Regional Ports Australia Conference

Geelong

20th November 2013

Ms Chris White

Chair

Cruise Down Under

November 2013

Agenda

• Australian industry overview

• Factors influencing choice of regional ports

• Successful regional destinations

• Emerging regional destinations

• Emerging national trends

Australian Industry Overview

• Cruise continues to be the fastest growing

segment of the tourism industry • There are currently 21 million people taking a

cruise worldwide • Australia has experienced the greatest growth in

the past 2 years of any other region in the world

• CLIA Results for 2012 reveal 694,062 Australians took a cruise

• 11% Growth of over 2011 • 17% increase in Australians cruising in Australia

• CDU’s 2013 Economic Impact Study results

– $2.88 billion in total expenditure in Australia (international and domestic)

– $2.05 billion in total international expenditure

Australian Industry Overview cont…

Australian Industry Overview cont.. • Deployment of global brands in Aust. on a

full year or seasonal basis has grown significantly

• Australia now represents 7% of worldwide deployment

• Big brands are deploying bigger and newer ships in Australia

• Cruise lines seeking new destinations and compelling experiences

About 7% of industry capacity deployed in Australia

Industry Continues to Grow and Shift

• Source: Deployment Database

Caribbean 58%

North American

14%

Europe 22%

Exotic 4%

Other 2%

Caribbean 46%

North American

10%

Europe 31%

Exotic 10% Other 3%

2000 Industry Capacity Allocation 2012 Industry Capacity Allocation

Penetration Rate at 2013

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

North America Australia United Kingdom Germany

Penetration Rate as % Population

Penetration Rate

Unprecedented Capacity Growth

Market size has almost doubled in 4 years

8 Source: 2011 ICCA Annual Cruise Market Report & internal estimates

0

1

2

3

4

5

6

7

8

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ALB

D (

Mill

ion

s)

Australia & New Zealand Home Port Deployed Capacity ALB

P&O Cruises Princess Carnival Holland America Costa

Cunard Royal Caribbean Celebrity Other

YoY (%) Growth

21 6 15 77 28 4 17 23 22 2

Factors Influencing Choice of

Regional Ports • Push for shorter cruises due to limited

holiday time

• Cost of fuel for long distance travel

• Berth availability at key hub ports

• With 23 new ships on order by 2016 an additional 6,000 port calls will be made SOMEWHERE in the world

Key elements in decision making

• Operational

– Infrastructure

– Fuel costs

– Port fees

• Marketing

– Appeal/Marketability/Experiences

– Source markets

– Profitability

Emerging Trends in

Regional Deployment

• 2-5 night cruises

• Influences on special events

• Food and wine

• Willingness to work with safe anchorages vs alongside

The benefits

• Economic contributions - $52.5 million of direct expenditure was injected into destinations around Australia in 2012-13

• Supports land transport

• Supports retail

• Supports attractions

Successful Regional Port Examples

• Whitsundays – over $13 million direct expenditure into region

• Proximity between Sydney and Cairns

• Access to Great Barrier Reef

Cairns

• Contributes $11.6 million to local economy

• Strong history with cruising since emergence in Australia

• Access to Willis Island creating international voyages

• Access to Port Douglas,

Daintree and

Great Barrier Reef

Newcastle

• Contributes $10.5 million to local economy

• Proximity between Sydney and Brisbane

• Provides an overflow option to Sydney

• Sound port infrastructure

• Creates diversity in an industrial port

Geraldton

• Contributes $3 million to local economy

• Proximity between Broome and Fremantle

• Strong WW11 and maritime history

Emerging Regional Ports

• Geelong – 5 visits in 13/14 and seeking investment

• Eden – infrastructure investment to increase the anchorage opportunities for larger ships

• Port Arthur – new jetty infrastructure

• Broome – potential growth in expedition cruising

• Townsville – new terminal facility

Threats

• Anchorages options available in all weather conditions

• Efficient time frames for landing passengers to maximise time ashore

• Landside infrastructure and ensuring the experience is quality

Emerging National Cruise Trends

• Increase in shorter cruises in Australia – 38% increase in 1-4 day cruises

• Circumnavigation cruises remaining popular

• Increased focus on family and multi-generational travel

• Passengers seeking unique experiences in destinations