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For more information visit our website www.mcp.com or contact us at:+ 47 37 09 00 00. maritime communications partner W “a very goodenvironmental“a very record, sophisticated, state- sets anexampleforthewidermaritime sectorbyhaving President SiimKallasrecognised thatthecruiseindustry the different countries andregions ofEurope. commercial factorsandchallengesaffecting in theindustry of recent geo-politicalevents,butalsoconsidersthe for oursectorintheglobalcontextagainstbackground shipbuilding industry. isakeydriverinmaintainingEuropeancruise industry ships announcedupto2014testifiesthefactthat manufacturers. Theinvestmentof€10.3billioninnew buy99%ofalltheirsuppliesfromin turn European ships are currently builtinEuropean shipyards, which Europe, anincrease of55%since2005. It generatesemploymentforover300,000peopleacross by 9.3%over2009tocommand30%oftheglobalmarket. andincreasedgoods andservices, itsEuropean bookings The reportgenerated€35.2billionof shows theindustry more thandoubled inthepastdecadetoover5million. Europeans whochooseacruiseholidayinEurope has to Europe’s economy. ThenumberofEuropeans andnon- steadily andmakeareal socialandeconomiccontribution continuestogrowhighly uncertaintimesthecruiseindustry the manyfacetsofEuropean cruisesector. Foreword At theECCConference inJune,Commission Vice This report notonlyaddresses insomedetailtheoutlook It isalsoworthrecalling that99%oftheworld’s cruise It isencouragingandindeedremarkable thatinthese wider worldwithaninteresting insightinto policymakers inBrusselsaswellthe 2011/2012 Report.Hopefullyitwillprovide elcome totheEuropean CruiseCouncil’s and ChairmanSilverseaCruise s Manfredi Lefebvre D’Ovidio, ChairmanECC part oftheworld. positive socialandeconomicpotential wecanmaketoour the cruisesectoroperatinginEurope, andtoappreciate the explore alittlefurtherthemanyandcomplexelementsof also discussedinthepagesofreport. matters relatingTheseare toportoperationsandservices. between portsandthecruiselinesonanumberofimportant issues, buttheneedforcooperationisequallyevidentas andtheregulatorsthe industry onenvironmental andsafety and wastemanagement,amongothers,inthiscontext. report addresses someofthefactorsrelating toshipemissions Europe remaining agoodplacefordoingbusiness,andthe that environmental sustainabilitygoeshandinwith ensuring thatgrowth issustainable.Itachallengetoensure aware leveloftheirkeyrole atbothcompany andindustry in on environmental issues.Inthisregard cruiselinesare fully NGOsandindeedthegeneralpublic by bothgovernments, but afew. fuelsourcesdesign, enginedesignandalternative toname pursued: theprospects forexhaustgasscrubbers,ship at theforefront ofinnovativetechnologywhich are being and, reflecting this, the report looksatthemanyinitiatives proud isdeterminedtocontinue andwhichtheindustry competent crew”. of-the-art shipsthatare safe,secure andequippedwith I hopethatthisbriefintroduction willencourageyouto There isaclearneedforanintensifieddialoguebetween Such initiativesare ofcourseareflection ofthewiderfocus These areisrightly attributes ofwhichthecruiseindustry

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Foreword By Tim Marking,Secretary General By Tim By PierfrancescoVago, and ChairmanSilverseaCruises Chairman European Cruise Council By Manfredi Lefebvre D’Ovidio, MSC Cruises ofECCand CEOof Vice-chairman Structure andgoals common goal operational environment isour A stable,secure andefficient

benefit? 35 24 22 19 12 Are cruisecallsacostor demand stillgrows Tough year forEurope but by cruising European economiesboosted the race? Can European shipyards win vs. Pricing The challengeofgrowth 35 5 ECC 2011/2012 Report 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

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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 72 Croisières de 73 Compagnie du Ponant 74 75 76 Disney Cruise Line 77 Fred. Olsen Cruise Lines 78 Hapag-Lloyd Cruises 79 80 Hurtigruten 81 Iberocruceros 82 Louis Cruises 83 MSC Cruises 84 85 Oceania Cruises 86 P&O Cruises 94 87 Phoenix Reisen 88 89 Pullmantur 94 Silversea Cruises 90 Regent Seven Seas Cruises 95 Star Clippers 91 Royal International 96 TUI Cruises 92 Saga Shipping 93 Seabourn Cruise Line 98 Associate members

