Latest Developments, cruise and tourism in the Mediterranean

1. ISTITUTO INTERNAZIONALE PROJECT PART-FINANCIED
DELLE COMUNICAZIONI BY THE EUROPEAN UNION
“Cruise and Tourism in
the Mediterranean –
Latest Developments”
Sara Canevello
IIC Genova
SARA CANEVELLO – IIC, Port Net Malta Workshop “Port, Tourism and Culture”, Attard, September 5, 2007

2. World Cruise Destinations
Mediterranean;
Africa;
Mexico;
Alaska;
Middle East;
Antarctica;
Panama Canal, Polynesia;
Asia;
South America;
Australia/New Zealand;
South Pacific;
Bahamas, Bermuda;
USA.
Baltic;
Britain – Ireland;
Transatlantic cruises;
Canada;
River cruises;
Caribbean;
Central America;
New destinations:
Europe (Northern Europe);
China, Dubai, Mauritius (Costa) etc…
Florida;
Hawaii;
SARA CANEVELLO – IIC, September 5, 2007
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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…
SARA CANEVELLO – IIC, September 5, 2007
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4. 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).
SARA CANEVELLO – IIC, September 5, 2007
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5. The Mediterranean contest
16 Millions cruise passengers in the Med (2006) !
SARA CANEVELLO – IIC, September 5, 2007
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6. 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!
SARA CANEVELLO – IIC, September 5, 2007
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7. The Mediterranean cruise market dimension (SUPPLY)
Cruise ships fleet operating in the Mediterranean
ca. 50 ships
New constructions from 2008 until 2010 in the world
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.
SARA CANEVELLO – IIC, September 5, 2007
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8. The Cruise ships order book (SUPPLY)
2008 cruise ships deliveries:
NAME OF LOWER REPORTED
LINE GT YARD
THE SHIP BERTH PRICE
- 68.500 2.050 Meyer Werft $378m
Aida Cruises
Carnival
Carnival Cruise
112.000 2.974 Fincantieri $ 584m
Splendor
Lines
Celebrity
118.000 2.850 Meyer Werft $ 641m
Celebrity cruises
Solstice
Holland America
Eurodam 86.000 2.044 Fincantieri $ 450m
Line
MSC Fantasia 133.500 3.300 Aker Yards $ 550m
Msc Cruises
MSC Poesia 90.000 2.568 Aker Yards $ 425m
Msc Cruises
Ventura 116.000 3.100 Fincantieri $602m
P&O Cruises
Irving $ 50m
Pearl Seas Cruises - 8.700 165
Shipbuilding (estimated)
- 116.000 3.100 Fincantieri $ 570m
Princess Cruises
Independence
158.000 3.643 Aker Yards $ 828m
Royal Caribbean
of the Sea
SARA CANEVELLO – IIC, September 5, 2007
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9. The tourism market dimension (DEMAND)
Source: WTO (World Tourism Organization)
SARA CANEVELLO – IIC, September 5, 2007
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10. The forecasts of tourism market dimension (DEMAND)
Source: WTO (World Tourism Organization)
SARA CANEVELLO – IIC, September 5, 2007
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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!!!
SARA CANEVELLO – IIC, September 5, 2007
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12. The cruise market dimension (DEMAND)
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.
SARA CANEVELLO – IIC, September 5, 2007
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13. The Mediterranean cruise market dimension (DEMAND)
Italy is in pole position as the first Mediterranean cruising
destination (6 millions of passengers in 2006; Spain, - 2°- 4,5 millions)
Cruise passengers’ movement in Italian Ports
(number of passengers in thousands)
SARA CANEVELLO – IIC, September 5, 2007
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14. The cruise and tourism market dimension (DEMAND)
=
16 millions of cruise passengers in the world in 2006
= 21,3% (75 millions in 2006)
= (37 millions in 2006)
43,2%
= (54 millions in 2006)
29,6%
SARA CANEVELLO – IIC, September 5, 2007
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15. The cruise product (DEMAND)
Before joining a cruise holiday the passenger puts his
attention on:
• 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,…).
