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STATE OF THE CRUISE INDUSTRYCruise Shipping Asia-Pacific

Christine Duffy - President and CEO, Cruise Lines International Association

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THE PROMISE OF ASIA

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Gateway to Tomorrow’s MarketplaceAsia-Pacific region is the future of the global cruise industry

Millions of potential new passengers

New ships, expanded ports and terminals and investment in infrastructure

New Asian-Pacific routes open to visitors from around the world

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Singapore’s Marina Bay Cruise Centre$350 million investment, opened in May 2012

Expected to double Singapore’s handling capacity

Chosen as homeport for Royal Caribbean’s Voyager of the Seas

Expected to welcome 1.3 million passengers in 2013 (up from 1 million in 2010)

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China’s InvestmentsIn 2011, the number of home-port calls overtook transit calls

Homeports capable of serving large, luxury liners established in:

− Shanghai− Tianjin

Number of ships arriving at ports on China’s mainland

− Xiamen− Qingdao

Number of international liners arriving in Shanghai’s specialty port for luxury ships

62 (2012)

150+ (2013)

223 (2010)

262 (2011)

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GROWTH AND GLOBALIZATION OF CRUISING

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Passenger and Ship GrowthSince 2000, 143 new ships have been added to the CLIA fleet, nearly doubling the number of beds

13 new ships introduced by CLIA’s member lines in 2012

9%

91%

2000

31%

69%

2011

Since 2000, the number of CLIA passengers from outside North America has tripled

North America Rest of World

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New Ship DeploymentsShip deployments are evolving to meet expectations of new international travelers

Deployments to Australia and New Zealand increased more than 100%

over the past 5 years

New routes being planned to appeal to Asian passengers

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The Future is Bright

Asian market’s penetration rate is

only .01%

Growth to 1% penetration rate

equates to 40 million passengers

4 times larger than US market

Penetration rate in the United States

is about 3%

Translates to 10 million passengers

“Mature Market”

Market Opportunity

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SEIZING THE FUTURE

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Economic PredictionsGlobal spending by middle class predicted to grow from $21 trillion today, to $56 trillion by 2030

More than 80% of this growth expected to come from Asia

China’s middle class spending expected to pass US by 2020 and the 27-country EU by 2027

300 million Chinese projected as potential cruise passengers – the equivalent of adding another North America or Western Europe to the

cruise market

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Education NeedsEducating the market of potential passengers is a necessity

To-Do:

Redeploy cruise ships to Asian ports

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Education NeedsEducating the market of potential passengers is a necessity

To-Do:

Redeploy cruise ships to Asian ports

Address lack of knowledge about life onboard a ship

Understand different dining and entertainment preferences

Anticipate and address language and cultural differences

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Industry must also educate itself to understand the basic needs and expectations of these

potential passengers

Education NeedsEducating the market of potential passengers is a necessity

To-Do:

Redeploy cruise ships to Asian ports

Address lack of knowledge about life onboard a ship

Understand different dining and entertainment preferences

Anticipate and address language and cultural differences

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Travel Agent PartnersThe crucial first connection between cruise lines and its passengers

Agents are critical to growth and success of the cruise industry

‐ ICCA investing to educate, train, and equip agents

‐ Travel agent training sessions at Cruise Shipping Asia-Pacific

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ONE INDUSTRY, ONE VOICE

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Safety is our Highest PriorityLaunched Cruise Industry Operational Safety Review (OSR)

Since January 2012 launch:

Proactively identified and implemented best safety practices available

6 new policies announced

Engage key stakeholders

Mobilize industry partners

Educate broader audiences

Next Steps: Develop a shared communications platform to

Cruise industry introduces new

safety measures

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State of the Industry Panel

Robert Giorgi President, V.Ships

Dr. Zinan Liu Managing Director for China and Asia, Royal Caribbean

Gianni Onorato President, Costa Crociere

Ann Sherry CEO, Carnival Australia

Gavin Smith Managing Director, Royal Caribbean

Jan Swartz EVP of Sales, Marketing and Consumer Services, Princess

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