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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 E constantly exploring newplacestoreach alarger audience. far from beingfullyexploited. strongest –namelyEurope, where thegreat potentialisstill for instance,movingcruiseships towhere demand seems choices. Taking advantageof theirmobileassetstheyare, manoeuvring around problems tooptimiseprocesses and this challengingphaseoftheindustry’s development. times. Theseinnerstrengths haveproven cruciallyhelpfulin sense ofsecuritythatisparticularlyappreciated inunsettled combined withauniqueabilitytogiveholidaymakers and mobilitythatland-basedresorts canonlydream of, face oftheseformidabledifficulties –through aflexibility the past18monthsalone. which wehavealready doneinmanypartsoftheworldover It’s ourresponsibility asasectortorisethesechallenges– level. travel andtourismdemandatlocalinternational areas: allthesefactors willultimatelyhaveanimpacton continues tothreaten theGulfofAdenandsurrounding occurrence ofdevastating naturaldisasters;thepiracythat AfricaandEurope;political turmoilsweepingNorthern the and itspotentialrepercussions intheUnitedStates; the confidence. Theglobalfinancialcrisis;theeurozone crisis because itweighssoheavilyonbusinessandconsumer continuously monitorsEurope’s macro-economic situation tourism throughout Europe. an effective catalystforthedevelopmentandpromotion of sector isbecomingakeydriverofEurope’s economyand institutions, aswellthegeneralpublic,howcruise European explains togovernments, andinternational money. Through theEuropean CruiseCounciltheindustry offering gueststhemostinnovativeshipsandgreat valuefor Cruise companiesare alsoenrichingtheiritineraries, But that’s notall.Cruisecompanies are alsoskilfully resilience hasshownexemplary inthe The cruiseindustry But there isnoroom forcomplacency, andthesector isstronglyThe industry committedtocontinuousgrowth, passengers embarkedfrom aEuropean portin2010. share currently of30%with5.5millionEuropean market, afterNorthAmerica,withaglobalmarket urope isfirmlyestablishedasthe secondlargest cruise common goal" environment isour operational and efficient "A stable,secure and CEO of MSC Cruises and CEOofMSCCruises Pierfrancesco Vago, ofECC Vice-chairman Europe’s challenges. through itspioneeringpositionhelptofindthesolutions can makeasignificantcontribution tothedebate,and concluded. TheECCfirmlybelievesthatthecruisesector and anti-piracyactivitiesare otherpressing issuestobe sulphur fuel,wastemanagement,safetypackages,regulation shipping, greenhouse emissioncuts,thetransitiontolow- issuesraisedinthewhitepaper.rights –thevery Sustainable It cares deeplyaboutpeople,passengerrightsandcrew resource efficient transportsystem. Single European Transport Area –Towards acompetitiveand Commission’s 2011whitepaperentitled Roadmaptoa fully involvedinthecrucialdebatearound theEuropean environment –through isfortheindustry theECC –tobe involved. tangible foreveryone partnership and‘pooling’approach couldbereal and to makeadifference. Thebenefitsofsuchaproactive stakeholders, invitingthemtoplaytheirpartinhelping fostered dialogues withallportauthorityanddestination sector’s competitiveness.With thisinmind,wehave the European institutionswithoutcompromising the meets theunderstandablelegislativeambitionsof and runbyanappropriate regulatoryframeworkthat environment, structures complementedbymodern goal –isastable,secure andefficient operational economies ofscale. considerable effect), anditisabletodosomainlythrough operating costs(onwhichhighlyvolatilefuelpriceshavea destination intheirownright. oronthe‘hardware’,focused ontheitinerary makingthema throughout theyear, butalsobuildingshipsthatare either not onlyproviding anincredible arrayofchoicesforallages They are increasingly diversifying theirproduct offerings, The cruise industry caresThe cruiseindustry deeplyabouttheenvironment. An importantfactorinbringingaboutthisoperational –ourcoreThe idealsituationfortheindustry common Finally, thesectorisdoingitsbesttopragmaticallycontain

9 ECC 2011/2012 Report 10 ECC 2011/2012 Report Iberocruceros Alfredo Serrano, CruiseLines Carnival Lynn Narraway, Star Clippers Eric Krafft, Board members Silversea Cruises Manfredi Lefebvre, Chairman Executive Committeeandboard members MSC Cruises Neil Palomba, Ports &Infrastructure Tim Marking Secretary General Hapag-Lloyd Cruises Sebastian Ahrens, ECC Secretariat Chairmen ofSub-Committees

Vago, Pierfrancesco Vice-Chairman Holland AmericaLine Joseph Slattery, Robert Ashdown Operations Environment & Director Technical, Hill Dickinson Maria Pittordis, Consumer Affairs Tourism & Croisieres deFrance Antoine Lacarriere, Pullmantur Luis Avila, Costa Cruises Gianni Onorato, MSC Cruises

TUI Cruises Richard J.Vogel, Cruises Ltd. Royal Caribbean Michael Bayley, Support Administrative Corporation Carnival Tom Strang, & Security Environment, Safety Monica Ford Mike Rodwell, Oceania Robin Lindsay, AFCC Georges Azouze, Olsen CruiseLines

