CRUISE SEGMENT SUB-REPORT
WESTERN CAPE TOURISM MASTERPLAN DEVELOPMENT
STRICTLY CONFIDENTIAL
PREPARED FOR: The Department of Economic Development and Tourism (DEDAT) of the Provincial Government of the Western Cape, South Africa
PROJECT NUMBER: EDT 004-19
FOCUS: UK, Europe & Americas
LEADERS: Rashid Toefy, Deputy Director-General Ilse van Schalkwyk, Chief Director Economic Sector Support
SUBMITTED BY: ANITA MENDIRATTA, Founder and President - AM&A
DATE: February 11th 2020
FINAL
1. INTRODUCTION
In Q3 2019 ANITA MENDIRATTA & Associates is honoured to have been invited by DEDAT to participate in a process around establishment of, as expressed by DEDAT:
“a 15- year tourism master plan for the Western Cape (WCTMP). The Master Plan will set the foundation to start shaping the development needed to maintain and develop a sustainable and thriving tourist destination.”
Central to WCTMP development is conducting comprehensive research around the potential of the Western Cape for travellers from two priority global regions, namely:
1) The Americas: representing 16.64% of current overseas travellers to South Africa with 57.2% of those visitors going to the Western Cape (WESGRO)
2) Europe: representing 60.57% of current overseas travellers to South Africa with 62.0% of those visitors going to the Western Cape (WESGRO)
with emphasis on Megatrends and Destination Potential. This process is well underway, with Draft 2 of AM&A’s research underway with DEDAT.
Within the report composed by AM&A, 15 Traveller Megatrends were identified as central to shaping the future of tourism growth globally.
Within the 15, one of them, namely CRUISE TOURISM (no. 10), represents a significant, continuous- growth niche within global tourism.
Top-line review of the cruise tourism megatrend from the AM&A report, as shared below, yielded enhanced interest from DEDAT:
TRAVELLER MEGATREND 10: Cruise Tourism has been a booming segment in recent years, leading the way in scope and scale of segment CRUISE TOURISM development.
As stated by Cruise Lines Industry Association (CLIA), the world’s largest consortium of cruise lines representing over 50 cruise line companies which control over 95% of global cruise capacity:
● The cruise industry is projected to continue to grow throughout 2019 with an estimated 30 million travellers expected to cruise, up 6% from 28.2 million in 2018.
● In the coming year 18 new ships are on order from CLIA cruise lines.
● A total of 272 CLIA-member cruise ships are projected to be in operation by June 2019.
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● The cruise industry continues to make a positive impact on communities around the globe by sustaining 1,108,676 jobs equalling $45.6 billion in wages and salaries and $134 billion total output worldwide in 2017
● 65% bookings occur online, 37% at a travel agency
● From a traveller perspective, growth is grounded in cruise tourism’s:
• reach of destinations
• ease of travel (only unpack once)
• affordability
• all-inclusive packages eliminating additional costs / surprises
• opportunity for multi-generational travel
• openness to solo travellers
• high degree of passenger personalisation of on-board and import experiences
• advances in connectivity making onboard working possible
• shift from traditional focus on older (55+) travellers to younger, Millennial and Gen-Z travellers
• strength of loyalty programmes
• growth in image to be more stylish, smart and hip as a way of travel
● While overall the segment is still one of the smaller ones in terms of all international holidays, its development has been exceptional with double-digit growth rates and increases that were twice as much as international holidays in general.
● Spread of cruise passenger source markets globally:
• N America: 56%
• Europe: 30%
• Asia-Pacific: >10% (NB: China dominates the
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passenger share of Asia's cruise market with over 70% of the region's 4.24 million passengers in 2018)
• Africa: 2%
• South American: 1%
Most popular destinations region is North America, followed by Europe, South America...though strong growth is occurring in Asia and African cruise itineraries
In parallel to the AM&A research study underway for DEDAT, an additional request was made by DEDAT to AM&A for further review and analysis of the Cruise Tourism sector to, as expressed by DEDAT "unpack cruise tourism as an experience from Americas and Europe as that is where the target market is based."
This document reflects further exploration of the Cruise Tourism segment, both globally and from the perspectives of travellers from the Americas, UK and Europe.
IMPORTANT:
While Cruise Tourism is expanding in ship product diversification, especially in the areas of:
Expeditions and
River Cruising, these are not featured in this report as deemed not relevant to Western Cape cruise tourism development due to the small, protected, waterway requirements of these vessels and high volume of small, local destination itineraries.
This report is only focused on medium to large cruise vessels only, reflecting passenger loads of 1000+ suitable for exposed, large seaway cruising.
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2. THE GLOBAL CRUISE TOURISM SEGMENT
The Cruise Tourism segment is a relatively young segment with modern roots. It was in the 1970s that transatlantic voyages first began for travel and leisure, not for the purposes of sea-based transportation.
ENTERTAINING ORIGINS OF CRUISING While a new niche offering a unique holiday choice whereby ship was the destination as much as the destination port(s) of call, a concept created by Caribbean based entrepreneurs with the development of ‘fun ships’ the love of cruise travel was ignited with the long-running success of the television series The Love Boat. On-air from May 5, 1977 until Feb 27, 1987, in its original period of weekly broadcasting (and still in syndication worldwide to this day), American viewing markets in particular were able to get an insider perspective of the exotic, exciting, exclusive and exploration-rich potential of cruise travel. It is fascinating that concept for global travel can have such simple, yet profoundly impactful, origins. From the 1970s, passenger volume doubled every decade lead by North America with the vast majority of capacity and activity, followed thereafter by Europe, and to a lesser yet still valuable degree, Australasia. Today, Cruise Tourism is the fastest growing sector in the tourism industry, with an annual growth rate of 7.4%. (CLIA) In terms of worldwide economic impact, in 2018, with 28.5 million passengers taking to the waters, the sector generated an estimated: . US$ $150 Billion in economic activity . Over 1 Million jobs With the average length of cruise holidays being 7 days, Cruise Tourism continues to reflect the ship being as much of a destination as the destination port(s) of call. 2019 projections from CLIA remain strong and steady.
(CLIA 2019 State of Industry Presentation)
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From a passenger age perspective, Cruise Tourism is a wonderful multi-generational travel option, meeting the needs of toddlers to elders, as reflected by the following split across generations:
(Source: Statista 2019)
CRUISE ACTIVITY – CORPORATIONS AND DESTINATIONS
From a regional split perspective, current cruise destination activity is as follows:
(Source: Cruise Industry News 2019)
Importantly, the high cost and complexity of cruise ship construction has resulted in only a small number of global cruise companies possessing the lion’s share of supply. At present the industry is divided as follows in terms of cruise companies.
