Cruise Industry Overview
Board of Trustees of the Galveston Wharves
Mike McGarry Senior Vice President Government Affairs Cruise Lines International Association February 20, 2018 Cruise Lines International Association (CLIA) is the unified global organization helping the cruise industry succeed by advocating, educating and promoting the common interests of the cruise community.
2 GLOBAL VOICE
15 Offices Around the World Brazil / Alaska / Australasia / Belgium & Luxembourg / Europe / France / Germany / Italy / Netherlands / North America / North Asia / North West & Canada / Southeast Asia / Spain / UK & Ireland
3 CLIA COMMUNITY
CRUISE EXECUTIVE 50+ LINES 340+ PARTNERS Ocean, river and specialty Key suppliers and cruise line cruise lines, representing more partners, including ports & than 95 percent of global destinations and ship development, cruise capacity suppliers and business services
TRAVEL TRAVEL 15,000 AGENCIES AGENT Includes the largest agencies, hosts, franchises 25,000 MEMBERS and consortia WORLDWIDE
4 CLIA COMMUNITY IN TEXAS
CRUISE 3 LINES 6 SHIPS
EXECUTIVE TRAVEL 6 PARTNERS 2,781 AGENT MEMBERS
TRAVEL 576 AGENCIES
5 WHAT CLIA DOES
Representation International Maritime Organization (IMO) Maritime Policy Government Affairs and International Labour Organization (ILO)
Business Partner & Supplier Reputation Management Travel Agent Engagement Development
6 HOW THE INDUSTRY WORKS
Legal & Regulatory Compliance
Passenger Outstanding Ship Building Sourcing & Guest & Sales Experiences Revitalizing
Port & Destination Development
7 LEGAL & REGULATORY COMPLIANCE
Comprehensive system of regulation, enforcement and inspection to protect passengers, crew and the environment.
International Maritime Organization (IMO) Parties set international shipping and labor International Labour Organization (ILO) regulations, respectively
Flag States Enforces international requirements on ships flying its flag, globally; provide labor pool
Classification Societies Audit ships regularly for compliance on behalf of the Flag State
Port States Verifies compliance with shipping regulations on foreign flagged ships at ports of call
8 INDUSTRY POLICY LEADERSHIP
Industry-Level Consultative ▪ Active engagement on Status at International international treaty negotiations Maritime Organization and other matters (IMO) ▪ CLIA presented 10 industry- initiated safety policies
▪ Instituted 23 mandatory policies on safety, security, environment, public health and Industry Self-Regulation medical ▪ Exceed regulatory Leadership requirements ▪ Integrated in ship Safety Management System (SMS) ▪ Annual CEO verification ▪ Third-party certification ▪ Globally applicable
9 MARITIME POLICY ADVISORY COMMITTEES & WORKING GROUPS
Global Committees Global Working Groups Maritime Safety Matters Medical Maritime Security Matters Facilitation, Customs & Marine Environment Protection Immigration Matters Public Health & Sanitation Navigation & Hydrographic Industry Self-Regulation Leadership Polar Cyber Security
10 CLIA OCEANGOING CRUISE LINE POLICIES
Implementation verified annually by Cruise Line CEOs as a condition of CLIA Membership Incorporated into ship’s Safety Management System (SMS), where appropriate Subject to internal and third party audit Industry Self-Regulation Leadership
11 CLIA OCEANGOING CRUISE LINE POLICIES
• Securing heavy objects, location of lifejacket stowage, harmonization of bridge Operational procedures, recording the nationality of passengers, common elements of musters and emergency instructions, excess lifejackets, passage planning, Safety bridge access, passenger muster, lifeboat loading for training purposes • Installation and use of local sounding smoke alarms, water mist fire Fire Protection suppression system, fire protection measures for covered mooring decks
Shipboard • Reporting of crimes and missing persons, safeguarding children in youth Security activity centers, security incidents
Environmental • Waste management Protection Health Industry• Medical Self facilities,-Regulation public health Leadership • Guest care practices, cruise industry bill of rights, gambling, anti-corruption Other principles
12 CRUISE PASSENGERS COME FROM AROUND THE WORLD
United Kingdom 1.89 mil China Canada Germany 2.11M 2.02 mil 751,000 Spain Italy 486,00 751,000 0 United France States 574,000 11.54 mil
