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2011/2012 REPORT Making a Real Social and Economic Contribution to Europe’S Economy Business Or Pleasure ? You Sit at a Table in a Conference Centre on the Top Deck

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2011/2012 REPORT Making a Real Social and Economic Contribution to Europe’S Economy Business Or Pleasure ? You Sit at a Table in a Conference Centre on the Top Deck 2011/2012 REPORT Making a real social and economic contribution to Europe’s economy Business or pleasure ? You sit at a table in a conference centre on the top deck. You enjoy the maritime atmosphere combined with great facilities. The ship’s state-of-the-art, reliable, wireless Internet and GSM connection suits you quite fine. And for a moment you wonder, is this business or pleasure? You agree with yourself, it’s both. Your ships. Our service. Shared success. Maritime Communications Partner Together with major US and European based cruise brands, we provide passengers with ‘just like home’ reliable GSM, CDMA and WiFi services. MCP raises the bar for passenger and crew satisfaction by providing value-added onboard communication services. For more information visit our website www.mcp.com or contact us at:+ 47 37 09 00 00. maritime communications partner Foreword elcome to the European Cruise Council’s of-the-art ships that are safe, secure and equipped with 2011/2012 Report. Hopefully it will provide competent crew”. policymakers in Brussels as well as the These are attributes of which the cruise industry is rightly wider world with an interesting insight into proud and which the industry is determined to continue Wthe many facets of the European cruise sector. and, reflecting this, the report looks at the many initiatives It is encouraging and indeed remarkable that in these at the forefront of innovative technology which are being highly uncertain times the cruise industry continues to grow pursued: the prospects for exhaust gas scrubbers, ship steadily and make a real social and economic contribution design, engine design and alternative fuel sources to name to Europe’s economy. The number of Europeans and non- but a few. Europeans who choose a cruise holiday in Europe has Such initiatives are of course a reflection of the wider focus more than doubled in the past decade to over 5 million. by both governments, NGOs and indeed the general public The report shows the industry generated €35.2 billion of on environmental issues. In this regard cruise lines are fully goods and services, and increased its European bookings aware at both company and industry level of their key role in by 9.3% over 2009 to command 30%of the global market. ensuring that growth is sustainable. It is a challenge to ensure It generates employment for over 300,000 people across that environmental sustainability goes hand in hand with Europe, an increase of 55% since 2005. Europe remaining a good place for doing business, and the It is also worth recalling that 99% of the world’s cruise report addresses some of the factors relating to ship emissions ships are currently built in European shipyards, which and waste management, among others, in this context. in turn buy 99% of all their supplies from European There is a clear need for an intensified dialogue between manufacturers. The investment of €10.3 billion in new the industry and the regulators on environmental and safety ships announced up to 2014 testifies to the fact that the issues, but the need for cooperation is equally evident as cruise industry is a key driver in maintaining a European between ports and the cruise lines on a number of important shipbuilding industry. matters relating to port operations and services. These are This report not only addresses in some detail the outlook also discussed in the pages of the report. for our sector in the global context against the background I hope that this brief introduction will encourage you to of recent geo-political events, but also considers the explore a little further the many and complex elements of commercial factors and challenges affecting the industry in the cruise sector operating in Europe, and to appreciate the the different countries and regions of Europe. positive social and economic potential we can make to our At the ECC Conference in June, Commission Vice part of the world. President Siim Kallas recognised that the cruise industry sets an example for the wider maritime sector by having Manfredi Lefebvre D’Ovidio, Chairman ECC ECC 2011/2012 Report “a very good environmental record, sophisticated, state- and Chairman Silversea Cruises 3 10ISP033 C&F map ad 5/3/10 11:27 AM Page 1 A Passengership Fleet = passengership routes That Forges Ahead dedicated ISP delivers both the expertise and the experience to handle every aspect of managing and passengership operating your passengerships worldwide. For 20 years, we’ve been dedicated to providing management the most reliable, professional, and cost-effective solutions for your business, from passenger service to maintenance to financials and anything else you or your clients may need. For more information on ISP’s fleet of passengerships and accompanying management services, visit www.isp-usa.com or call us