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(Source: Cruise Industry News 2019)
Respective passenger numbers as estimated as follows:
(Source: Cruise Industry News 2019)
Segment-wise, the split is as follows:
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(Source: Cruise Industry News 2019)
Organic growth of cruising by leading cruise corporations can be strongly credited to:
. Significant investment by cruise companies into new products development, both in:
. hardware (ship design and operations) and
. software (guest experience delivery)
. High control of guest experience delivery resulting in high levels of passenger satisfaction and brand loyalty
. Relative ease of conversion of land-based resort guests into cruise passengers as an all- inclusive model on the water
. Ease of travel resulting to high repeat clientele
This is positive news for ports-of-call, as 65% of those passengers will spend extra days exploring the destination and spending personal funds off-ship.
CRUISING TODAY
As growth of passenger numbers steadily increases, so too does ship building, launching and redeployment, and new port introduction.
Still, innate centres of gravity exist in the segment as a result of regional geography, destination diversity, climate and overall tourism appeal.
The Mediterranean (17.3%) and Caribbean (34.4%) are by far the most popular regions for cruise itineraries. This is due to the Caribbean’s proximity to the US, the number one global source market. Price, weather, and ease of travel diversity around the region are also contributing factors. The Mediterranean offers similar advantages for the European market, providing passengers with a varied itinerary in a short time frame, warm weather, and affordable routes.
Interesting to note:
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CRUISE PASSENGER INSIGHTS AROUND THE GLOBE (CLIA, 2018)
Mediterranean Moves – Cruises in the Mediterranean are moving up in popularity with an impressive 8 percent increase from 2017 to 2018 totalling more than 4 million cruise passengers.
Shorter Cruises – Passengers are preferring shorter cruise durations. Seven-day cruise itineraries are up 9 percent while three-day and under cruises are also up 10 percent in 2018.
Caribbean Rebounds – Cruisers love the Caribbean and the latest insight reveal travel to the islands is still in full swing. An impressive 11.3 million cruise passengers travelled to the Caribbean in 2018 an annual increase of 6 percent.
Destination Alaska – As adventure travel continues to thrive, so do adventurous cruise destinations. Alaska has experienced double-digit growth with a year-over- year 17 percent increase in passengers in 2017 and another 13 percent increase in 2018 accounting for more than one million cruisers travelling to this destination.
Moderate Growth in Asia – When compared to the rapid increases of the past, 2018 saw moderate cruise passenger growth throughout Asia and China with a 5 percent increase in cruise passengers from the region totalling a still impressive 4.2 million.
(FCCA, 2019 Cruise Industry Overview)
BENEFITS OF CRUISE TOURISM
One of the main benefits to cruises vs. land-based vacation, is the opportunity to see and do new things. Being able to visit multiple countries, cities and cultures on one vacation allows travellers to make the most of the immersive experiences.
The benefits of Cruise Tourism grow in line with the ways in which the cruise companies are innovating in, as stated earlier:
. hardware (ship design and operations) and
. software (guest experience delivery)
Looking more carefully at drivers of Cruise Tourism growth, the following overt benefits are identified (and also provide a list of imperatives for cruise destinations):
1. ACCESS AND OPPORTUNITIES
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Travellers are setting their sights on destinations that were previously out of reach, some only accessible by cruise ship. They want to be among the first of their peers to experience destinations such as the Galapagos Islands and Antarctica.
Cruises also offer an all-inclusive package whilst on board, which eliminates additional costs and/or surprised when travelling. Some cruise liners offer tokens to spend when in port, this allows the local communities to benefit from passengers disembarking, but also not adding on any additional costs to travellers.
2. CONNECTIVITY
Continuing development and availability of technology is facilitating and lowering the cost of on- board communication. Many large cruise ships are, for example, already offering wireless internet on-board. This means that cruise passengers have better access to the internet while they are cruising, which increases the chance that they will look for information about attractions and activities at the next port of call. Therefore, it is very important for cruise destinations and local supplies to invest in online marketing, for example, mobile-friendly website.
Some cruise liners have taken connectivity and personalisation to the next level, including keychains, necklaces, bracelets and apps which allow them to choose their itinerary. This means there is greater personalisation for travellers when pre-planning excursions and on-board activities.
3. SUSTAINABILITY
Sustainable tourism can be applied to an entire destination, as well as each type of entity on the value chain. Sustainable destination management is particularly important to cruise tourism because the visitor experience is diverse and visitor flows place pressure on a wider range of stakeholders within a destination. Worldwide, tourism demand is expected to outpace and stress the infrastructure required to handle it. Sustainable development in cruise tourism comes at a pivotal moment in global travel.
4. ACCESSIBILITY
Accessibility is imperative for cruise tourism and requires a great deal of initial investment in both infrastructure as well as maintenance costs. A destination that wants to focus on cruise tourism has to have a port that is able to safely receive cruise ships. This requires;
A cruise terminal or alternative docking facility;
Docks of sufficient length;
Water of sufficient depth;
The possibility for cruise ships to turn around and a constant level off access regardless sea conditions;
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Good facilities at the terminal or docking facility such as luggage handling space, gangways, parking area, airlift, customs area, waiting facilities, toilets and information centres
5. WEATHER
Like any other vessel that sails at high seas, rivers or lakes, cruise ships are at the mercy of the weather. Cruise liners are fully aware of this and try to place their ships in destinations where the weather is less likely to affect the itinerary, but avoiding inclement weather is never guaranteed.
While there are some regions, like the Antarctic, that are susceptible to weather disruptions year-round, most areas of the world contend with bad weather on a seasonal basis. For instance, Caribbean cruises are more likely to be disrupted during hurricane season, which runs from June to November. The Alaskan low seasons are April to May and September, because there is a greater chance of rain, cold weather and even snow.
6. PROXIMITY AND OPPORTUNITY
Competition in the cruise market is fierce so a region, destination or port really has to have something attractive, special, unique or iconic if it wants to attract cruise lines and get cruise passengers from board. Cruise passengers have limited time ashore, with an average of 8 hours to get to know a destination. They tend to do a different activity at each port and will not want to repeat an activity within the same trip.
Importantly, as a result of significant challenges faced by the cruise sector over the past decade, passengers look to cruise companies for experience and expertise as reassurance as regards:
7. HEALTH AND SAFETY
Extreme care in terms of management of health risks as a result of:
Breakouts of transmittable diseases: cruise companies worldwide have faced significant challenges with virus outbreaks which, as a result of the high number of passengers within a relatively small shared space, can cause rapid contamination of the ship and severe illness of passengers making detouring and even end of itineraries essential to protect overall welfare of both passengers and ship assets.