Australia 1.28 mil
13 WHERE ARE PASSENGERS GOING?
2017 Cruise Line Deployment, by Region % of Available Lower Berth Days Caribbean 35% Mediterranean 16% All Other 15% Europe w/o Med 11% China 6% Asia w/o China 4% Australia/NZ/P… 6% South America 2% Data source: CLIA Ocean Deployment Report
14 CARIBBEAN CRUISE PASSENGER ARRIVALS
Top Destinations- At least 1M Arrivals Mexico - Cozumel 3,674,529 The Bahamas - Nassau 3,369,960 Cayman Islands -… 1,438,968 Puerto Rico - San Juan 1,262,051 U.S.V.I. - St. Thomas 1,143,038 St. Maarten - Philipsburg 1,096,681 Honduras - Roatan 1,002,345
Cuba* 380,000
Source FCCA- Actuals and projections as of November 2017, subject to change Passenger arrival projections based on double occupancy for planned vessel calls and understated compared to actual loads * Cuba: Projections from Cuban Authorities
15 OUTSTANDING GUEST EXPERIENCES
Cruising delivers high customer satisfaction: 92% of Cruisers 65% of Cruisers 71% of Gen Xers will probably or cited ocean or selected ocean definitely book a river cruises as or river cruises cruise as next best overall type as best overall vacation of vacation type of vacation
Data from CLIA’s 2017 “Cruise Travel Report”
16 2018 CRUISE INDUSTRY OUTLOOK
17 2018 PASSENGER CAPACITY SNAPSHOT 2018 = 27.2 Million Passengers Expected to Cruise
CLIA Global Ocean Cruise Passengers (In Millions)
27.2 24.7 25.8 22.34 23.06 20.5 20.9 21.3 19.1 17.8
2009 2010 2011 2012 2013 2014 2015 2016 2017p 2018p
p = projection 18 NEW SHIPS DEBUTING IN 2018 27 CLIA Cruise Lines New Ships on Order (as of December 2017) Ocean River
CRUISE LINE SHIP NAME CRUISE LINE SHIP NAME Aida Cruises AidaNova AmaWaterways MS AmalLea America Song Carnival Cruise Line Carnival Horizon American Cruise Lines American Constitution Celebrity Cruises Celebrity Edge Avalon Waterways Avalon Saigon Holland America Line ms Nieuw Statendam Amadeus by Luftner MS Amadeus Queen Africa Dream II MSC Cruises MSC Seaview CroisiEurope MS Elbe Princesse I Crystal Debussy Norwegian Cruise Line Norwegian Bliss Crystal Cruises Crystal Ravel PONANT Yacht Cruises Le Laperouse Pandaw River Expeditions Sabei Pandaw and Expeditions Le Champlain Royal Caribbean Riviera Travel MS Robert Burns Symphony of the Seas International River Cruises MS Douro Splendour Scenic Luxury Cruises ms Treasures II Scenic Eclipse Tauck River Cruising and Tours ms Esprit II Uniworld Boutique River Seabourn Seabourn Ovation S.S. Beatrice Cruise Collection TUI Cruises Mein Schiff 1
19 MORE SHIPS, MORE OPTIONS
CLIA Cruise Line New Ocean, River and Specialty 449 Cruise Ships 27 CLIA Cruise Line Ships Scheduled in 2017 to Debut in 2018
20 ECONOMIC IMPACT
21 2016 GLOBAL ECONOMIC IMPACT
24.7 1,021,681 $41.1 MILLION JOBS BILLION PASSENGERS FT EQUIVALENT WAGES + SALARIES EMPLOYEES
$126 BILLION TOTAL OUTPUT WORLDWIDE
22 2016 U.S. ECONOMIC IMPACT
11.5 389,432 $20.6 MILLION JOBS BILLION PASSENGERS FT EQUIVALENT WAGES + SALARIES EMPLOYEES
$47.76 BILLION TOTAL OUTPUT
23 2016 TEXAS ECONOMIC IMPACT
1.09 25,166 $1.62 MILLION JOBS BILLION PASSENGERS FT EQUIVALENT WAGES + SALARIES EMPLOYEES
$1.42 BILLION DIRECT SPENDING
24 TEXAS BY THE NUMBERS
Of All U.S. Cruise 9.5% Passengers 7.7% 1.09M Of U.S. Cruise Resident Cruise Embarkations Passengers 20% Increase in Passengers Over 2014 25 PORT OF GALVESTON BY THE NUMBERS
Increase in Passenger Embarkations from 35% 2014-2016
New Passenger Embarkations
227k 26 QUESTIONS & DISCUSSION
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