Asia Cruise Trends 2014 Edition
Prepared by: Research, analysis, and design by: About Cruise Lines International Association (CLIA) – One Industry, One Voice Celebrating its 40th Anniversary in 2015, Cruise Lines International Association (CLIA) is the unified voice and leading authority of the global cruise community. As the largest cruise industry trade association with 15 offices globally, CLIA has representation in North and South America, Europe, Asia and Australasia. CLIA’s mission is to support policies and practices that foster a safe, secure, healthy and sustainable cruise ship environment for the more than 23 million passengers who cruise annually, as well as promote the cruise travel experience. Members are committed to the sustained success of the cruise industry and are comprised of the world’s most prestigious ocean, river and specialty cruise lines; a highly trained and certified travel agent community; and other cruise industry partners, including ports, destinations, ship developers, suppliers, business services and travel operators. For more information, visit www.cruising.org, www.cruiseforward.org or follow Cruise Lines International Association on the CLIA Facebook and Twitter fan pages.
Contact Information: CLIA Headquarters 1201 F Street, Suite 250 Washington, D.C. 20004 (202)759-9370
About CHART Management Consultants CHART assists senior management to understand complex issues, to develop strategic solutions to problems and to devise innovative approaches to capitalizing on the growth of the cruise industry. The firm brings unique experience, analytical rigour, strong communication and implementation skills and exceptional client service to every project.
CHART’s clients span the globe. In recent years the firm’s focus has moved more to Asia and the Pacific. The firm created the strategy for Papua New Guinea, resulting in many cruise ships now visiting its ports and island destinations. CHART designed and delivered both the 2013 Asia Cruise Association White Paper and the current CLIA Asia Cruise Trends project. It recently also conducted the Pacific Cruise Market Research and Intelligence project.
CHART Principal, Ted Blamey, a Harvard MBA and McKinsey and Co. consultant was appointed Managing Director Sitmar Cruises Australasia at age 33 and global President/CEO 8 years later. After initiating the first cruise industry consolidation by sale of Sitmar to P&O/Princess he served as Port Authority Chair and Retail Travel Group CEO. He founded CHART in 1997. CHART’s Associates have all held senior executive positions in cruise lines. Website: www.CHARTmgmtconsultants.com
Released April 2015
2 TABLE OF CONTENTS
SECTION PAGE
INTRODUCTION 4
KEY FINDINGS 5
CAPACITY 7
DESTINATIONS 12
SOURCE MARKETS 28
APPENDIX 43
3 INTRODUCTION
The cruise industry in Asia is growing rapidly. As many cruise lines deploy more capacity to the region, including some of the most modern cruise ships, cruise lines and industry stakeholders need to understand the trends, monitor guest source markets and the overall potential for cruise tourism growth. To achieve this goal, Cruise Lines International Association Southeast Asia commissioned CHART Management consultants to undertake an in-depth market analysis of Asia Cruise Trends.
With the collaboration of 13 international and regional cruise brands, which account for nearly 90 percent of regional capacity, this project set out to study the ocean cruise segment (2+ nights) and accomplish key objectives:
• Provide industry stakeholders with actionable, meaningful information, in particular – Develop trending data on key drivers of cruise activity such as capacity, deployment, and destinations – Compile data on the size of Asia guest source markets
• Provide a tool to work with governments and the private sector to identify the longer-term benefits for local economies and specifically to – Assist authorities in forming cruise industry-specific policies and regulations – Provide analysis to inform investment and infrastructure decisions
The following report outlines capacity and destination trends between 2013 and 2015, based on planned itineraries for 2015. Key capacity metrics, like ship counts, cruises, operating days and passenger capacity, are analyzed. Additional destination metrics such as port calls and passenger destination days describe the deployment trends.
It also provides an historical overview of passenger source volume from 12 Asian markets between the 2012 and 2014 travel years, reviewing metrics such as passenger source volume, types of cruises and ship segments selected, length of cruises taken, destinations visited, and passenger ages.
As Asia is a rapidly growing and dynamic market, three-year trends are typically analyzed using a compound annual growth rate to identify underlying trends against the year over year variability in markets.
Throughout this report, and consistent with the 2013 Asia White Paper all analysis and information exclude one-night cruises.
4 KEY FINDINGS
THE TRENDS
Cruise tourism in Asia is growing at double-digit rates – both in capacity deployed in the region and as a passenger source market.
• Between 2013 and 2015, cruise capacity has increased across all metrics. • The number of ships deployed in Asia grew at a 10 percent compound annual growth rate. • Similarly, the volume of cruises and voyages within and through Asia increased 11 percent. • Operating days expanded 16 percent. • Passenger capacity in Asia increased 20 percent.
Global deployment patterns have shifted in favor of Asia. • Asia had the greatest gain in share of global capacity deployment (2.4 percentage points) among all regions. • Asia ascended from seventh to fourth in ranking of share of available bed days between 2013 and 2015.
The cruise industry is bringing more cruise visits to destinations in Asia. • There will be 980 more port calls in 2015, an increase of 34 percent in absolute volume from 2013. • Destinations with the greatest growth in total port calls are Japan and Malaysia, with 238 and 197 additional calls, respectively. Other destinations with total port call growth include Hong Kong (101), Singapore (84), and South Korea (68).
As a source market for cruise tourism worldwide, the absolute volume of cruise travelers sourced from Asia has nearly doubled since 2012. • Between 2012 and 2014, passenger volume grew from 775,000 to nearly 1.4 million passengers, a 34 percent compound annual growth rate. • China is a main driver of passenger growth in Asia, adding 480,000 more cruise travelers since 2012 – a nearly 80 percent compound annual growth rate. • Other markets with leading, double-digit growth include Hong Kong (74 percent), India (36 percent), Japan (20 percent), and Taiwan (14 percent).
Among the nearly 1.4 million cruise passengers from Asia, China accounted for nearly half of the regional passenger volume in 2014. • An estimated 679,000 passengers came from mainland China compared to 700,000 sourced from the rest of Asia. • Other leading source markets include Singapore (163,000), Taiwan (137,000), and Japan (119,000).
5 KEY FINDINGS
Asia cruise passengers travel close with short sailings. • The majority (91 percent) of Asian cruisers sailed within the region in 2014. • Europe (60 percent) was the leading destination among the long-haul cruisers that sailed outside of Asia, followed by Alaska/Canada/New England (20 percent) and Caribbean/Western U.S./Hawaii (14 percent) destinations. • The majority (84 percent) sailed on the Contemporary ship segment followed by the Premium/Upscale segment (15 percent). • Shorter sailings were more likely, with the greatest share of passengers sailing 4 to 6 nights (48 percent) followed by 2 to 3 nights (38 percent).
THE 2015 OUTLOOK
The momentum of cruise tourism continues with 26 brands serving the market in 2015. • 52 ships will be deployed. • More than 1,000 cruises and voyages are scheduled. • Passenger capacity is estimated at more than 2 million.
In 2015, there will be variation in the ship product mix. • Most ships will be mid-size with 22 deployed in 2015. • Small ships will be seen in the market with 14 deployed. • Large (10) and mega ships (1) will also host passengers. • The Expedition niche will have 5 ships deployed.
Asia to Asia cruises and short sailings will dominate itineraries in 2015. • 981 cruises are scheduled followed by 86 voyages through the region. • The majority of cruises will be 2-3 night (48 percent) and 4-6 night (37 percent) cruises.
The cruise industry will have a potential to bring 7 million passenger destination days across local communities in the region. • With nearly 4,000 port calls scheduled, itineraries will touch 168 destinations across 19 markets. • Japan and Malaysia will welcome the most port calls, 646 and 580 respectively. • Top ports with over 200 total calls in 2015 include Singapore (374), Jeju Island, South Korea (217), and Hong Kong (200). • In terms of potential for tourist visits, Japan and Korea will host the most passenger destination days with approximately 1.2 million passengers scheduled in each market.
6 CAPACITY
The prospects and opportunities for cruise tourism in Asia are inspired by the notable growth in travel volume sourced from countries across the region. To illustrate, based on World Tourism Organization statistics , outbound tourism from China grew nearly 20 percent annually between 2009 and 2013.
The cruise industry has taken action with a noticeable growth in capacity to the region. Between 2013 and 2015, the number of ships deployed in Asia grew at a 10 percent compound annual rate, followed by an 11 percent increase in the volume of cruises and voyages. With an added 16 percent increase in operating days, passenger capacity increased 20 percent.
With a focus on increasing capacity in Asia, global deployment patterns have shifted – Asia had the greatest gain in global share of available bed-days (2.4 percentage points) among all regions and ascended from seventh to fourth in ranking between 2013-2015.