Food safety: linked to the above, food poisoning risks always exist onboard, requiring careful management of food quality, enabling passengers to over-indulge in meal services as is standard with all-inclusive offers that unleash a feeling of entitlement of excessive consumption of beautifully, specially prepared, often themed menus for excited, hungry guests.
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8. TERRORISM - PIRACY:
Painfully, the cruise segment faced direct targeting by pirates along the popular cruise route of the east coast of Africa. As a result, cruise companies travelling routes of potential risk have developed expertise in security monitoring and, if necessary, itinerary management to re-route. While no longer an issue of frequency of familiarity, in today’s day and age of increasing criminal activity, including targeting of land-based tourism destinations, cruise companies must maintain monitoring of this potential threat.
Clearly from the above outline of benefits of cruise tourism, this segment has evolved as a centre of expertise in traveller experience delivery through exceptional overt (and covert) levels of care, creativity, and connection.
IMPORTANT TO NOTE: EXPANDING CRUISE TOURISM BENEFITS TO LOCAL COMMUNITIES
Over the past decade, two segments of the international tourism sector have come under extreme pressure and criticism regarding their limited contribution to the local communities in, and with, which they operate. These two segments are:
1. All-Inclusive Resorts, and 2. Cruise Tourism
Central to criticism is the fact that businesses operating in these segments are, in the main, registered and collecting revenues in countries beyond those in which they are present as tourism offerings. In addition, their operations are limited in local community engagement and opportunity for economic benefits from traveler interaction.
As a result, in both cases and more often than not, there was little to no scope of opportunity for travelers to enjoy up close and personal experiences with local communities in ways that directly, meaningfully and sustainably provided economic and social benefits for people of the destination.
Recently, however, the cruise sector has taken the bold step of relooking their business models to establish ways in which destination communities can enjoy access to the cruise traveler market, both on-board and when in ports of call. This is driven by not only need to address growing sentiment of cruise line greed at the expense of locals, but also travelers requesting/demanding local souvenirs and experiences as part of their cruise experience.
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Leading this evolutionary approach to cruise product development is Carnival Cruise Lines. Representing:
# Ships: 57 (Source: Cruise Industry News 2019) # Passengers: 11.9 M (Source: Cruise Industry News 2019) % Total Cruise Market: 44% (Source: CLIA) Carnival has changed their policies in sustainability practices, especially as relates to local community development. In addition to developing a number of on-land excursions directly engaging and remunerating local communities as partners in product development and experience delivery across, inter alia,: Adventure Sport Arts & Culture Horticulture and Agriculture Wildlife Gastronomy Wellness Carnival has a number of community upliftment initiatives as part of their core operations. As outlined in their COMMUNITY ENGAGEMENT component of their Sustainability strategy:
OUR COMMITMENT:
Having a positive impact on the communities we visit begins with trust and unity on the inside; a strong company culture, a sense of responsibility, a focus on transparency and a commitment to help make the communities we visit better. We embrace the culture of the communities in which we operate, including our headquarters locations, homeports, private islands and ports of call. We want our ships and crew to always be welcomed, bringing hope, prosperity and goodwill wherever they sail. We understand that there may be an impact on the sustainability of a community when we engage with, operate in, or cease operating there. We continually strive to promote sustainable tourism by contributing to our communities in a positive social, environmental and economic manner, working in conjunction with local governments, trade associations, tourism organizations and other community stakeholders.
OUR STRATEGY:
It is important for us to invest in the communities we visit and support their sustainable development, which is also essential for our operations. Within our supply chain, we work with our tour operators to support and ensure responsible excursions. Our port
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development group works with port communities for developing leading destinations and ports as well as securing preferred ports. This enables us to grow demand and deliver unique experiences that benefit both our destinations and our organization.
The Carnival Foundation, our cruise brand foundations, our cruise brands and our employees support a wide and far-reaching variety of local and global organizations through monetary and in-kind donations, innovative philanthropic programs, employee fundraisers and hands-on volunteer initiatives. We also provide our guests with the opportunity to contribute to the causes we support. Many of our cruise brands have donation programs where reusable goods from our ships are provided to people in need throughout the communities we visit. Local non-profit groups, government agencies and various stakeholder groups work with our cruise brands to collect toiletries, dishes, cookware, mattresses, tableware, furniture and other items from the ships and distribute them to shelters, hospitals, orphanages and homeless programs. We also collaborate with many organizations that focus on the areas of the arts, human rights, education, health and environmental conservation.
As part of our commitment to supporting our communities, during times of crisis, we provide emergency aid and relief through financial donations which we coordinate with various national and international relief organizations. We also use our ships to deliver emergency supplies to the affected areas. Through our cruise brands and corporate foundation as well as through the extraordinary efforts of our employees worldwide, we support a variety of relief programs providing aid, donations and services to an array of charitable organizations that touch many thousands of lives globally.
We also continue to increase the number of partnerships we have around the world to create even more opportunities for our guests and crew to positively experience the places they visit, and also participate in various community and social impact experiences. These experiences make a real sustainable impact not only on the people in the communities we journey to but also on our guests and crew.
2020 GOAL AND UPDATE:
We continue to engage on initiatives and partnerships that support and sponsor a broad range of organizations for the benefit of our local and global communities:
Committed to support Caribbean Community projects with a $10 million pledge.
Supported global disaster relief efforts with a $5 million pledge.
Continued partnership with Mercy Ships.
Continued to support the Smithsonian National Museum of African American History & Culture with a $2 million gift over a five-year period.
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Continued our partnership with the Big Brothers Big Sisters program with a $5 million gift over a five-year period.
(Source: Carnival Corporation)
Such corporate leadership is not only setting the bar higher for other cruise companies in terms of their shaping their respective policies re. social sustainability, it is offering Carnival, and others, a bases for evolved brand equity, loyalty and competitiveness. The latter components are vital in the increasingly competitive cruise tourism sector. For any destination, it is vital to work proactively with cruise companies to establish maximum opportunities for: 1. Cruise ship supply chain fulfilment, especially as regards arts & crafts reflecting of the destination and offering travellers unique, diverse local, meaningful keepsakes (across the affordable to premium price range) reflective of their travels, for sale on-board. 2. Cruise traveller engagement: local experiences and excursions within the port of call, as well as reaching further out into locations increasing destination exposure ad understanding (ie Winelands, Hermanus, Cape Point, etc), with transport offered as part of the experience design and delivery.
