• The quickest expanding sector in the tourism business.

Between 1995 and 2005, the worldwide demand for the

cruise product is more then doubled changing up from 5,7 to

14,4 millions of passengers and about 16 millions of

passengers during 2006.

It appears a huge number but it means that cruise market is

only 2% OF INTERNATIONAL TOURISM IN 2006!!!

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The forecasts for 2007 announce more ships, more

passengers and more brands visiting more European ports

than ever before.

Currently Europe is the fastest growing market for cruise

passengers in the world.

The cruise market dimension (DEMAND)

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The Mediterranean cruise market dimension (DEMAND)

Cruise passengers’ movement in Italian Ports (number of passengers in thousands)

Italy is in pole position as the first Mediterranean cruising

destination (6 millions of passengers in 2006; Spain, - 2°- 4,5 millions)

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16 millions of cruise passengers in the world in 2006

The cruise and tourism market dimension (DEMAND)

=

=

=

=

(75 millions in 2006)



21,3%

43,2%

29,6%

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The cruise product (DEMAND)

• Cruise geographic area;

• Length of the trip;

• Period of the year;

• Balance between quality and price;

• Motivation (leisure/business);

• Cruise target (young, single, elder,

honeymooners,…).

Before joining a cruise holiday the passenger puts his

attention on:

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Cruise passengers movement in the main Italian ports

392.103

477.579 487.000559.942

659.277

983.171

1.268.477

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

2000 2001 2002 2003 2004 2005 2006

Port of Civitavecchia Port of Naples

971.874

830.158

773.223

613.609

485.067469.632

405.639

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

2000 2001 2002 2003 2004 2005 2006

+223,5% +139,6%

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Port of Venice Port of Leghorn

337.475

885.664

815.153

677.976689.836

507.547526.436

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

1.000.000

2000 2001 2002 2003 2004 2005 2006

607.848

462.383

387.385363.883

297.748263.657

228.996

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

2000 2001 2002 2003 2004 2005 2006

+162,4% +165.4%


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Port of Savona Port of Genoa

530.057592.038

632.895

195.303

105.438109.633

120.071

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

2000 2001 2002 2003 2004 2005 2006

471.245

615.000

473.333

362.557310.000

567.506

407.974

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

2000 2001 2002 2003 2004 2005 2006

+393,1% +16,0%

2003 – 2004: +171,4% 2003 – 2004: -49,6%


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Cruise passengers movement in other Mediterranean ports

Port of Barcelona:

654.806

843.686

573.571

1.407.179

1.228.561

1.024.8511.054.412

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

2000 2001 2002 2003 2004 2005 2006

... Barcelona is a “must” for the

cruise lines and the first cruise

passengers port in 2006 of the

Mediterranean!

• privileged position

• efficient International Airport

• new terminal “Palacruceros”

funded and managed by Costa

+145,3%

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Port of La Valletta

625.015

494.577

450.571460.356

402.270

349.957

300.778

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

2000 2001 2002 2003 2004 2005 2006

French Riviera ports(Nice, Cannes, Villefranche)


397.673

304.929291.225

389.361

356.703

273.500

173.992

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

2000 2001 2002 2003 2004 2005 2006

+128,5% +107,8%

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624.200

130.869

215.137

296.958

423.946457.334

510.641

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

2000 2001 2002 2003 2004 2005 2006

Port of Dubrovnick

234.471

330.448

448.960

185.656

563.993

600.000

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

2000 2001 2003 2004 2005 2006

Port of La Goulette(Tunis)


+123,2% +376,9%

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Cyprus ports(Limassol – Larnaka)

Port of Pyraeus

824.096

448.815

562.936

384.670378.580386.318398.049

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

2000 2001 2002 2003 2004 2005 2006

771.241

502.308

407.723452.506

387.697

525.351508.107

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

2000 2001 2002 2003 2004 2005 2006


-45,54% +51,78%

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New exigencies of the cruise market

The high level of growth of the Mediterranean cruise market is

creating new exigencies for the ports:

• TECHNICAL AND INFRASTRUCTURAL EQUIPMENTS

• QUALITY ASSETS

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• TECHNICAL AND INFRASTRUCTURAL EQUIPMENT:

- Suitable quays;

- Functional passengers terminals (above all for home port cruises);

- High security levels (ISPS code, x-ray, metal detectors);

- Wharves’ accessibility during the boarding/disembarking operations;

- Efficient cruise companies’ supply-chain;

- Well-organized luggage handling;

- Optimized terminal and ship’s check-in;

- Optimized land transfers thanks to well connected airports / railway

stations (above all for home port cruises).

New exigencies of cruise market ports

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QUALITY ASSETS:

Port services:

- High level of welcoming (assistance and tourist information);

- Accessibility to public and private transport means;

- High care of port viability focusing on personal safety.

Tourist supply:

- Tourist signage (above all for free cruise passengers);

- Pedestrians itineraries;

- Efficiency public transport services;

- Flexible working hours’ shops and stores;

- Local support to the cruise company’s excursions.

New exigencies of cruise market ports

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Cruise market risks and threats

From a logistical and structural point of view, not all the

Mediterranean ports will be able to manage and sustain a high

passenger movement.

This is the reason why a new political evaluation is necessary

in this area, programming calls on the basis of actual

possibilities.

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Cruise market opportunities

The Mediterranean ports must counterbalance the exponential

demand of the market.

Many European ports have begun a process of restructuring in

order to support the market’s growth in accordance with the

new generation of cruising vessels.

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National and local economic impact on:

• Jobs occupancy;

• Port authority (port fees);

• Cruise terminals;

• Maritime agents;

• Pilots, tugboats, other services (fresh water, garbage, etc.);

• City councils and other local institutions;

• Travel agents tour operators;

• Shops and stores;

• Food and beverage manufacturers (bunker fuels and paints, metal goods

and machinery);

• Financial and business services.

Each passenger spends a sum of money during the cruise

trip and also… in each visited port!

Cruise market opportunities

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Local institutions need to put into practice useful

promotion and marketing activities in order to show the

receptive capacity, tourist supply and the logistic

functionality of their areas!

Cruise operators are not looking for new ports but for a

territorial integrated services’ offer!

A “super partes” initiative able to organize and coordinate

the communication strategy among all the involved parts

would be useful!

Strategies of local institutions

Thank you for your timeand your attention!

Sara [email protected]

cruise market med 0907

Business

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