The intent, among the study group, is to deploy 26 brands between 2014 and 2015, accounting for 52 ships in 2015. These brands will provide 1,065 cruise products (981 Asia-to-Asia cruises and 84 voyages). Overall, there is a planned capacity for 2.17 million passengers in 2015.
7 Capacity: 2015 Outlook
In 2015, 52 ships are scheduled to sail in Asian waters with a variety of product offerings. Mid-sized ships will Ships in Asia by Size, 2015 account for most of the fleet (22 ships) followed by 14 52 small ships and 10 large ships. An additional five expedition ships and one mega ship will host passengers 22 in 2015. 14 10 5 1 Cruise lines will cater mainly to the premium and contemporary segments with 10 lines in the Asia market. Another seven cruise lines will be in upscale followed by four luxury lines and four expedition lines.
The vast majority of cruises scheduled are within the Cruise Ship Segments, 2015 region with 981 Asia-to-Asia itineraries and a smaller Cruise Ship Segment # Lines volume of longer voyages (84) that touch the region at some point in the itinerary. In total, 1,065 cruises are Premium & Contemporary 10 scheduled in 2015. Upscale 7
Short cruises will dominate the itineraries in Asia. Cruises Luxury 4 of 2-3 nights will account for the highest share of all Expedition 4 cruises, 43 percent, followed by 4-6 night offerings representing 37 percent of all cruises.
Cruises Offered by Type, 2015 The allocation of ships and cruise itineraries will result in 5,824 operating days in Asia for 2015 providing a total Total capacity for 2.17 million passengers. 1,065 Asia-Asia 981
Voyages 84
Length of Cruises Offered, 2015
0%
40% 34% 1% 7% 3% 4% 2% 8%
2-3 nights 4-6 nights 7 nights 8-10 nights 11-13 nights 14 nights 15-19 nights 20+ Voyages
The allocation of ships and cruise itineraries will result in Capacity Summary: 2015 5,824 operating days in Asia for 2015 providing a total capacity for 2.17 million passengers. Ships 52
Cruises & Voyages 1065 Operating Days 5824 Passenger Capacity (millions) 2.17
8
Capacity: 2015 Outlook, Brand Deployments
In 2015, 26 brands will offer cruise products in the Asia region. Star, Costa, and Royal Caribbean will host the greatest share of sailings, 33 percent, 20 percent and 16 Cruise and Voyages Offered in Asia by Top 10 Brands: 2015 percent respectively, and will also lead in the number of Asia-Asia Asia-to-Asia itineraries. In the voyage space, Princess will Brand cruises Voyages Total Sailings offer the greatest volume of long-haul cruises, scheduling Star 352 352 18 through the region. Costa 211 4 215 RCI 166 7 173 Princess 73 18 91 Regional cruise lines will be more likely to offer short NYK 46 2 48 duration cruises. On average, Star and NYK will offer the Celebrity 26 5 31 shortest duration cruises, 2.5 and 3.9 nights respectively. Silversea 18 3 21 Alternatively, Oceania and Regent 7 Seas will offer the Holland America 10 6 16 longest cruises with 17.3 and 17.0 nights on average. Windstar 12 2 14 Oceania 6 8 14 With planned passenger capacity up to 2.17 million passengers, Costa will have the ability to host the greatest share of passengers in Asia, accounting for nearly 29 percent of passenger capacity. Royal Caribbean and Star brands will follow with over 25 percent each. Avg Length of Cruise (nights)
Oceania 17.3
Regent 7 Seas 17 Hapag-Lloyd 16 Holland America 14 Share of Passenger Capacity, 2015 AIDA 14 Azamara 13.6 NYK Asuka II, Other, 5.0% Seabourn 13.3 1.9% Voyages to Antiquity 12.8 Celebrity, Lindblad Orion 12.6 3.0% Silversea 11.4 Princess, Crystal 11 10.5% Costa, 28.7% Celebrity 10.2 Windstar 10.2 Silversea Expedition 10 Ponant 9 Star, 25.2% Princess 6.4 Royal Caribbean International 5.2 RCI, 25.6% Costa 4.1 NYK Asuka II 3.9 Star 2.5
Costa RCI Star Princess Celebrity NYK Asuka II Other
9 Capacity: Trends
Between 2013 and 2015, cruise industry capacity had Cruise Ships Deployed by Type, Asian Region double-digit growth across all capacity metrics. The volume of ships deployed grew 10 percent annually from Expedition Small Midsize Large Mega Total 43 ships in 2013 to 52 in 2015, expanding across all ship 2013 2 14 19 8 0 43 size categories. 2014 5 15 21 9 0 50 2015 5 14 22 10 1 52 Sailings in and through Asia had strong growth, increasing 11 percent annually from 861 cruises and voyages in 2013 to 1,065 in 2015. Both cruise types drove the overall Cruise Activity in Asia, Total Cruises growth with Asia-to-Asia cruises increasing 10.6 percent and voyages increasing 19 percent, annually. 970 1065 861 While the short cruises dominate itineraries, the mix of cruise durations has shifted slightly. Cruises of 4-6 nights grew the most, increasing from 263 sailings in 2013 to 367 in 2015, followed by longer 8-10 night cruises, up from 36 to 71. 2013 2014 2015
Duration of Cruise (nights)
2015 40% 34% 1% 7% 3% 4% 2% 8%
2014 44% 29% 3% 6% 4% 5% 2% 6%
2013 46% 31% 1% 4% 3% 6% 2% 7%
2 to 3 4 to 6 7 8 to 10 11 to 13 14 15 to 19 20+
These product trends brought operating days up 16.3 percent annually from 4,307 operating days in 2013 to 5,824 in 2015. Overall, the opportunity to host passengers in Asia grew 20 percent in this timeframe, from a passenger capacity of 1.51 million in 2013 and exceeding the two million mark in 2015 (2.17 million).
Capacity Growth 2013-2015
Operating Days Passenger Capacity (millions) 5824 6000 2.3 5276 5500 2.1 2.17 5000 1.9 4307 4500 1.7 1.81 4000 1.51 1.5 2013 2014 2015 10 Capacity: Trends by Brand
The growth in total sailings in the region has been driven by many international brands. While Star hosts the largest Asia to Asia Cruises by Top 5 Brands number of Asia-to-Asia cruises, the volume of scheduled cruises decreased from 420 in 2013 to 352 in 2015. Brand 2013 2014 2015 Conversely, international brands Costa and Royal Star 420 365 352 Caribbean increased their number of sailings. In 2013, Costa had 116 scheduled Asia-to-Asia cruises with an Costa 116 169 211 increase to 211 in 2015. Similarly, Royal Caribbean Royal Caribbean International 106 120 166 increased Asia-to-Asia cruise volumes from 106 to 166 in the same timeframe. The Princess brand also had notable Princess 5 86 73 growth in regional cruises, starting from 5 in 2013 to 73 in 2015. NYK Asuka II 47 42 46
While voyages comprise a smaller portion of Asia cruises, three brands had notable growth in voyages through the region. Princess increased Asia voyages from 11 to 18, Voyages through Asia by Top 5 Brands followed by Oceania and Royal Caribbean which added 6 and 3 more voyages over the 2013-2015 timeframe. Brand 2013 2014 2015 Princess 11 14 18 In terms of passenger capacity trends, leading brands with greatest capacity had mixed patterns. Star reduced Oceania 2 3 8 capacity 11 percent annually, from 688,000 passengers to Royal Caribbean International 4 1 7 545,000 in 2015. Meanwhile, the Costa and Royal Caribbean brands increased passenger capacity 44.5 Holland America 5 5 6 percent and 29.8 percent, respectively. Silversea 6 8 6
Passenger Capacity By Top 5 Brands
Brand 2013 2014 2015 Star 688,178 577,198 545,376 Costa 297,364 431,722 620,440 Royal Caribbean International 328,674 376,794 553,870 Princess 33,044 239,020 228,010 Celebrity 28,418 44,384 65,106
11 CRUISE DESTINATIONS
The expansion of cruise capacity naturally impacts the volume of visits across destinations in Asia. Between the 2013- 2015 study timeframe, 980 more port calls were added in the region. Destinations benefiting from this trend includes Japan, with 238 more calls, and Malaysia, with 197 more calls since 2013.
In 2015, cruises will visit 168 destinations across 19 countries. Japan will welcome the most port calls, hosting 646 total calls. Malaysia follows and will welcome 580 total calls . Top ports include Singapore (374), Jeju Island, South Korea (217), and Hong Kong (200). In total, 2015 will bring 3,909 total port calls to Asia.
