stephen bradford - australian cruise association - the growth of cruise shipping and the role of...

Regional Ports Australia Conference

Cairns

29 October 2015

Stephen Bradford

Chairman

Australian Cruise Association October 2015

Australian Cruise Association (Formerly Cruise Down Under)

• Australian Cruise Association is the co-operative marketing brand for cruise destinations and service providers to the cruise industry in Australia and the South Pacific

• With 78 members across ports, tourism, attractions and service providers

• We are the independent voice of cruise, promoting the extensive benefits of the industry across a wide range of stakeholders and providing education to support and grow the industry

Key Objectives

• Leadership and Governance

• Research and Insight

• Position and Market the Australian region as a World Class Destination

• Growing Membership

• Stakeholder and Partnership Development

Cruise Shipping Global

• 14-17 March 2016

• Fort Lauderdale (previously held in Miami)

• Cruise industry’s Premier Global Event

• Business to Business exhibition and conference

• Promoting destination Australia

Global Industry Overview

• It continues to grow! • In 2014, 22.1 million people worldwide took a

cruise – up 5% • Passengers has increased by five million in the

last six years • Over 23 million passengers are projected to

take a cruise in 2015. • The newest emerging markets are China,

India and Cuba • 55 new ships joining global fleets by 2020

(taking numbers to around 460 vessels)

Australian Industry Overview

• CLIA Results for 2014 reveal 1 million

Australians took a cruise – a 20% growth from 2013

• 2 million predicted by 2020 • International passenger numbers continue to

grow with around 180,000 cruising in our waters

• Australian Cruise Association’s (CDU’s) 2015 Economic Impact Study results show $3.3 billion in total expenditure in Australia (international and domestic)

Ports Visited

NSW 10%

QLD 23%

WA 27%

VIC 10%

TAS 14%

NT 3%

SA 10%

OT 3%

2014-15 30

0

5

10

15

20

25

30

35

NSW 33%

QLD 31%

WA 11%

VIC 9%

TAS 7%

NT 4%

SA 4%

OT 1%

Port Visits

2014-15

874

0

100

200

300

400

500

600

700

800

900

1,000

Turnaround Visits

NSW 59%

QLD 24%

WA 9%

VIC 6%

NT 2%

2014-15

427

0

50

100

150

200

250

300

350

400

450

Passengers in port

NSW 49%

QLD 27%

WA 8%

VIC 8%

TAS 4%

NT 2%

SA 2%

OT 0%

2014-15 2,421,0

00

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Mil

lio

ns

Passenger Expenditure, $M

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

NSW 56%

QLD 24%

WA 10%

VIC 6%

TAS 1%

NT 2%

SA 1%

OT 0%

2014-15

$902.7M

Crew Expenditure, $M

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

NSW 50%

QLD 29%

WA 10%

VIC 4%

TAS 3%

NT 2%

SA 2%

OT 0%

2014-15

$86.8M

Port Related Expenditure $M

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

NSW 52%

QLD 23%

WA 7%

VIC 13%

TAS 0%

NT 5%

SA 0%

OT 0%

2014-15

$791.8M

Bunker World Index

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2007-08

2008-09

2009-10

2010-11

2011-12

2011-12

2012-13

2013-14

2014-15

Total Expenditure, $M

NSW 56%

QLD 23%

WA 8%

VIC 8%

TAS 1%

NT 3%

SA 1%

OT 0%

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2014-15

$1,953M

Economic Impact Impact 2013-14 2014-15 % change

Output ($m) Direct $1,856.6 $1,953.0 5.2% Indirect $1,312.4 $1,377.2 4.9% Total $3,169.1 $3,330.2 5.1% Wages Income ($m) Direct $589.3 $604.7 2.6% Indirect $313.1 $325.7 4.0% Total $902.4 $930.4 3.1% Employment (FTEs) Direct 8,367 9,212 10.1% Indirect 4,574 4,835 5.7% Total 12,941 14,047 8.5% Value Added ($m)

Direct $915.1 $948.8 3.7% Indirect $587.6 $610.4 3.9% Total $1,502.7 $1,559.2 3.8%