SARA CANEVELLO – IIC, September 5, 2007
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16. Cruise passengers movement in the main Italian ports
Port of Civitavecchia Port of Naples
1.400.000 1.200.000
1.268.477
971.874
1.200.000
1.000.000
1.000.000
830.158
983.171 800.000
773.223
800.000
613.609
600.000
659.277
600.000 485.067
559.942 469.632
400.000
487.000
477.579 405.639
400.000
392.103
200.000
200.000
0
0
2000 2001 2002 2003 2004 2005 2006
2000 2001 2002 2003 2004 2005 2006
+139,6%
+223,5%
SARA CANEVELLO – IIC, September 5, 2007
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17. Cruise passengers movement in the main Italian ports
Port of Leghorn
Port of Venice
1.000.000 700.000
885.664
900.000 607.848
815.153 600.000
800.000
689.836 500.000
700.000
677.976
462.383
600.000
400.000
507.547
526.436 387.385
363.883
500.000
300.000 297.748
400.000
263.657
337.475 228.996
300.000 200.000
200.000
100.000
100.000
0
0
2000 2001 2002 2003 2004 2005 2006
2000 2001 2002 2003 2004 2005 2006
+165.4%
+162,4%
SARA CANEVELLO – IIC, September 5, 2007
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18. Cruise passengers movement in the main Italian ports
Port of Genoa
Port of Savona
700.000 700.000
632.895
615.000
600.000 600.000
592.038 567.506
530.057
500.000 473.333
500.000
471.245
407.974
400.000 400.000
362.557
310.000
300.000 300.000
195.303
200.000
200.000
120.071
109.633
105.438
100.000
100.000
0
0
2000 2001 2002 2003 2004 2005 2006
2000 2001 2002 2003 2004 2005 2006
+16,0%
+393,1%
2003 – 2004: +171,4% 2003 – 2004: -49,6%
SARA CANEVELLO – IIC, September 5, 2007
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19. Cruise passengers movement in other Mediterranean ports
Port of Barcelona:
• privileged position
• efficient International Airport
1.600.000
• new terminal “Palacruceros”
1.407.179
1.400.000
funded and managed by Costa
1.228.561
1.200.000
1.054.412 1.024.851
1.000.000
... Barcelona is a “must” for the
843.686
800.000
654.806
cruise lines and the first cruise
600.000
573.571
passengers port in 2006 of the
400.000
200.000
Mediterranean!
0
2000 2001 2002 2003 2004 2005 2006
+145,3%
SARA CANEVELLO – IIC, September 5, 2007
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20. Cruise passengers movement in other Mediterranean ports
French Riviera ports
Port of La Valletta
(Nice, Cannes, Villefranche)
700.000 700.000
625.015
600.000 600.000
500.000 500.000
494.577
397.673 450.571
389.361 460.356
400.000 400.000
402.270
356.703
349.957
300.000 300.000
304.929
300.778
291.225
273.500
200.000 200.000
173.992
100.000 100.000
0 0
2000 2001 2002 2003 2004 2005 2006 2000 2001 2002 2003 2004 2005 2006
+107,8%
+128,5%
SARA CANEVELLO – IIC, September 5, 2007
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21. Cruise passengers movement in other Mediterranean ports
Port of La Goulette Port of Dubrovnick
(Tunis)
700.000
700.000
624.200
600.000
600.000
600.000
563.993 510.641
500.000
500.000
457.334
448.960
423.946
400.000
400.000
330.448
300.000
300.000 296.958
234.471 215.137
200.000
200.000
185.656
130.869
100.000
100.000
0
0
2000 2001 2002 2003 2004 2005 2006
2000 2001 2003 2004 2005 2006
+376,9%
+123,2%
SARA CANEVELLO – IIC, September 5, 2007
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22. Cruise passengers movement in other Mediterranean ports
Cyprus ports Port of Pyraeus
(Limassol – Larnaka)
900.000
900.000
824.096
771.241
800.000
800.000
700.000 700.000
600.000
600.000
562.936
525.351
508.107 502.308
500.000 448.815 500.000
452.506
407.723
400.000 400.000
387.697
398.049 384.670
386.318 378.580
300.000 300.000
200.000 200.000
100.000 100.000
0 0
2000 2001 2002 2003 2004 2005 2006
2000 2001 2002 2003 2004 2005 2006
-45,54% +51,78%
SARA CANEVELLO – IIC, September 5, 2007
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23. 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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24. New exigencies of cruise market ports
• 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).
SARA CANEVELLO – IIC, September 5, 2007
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25. New exigencies of cruise market ports
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.
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26. 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.
SARA CANEVELLO – IIC, September 5, 2007
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27. 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.
SARA CANEVELLO – IIC, September 5, 2007
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28. Cruise market opportunities
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!
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29. Strategies of local institutions
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!
SARA CANEVELLO – IIC, September 5, 2007
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30. Thank you for your time
and your attention!
Sara Canevello
canevello@iicgenova.it