The cruise industry activity in 2015 will also have a positive impact by bringing passengers to destinations across the region. With the combination of added ships, volume of cruises, and length of port call visits, the cruise industry will bring 7 million passenger destination days to localities across Asia.
12 Cruise Destinations: Regional Overview, Continued
The volume of total port calls planned throughout Asia in 2015 will reach 3,909 calls. Since 2013, port calls Growth in Total Port Calls increased 34 percent with an influx of calls in 2014 30% 34% (increasing 30 percent) and a 4 percent increase scheduled in 2015. The moderation in 2015, versus 2014, 4% was driven by deployment changes of two lines - Star cruises moving capacity out of East Asia for 2015, and Princess Cruises redeploying from East to Southeast Asia 2013 vs 2014 2014 vs 2015 2013 - 2015 cagr and reducing overall Asian presence in 2015.
Most recently in 2014, the key countries hosting port calls were led by Japan, with 626 total calls, Malaysia, and South Korea with over 400 calls. (Fig 2). Singapore, Shanghai, and Jeju Island, South Korea led in total port Top 10 Countries by Total Port Calls, 2014 calls, each hosting over 200 calls in 2014. Japan 626 In terms of turnaround ports, Singapore and Shanghai had Malaysia 505 the most turnaround calls, hosting 267 and 202, South Korea 417 respectively. Ho Chi Minh City, Vietnam, Hong Kong, and Singapore greeted the most overnight calls, all receiving China 390 between 40-50 calls in 2014. Vietnam 363
Overall, with 3,814 calls in 2014, the cruise industry Singapore 335 brought 6.5 million passenger destination days to the Asia Thailand 293 region, concentrated mostly in the East Asia region which Taiwan 235 led in hosting the most port calls and passenger destination days.. Hong Kong 184 Indonesia 176
Top 10 Ports by Total Port Calls, 2014
Singapore 335 Baoshan/Shanghai 254 Jeju Island 218 Key Destination Metrics by Region, 2014 Hong Kong 184 Passenger Georgetown/Penang 183 Destination Days Keelung/Taipei 147 Ports Calls (000s) Patong Bay/Phuket 115 East Asia 60 1,853 3,935 Ho Chi Minh City 111 Southeast Asia 63 1,768 2,413 Pusan/Busan 108 South Asia 17 193 159 Halong Bay/Hanoi 108 Total Asia 140 3,814 6,508
13 Cruise Destinations: Regional Overview
2015 Outlook Top 10 Markets by Total Port Calls, 2015 Primary countries set to host the greatest volume of calls Outlook in 2015 include Japan, Malaysia, South Korea, Singapore, and Thailand, all planning to receive over 300 calls. Japan 646
Similarly, 9 ports in Asia will host over 100 total calls. Malaysia 580 Singapore is scheduled to have the most total calls, South Korea 377 reaching 374, with Jeju Island, South Korea, ranking second, 217. Hong Kong and Shanghai follow in ranking Singapore 374 with 200 and 183 total calls, respectively. Thailand 374
There will be 30 turnaround ports, with Singapore hosting Vietnam 316 the vast majority (308). Shanghai and Hong Kong will also China 300 host a notable volume with 143 and 142 turnarounds scheduled, respectively. Hong Kong 200
Indonesia 196 Overnight calls are scheduled across 37 ports in 2015. Yangon, Myanmar will host the most overnight calls (48), Taiwan 175 followed by Singapore (41), Phu My/Ho Chi Minh City, Vietnam (38), Hong Kong (37) and Laem Chabang/Bangkok, Thailand (36). Top 10 Ports by Total Port Calls, 2015 Outlook Overall, port calls will shift and be concentrated in the Southeast Asia region, accounting for 50 percent of all Singapore - Singapore 374 calls. Yet, East Asia will continue to host the most passenger destination days. In terms of cruise passenger Jeju Island - South Korea 217 potential, the region is set to host 7 million passenger Hong Kong - China 200 destination days in 2015, an eight percent increase over 2014. Baoshan/Shanghai - China 183
Georgetown/Penang -… 177
Patong Bay/Phuket -… 140
Port Klang/Kuala Lumpur -… 131
Keelung/Taipei - Taiwan 130
Phu My/Ho Chi Minh City -… 130
Key Destination Metrics by Region, 2015
Ports Calls Passenger Destination Days (000s) East Asia 95 1,698 3,895 Southeast Asia 61 1,973 2,885 South Asia 12 238 225 Total Asia 168 3,909 7,005
14 East Asia Cruise Destination: China
China, as a destination, is scheduled to welcome 300 port calls in 2015. While over half of the calls will be turnaround (177 calls), 96 transit calls are also scheduled. This will bring a potential for 807,000 Passenger Destination Days to the market.
Growth Trends: • While China, as a source market, remains the growth powerhouse for the Asian Cruising economy, as a destination cruise calls shifted away in 2015. Total calls declined by 23 percent in 2015 relative to 2014, reflecting both the strong capacity growth in 2014, and deployment adjustments in 2015. • In absolute volume, there was a 6 percent growth in China port calls over the 2013-2015 period, for a combined annual growth rate of 3 percent.
2015 Outlook Top Ports 2015 2015 Port Calls Transit Turnaround Overnight 300 Hong Kong 21 142 37 177 96 Baoshan/ Shanghai 22 143 18 27 3 33 5 Tianjin / Beijing Overnight Turnaround Transit Total 25 - 3 Xiamen 2015 Passenger Destination Days (000s) 26 - - Hainan / Sanya 181 11 - - Transit Hainan / Haikou 807,000 Turnaround 8 - - Total PDDs 604 Overnight Dalian 21
Growth Trends 2013-15 Growth Trends: Port Calls (CAGR, Total Growth Rate) China: Yr-Yr Growth Rate Port Calls
38% 34%
38% 16% 17%
-23% 3% 6% 2014 growth 2015 growth CHINA ALL ASIA EAST ASIA
2 year cagr 2 yr % growth 15 East Asia Cruise Destination: Hong Kong
When compared to ports in mainland China, Hong King is expected to lead in the volume of total port calls, with 200 calls in 2015 scheduled to date. Mainly a turnaround port, accounting for 70 percent of call volume, the destination will host up to 389,000 Passenger Destination Days in 2015.
Growth Trends: • Destination port call volume is anticipated to grow 9 percent in 2015 • Since 2013, Hong Kong had a 102 percent growth in the absolute volume of calls , for a combined annual growth rate of 42 percent.
2015 Outlook Top Ports 2015: China Port Calls in 2015 200 Transit Turnaround Overnight
142 Hong Kong 21 142 37
37 Baoshan/ Shanghai 21 22 143 18 3 33 5 Tianjin / Beijing Overnight Turnaround Transit Total 25 - 3 2015 Passenger Destination Days (OOOs) Xiamen 26 - - Hainan / Sanya 46 Transit 11 - - 389,000 Turnaround Hainan / Haikou Total PDDs 286 8 - - Overnight Dalian 57
Growth Trends 2013-2015 Growth Rate Trends: Port Calls (CAGR, Total Growth) Hong Kong: Yr-Yr Growth Rate Port Calls
102%
85% 42% 34% 38% 16% 17%
9% HONG KONG ALL ASIA EAST ASIA
2014 growth 2015 growth 2 year cagr 2 yr % growth 16 East Asia Cruise Destination: Japan
To date, Japan will have the most scheduled port calls in 2015 among all Asia markets, with 646 total calls scheduled. Predominantly transit calls (550), these visits will result in a potential for over 1.2 million Passenger Destination Days in the market.
Growth Trends: • In 2015, Japan will keep pace with the average port call growth across the entire Asia region, while call volume contracts in the East Asia sub-region. • Since 2013, there was 72 percent absolute growth in Japan port calls, for a combined annual growth rate of 31 percent.
2015 Outlook Top Ports (Total Calls) 2015 2015 Port Calls Fukuoka 89 646 550 Naha / Okinawa 68 Ishigaki 66 22 74 Yokohama / Tokyo 58 Nagasaki 55 Overnight Turnaround Transit Total Calls Kobe 39 Hakata/ Fukuoka 36 2015 Passenger Destination Days (000s) Yonaguni 30 Kagoshima 15 25 Hiroshima 14 110 Overnight Sakaiminato 14 1,227,000 Turnaround Osaka 13 Total PDDs Transit Aomori 11 1092 Hakodate 11
Growth Trends 2013-2015 Growth Rate Trends: Port Calls Japan: Year-over-year Growth Rate (CAGR, Total Growth)
58% 72%
38% 31% 34% 9% 16% 17%
2014 growth 2015 growth JAPAN ALL ASIA EAST ASIA 2 year cagr 2 yr % growth 17 East Asia Cruise Destination: South Korea
In 2015, South Korea is anticipated to remain predominantly a transit destination with 364 transit calls out of 376 total calls scheduled. The destination is scheduled to host over 1.1 million Passenger Destination Days in 2015.