New South Wales 014-15

• 3 ports

• 285 visits

• 273 – Sydney

• 9 – Newcastle

• 3 - Eden

• 1,174,520 passenger days

• 223,358 crew days

• $1 Billion expenditure

17

Queensland 2014-15

• 8 ports

• 275 visits

• 134 – Brisbane

• 42 – Cairns

• 30 – Port Douglas

• 645,492 passenger days


• $444M direct expenditure

• $15M direct to Cairns

18

Victoria 2014-15

• 3 ports

• 1 anchorage

• 83 visits

• 75 – Melbourne

• 4 - Portland

• 2 - Geelong

• 2 - Mornington Peninsula



• $160M expenditure

Tasmania 2014-15

• 2 ports

• 3 anchorages

• 58 visits

• 35 Hobart

• 12 Burnie

• 8 Port Arthur



• $18.7M direct expenditure

20

South Australia 2014-15

• 3 ports

• 32 visits

• 19 – Adelaide

• 7 – Kangaroo Island

• 6 – Port Lincoln



• $16M expenditure

Western Australia 2014-15

• 9 ports

• 101 visits

• 43 – Fremantle

• 14 – Broome

• 10 - Geraldton



• $146M direct expenditure

• 3.7M direct to Geraldton

Northern Territory 2014-15

• 1 port

• 36 visits



• $54.3M direct expenditure

New ships in Australia 2015/16

• Noordam

• Golden Princess

• Explorer of the Seas

• Pacific Eden

• Pacific Aria

• Costa Luminosa

• Azamara Quest

• Ponant Le Soleal

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

Regional Port Considerations

• Are you interested in providing a berth?

• Under what considerations?

– Booking period

– Price

– Provision of maritime services

– Wholistic approach


• Understanding the “cruise model”

• Advance notice of price changes

– a 3-5 year view on pricing

• Liaison with ground handlers

• Cruise profitability

– Ticket sales

– On board revenue


• Official Cruise Tours

– important revenue source

– key factor in returning to destinations

– looking for unique and exclusive product

– coach accessibility and priority

– ship has responsibility for passengers when on official cruise tours

2015/16 Cruise Trends

• Events

• Regional itineraries

• Shorter trips

• Focus on cuisine

• Active vacations at sea

The China Market

Where the Chinese are cruising

• With China’s recent growth patterns, by 2020

• Expect well over 2 million Chinese cruising

• Even 4 million is feasible

• Will then be larger than AU & NZ source markets combined.

• Many reasons for optimism • Many announcements of new ships there (Star two mega ships coming) • Carnival is customising ships for China and close to forging a new China

brand

• New Chinese entrants

• Growing middle class, disposable income

• More freedom to travel, more vacation time

• Multiplier effects of cruise experience and word-of-mouth

• Growing understanding and confidence of travel distributors

Asia Cruise Tourism Trend

33

• Potential Asian source market of 3.8 million by 2020, representing a

compound annual growth of 14.3% and a total penetration of 0.12%.

Million

CAGR +14.3%

Highlights for 2015-17 P&O’s five ship spectacle 25 November 2015

Highlights for 2015-17 Ovation of the seas

HISTORY OF LARGEST CRUISE SHIPS TO BE BASED IN AUSTRALIA

2001 - 2005 Pacific Sky, Sun, Star • 46,087 – 47,262 GRT • 1400 Pax

2007 Sun Princess • 77,499 GRT • 1990 Pax

2009 Rhapsody of the Seas • 78,878 GRT • 2400 Pax

2013 Carnival Spirit • 80,286 GRT • 2600 Pax

2014 Voyager of the Seas • 137,270 GRT • 3500 Pax

2016 Ovation of the Seas 168,666 GRT, 4180 – 4905 Pax

MORE THAN 3.5 x LARGER THAN SHIPS

10 YEARS AGO

Future Growth

• After recording growth of 13.1% in 2014-15, cruise ship visits to major Australian ports are expected to increase by approximately 80 visits (10%) that will flow onto an estimated 950 ship visits in 2015-16

• Preliminary estimates for 2016-17 at this stage indicates continued growth with regional destinations seeing the greatest impacts.

• Supports land transport • Coach operators • Private tours

• Supports retail • Unique/local arts and crafts

• Supports attractions • Nature/wildlife • Wineries/food experiences • Attractions unique to a

destination

• Supports Accommodation • Pre and post cruise

• Supports Regional Dispersion

The Benefits

20th Anniversary Conference

• 7-9 September 2016

• Location Sydney

• Leading International Cruise Line Speakers

• Outstanding program covering ports, tourism and supply topics

• Extensive networking opportunities

• “The” cruise event in our region – not to be missed!