In so doing, not only will this elevate the receipt of economic and social benefits for the destination, but also increase the value of the destination for travellers, thereby strengthening cruise line itinerary interest and appeal.
TRAVELLER PROFILE
Cruise travellers love cruising!
People who take cruises are very loyal to cruising, with 92% of cruisers saying they will probably or definitely book a cruise as a next vacation (FCCA, 2018).
Cruises are a preferred vacation choice for families, especially those with children under 18, and children are involved with the decision process for cruises more than they are for land- based vacations.
68% of cruisers identified the destination of their vacation as the most important factor influencing their vacation choice (FCCA, 2018).
As a technical overview of cruise segments and offerings:
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Segment Demographics Itinerary itinerary Ship Characteristics Representative Characteristics duration Cruise Lines
Budget Youth and Mediterranean 3-7 days Small ships with Fred Olsen lower-income itineraries and minimum on-board population common facilities and Island Cruises segments destinations: services “hop-on/hop- Louis Cruise off” Cruise passengers make their own Pullmantur beds Thomson
Travelscope
Contemporary Target is very Common 3-7 days Large, new ships Carnival Cruises broad, offering destinations or “something for zones Resort-type Celebrity everyone”, but facilities with a especially strong emphasis on Costa attractive to on-board activities first-time and services (such Disney cruise as beauty shops, passengers, golf, ice skating, MSC families, spa, etc.) and couples and family Norwegian young people entertainment. Cruise Line
P&O
Royal Caribbean
Premium Over 40 age Itineraries Varied; Smaller than Celebrity group, often featuring more contemporary Cruises; professionals, rarely visited emphasis segment; targeting ports. on Fred Olsen repeat cruises More refined passengers. longer furnishings; Holland than 7 America Line nights. On-shore excursion are Oceania Cruises important profit generators; Pullmantur
Two-types of Saga excursions are offered: for First- time (less sophisticated) and repeat customers
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Luxury Couples and Focused on More . Smaller ships, Crystal Cruises singles with a unusual ports than 10 most spacious taste for super and places; days. accommodations Hapag-Lloyd luxury resorts shore with a high Kreuzfahrten on land, with excursions percentage no facilities for represent an offering views of Hebridean children. important the sea; Island Cruises profit generator . Numerous suites; Peter Deilmann Kreuzfahrten . Highest crew- per-passenger Raddison Seven ratio; more Seas sophisticated interior design, Seabourn with antiques Cruise Line and art collections of Silversea great value; and Cruises
. Exclusive atmosphere
(Source: UNWTO, 2016)
TRAVELLER TRENDS TODAY
Cruise Tourism is an interesting segment in terms of re-invention. While for many years it became a signature travel offering for families, increasingly cruise companies are designing and delivering unique new offerings for today’s more personal, more purpose-driven travellers.
Trends to note include:
. LONE CRUISERS
With more Google searches for “solo travel” and “traveling alone” than ever before, travelling alone is rising in popularity. Cruising allows for solo travel without the worry of arranging a ton of details while visiting even the most far-reaching destinations and connecting with other travellers, forming community bonds and experiencing once-in-a-lifetime things.
Cruise lines are responding to a shift in passenger demographics by offering studio cabins, single friendly activities, eliminating single supplements and solo-lounges (i.e. single-sleeping bedrooms/suites).
. FEMALE-CENTRED CRUISING
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With the number of female travellers growing, many tourism and travel companies are creating female-centred itineraries based on interests and connecting women with other women. Female- centred cruises can create a female empowerment community at sea while allowing travellers to experience the world around them.
. GENERATION CRUISE POSITIVE
More than 66% of Generation X and 71% of Millennials have a more positive attitude about cruising compared to two years ago (CLIA, 2020).
Generation Z is set to become the largest consumer generation in the next two years - outpacing even Millennials. Like the generation before, this age bracket prefers authentic experiences over material items and has an even greater Wanderlust. The appeal of multiple destinations and unique experiences, such as music festivals at sea, is helping attract this new generation of cruisers.
People who take cruises are younger and more diverse than non-cruisers.
Younger generations - including Millennials and Generation X - are embracing cruise travel, rating it as a better vacation type than land-based vacations, all-inclusive resorts, tours, vacation house rentals or camping.
Most loyal groups are the younger generations; two-thirds of Gen Y/Millennials say that cruising is their favourite vacation, and this preference is even more pronounced among Gen Xers, with 71%.
. SPREADING SPENDING
The vast majority of cruisers see cruising as a good way to sample destinations for later trips. Millennials and Gen Xers, in particular, like this benefit to cruising and are more likely to have done pre-/post-cruise stays in a port city and/or returned to a visited destination first experienced on a cruise. In port before boarding a cruise passenger will typically spend $376 before boarding their cruise (SOURCE: CLIA, 2018), they will also spend on average $101 whilst in port, during their cruise vacation.
. SPREADING SEASONS
Until a decade ago, cruises to the Mediterranean were limited to 3 seasons of the year; Spring, Summer and Autumn. They have no expanded to include Mediterranean cruises in the Winter season. Supporters enthuse about winter cruising because prices are lower, you don’t have the intense summer heat, and you get to see places such as Pompeii or Rome without hordes of tourists.
More than 25 cruise lines sail the Med in the summer, offering everything from mini-cruises to grand voyages, and visiting every destination imaginable – including some you’ve probably never heard of. Typically, big ships visit the ports with world-famous sights; smaller ones visit must-see places but also sneak into unfamiliar bays and harbours, taking you to little-known gems away from the crowds.
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3. THE CRUISE TOURISM EXPERIENCE BY REGION
As stated earlier, Cruise Tourism has its roots of interest and activity in the Americas. The combination of high traveller interest, ease of access to cruising regions, scope of choice and affordability of offerings makes the greater Americas region a global Cruise Tourism hub.
US CRUISING, CLOSE UP
The US is by far the largest segment of cruise passengers from The Americas, representing 13,091,000 of the total for the region. Canada comes in 6th globally, represented by 971,000 passengers. South America saw 883,000 passengers in 2018 (led by Brazil and Argentina). The Caribbean welcomes 56,000 and Central America 47,000.
Globally, interest in Cruise Tourism is strongly driven by the ease of travel – both the act of travel and access to its benefits. This applies particularly when it comes to discovering new destinations.