Cruises

Fred. Fred. Hurtigruten Iain Cottam, UK Carnival David Dingle, Costa Cruises Fabrizia Greppi, Public Relations Tom Wolber, Disney CruiseLine Louis Cruises Costakis Loizou, Cruises Regent SevenSeas Graham Sadler,

Saga Shipping James Duguid, AIDA Cruises Michael Thamm, shortly. make anappointment Committee isdueto Labour Affairs Sub- recently formed Committee. The Taxation Sub- chairman ofthe UKis Carnival NB DavidDingle, RCL Cruises Ruth Marshall, Health &Hygiene Phoenix Reisen Johannes Zurnieden, du Ponant Seaborn CruiseLine Seaborn Richard Meadows, Sauvee Jean-Emmanuel , Compagnie , Compagnie

From 15/12/11 Norwegian CruiseLine Andy Stuart,

T Structure andgoals beginning of2011 movedfrom beingunderthe umbrella of within thewidercruiseindustry, theECC hassincethe Europe aswellhavingsome34associatemembersfrom statement, itsgoalsbeing: sustainable growth inthefuture. complex issueswhichmayimpactthepotentialforachieving EU institutionsandotherstakeholdersonthemany activelyshouldengageindiscussionswiththe the industry of Brusselsasaregulatorycentre, itbeingseenasvitalthat studies, theresults ofwhichare addressed inthis report. has beenthecommissioningofindependenteconomicimpact at national,regional andlocallevels.Essentialinthiscontext toEuropesocial andeconomiccontributionoftheindustry growth andthatthere wasagenerallackofawareness ofthe Now comprisingthe30leading cruise linesoperatingin • • • • These dualobjectivesare setoutintheECC’s mission The secondkeyelementwastheincreasing importance objectives. policies andactionswhichconflict withthese objectives whileanticipatingandresponding to organisationsgovernmental inpursuitofthese to co-operatewithEUinstitutionsandnon- contribution toEurope; and institutions inrelation toitseconomicandsocial to raisetheprofile ofthecruisesectorwithEU LabourOrganisationInternational inparticular; MaritimeOrganisationplayed bytheInternational and dimensionofthesectorandrolesinternational the environment, andonethatalsorecognises the supports safeshippingoperationsandprotection of to striveforanEUregulatoryenvironment that continued growth ofthecruisesectorinEurope; an EUregulatoryenvironment thatwillfosterthe to workfortheeliminationoftradebarriersand the industry would experience a period of significant wouldexperienceaperiodofsignificant the industry were essentially twofold.Thefirstwasabeliefthat by itsfoundingcruisecompanymembersin2004 he underlyingreasons fortheformationofECC Secretary General Tim Marking goal ofachievingsustainablegrowth inthecomingyears. represents theinterests oftheEuropean inits cruise industry developed intoanindependentorganisation thateffectively Chairman PierfrancescoVago, theECCbelievesthatithas within theEU. andthereviewand diseasesurveillance, oftheVAT system development ofaEuropean manualforhygienestandards facilities, piracy, passenger rights,tourismpolicy, the directive, greenhouse gasemissions,wastereception by thesub-committeesincluderevision ofthesulphur Labour Issues. Taxation; PortsandInfrastructure; PublicRelations;and Tourism andConsumerAffairs; HealthandHygiene; the sector, thesecoverEnvironment, SafetyandSecurity; increasing range ofregulatoryandotherissuesaffecting established. Reflectingthegrowth andthe oftheindustry a numberofspecialisedsub-committeeshavebeen for theoveralldirection anddecisionsoftheorganisation, Executive CommitteeandtheBoard whichare responsible the IMO. coordinated andinfluential role oftheEUinsuchbodiesas especially relevant againstthebackground ofthe increasingly with aglobaldimension.Suchcooperationisregarded as Association–particularlyonthoseissues International working relationship withtheUS-basedCruiseLines the European isitscloseandimportant cruiseindustry and LutherPendragon. affairs/public relations expertiseprovided byADSInsight secretariat based oninBrussels,theECCcandrawpublic a fullyindependentorganisation. Inadditiontoafulltime the European CommunityShipowners’Associationstobeing Under ChairmanManfredi Lefebvre D’OvidioandVice Current issuesofparticularimportancebeingaddressed As regards organisation, internal inadditiontothe A keycomponentoftheECC’s successfulpromotion of