Growth Trends: • The East Asia sub-region is scheduled to have modest decline of port call volume in 2015, similarly, South Korea is slated to experience a 10 percent drop in port calls over 2014. • Since 2013, there was an absolute increase of 22 percent in total port calls to South Korea, giving the destination a combined annual growth rate of 11 percent.
2015 Outlook Top Ports 2015 2015 Port Calls 364 376 Transit Turnaround Overnight
209 - 8 Jeju Isl 12
Overnight Turnaround Transit Total 85 - 4
2015 Passenger Destination Days (OOOs) Incheon / Seoul
Transit 70 1 1,147,000 Turnaround - Total PDDs 1,041,696 Overnight Pusan/ Busan 24,740 65,338
Growth Trends 2013-2015 Growth Rate Trends: Port Calls South Korea: Yr-Yr Growth Rate Port Calls (CAGR, Total Growth) 35% 38% 34%
22% 16% 17% 11% 2014 growth 2015 growth SOUTH KOREA ALL ASIA EAST ASIA -10% 2 year cagr 2 yr % growth 18 East Asia Cruise Destination: Taiwan
In terms of call activity, Taiwan is diversified among transit and turnaround port calls and is scheduled to welcome 175 total calls in 2015. Keelung/Taipei will lead in port calls, with 84 percent of calls scheduled in Taiwan. The destination will host 325,000 Passenger Destination Days in 2015.
Growth Trends: • With a 50 percent rise in call volume to Taiwan in 2014, itinerary plans in 2015 result in a 25 percent reduction of calls. • Longer-term growth trends reveal that, in absolute volume, port calls to Taiwan grew 12 percent since 2013, for a combined annual growth rate of 6 percent.
2015 Outlook Top Ports 2015 2015 Port Calls Transit Turnaround Overnight 175
96 75 Keelung / Taipei 33 94 3
4 24 1 2 Overnight Turnaround Transit Total Kaohsiung
2015 Passenger Destination Days (000s) 8 - - Hualien 168 Transit 325,000 Total Turnaround 7 - - PDDs 148 Overnight Taichung 8
Growth Trends 2013-2015 Growth Rate Trends: Port Calls Taiwan: Yr-Yr Growth Rate Port Calls (CAGR, Total Growth)
38% 34%
50% 17% -25% 16% 12% 6% 2014 growth 2015 growth TAIWAN ALL ASIA EAST ASIA
2 year cagr 2 yr % growth
19 Southeast Asia Cruise Destination: Cambodia
Cambodia’s 34 transit (and total) port calls and 47,000 Passenger Destination Days in 2015 were a part its strong two year growth in cruising. Port calls remain a transit operation.
Growth Trends: • Beginning from a small base, 2015 will reverse a reduction in call volume to the destination in 2014 and double volume in 2015. • Since 2013, absolute port call volume grew 113 percent in Cambodia over the 2013-2015 period, for a combined annual growth rate of 46 percent.
2015 Outlook Top Ports 2015 2015 Port Calls 34 34
Transit Total Transit Cambodia 34 - Turnaround 2015 Passenger Destination Days (000s) Overnight
Transit 47,000 Total Turnaround PDDs 47 Overnight
Growth Trends 2013-2015 Growth Rate Trends: Port Calls CAMBODIA: Yr-Yr Growth Rate Port Calls (CAGR, Total Growth) 127% 113%
46% 34% 16% 13% 28%
-6% CAMBODIA ALL ASIA SOUTHEAST ASIA 2014 growth 2015 growth 2 year cagr 2 yr % growth 20 Southeast Asia Cruise Destination: Malaysia
Malaysia, second in call volume among markets in Asia, is scheduled to welcome 580 port calls in 2015, the majority as transit calls (84 percent). Georgetown/Penang and Kuala Lumpur will lead Malaysia in calls, with a combined 46 percent of the market. The destination will have a potential to host 871,000 Passenger Destination Days in 2015.
Growth Trends: • 2015 will continue the growth trend in Malaysia, where call volume will increase 15 percent over 2014. • Since 2013, port calls grew 52 percent in absolute volume, for a combined annual growth rate of 23 percent, higher than Southeast Asia’s rate of 13 percent.
2015 Outlook Top Ports 2015 2015 Port Calls Transit Turnaround Overnight 580 479 Georgetown/ Penang 121 56 - Port Kelang/ Kuala Lumpur 131 - - 99 2 Langkawi 78 -
Overnight Turnaround Transit Total Kota Kinabalu 22 43 1 Malacca 54 - - 2015 Passenger Destination Days (000s) Pulau Redang 16 - -
Tioman 16 - - Transit Pulau Pangkor 8 - - 871,000 731 Turnaround Total PDDs 7 - Overnight Kuching - Sandakan 6 1 - 140 1
Growth Trends 2013-2015 Growth Rate Trends: Port Calls MALAYSIA: Yr-Yr Growth Rate Port Calls (CAGR, Total Growth)
52%
34% 32% 28% 23% 16% 15% 13%
MALAYSIA ALL ASIA SOUTHEAST ASIA 2014 growth 2015 growth 2 year cagr 2 yr % growth 21 Southeast Asia Cruise Destination: Philippines
The Philippines will host 77 port calls in 2015. Transit traffic will be the majority of calls and passenger destination days , at 79% and 75% of total, respectively. The destination will host nearly 100,000 Passenger Destination Days in 2015.
Growth Trends: • The Philippines as a destination grew tremendously over the 2013-2015 period. While starting from a small base, there was 450 percent growth in absolute call volume to the Philippines, for a combined annual growth rate of 135 percent.
2015 Outlook Top Ports 2015 Port Calls in 2015 Transit Turnaround Overnight 77 61
Puerto Princesa 22 14 15 1
Overnight Turnaround Transit Total
2015 Passenger Destination Days (000s) Manilla 16 1
Transit 71 94,000 Total Turnaround PDDs Boracay 12 - Overnight 23
Growth Trends Growth Rate: Port Calls 2013-15 (CAGR, Total PHILIPPINES: Yr-Yr Growth Rate Port Calls Growth) 450%
135% 314% 16% 34% 13% 28%
33% PHILIPPINES ALL ASIA SOUTHEAST ASIA 2 year cagr 2 yr % growth 2014 growth 2015 growth 22 Southeast Asia Cruise Destination: Singapore
Among all ports, Singapore will host the most calls in 2015 with 374 calls scheduled. The destination is slated to host 633,000 Passenger Destination Days. Turnaround calls will dominate, with 82 percent of total calls and 84 percent of total passenger destination days.
Growth Trends: • In 2015, there will be strong growth in port calls to the Southeast Asia sub-region, with Singapore’s port showing similar increases of 12 percent. • With an absolute increase of 29 percent in port calls over the 2013-2015 period, the port had a combined annual growth rate of 14 percent.
2015 Outlook
2015 Port Calls 2015 Passenger Destination Days (000s) 374 308
44
41 25
Overnight Turnaround Transit Total Transit Turnaround 529 Overnight
633,000 Total PDDs
60
Growth Trends 2013-2015 Growth Rate Trends: Port Calls SINGAPORE: Yr-Yr Growth Rate Port Calls (CAGR, Total Growth)
34% 29% 28%
15% 16% 12% 14% 13%
SINGAPORE ALL ASIA SOUTHEAST ASIA
2014 growth 2015 growth 2 year cagr 2 yr % growth 23 Southeast Asia Cruise Destination: Thailand
Thailand is schedule to host 374 port calls in 2015 with a potential for 579,000 Passenger Destination Days. Transit traffic will be the majority of port call and passenger destination day volume , at 81 percent and 80 percent of total, respectively. Phuket and Bangkok will lead Thailand in port calls, providing 51% of total port calls I n2015.
Growth Trends: • Thailand will grow at 28 percent in total calls from 2014 to 2015, exceeding robust Southeast Asia sub-region growth of 12 percent. • Longer term trends reveal Thailand had 14 percent growth in absolute volume of port calls over the 2013-2015 period, for a combined annual growth rate of 7 percent.