Research conducted by the FCCA (‘a not-for-profit trade organization composed of 21 member cruise lines operating nearly 200 vessels in Floridian, Caribbean and Latin American waters providing a forum for discussion on tourism development, ports, safety, security and other cruise industry issues’) demonstrate the perceived strength of proposition vis a vis conventional land-based holidays:
(Source: FCAA, 2019)
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FCCA research goes into greater detail re. holiday experience delivery:
CRUISE PASSENGER INSIGHTS IN NORTH AMERICA
In terms of Americas traveller interest in cruising destinations:
Cruise Travel on the Rise - North American passenger numbers reached 14.2 million in 2018, showing an increase of 9 percent from 2017.
Eyes on the Mediterranean – Globally, Mediterranean cruises grew substantially in popularity last year, totalling more than 4 million cruise passengers worldwide. Of those, more than 700,000 passengers came from North America up 29 percent from the previous year.
Craving the Caribbean – Cruise travellers from North America dominate cruise travel to the easily accessible Caribbean. Continued growth in cruising to the Caribbean, Bahamas, and Bermuda, is up 7 percent to 9.8 million passengers in 2018.
Alaskan Adventures Preferred – Aligning with global insights, North American cruisers made up the significant portion of cruise passengers traveling to Alaska in 2018 with 906,019 cruise passengers increasing to 14 percent from 2017.
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Additional Destinations - Other growing North American destinations include the Hawaii & North Atlantic Coast region, Mexico, California, and Pacific which increased 4 percent in 2018, totalling 1.3 million cruise passengers.
(SOURCE: Cruising.org)
US CRUISING – ECONOMIC IMPACT
The U.S. cruise industry had an economic impact of over $52.7 billion in total 2018 contributions - marking an increase of over 10% since 2016.
o Direct Impact: $23.96 billion in direct purchases made by passengers, crew, and cruise lines.
o Indirect & Induced Impact: $28.7 billion in indirect supply purchases and merchant payments, as well as induced economic benefits from cruise line and supplier purchases of consumer goods and services.
Advancements in Embarkation: Nearly 13 million cruise passengers worldwide embarked from ports in the United States in 2018—an increase of nearly nine percent from 2016.
o Florida and California: With a total of nine cruise ports between them—accounted for 68 percent of the U.S embarkations in 2018. Meanwhile, embarkations from the two cruise terminals in New York increased 12 percent since 2016 and ports in Galveston also experienced a 13 percent embarkation increase in 2018 compared to 2016.
Increased Onshore Spending: In 2018, cruise lines, passengers and crew spent a record $23.96 billion in the United States—a 33 percent increase since 2010.
S. Expenditures: The cruise industry generated 421,711 jobs across the United States and contributed more than $23.15 billion in wages and salaries, a nearly 13 percent increase since 2016.
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TOP 10 STATES BENEFITING ECONOMICALLY FROM THE GLOBAL CRUISE INDUSTRY
1. Florida
2. California
3. Texas
4. New York
5. Alaska
6. Washington
7. Georgia
8. Illinois
9. New Jersey
10. Louisiana
(SOURCE: Cruising.org)
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EUROPE & UK CRUISING, CLOSE UP
Europe is popular for cruising, both in terms of destination and outgoing passengers.
Europeans accounted for 7.17 million cruise passengers in 2018, an increase of 3.3% against 2017.
Europe is popular for cruising, both in terms of destination and outgoing passengers.
The Mediterranean is the top cruising region for Europeans passengers, 2018 saw 2.27 million passengers. Northern Europe is the second most popular region to visit, up 4.8% in 2018 - 1.43 million passengers. (CLIA)
20 European countries are visited by cruise ships.
12 million passengers took a cruise in Europe in 2017.
There are 128 ports of call in Europe, visited by 6,007 vessels in 2017.
(Source: Cruise Europe)
In 2018, CLIA established that European outbound cruise tourism was as follows:
COUNTRY NUMBER OF SHARE OF AVERAGE AGE AVERAGE CRUISE CRUISERS SOURCE LENGTH (DAYS) PASSENGERS
1. Germany 2,223,00 31% 48 12
2. UK 2,009,000 27% 57 10
3. Italy 831,000 12% 43 6
4. Spain 530,000 7% 43 7
5. France 521,000 7% 48 7
6. Switzerland 154,000 2% 48 9
7. Austria 136,000 2% 50 8
8. Netherlands 113,000 2% 54 9
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9. Norway 101,000 1% 45 5
10. Belgium 70,000 1% 53 7
219,000 Europeans went on cruises to Africa/Middle East in 2018. 209,200 went on world voyages or transatlantic voyages, many of which include Africa (particularly Cape Town) in their itineraries. There is, unfortunately, limited data on specifics within greater regions.
For European passengers on a cruise in Africa/Middle East, the average age is 50
Average duration for European cruising: 12 days
Nationalities that cruise in Africa / Middle East fall in line with the above outbound markets.
o Germany
o UK
o Italy
o Spain
o France
(Focus periods for travellers: Jan to Apr, with travellers more inclined to be older Europeans with greater spending power and more days available for holidays)
Off-peak season cruising is rising in popularity. Travellers looking for tropical warmth or experiences in colder months for activities such as seeing the Northern Lights or touring European Christmas Markets.
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4. OPPORTUNITY FOR THE WESTERN CAPE
Increasingly African tourism development as a whole is looking to Cruise Tourism as a possibility.
While a growing area of interest with limited concrete information, still a confident picture of possibility and probability of sector growth and development can be formed.
CRUISING IN AFRICA
Source: AM&A
The cruise season in Africa typically runs from October/November to May. Primary ports of call include: Cape Town, Durban, Mombasa, Mahé, Windhoek, Port Elizabeth, Maputo and Port Louis. (See reference points in map above.)
(Other South African ports of call include Richard’s Bay, East London and Mossel Bay, however from a cruise company perspective they would be second priority in terms of itinerary appeal and value for passengers.)
Outside of the peak season, world voyages and repositioning cruises sometimes include ports in Africa as embarkation or disembarkation points, Cape Town being a popular choice. December and January are particularly popular for cruises operating from South Africa.
Cruise itineraries in the Indian Ocean are the main exception, offering year-round itineraries including the Seychelles and Madagascar.
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As the majority of African cruises sail in the winter months for Europeans and North Americans, the warm temperatures and summer weather are a particular draw.
Itineraries on the African continent usually last at least 10 days, although as you’ll see below, MSC Cruises does offer shorter trips. Most cruises in Africa start or end in South Africa, typically Cape Town or Durban.