at +1 305 573 6355. Ashcroft & Associates Ltd., the publishers of the ECC Report, would like to express their sincere thanks and gratitude to the many organisations that have helped in the production of the magazine by contributing to articles and reports, or supplying facts and figures, information and pictures, or provided help in other ways. We have made every effort to ensure Contents the accuracy of the information but changes occur incessantly. Readers are advised to check that any material facts are still current with the responsible authorities. For information about future issues of the ECC Report please email: info@ ashcroftandassociates.com or tel:+44 20 8994 4123 The contents of this publication are protected by copyright. Publisher and Editor Chris Ashcroft Contributors Tony Peisley John McLaughlin Design & Production marcusmacaulay.co.uk Administration and Finance Gilly Ashcroft 35 Circulation Kerstin Jones 3 Foreword 12 The challenge of growth By Manfredi Lefebvre D’Ovidio, vs. Pricing Printed by Chairman European Cruise Council Warners Midlands and Chairman Silversea Cruises 19 Can European shipyards win the race? 9 A stable, secure and efficient operational environment is our 22 European economies boosted common goal by cruising By Pierfrancesco Vago, Vice-chairman of ECC and CEO of 24 Tough year for Europe but MSC Cruises demand still grows Published by Ashcroft & Associates Ltd 10 Structure and goals 35 Are cruise calls a cost or a PO Box 57940, London W4 5RD, By Tim Marking, Secretary General benefit? ECC 2011/2012 Report United Kingdom 5 39 Green issues dominate new ship design 43 Engines - an evolving science 54 47 Derogation and fuel availability 48 Is LNG the solution? 50 Emissions technology – a race against time 52 The need to harmonise sulphur policy 54 Addressing the carbon issues 56 Consistency of standards required for ship and shore 58 Onboard recycling – a waste of time? 60 ECC favours global solutions 62 Will member states interpret passenger rights the same way? 60 64 Consistency across Europe the key health concern Up to 9% savings on Intersleek® 900 your annual fuel bill* Intersleek®900 is the latest generation foul release coating that offers proven savings of up to 9% on your annual fuel bill. With over 400 vessels now coated, Intersleek®900’s proven performance offers significant reductions in greenhouse gas emissions and time in drydock. Better for the environment, better for your business. To find out more visitwww.international-marine.com/intersleek900 % * Depending on application and in-service conditions. 11135 Int900 9% Ad 420w x 142mm aw4.indd 1 13/04/2011 17:07 66 ECC members profiles 68 AIDA Cruises 66 69 Azamara Club Cruises 70 Carnival Cruise Lines 71 Celebrity Cruises 72 Croisières de France 73 Compagnie du Ponant 74 Costa Cruises 75 Cunard Line 76 Disney Cruise Line 77 Fred. Olsen Cruise Lines 78 Hapag-Lloyd Cruises 79 Holland America Line 80 Hurtigruten 81 Iberocruceros 82 Louis Cruises 83 MSC Cruises 84 Norwegian Cruise Line 85 Oceania Cruises 86 P&O Cruises 94 87 Phoenix Reisen 88 Princess Cruises 89 Pullmantur 94 Silversea Cruises 90 Regent Seven Seas Cruises 95 Star Clippers 91 Royal Caribbean International 96 TUI Cruises 92 Saga Shipping 93 Seabourn Cruise Line 98 Associate members Up to 9% savings on Intersleek® 900 your annual fuel bill* Intersleek®900 is the latest generation foul release coating that offers proven savings of up to 9% on your annual fuel bill. With over 400 vessels now coated, Intersleek®900’s proven performance offers significant reductions in greenhouse gas emissions and time in drydock. Better for the environment, better for your business. To find out more visitwww.international-marine.com/intersleek900 % * Depending on application and in-service conditions. 11135 Int900 9% Ad 420w x 142mm aw4.indd 1 13/04/2011 17:07 Anzeige_Maritime_210x297_1.indd 1 11.11.11 08:40 "A stable, secure and efficient operational environment is our common goal" urope is firmly established as the second largest cruise They are increasingly diversifying their product offerings, market, after North America, with a global market not only providing an incredible array of choices for all ages share currently of 30% with 5.5 million European throughout the year, but also building ships that are either passengers embarked from a European port in 2010. focused on the itinerary or on the ‘hardware’, making them a EThe industry is strongly committed to continuous growth, destination in their own right. offering guests the most innovative ships and great value for Finally, the sector is doing its best to pragmatically contain money. Through the European Cruise Council the industry operating costs (on which highly volatile fuel prices have a explains to governments, European and international considerable effect), and it is able to do so mainly through institutions, as well as the general public, how the cruise economies of scale. sector is becoming a key driver of Europe’s economy and The ideal situation for the industry – our core common an effective catalyst for the development and promotion of goal – is a stable, secure and efficient operational tourism throughout Europe.
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