2015 Outlook Top Ports 2015 2015 Port Calls 374 Transit Turnaround Overnight 303
Patong Bay / Phuket 136 - 4
59 12 Laem Chabang / Bangkok 41 11 36
Overnight Turnaround Transit Total Koh Samui 52 2-
2015 Passenger Destination Days (000s) Krabi 52 -
Transit Klong Toey / Bangkok 13 1 17 579,000 Turnaround Total PDDs 464 Overnight 21 Ko Yao Noi 6 - - 94 Growth Trends 2013-2015 Growth Rate Trends: Port Calls THAILAND: Yr-Yr Growth Rate Port Calls (CAGR, Total Growth) 28%
34% 28%
16% 14% 13% 2014 growth 2015 growth 7%
THAILAND ALL ASIA SOUTHEAST ASIA -11% 2 year cagr 2 yr % growth
24 Southeast Asia Cruise Destination: Vietnam
Vietnam is schedule to welcome 316 cruise calls in 2015 with the majority transit calls. Ho Chi Minh City and Hanoi are scheduled to lead, with a combined 54 percent of the port calls in Vietnam. The destination has a potential to host 421,000 Passenger Destination Days in 2015.
Growth Trends: • As call volume has varied year-over-year, Vietnam’s long term growth trend has declined against a backdrop of growth in the sub-region. • Since 2013, absolute call volume contracted -7 percent for a combined annual growth rate of -4 percent.
2015 Outlook Top Ports 2015 2015 Port Calls Transit Turnaround Overnight 316 242 Ho Chi Minh City / Phu My 90 2 38
72 2 Halong Bay / Hanoi 52 - 25
Overnight Turnaround Transit Total Da Nang / Hue Chan May 35 -8 2015 Passenger Destination Days (000s) Nha Trang 39 -
Transit Chan May 19 - 1 421,000 360 Turnaround Total PDDs Overnight Qui Nhon 6 - - 61
Growth Trends 2013-2015 Growth Rate Trends: Port Calls VIETNAM: Yr-Yr Growth Rate Port Calls (CAGR, Total Growth)
34% 6% 28%
16% 2014 growth 2015 growth 13% -7% -12% -4% VIETNAM ALL ASIA SOUTHEAST ASIA
2 year cagr 2 yr % growth 25 South Asia Cruise Destination: India
With 113 calls scheduled to date, India will have a potential to host 121,000 Passenger Destination Days in 2015. The vast majority of cruise calls will be transit.
Growth Trends: • India is scheduled to receive strong growth in port calls and Passenger Destination Days in 2015. While the countries of the South Asia sub-region saw tremendous growth, India dominates in nominal terms at slightly over 50 percent of the total market. • The longer term growth trend reveals India had 27 percent growth in port calls since 2013, for a combined annual growth rate of 13 percent.
2015 Outlook Top Ports 2015 2015 Port Calls Transit Turnaround Overnight 113 93 Cochin 28 3 8
17 3 Mumbai 28 - 9 Overnight Turnaround Transit Total
2015 Passenger Destination Days (000s) Mormugao / Goa 15
Transit Mangalore 14 121,000 Total 89 Turnaround PDDs Overnight 6 Port Blair / Andaman Is 6 26
Growth Trends 2013-2015 Growth Rate Trends: Port Calls India: Yr-Yr Growth Rate Port Calls (CAGR, Total Growth)
74%
18% 34% 32% 27% 13% 16% 8% INDIA ALL ASIA SOUTH ASIA
2014 growth 2015 growth 2 year cagr 2 yr % growth 26 South Asia Cruise Destination: Other South Asia
The remaining destinations in South Asia will also welcome cruise passengers in 2015 and provide tourists explorations in Myanmar, with 73 total calls, the Maldives (13), and Sri Lanka (39).
There is also a potential to host 55,000 passenger destination days in Myanmar, 36,000 in Sri Lanka, and 10,000 in the Maldives.
Starting from a small initial base of port calls, these destinations have experienced positive growth since 2013.
2015 Outlook Top Ports 2015 2015 Port Calls 73 Transit Turnaround Overnight
48 Overnight 39 33 Turnaround 24 Yangon (Rangoon), 24 1 48 1013 Transit Myanmar 1 4 2 3 Total MYANMAR SRI LANKA MALDIVES
2015 Passenger Destination Days (000s) Colombo, Sri Lanka 23 2 4
19 Transit Turnaround 36 33 Male, Maldives 10 3 Overnight 8 3 2 MYANMAR SRI LANKA MALDIVES
Growth Trends 2013-2015 Growth Rate Trends: Port Calls Yr-Yr Growth Rate Port Calls (CAGR, Total Growth) 246% 462%
137% 2014 growth 62% 63% 50% 44% 74% 2015 growth 22% 20% 16%34% 32% 31% 15% -11% MYANMAR SRI LANKA MALDIVES ALL ASIA SOUTH ASIA MYANMAR SRI LANKA MALDIVES 2 year cagr 2 yr % growth 27 SOURCE MARKETS
Asia is not only a region to deploy cruise journeys, it is a growing market to source cruise passengers on trips around the globe. Most recently, passenger volume from Asia grew 34 percent annually between 2012 and 2014. In 2014 , nearly 1.4 million Asians took a cruise vacation.
Driving overall growth are markets in East Asia. Passenger volume out of mainland China had the strongest growth, increasing 79 percent annually and reached 697,316 passengers in 2014. Hong Kong passenger volume also grew strongly at 74 percent followed by Japan which increased 20 percent since 2012.
Asian travelers predominantly take cruises within the region. In 2014, 91 percent of Asian cruisers sailed in Asian waters and among the long-haul cruisers, most sailed to European destinations (40 percent). Aligned with the capacity offerings, Asian passengers sailed on Contemporary ships (80 percent) and also selected shorter sailings between 4-6 nights (48 percent) and 2-3 nights (38 percent).
Asian cruise passengers are found across the age spectrum yet age cohorts that had the strongest growth since 2012 include passengers between 30-39 (+51 percent, annually), 50-59 and 60-69 (40 percent, each).
28 Source Markets: Regional Overview
Cruise demand out of the Asia region has grown substantially since 2012. With an annual growth rate of Asia Source Passenger Volume Trend 34 percent, passenger volume sourced from Asia reached nearly 1.4 million in 2014. 1,398,037
34% 1,205,138 Regional cruises comprise the majority of sailings selected cagr by Asian passengers. While the volume of sailing across all cruise types has increased since 2012, Asian cruises grew 774,531 at the fastest rate, 40 percent annually with Asia fly- cruises increasing another 16 percent. Fly-cruises outside of the region increased 5 percent.
Among the Asian cruise passengers that traveled to long- haul destinations, the majority visited destinations in Europe, 60 percent. North America also attracted over 2012 2013 2014 one-third of passengers with the Alaska/Canada/New England region attracting 20 percent of passengers followed by 14 percent that visited the Caribbean/Western US/Hawaii. Asia Source Passenger Share by Cruise Type %
The majority of passengers selected a ship from the 2012- contemporary segment, 84 percent, however in 2014 the 2014 mix of ship segments selected among Asian passengers 2012 2013 2014 CAGR% increased in the Premium/Upscale lines while the share Asia Cruise 79% 86% 87% 40% decreased for the Contemporary lines. The Luxury segment accounted for less than 1 percent of passenger Asia fly-cruise 6% 3% 4% 16% volumes. Fly-cruise outside Asia 15% 11% 9% 5%
Asian Passenger Share of Outside Asia Fly- Cruise Volume by Destination, 2014 Asian Passenger Share of Volume by Cruise Line Segment Med/Baltic/UK/Ireland 60% 90% 92% 84% Alaska/Canada/New 20% England
Caribbean/Western 14% US/Hawaii 15.50% 9.10% 7.60% South Pacific/Australia/New 3% Zealand 2012 2013 2014 World Cruises 2% Premium/Upscale Contemporary
Panama Canal/South 1% America
29 Source Markets: Regional Overview
Short sailings dominate cruises taken by Asian passengers. With an average of 4.8 nights, nearly half of passengers took a cruise lasting 4-6 nights, followed by 2-3 nights for 38 percent of cruisers. World cruises and cruises over 21 nights accounted for less than one percent of all passenger sailings.
Asian travelers fall across the age spectrum with most passengers falling in the 50-59 age cohort (21 percent) and 30-39 cohort (19 percent).