Importantly, longer world voyages (cruise itineraries over 20 nights long) often include Africa on their itineraries. Cape Town is usually a port-of-call, offering passengers a chance to experience a game reserve day trip or to include a longer visit to see the “Big Five” pre or post cruise.
CLOSE UP ON KENYA
Mombasa is a port city in Kenya (Africa's Indian Ocean coast). As one of the continent’s most popular cruise destinations with distinct geographic strengths, the city has population around 1.2 million. The port is located on a bay and features a deep-water natural harbour (Kilindini Harbour). This makes it a key seaport on the shipping trade routes between Arabia, Africa, India and the Orient.
According to the country's Tourism Cabinet Secretary, the USA has overtaken the UK as Kenya's top tourist source market. The number of tourists from India is also increasing - around 55,000 (January- October 2016). In the same period, South African tourists were around 28,000.
Mombasa is Kenya's 2nd and oldest city, which serves as a port for landlocked Uganda and north- east Tanzania, includes Old Mombasa, situated on a small offshore island, and a bigger, more modern mainland metropolitan area connected to the isle by bridge, causeway and ferries.
Kilindini Harbour is a vast, natural deep-water inlet extending inland from Mombasa. Its max draft is 55 m (180 ft) and serves as the harbour for Mombasa City, with hinterland extending to Uganda. This harbour is the main part of Port Mombasa - Kenya's only international seaport and the largest cargo port in east Africa.
Kilindini Harbour is managed by KPA (Kenya Ports Authority). Apart from cargo handling, the city of Mombasa is visited by cruise ships. "Kilindini" is an ancient Swahili term meaning "deep". The port is so named as the channel is naturally very deep. The harbour is an example of natural geographic phenomenon ("a ria") formed before millions of years when sea level rose and engulfed a river flowing from mainland Africa.
The port is visited by smaller-sized cruise vessels (passenger capacity up to 1000) usually operating on Indian Ocean itineraries. Statistics show that Kenya's record year was 2004, when the port handled a total of 42 ship calls and over 15,000 passengers. In 2013, the cruise port was visited by 6 ships, bringing around 3,000 passengers.
On October 24, 2018, Port Mombasa reported a performance record of 1450 TEUs (containers) moves within an 8-hour shift in containership handling operations. The record performance was set on port's largest box ship so far - MSC Maxine (max capacity 9411 TEUs).
Recent reports indicate that Mombasa’s new cruise terminal is ready to open this month, the first ship is due to arrive at the new cruise terminal just before Christmas (2019).
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WESTERN CAPE
Cape Town port, operated by the Transet National Ports Authority (TNPA), is only 10 minutes’ drive from the city centre and is located only 22km away from Africa's second largest airport - Cape Town International Airport. While the port’s cruise ship schedule sees vessels dock throughout the year, it is also a popular embarkation and disembarkation port of call for seasonal relocation and around the world voyages.
The port has received global recognition and was nominated for the 26th World Travel Awards in the Africa’s Leading Cruise Port category (World Travel Awards, 2019)
Current plans through the V&A Waterfront to develop the passenger terminal will likely see increased interest in Cape Town from cruise operators and tourists.
“Cape Town is fast becoming known as the ‘turn-around’ port for both inbound and outbound international arrivals and departures, and we aim to build on this success. Our objective is to become the number one port in Southern Africa for cruise liner business.” -The V&A Waterfront’s Andre Blaine, Executive Manager Marine and Industrial
In December 2015, V&A Waterfront officially signed a 20-year agreement to manage the terminal.
Upgrades to the building took place in two phases.
First, the terminal got four new walls to create an enclosed building and the ground floor was retrofitted for passengers. The retrofit included the creation of customs facilities, immigration desks, passenger infrastructure and baggage handling services.
Phase two commenced in 2017 and saw the upper level of the terminal retrofitted to create a mixed space for events, restaurants and retail tenants. The parking area was improved, and a viewing deck was opened to provide locals with a view of visiting cruise ships.
Facilities now available at the V&A Waterfront Cruise Terminal;
Immigration processes
Accessibility; wheelchair and pram friendly, Braille, Guide Dogs welcome.
Amenities; tourist information desk, restaurants, free Wi-Fi.
Parking arrangements; 150 open bays for drop and go, longer term parking also available
Coach parking
Shuttle services; available from the Silo District.
Public transport access.
In the upcoming cruise season (2020) there are 21 different ships from 11 cruise liner companies scheduled to dock at the Cruise Terminal’s E berth in Cape Town Harbour. This amounts to an expected 57 cruise ship visits this coming season, bringing hundreds of new visitors to the Western Cape. (Invest Cape Town)
Of the ships currently scheduled, these are the most popular:
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The AIDAmira, operated by AIDA Cruises, a subsidiary of Carnival Corporation. Operates 14- day cruises from Cape Town. AIDA is Germany’s largest cruise line, and as such most passengers speak German and are from a German speaking country.
The MSC Orchestra, operated by MSC Cruises. MSC Cruises departs from Cape Town on both short 4-day itineraries to Namibia, as well as Grand Voyage itineraries which connect Cape Town to Europe. While the primary market for MSC Cruises is Europeans, they are increasingly marketing to North American travellers.
Azamara Quest, operated by Azamara Club Cruises, is a smaller, luxury vessel. They run 10- day cruises along the South African coast, starting and ending in Cape Town. Worth noting that some of these voyages are themed, such as golf focused. They also use Cape Town as a starting or ending point in some of their longer voyages to/from India and Dubai.