Share of Asian Source Passenger by Cruise Length (nights) Share of Asian Source Passenger by Age
57% 9% 8% 9% 55% 48% 14% 14% 16% Average: 70 yrs and 4.8 nights 38% over 20% 21% 21% 60-69 yrs 30% 50-59 yrs 23% 20% 15% 14% 19% 40-49 yrs 12% 10% 30-39 yrs 15% 19% 19% 2.40% 2.30% 1.40% 20-29 yrs 9% 8% 8% 4% 4% 3% 2012 2013 2014 13-19 yrs 9% 10% 10%
14 to 20 7 to 13 4 to 6 2 to 3 2012 2013 2014
A major driver of the growth in Asia source volume were Passenger Volume by Source Market, 2014 passengers from mainland China. The market contributed half of the source volume for the region in 2014 and China 50% increased nearly 80 percent annually since 2012. Other markets driving growth in the region include Hong Kong, Singapore 12% India, Japan and Taiwan. Taiwan 10% Japan 9% India Top 5 Markets by Annual Passenger Growth, 7% 2012-2014 Hong Kong 6% Malaysia 4% 79% 74% Indonesia 1% South Korea 1% 36% Philippines 20% 14% 1% Thailand 0% Vietnam 0% China Hong Kong India Japan Taiwan (mainland) Other Asia 0% 30 Cruise Passenger Source Market: China
In 2014, mainland China was the fastest growing source market. Nearly 700K Chinese took a cruise vacation, growing 79 percent annually since 2012. The vast majority took a non-fly cruise within the region, at 95% of all cruises taken. Other key characteristics include: • 89 percent selected a Contemporary cruise line • The average length of cruise was 4.9 nights • The average age of the Chinese cruise passenger was 42 years
Length of Cruise, 2014 China: Share of passengers by cruise type, 2014 4.9 nights 4.2% 1.1% Average length of cruise
7 to 13 nights, 16% 79% Fly-cruise, outside 4% Asia Asia Fly-cruise 14 to 20 nights, 0.1% Asia cruise 2 and 3 nights 4, 5, 6 nights 7 to 13 nights 94.7%
14 to 20 nights 21 nights or longer World cruises
China: Share of Passengers by Cruise Line Passenger Age, 2014 Segment, 2014 42 years Average age of cruise passenger 13-19, 2% 10% Luxury 5% 11% 24% 14% 25% 6% 11% Premium/Upscale
Contemporary 89%
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend 697,316
466,781
216,700 79% Compound annual growth rate
2012 2013 2014 31 Cruise Passenger Source Market: Japan
In 2014, nearly 120,000 Japanese took a cruise vacation, growing 20 percent annually since 2012. While the majority took a cruise within the region, over one-quarter took a fly cruise outside the region, compared to 9 percent among Asian cruisers as a whole. Other key characteristics include: • 68 percent selected a Contemporary cruise line • The average length of cruise lasted 8 nights, compared to 4.8 nights for Asian cruisers • The average age of the Japanese cruise passenger was 60 years, the oldest among all markets
Length of Cruise, 2014 Japan: Share of passengers by cruise type, 2014 8 nights Average length of cruise 2% 2%
Asia cruise 27% 21% 17% 53% 6% Asia fly cruise
9% 64% Fly-cruise, non- Asia 2-3 nights 4-6 nights 7-13 nights 14-20 nights 21 + nights World cruises
Japan: Share of passengers by cruise line Passenger Age, 2014 segment, 2014 60 years 1% Average age of cruise passenger 3% 4%
31% Luxury 36% 31% 12% 7% 1%
Premium/Upscale
68% Contemporary 70 + 60-69 50-59 40-49 30-39 20-29 13-19 12 and younger
Passenger Volume Trend
119,383 100,384 82,232 20% Compound annual growth rate
2012 2013 2014 32 Cruise Passenger Source Market: Hong Kong
In 2014, over 80K individuals from Hong Kong took a cruise vacation. Growing 74.3 percent annually since 2012, it was the second fastest growing source market in Asia. 70.4% of cruisers chose Asia region cruises, 18.5% chose fly-cruises outside Asia. Other key characteristics include: • 83.1 percent selected a Contemporary cruise line • The average length of cruise was 5 nights • The average age of the Hong Kong cruise passenger was 52 years
Hong Kong: Share of passengers by cruise type, Length of Cruise, 2014 2014 5 nights Average length of cruise
18.5% Fly-cruise, outside Asia 57% 20% 21% 1.6%
11.1% Asia Fly-cruise 21 nights or longer, 0.3% 70.4% Asia cruise World cruises, 0.1%
2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises
Hong Kong: Share of Passengers by Cruise Line Passenger Age, 2014 Segment, 2014 52 years 1% Average age of cruise passenger
16% 12% 25% 27% 15% 9% 5% Luxury
Premium/Upscale 3% 5% Contemporary
83%
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend
80,551
36,102 26,511 74.3% Compound annual growth rate 2012 2013 2014 33 Cruise Passenger Source Market: India
In 2014, over 91K Indians took a cruise vacation, growing 36 percent annually since 2012. Indian cruisers predominantly selected contemporary cruise lines, 95 percent, and were also likely to take an local Asian cruise, 76 percent. Other key characteristics include: • Were more likely to take a long-haul fly cruise outside of Asia, versus Asian passengers overall, 20 percent versus 9 percent, respectively • The average length of cruise was 3.6 nights • The average age of the Indian cruise passenger was 36 years
Length of Cruise, 2014 India: Share of passengers by cruise type, 2014 3.6 nights Average length of cruise
19.8% Fly-cruise, outside Asia 82% 8% 10% 4.4% Asia Fly-cruise 14 to 20 nights, Asia cruise 0.3% 75.8%
2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises
India: Share of Passengers by Cruise Line Passenger Age, 2014 Segment, 2014 36 years 0% 5% Average age of cruise passenger
Luxury 3% 8% 13% 18% 19% 19% 8% 12% Premium/Upscale
Contemporary 95%
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend 91,165 80,496
49,442 35.8% Compound annual growth rate 2012 2013 2014 34 Cruise Passenger Source Market: Indonesia
In 2014, over 18K Indonesians took a cruise vacation, growing 7.7 percent annually since 2012. Indonesians were more likely to take a fly-cruise outside Asia, versus cruisers from other Asian source markets, 19 percent versus 9 percent, respectively. Other key characteristics include: • 86 percent selected a Contemporary cruise line • The average length of cruise was 4.9 nights • The average age of the Indian cruise passenger was 44 years
Length of Cruise, 2014 Indonesia: Share of passengers by cruise type, 2014 4.9 nights Average length of cruise
18.6% Fly-curise, outside Asia 36.6% 41% 40% 18% 0.8% Asia Fly-cruise
Asia cruise 44.8%
2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises
Indonesia: Share of Passengers by Cruise Passenger Age, 2014 Line Segment, 2014 44 years 1% Average age of cruise passenger
14% Luxury 12% 13% 15% 18% 17% 11% 5% 9%
Premium/Upscale
Contemporary 86%
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend
20,374 18,298 15,763
7.7% Compound annual growth rate 2012 2013 2014 35 Cruise Passenger Source Market: Malaysia
In 2014, over 51K Malaysians took a cruise vacation, with flat growth of -.8 percent annually since 2012. 88.2% of Malaysians chose regional cruises within Asia. Other key characteristics include: • 92.3 percent selected a Contemporary cruise line • The average length of cruise was 3.4 nights • The average age of the Indian cruise passenger was 43 years
Malaysia: Share of passengers by cruise type, 2014 Length of Cruise, 2014
3.4 nights 5.9% 5.9% Average length of cruise
Fly-cruise, outside Asia 82% 9% 8% Asia Fly-cruise
14 to 20 nights, Asia cruise 0.8% 88.2%
2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises
Malaysia: Share of Passengers by Cruise Line Passenger Age, 2014 Segment, 2014 43 years 0% Average age of cruise passenger 7% Luxury 7% 16% 20% 13% 16% 14% 4% 9% Premium/Upscale
Contemporary 92%
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend 72,416 52,054 51,216
-0.8% Compound annual growth rate 2012 2013 2014 36 Cruise Passenger Source Market: Philippines
In 2014, over 12K Filipinos took a cruise vacation, growing 3 percent annually since 2012. While the majority took a cruise within the region, 44% of all cruises taken, Fly-cruises outside Asia made up a large share at 29.5%. Other key characteristics include: • 67 percent selected a Contemporary cruise line • 31 percent cruised a luxury segment • The average length of cruise was 6.2 nights • The average age of the Filipino cruise passenger was 42 years