VESSELS SCHEDULED IN CAPE TOWN 2020/2021 According to CrewCenter, the following cruise activity is scheduled for the 2020/1 cruising season:
DATE SHIP CRUISE LINE ARRIVE-DEPART GUESTS CREW 30-Dec-2019 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 31-Dec-2019 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 5-Jan-2020 Oceania Nautica Oceania Cruises 10:00-23:59 824 386 6-Jan-2020 AIDAmira AIDA Cruises 06:00-21:00 1,730 650 6-Jan-2020 Oceania Nautica Oceania Cruises 00:00-17:00 824 386 12-Jan-2020 MSC ORCHESTRA MSC Cruises 09:00-18:00 3,013 987 13-Jan-2020 AIDAmira AIDA Cruises 06:00-21:00 1,730 650 15-Jan-2020 Artania Phoenix 08:00-24:00 1,200 420 16-Jan-2020 Artania Phoenix 00:00-24:00 1,200 420 17-Jan-2020 Artania Phoenix 00:00-23:00 1,200 420 17-Jan-2020 MSC ORCHESTRA MSC Cruises 09:00-18:00 3,013 987 19-Jan-2020 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 19-Jan-2020 Oceania Nautica Oceania Cruises 14:00-23:59 824 386 20-Jan-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 20-Jan-2020 Oceania Nautica Oceania Cruises 00:00-17:00 824 386 21-Jan-2020 Azamara Quest Azamara 07:00-18:00 724 380 21-Jan-2020 MSC ORCHESTRA MSC Cruises 09:00-18:00 3,013 987 27-Jan-2020 AIDAmira AIDA Cruises 06:00-21:00 1,730 650 28-Jan-2020 Marco Polo Cruise & Maritime 07:00-19:00 850 356 29-Jan-2020 Azamara Quest Azamara 08:00-00:00 724 380 30-Jan-2020 Azamara Quest Azamara 00:00-00:00 724 380 31-Jan-2020 AIDAaura AIDA Cruises 07:00-24:00 1,687 426 31-Jan-2020 Azamara Quest Azamara 00:00-18:00 724 380 1-Feb-2020 AIDAaura AIDA Cruises 00:00-20:00 1,687 426 2-Feb-2020 Oceania Nautica Oceania Cruises 14:00-23:59 824 386 3-Feb-2020 Oceania Nautica Oceania Cruises 00:00-23:59 824 386 4-Feb-2020 Oceania Nautica Oceania Cruises 00:00-17:00 824 386
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8-Feb-2020 Azamara Quest Azamara 08:00-00:00 724 380 9-Feb-2020 Azamara Quest Azamara 00:00-00:00 724 380 10-Feb-2020 AIDAmira AIDA Cruises 06:00-21:00 1,730 650 10-Feb-2020 Azamara Quest Azamara 00:00-18:00 724 380 11-Feb-2020 Seabourn Sojourn Seabourn 0700- 540 330 18-Feb-2020 Azamara Quest Azamara 08:00-00:00 724 380 19-Feb-2020 Azamara Quest Azamara 00:00-00:00 724 380 20-Feb-2020 Azamara Quest Azamara 00:00-18:00 724 380 20-Feb-2020 Sun Princess Princess Cruises 08:00-00:00 2,272 920 21-Feb-2020 Sun Princess Princess Cruises 00:00-00:00 2,272 920 22-Feb-2020 Sun Princess Princess Cruises 00:00-18:00 2,272 920 24-Feb-2020 AIDAmira AIDA Cruises 06:00-21:00 1,730 650 9-Mar-2020 AIDAmira AIDA Cruises 06:00-21:00 1,730 650 15-Mar-2020 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 16-Mar-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 19-Mar-2020 Silver Cloud Silversea 08:30-23:59 302 217 20-Mar-2020 Silver Cloud Silversea 00:00-18:00 302 217 22-Mar-2020 Norwegian Spirit NCL 07:00-16:00 2,414 1,125 23-Mar-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 29-Mar-2020 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 30-Mar-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 31-Mar-2020 Queen Mary 2 Cunard Line 2,800 1,253 1-Apr-2020 Queen Mary 2 Cunard Line 2,800 1,253 2-Apr-2020 Queen Mary 2 Cunard Line 2,800 1,253 2-Apr-2020 Pacific Princess Princess Cruises 08:00-00:00 824 373 3-Apr-2020 Pacific Princess Princess Cruises 08:00-23:00 824 373 4-Apr-2020 Pacific Princess Princess Cruises 05:00-23:00 824 373 5-Apr-2020 MSC ORCHESTRA MSC Cruises 09:00-18:00 3,013 987 6-Apr-2020 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 7-Apr-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 8-Apr-2020 Oceania Insignia Oceania Cruises 13:00-23:59 824 400 9-Apr-2020 Oceania Insignia Oceania Cruises 00:00-18:00 824 400 10-Apr-2020 MSC ORCHESTRA MSC Cruises 09:00-18:00 3,013 987 14-Apr-2020 MSC ORCHESTRA MSC Cruises 09:00-18:00 3,013 987 18-Apr-2020 AIDAmira AIDA Cruises 08:00-18:00 1,730 650 21-Apr-2020 Amsterdam Holland America 08:00-23:59 1,653 600 22-Apr-2020 Amsterdam Holland America 00:00-23:00 1,653 600 21-Oct-2020 AIDAmira AIDA Cruises 08:00-18:00 1,730 650 1-Nov-2020 AIDAmira AIDA Cruises 08:00-24:00 1,730 650 2-Nov-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 9-Nov-2020 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 10-Nov-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 15-Nov-2020 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 16-Nov-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 23-Nov-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 24-Nov-2020 Amsterdam Holland America 08:00-23:59 1,653 600
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25-Nov-2020 Amsterdam Holland America 00:00-23:00 1,653 600 29-Nov-2020 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 30-Nov-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 30-Nov-2020 Mein Schiff Herz TUI Cruises 08:00-24:00 2,669 900 1-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-24:00 2,669 900 2-Dec-2020 Azamara Journey Azamara 07:00-18:00 724 380 2-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-23:00 2,669 900 3-Dec-2020 Boudicca Fred. Olsen 926 320 7-Dec-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 Seven Seas 7-Dec-2020 Voyager Regent Seven Seas 13:00-23:59 752 445 7-Dec-2020 Mein Schiff Herz TUI Cruises 08:00-24:00 2,669 900 Seven Seas 8-Dec-2020 Voyager Regent Seven Seas 00:00-17:00 752 445 8-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-24:00 2,669 900 9-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-23:00 2,669 900 10-Dec-2020 Azamara Journey Azamara 08:00-00:00 724 380 11-Dec-2020 Azamara Journey Azamara 00:00-00:00 724 380 11-Dec-2020 MSC Opera MSC Cruises 09:00-16:00 2,679 730 12-Dec-2020 Azamara Journey Azamara 00:00-18:00 724 380 12-Dec-2020 MSC Opera MSC Cruises 09:00-16:00 2,679 730 13-Dec-2020 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 14-Dec-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 14-Dec-2020 MSC Opera MSC Cruises 09:00-16:00 2,679 730 15-Dec-2020 Mein Schiff Herz TUI Cruises 08:00-24:00 2,669 900 16-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-24:00 2,669 900 17-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-23:00 2,669 900 19-Dec-2020 MSC Opera MSC Cruises 09:00-16:00 2,679 730 20-Dec-2020 Azamara Journey Azamara 08:00-00:00 724 380 21-Dec-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 21-Dec-2020 Azamara Journey Azamara 00:00-00:00 724 380 21-Dec-2020 MSC Opera MSC Cruises 09:00-16:00 2,679 730 22-Dec-2020 Azamara Journey Azamara 00:00-18:00 724 380 Seven Seas 22-Dec-2020 Voyager Regent Seven Seas 06:30-17:00 752 445 22-Dec-2020 Mein Schiff Herz TUI Cruises 08:00-24:00 2,669 900 23-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-24:00 2,669 900 24-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-23:00 2,669 900 26-Dec-2020 MSC Opera MSC Cruises 09:00-16:00 2,679 730 27-Dec-2020 AIDAmira AIDA Cruises 16:00-24:00 1,730 650 28-Dec-2020 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 29-Dec-2020 Mein Schiff Herz TUI Cruises 08:00-24:00 2,669 900 30-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-24:00 2,669 900 31-Dec-2020 Azamara Journey Azamara 08:00-00:00 724 380 31-Dec-2020 Mein Schiff Herz TUI Cruises 00:00-19:00 2,669 900 2-Jan-2021 MSC Opera MSC Cruises 09:00-16:00 2,679 730
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4-Jan-2021 AIDAmira AIDA Cruises 00:00-21:00 1,730 650 4-Jan-2021 MSC Opera MSC Cruises 09:00-16:00 2,679 730 5-Jan-2021 Mein Schiff Herz TUI Cruises 08:00-24:00 2,669 900 6-Jan-2021 Mein Schiff Herz TUI Cruises 00:00-24:00 2,669 900 8-Jan-2021 MSC Opera MSC Cruises 09:00-16:00 2,679 730 23-Apr-2021 Seabourn Sojourn Seabourn a0:800): 540 330
In addition to increased visitors to Cape Town, cruise ships also contribute to the greater regional economy. Main revenue stems from crew and passenger onshore spending, shore excursions and tours, but also in-port spending from the cruise companies themselves.