Length of Cruise, 2014 Philippines: Share of passengers by cruise type, 2014 6.2 nights Average length of cruise
Fly-cruise, outside 29.5% Asia 30% 28% 40% 2.2% 44.3% Asia Fly-cruise 21 nights or longer, 0.3% Asia cruise 26.2% 2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises
Philippines: Share of Passengers by Cruise Line Passenger Age, 2014 Segment, 2014 42 years 2% Average age of cruise passenger
Luxury 31% 8% 13% 17% 17% 14% 15% 8% 8% Premium/Upscale
67% Contemporary
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend 14,072 11,597 12,305
3% Compound annual growth rate 2012 2013 2014 37 Cruise Passenger Source Market: Singapore
In 2014, over 163K individuals from Singapore took a cruise vacation, a contraction of 7 percent annually since 2012. The vast majority, 95 percent, chose regional cruises within Asia. Other key characteristics include: • 96 percent selected a Contemporary cruise line • The average length of cruise was shorter than the Asian average, 3.5 nights • The average age of the Indian cruise passenger was 46 years
Length of Cruise, 2014 Singapore: Share of passengers by cruise type, 2014 3.5 nights Average length of cruise 4.3%0.6%
Fly-cruise, outside 71% 22% 6% Asia Asia Fly-cruise 14 to 20 nights, 0.4% Asia cruise 95.1%
2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises
Singapore: Share of Passengers by Cruise Line Passenger Age, 2014 Segment, 2014 46 years 0% 4% Average age of cruise passenger
Luxury 10% 21% 20% 14% 13% 8% 4% 10% Premium/Upscale
Contemporary 96%
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend
248,378 189,378 163,232
-7.2% Compound annual growth rate 2012 2013 2014 38 Cruise Passenger Source Market: South Korea
In 2014, over 16K South Koreans took a cruise vacation, growing 8.6 percent annually since 2012. While the majority took a non-fly cruise within the region, 43% of all cruises taken, non-Asia fly-cruises made up a large share at 39%. Other key characteristics include: • 72 percent selected a Contemporary cruise line • The average length of cruise was 6.8 nights • The average age of the South Korean cruise passenger was 50 years
South Korea: Share of passengers by cruise type, Length of Cruise, 2014 2014 6.8 nights Average length of cruise
Fly-cruise, outside 23% 34% 41% 1.4% Asia 43.0% 38.8% Asia Fly-cruise 21 nights or longer, 0.4% Asia cruise
18.2% 2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises
South Korea: Share of Passengers by Cruise Passenger Age, 2014 Line Segment, 2014 50 years 0% Average age of cruise passenger 2.0% 7.0%
28% Luxury 14% 21% 22% 16% 12% 5.0% Premium/Upscale
72% Contemporary
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend 16,491 15,462
13,973 8.6% Compound annual growth rate
2012 2013 2014 39 Cruise Passenger Source Market: Taiwan
In 2014, over 137K individuals from Taiwan took a cruise vacation, growing 13.6 percent annually since 2012. 90.5% of cruisers chose Asia region cruises. Other key characteristics include: • 83.8 percent selected a Contemporary cruise line • The average length of cruise was 3.5 nights • The average age of the Hong Kong cruise passenger was 45 years
Length of Cruise, 2014 Taiwan: Share of passengers by cruise type, 2014 3.5 nights 5.1% Average length of cruise 4.4%
Fly-cruise, outside Asia 76% 17% 7% Asia Fly-cruise
14 to 20 nights, Asia cruise 0.2% 90.5%
2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises
Taiwan: Share of Passengers by Cruise Line Passenger Age, 2014 Segment, 2014 0% 45 years Average age of cruise passenger 16% Luxury 8% 15% 22% 17% 16% 11% 4% 7% Premium/Upscale
Contemporary 84%
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend 136,376 137,305 106,487 13.6% Compound annual growth rate
2012 2013 2014 40 Cruise Passenger Source Market: Thailand
In 2014, 5,767 tourists from Thailand took a cruise vacation, growing 5 percent annually since 2012. The majority (50%) took a fly-cruise outside of the region, a notably higher share than the total benchmark of 9 percent, with local Asia cruises at 36%. Other key characteristics include: • 67 percent selected a Contemporary cruise line • 30 percent cruised a premium/upscale line • The average length of cruise was 7.5 nights, versus 4.8 for Asians in general • The average age of the Thai cruise passenger was 48 years
Thailand: Share of passengers by cruise type, Length of Cruise, 2014 2014 7.5 nights Average length of cruise
Fly-cruise, 36% outside Asia 33% 18% 46% 2.3% Asia Fly-cruise 50% 21 nights or Asia cruise longer, 0.6% World cruises, 14% 0.1% 2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises
Thailand: Share of Passengers by Cruise Line Passenger Age, 2014 Segment, 2014 48 years 4% Average age of cruise passenger
Luxury 30% 11% 22% 19% 16% 16% 8% 3% Premium/Upscale
5% 67% Contemporary
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend
7,882
5,234 5,767 5% Compound annual growth rate 2012 2013 2014 41 Cruise Passenger Source Market: Vietnam
In 2014, 703 Vietnamese took a cruise vacation, growing 110.9 percent annually since 2012 (from a small base). Most cruisers, 57 percent, chose local regional cruises within Asia. Other key characteristics include: • 41 percent selected a Contemporary cruise line, 29% Luxury, and 29% Premium • The average length of cruise was 4.9 nights • The average age of the Indian cruise passenger was 42 years, the youngest among all Asian source markets
Vietnam: Share of passengers by cruise type, Length of Cruise, 2014 2014 4.9 nights Average length of cruise
Fly-cruise, outside Asia 59% 6% 34% 0.4% 43% Asia Fly-cruise
57% Asia cruise 2 and 3 nights 4, 5, 6 nights 7 to 13 nights 14 to 20 nights 21 nights or longer World cruises 0%
Vietnam: Share of Passengers by Cruise Line Segment, 2014
29% Luxury 3% 7% 23% 27% 19% 12% 4% 6% 41% Premium/Upscale
Contemporary 29%
70+ 60-69 50-59 40-49 30-39 20-29 13-19 12-under
Passenger Volume Trend
1,221
703 110.9% 158 Compound annual growth rate 2012 2013 2014 42 APPENDIX
43 Appendix - Methodology
The study entails an analysis of trends in ocean cruise capacity, destinations visited, and passenger source markets among 13 international and regional brands over a three-year timeframe. The following exclusions should be noted: • Excludes one-night cruises. • Four regional brands did not participate in the study.
The participants of the study represent approximately 90 percent of the capacity identified in Asia. Due to the lack of publicly available information, estimates of the remaining industry would be deemed unreliable. Therefore, some source market estimates may be under-reported, notably in China and Japan.
Study participants: International & Regional Cruise Lines 1. Azamara Club Cruises 2. Carnival Cruise Line 3. Celebrity Cruises 4. Costa Cruise Line 5. Crystal Cruises 6. Holland America Line 7. MSC Cruises 8. NYK Cruises 9. Princess Cruises 10. Royal Caribbean International 11. Seabourn Cruise Line 12. Silversea Cruises 13. Star Cruises
Excludes Regional Cruise Lines 1. Mitsui OSK 2. Japan Cruise Line 3. HNA Cruise Company 4. Bohai Ferry Company 5. Other new start ups
44 Appendix - Global Capacity Deployment
Capacity Share Changes by Region (Percentage Point Change/ALBDs* 2013 vs 2015) 2.43
1.05 1.29
-0.32 -0.47 -0.90 -0.76
-2.30
Share of Deployed Capacity by Region (% of ALBDs, 2015)
Caribbean 35.5%
Mediterranean 19.5%
Europe w/o Med 10.6%
Asia 6.0%
Australia/New Zealand/Pacific 6.0%
Alaska 4.5%
South America 2.9%
All Other 15.0%
* ALBD = Available Lower Bed Days. Assumes double occupancy per cabin for sale by revenue producing operating days Source: CLIA 2014 Deployment Survey among 18 international brands
45 Appendix – Capacity and Deployment by Brand
46 Appendix – Capacity and Deployment by Brand
ASIAN CRUISE DEPLOYMENT CALENDAR Ships Operating Asia-Asia Cruises or passing through Asia on Longer Voyages By Cruise Line/ Brand 2015 Cruise Line Ship Capacity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (pax) UPSCALE NYK Asuka II 872
Oceania Nautica 684 Insignia 684
Cunard Queen Mary 2 2620 Queen Elizabeth 2068
Azamara Quest 686
Hapag Lloyd Europa 408
Windstar Star Pride 212
Voyages to Antqy Aegean Odsy 376
LUXURY Seabourn Odyssey 458 Sojourn 450
Silversea Shadow 382 Whisper 382 Wind 296
Crystal Symphony 940
Regent 7 Seas Voyager 700
EXPEDITION Lindblad Orion 102
Ponant Le Soleal 264 L'Austral 264
Silversea Exp Discoverer 120
Hapag Lloyd Bremen 155
CHART Management Consultants 47 Appendix – Cruise Volume by Cruise Type and Brand
Cruise and Voyages Offered in Asia by cruise line: 2015
Brand Asia-Asia cruises Voyages Total Sailings Star 352 352 Costa 211 4 215 Royal Caribbean International 166 7 173 Princess 73 18 91 NYK 46 2 48 Celebrity 26 5 31 Silversea 18 3 21 Holland America 10 6 16 Windstar 12 2 14 Oceania 6 8 14 Azamara 8 3 11 Ponant 9 1 10 Crystal 9 9 Seabourn 6 3 9 Regent 7 Seas 5 3 8 AIDA 6 1 7 Voyages to Antiquity 6 6 Lindblad Orion 5 1 6 Hapag-Lloyd 3 3 6 Silversea Expedition 3 3 6 Fred.Olsen 1 3 4 P&O Australia 4 4 Cunard 2 2 P&O UK 1 1 HL Bremen 1 1 Seadream 0
48 Appendix - Passenger Destination Days by Brand
Passenger Destination Days By Brand
Brand 2013 2014 2015 Star 688,178 577,198 545,376 Costa 297,364 431,722 620,440 Royal Caribbean International 328,674 376,794 553,870 Princess 33,044 239,020 228,010 Celebrity 28,418 44,384 65,106 NYK Asuka II 42,728 42,728 41,856 Holland America 19,828 19,364 22,340 AIDA 19,414 16,292 15,094 Oceania 3,420 4,104 9,576 Crystal 4,610 12,578 8,298 P&O Aust - - 7,800 Azamara 8,328 6,940 7,634 Silversea 8,022 5,768 7,248 Regent 7 Seas 4,900 4,200 5,600 Fred.Olsen 2,104 2,104 4,704 Cunard 4,610 4,688 4,688 Seabourn 6,096 4,398 4,050 Ponant 2,033 2,904 2,640 Windstar - 848 2,544 Hapag-Lloyd 4,350 7,736 2,448 Voyages to Antiquity 2,632 - 2,256 P&O UK 1,870 3,818 1,948 Silversea Expedition - 860 750 Lindblad Orion 816 510 612 HL Bremen - - 155 Seadream 550 1,210 - Total 1,511,989 1,810,168 2,165,043
49 Appendix - Port Calls by Port, 2015
Scheduled Port Calls by Port, 2015 (25 or more calls)
Rank Market Port Transit Turnaround Overnight TOTAL 1 Singapore Singpaore 25 308 41 374 2 South Korea Jeju Isl 209 - 8 217 3 China Hong Kong 21 142 37 200 4 China Baoshan/ Shanghai 22 143 18 183 5 Malaysia Georgetown/ Penang 121 56 - 177 6 Thailand Patong Bay / Phuket 136 - 4 140 7 Malaysia Port Kelang/ Kuala Lumpur 131 - - 131 8 Taiwan Keelung / Taipei 33 94 3 130 9 Vietnam Ho Chi Minh City / Phu My 90 2 38 130 10 Japan Fukuoka 89 - - 89 11 South Korea Incheon / Seoul 85 - 4 89 12 Thailand Laem Chabang / Bangkok 41 11 36 88 13 Malaysia Langkawi 78 - - 78 14 Vietnam Halong Bay / Hanoi 52 - 25 77 15 Myanmar Yangon (Rangoon) 24 1 48 73 16 South Korea Pusan/ Busan 70 - 1 71 17 Japan Naha / Okinawa 67 - 1 68 18 Japan Ishigaki 66 - - 66 19 Malaysia Kota Kinabalu 22 43 1 66 20 Indonesia Benoa/ Bali 30 10 19 59 21 Japan Yokohama / Tokyo 11 42 5 58 22 Japan Nagasaki 55 - - 55 23 Thailand Koh Samui 52 - 2 54 24 Malaysia Malacca 54 - - 54 25 Thailand Krabi 52 - - 52 26 Vietnam Da Nang / Hue Chan May 35 - 8 43 27 China Tianjin / Beijing 3 33 5 41 28 Japan Kobe 20 10 9 39 29 Vietnam Nha Trang 39 - - 39 30 India Cochin 28 3 8 39 31 India Mumbai 28 - 9 37 32 Japan Hakata/ Fukuoka 34 2 - 36 33 Philippines Puerto Princesa 22 - 14 36 34 Cambodia Cambodia 34 - - 34 35 Thailand Klong Toey / Bangkok 13 1 17 31 36 Japan Yonaguni 30 - - 30 37 Sri Lanka Colombo 23 2 4 29 38 China Xiamen 25 - 3 28 39 Taiwan Kaohsiung 24 2 1 27 40 China Hainan / Sanya 26 - - 26
50 Appendix - Source Market Passenger Volume by Market
Source Market Passenger Volume by Market
Market 2012 2013 2014 # Growth 2-year cagr China (mainland) 216,700 466,781 697,316 480,616 79.40% Hong Kong 26,511 36,102 80,551 54,040 74.30% India 49,442 80,496 91,165 41,723 35.80% Indonesia 15,763 20,374 18,298 2,535 7.70% Japan 82,232 100,384 119,383 37,151 20.50% Malaysia 52,054 72,416 51,216 -838 -0.80%
Philippines 11,597 14,072 12,305 708 3.00%
Singapore 189,378 248,378 163,232 -26,146 -7.20% South Korea 13,973 15,462 16,491 2,518 8.60% Taiwan 106,487 136,376 137,305 30,818 13.60% Thailand 5,234 7,882 5,767 533 5.00%
Vietnam 158 1,221 703 545 110.90% Other Asia 5,002 5,194 4,308 -694 -7.20%
ALL ASIA 776,543 1,205,138 1,398,040 621,497 34.2%
51 Appendix - Glossary
Cruises: Encompasses deployment within Asia only. Our definition of a Cruise is a one that both begins and ends in an Asian port and includes only Asian ports in its itinerary. A Round-trip cruise returns to its port of embarkation while an Open-jaw cruise begins in one Asian port and finishes in another.
East Asia: Geography that includes China, Hong Kong, Taiwan, South Korea, and Japan.
Fly-Cruise: Cruise begins or ends with a flight to/from an Asian port (or both)
Ocean cruise: A cruise itinerary that sails to destinations via the ocean; itineraries last 2 or more nights.
Operating Days: Days spent cruising (on both voyages and cruises) in Asian waters.
Overnight Port Call: An overnight call occurs when the vessel departs at least one day after arriving in port. Overnight calls may be added to a transit call or added to a turnaround call. For example, a vessel arriving in Bangkok on 21 May and departing on 23 May is counted as making one transit call (21/5) and two overnight calls (21 and 22/5). A vessel arriving in Hong Kong on 21 May and departing with a different cruise number on 22 May is considered to have had one turnaround and one overnight call. Note that, in our treatment, an overnight does not exist independently of one or the other calls.
Passenger Capacity: The number of lower berths multiplied by the number of cruises for each vessel. [Example: Mariner’s 3,114 lower berths on the 46 cruises results in a passenger capacity of 143,244]
Passenger Destination Days (PDD): A measure of potential visits from cruise passengers across the time spent in a destination. [Example: A ship of 1,000 capacity calling at a destination for one day creates a potential of 1,000 PDD]
Product Segments: Contemporary: Mostly large ships that offer predominantly short – 3,4,5-night – cruises as well as some 7-night and longer Premium & Upscale: Distinguished by more spacious, refined on-board accommodation, superior dining, a more discrete service and higher prices. Luxury: The Luxury lines are another step above the Upscale in on-board comforts, product inclusions and price-point. Their ships typically carry few passengers and have very high staff-to-guest ratios. They also operate only longer cruises – typically 12 nights. Expedition: Small ships (100 to 300) offering immersion in remote destinations, usually with a high standard of service and accommodation.
South Asia: Geography that includes India, Myanmar/Burma, Sri Lanka
Southeast Asia: Geography that includes Singapore, Malaysia, Indonesia, Brunei, Indochina, Thailand, and Philippines.
52 Appendix - Glossary
Transit Port Call: A transit call includes all calls which have the arrival and departure scheduled on the same day. The same passenger load arrives and departs on a transit call.
Turnaround Port Call: A turnaround call occurs when the vessel arrives under one cruise number and departs with a different cruise number. This would generally involve all passengers on board disembarking and a new passenger load embarking. Turnarounds mark the end of one cruise and the start of the next. Passengers typically do not have the opportunity to sight-see or shop, take shore excursions or tour on a turnaround unless they opt to arrive in the port city early or stay over for an additional night or nights. The ship usually takes on fuel, fresh water, provisions, etc. Passengers and their baggage have to be disembarked and go through customs and immigration procedures, take transfers to the airport (or hotels). The new passenger complement has to be embarked.
Voyages: Itineraries that include ports of call outside the regions of Asia. Voyages are typically longer than cruises and often involve the positioning of a vessel from Europe, America or Australia to an Asian port from where it will offer a series of cruises. Other voyages include vessels on round world or other long trips, calling at Asian ports as part of the journey.
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