Many foreign crew disembark in Cape Town and return home, they are then replaced by South African crew.
The ships need to be restocked, and supplies such as food, wines, and flowers are purchased locally.
Ships sometimes require maintenance, providing additional employment opportunities for workers such as ship builders, welders, and electricians.
CONSIDERATIONS WHEN EVALUATING CAPE TOWN CRUISE GROWTH
All said, to develop Cruise Tourism as a platform for incremental tourism economic and social impact requires careful evaluation from both passenger and cruise company perspective, with attention to local / regional differences across the cruising world.
From a PASSENGER perspective, one must take into account:
. VACATION DAYS - With greater distances involved, African cruises typically cover more ground and are rarely less than 10 days long - it’s not uncommon to see sailings lasting 20 days. For American travellers this may pose a problem, as they are much more limited with their vacation days than the European traveller.
. PAPERWORK - travellers will of course need a passport when embarking on a cruise, with different visa regulations impacting passengers from diverse home nations. If the Western Cape is wanting to invest in Cruise Tourism, cooperation with travel companies and cruise liners is required to effectively and efficiently manage mobility countries for the traveller.
. SAFETY - Travellers need to know and trust that visiting Cape Town that their welfare is of the highest priority to the region, whether they visit for a day or longer period pre/post cruise. The Western Cape must ensure that they combat negative perceptions in all aspects of their tourism marketing and PR, as well as through travel travel advocates, while also providing easily accessible resources should incident occur.
. CORE VALUES - destinations that want to develop cruise tourism have to make sure they maintain the core natural and cultural values of their destination. It is vital to develop policies that safeguard their nature and culture and that limit potential negative impacts.
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Impacts to a destination’s cultural heritage generally result from poor management of the large-scale visitation in finite periods. Local communities and traditional cultures may be impacted, especially in rural areas where their intangible heritage forms an attraction, despite their not wanting to interact with cruise passengers. Resulting host community agitation from large visitor flows causing wear and tear on infrastructure, facilities, attractions and sites must be prevented as a matter of priority.
Critically, from a CRUISE LINER perspective, careful consideration must be taken as regards demands and expectations of cruise companies as, as with airlines, to port in a destination requires incentivisation and /or infrastructure provision.
Consideration in port adoption onto itineraries looks not only at hard infrastructure – both operational and legal imperatives of port stays, but also pure destination port appeal and opportunities for cruise companies to market and benefit from complementary activity.
As expressed by AccessCruise.com:
“to attract the cruise lines remember it’s more than just a nice new terminal. The larger lines with the bulk of the ships need more. They look at destination desirability, port satisfaction and port value (cost vs. revenue). It’s a blend of these items”.
What must therefore be considered is,:
“1. What are you doing to market the destination and how can the cruise lines benefit? Is your destination known and desirable?
2. What is the impression of the destination for the guests that want to explore independently?
3. What incentives can you offer the cruise lines and what kind of revenue will they make in port i.e. Shore Excursions
4. Can you make any guarantees? Essentially, can you take some of the risk out of trying your destination for the cruise line?
So, if you build it will they come? Not necessarily. There is much more work to be done once you have a pier and terminal in delivering a positive and profitable destination for the cruise industry.”
APPROACH TO GROWTH
Incremental investment into Cruise Tourism can come through:
1. incremental cruise ship activity, and/or
2. adoption of approaches that can effectively maximise diversity of economic spread, both in terms of:
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. opportunities for supply chain replenishment while in port,
. portfolio of offerings and geographic outreach beyond the immediate port location.
In the context of Cape Town, the province’s primary and priority port of interest for cruise ship operators, it is critical to take into consideration opportunities versus risks as a result of:
. limited cruising season per annum,
. limited time in-port condensing opportunities for local experience exposure,
. limitations to onboard supply replenishment and servicing,
. limitations on land-based connectivity from port to other key points of interest, and when exploring development potential of leverage of cruise activity for:
. uplifting and upscaling of SMME network of operations for product and service delivery in eg. retail and food & beverage concessions,
. opportunities for excursions beyond the port that enable passengers to venture beyond the city centre, including the Cape Winelands, Hermanus whale region, Cape Point, etc, and importantly,
. local community interaction with passengers and crew.
In closing, ultimately maximisation of cruise sector growth opportunity goes far beyond elevating ship arrivals in-port during limited cruise seasons.
Rather it is about strategically designed and directed development of offerings in products and experiences, through:
. direct cooperation with cruise companies and related tour operators to enable access to passengers as consumer audiences,
. working with the cruise lines to encourage port excursions that enable spend in local attractions with community-based focus,
. spreading the economic impact beyond onboard shops and immediate port locations for retail and food & beverage, all while,
. maximisation of terminal facilities year-round for non-ship dependent destination promotion, land-based experience activation and ongoing revenue generation.
- ENDS -
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