11 ECC 2011/2012 Report 12 ECC 2011/2012 Report A passengers are payingfortheircruises. should alsobemonitoringwhat those the indicatorofitsgrowth, whenit refer onlytopassengernumbersas to is atendencywithintheindustry growing brands–pointsout,there of CostaCruises–onethefastest- in justfiveyears. represent anincrease ofaboutathird million thisyear(2011),whichwould remained oncoursetoapproach 20 It alsoensured thattheglobalmarket which havenowdoubledinfouryears. quantum leapinAustralasiannumbers, passenger numbersin2010. another substantialriseinglobalcruise increase inEuropean sales,meant combined withthecontinuedrapid growth vs. pricing The challengesof But –asGianniOnorato,President The 7%hikewasboostedbya North Americamarket, in fiveyears–the – itsbestperformance tosignificantgrowthreturn 28,000 berthsaddedin2009–at berths tofollowthenineshipsand extra capacity–12shipsand32,000 pricing ascruisecompaniesintroduced stimulated byhighlycompetitive passengers, payingtherightprices.” anything. Theyhavetobetheright of passengersdoesnotreally mean Michael Thammagrees: “Thenumber Source: G.P.Wild Limitedfrom International PSA,CLIA,IRNandothersources. Total Rest ofWorld Europe (All) North America Region In mostmarkets2010demandwas Sister brandAIDACruisesPresident Global source markets(millionsofpassengers) 14.32 1.21 3.15 9.96 2005 15.11 1.29 3.44 10.38 2006 15.87 1.37 4.05 10.45 2007 Association (CLIA)memberbrands. 1% forCruiseLinesInternational drops in2009,stillfell–byjustover although stabilisingafterdouble-digit passenger andperpassenger-night, 2008. recovering from oflate thedownturn a timewheneconomieswere still Eight newships,withacombined As aresult, revenues achievedper 16.20 1.45 4.46 10.29 2008 17.58 2.18 5.00 10.40 2009 18.80 2.25 5.54 11.11 2010 the so-calledArab Springeventsinthe economic issueswere exacerbatedby – notablywithinEurope where those continued pressure onpricesandyields a marketplacewhere there hasbeen great. which, todate,are atleastgoodifnot than others–thathasensured results markets performingsignificantlybetter has beenitsglobalnature –withsome are likelytohavebeenbroken andit other leisure travelsectors,norecords has onceagaingenerallyoutperformed against thoseforecasts. economic andgeo-political–conspired in theeventacombinationoffactors– forhiscompanyin2011.But return also predicted a “great” yearofrecord Chairman andCEORichard Fain accordingly. individual companyshare pricesrising a three-year recovery process, with cruise sector. Itwentontopredict appear increasingly aligned”forthe beginning oftheyearthat“stars atthe analyst (Wm.Blair)toobserve encouraged oneleadingUSleisure recovery inglobaleconomies, combined withanexpectedcontinued slowdown incapacitygrowth, introduced during2011.Thisgradual 20,000 berths,were duetobe 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 Year PSA, CLIA,IRNandothersources. Source: G.P.Wild Limitedfrom International These results havebeenachievedin Although theglobalcruiseindustry Royal CaribbeanCruisesLtd.(RCCL) European Source Markets North Americanand 6% 0.5% –2% 3% 4% 9% 11% 7% 13% 1% year Growth on America North 10% 12% 10% 16% 9% 10% 6% 26% 7% 7% year Growth on Europe programmes, thedisruptionclearlyhad winteraswellsummer satisfactory modify itinerariesandeventuallyhad and, althoughthesectorwasquickto reported tohave ground toahalt when Mediterraneanbookingswere itineraries atshortnotice. price-cutting required tofillthenew from cancellationsandfrom the downside forthecruiselinesboth such changes,there wasasubstantial schedules anddeployments. inevitably causeddisruptionsto the earthquakeandtsunamiinJapan ships intheregion. itineraries anddeploymentsofcruise These meantlast-minutechangesin Middle EastandNorthAfrica(MENA). 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 Year Source: ECC There wasaperiod inJanuary As wellastheadministrativecostsof inAsia,whereIt wasasimilarstory paying the right prices.” paying therightprices.” to betherightpassengers, mean anything.Theyhave passengers doesnotreally “The numberofextra European cruisemarket 5,500,000 4,900,000 4,400,000 4,000,000 3,400,000 3,100,000 2,800,000 2,700,000 2,100,000 2,000,000 Passengers capacity inEurope in2012;butits will havejustshortof50%its the growth rateofrecent years. upwards, althoughperhaps notatquite capacity andsourcing trend remains to otherdestinations,butthegeneral American brandsawayfrom Europe redeployments ofshipsbyNorth disruptions”. of itinerary “much lessofacapacityissuethanone drop in2011ticketpricespaidwas capacity inEurope, sayingthatthe any suggestionthatthere istoomuch Officer Howard Frankisquickto refute Vice ChairmanandChiefOperating Corporation&Plc period, butCarnival market hastrebled overthesame eight outofthepasttenyears. of NorthAmerica,asithasdonefor expected tohaveagainoutstrippedthat European cruisesource marketsis economic issues–growth inthe CruiseLine(NCL). Norwegian CruiseLines(CCL)and of Carnival andotherlargeInternational newships Oasis-class shipsofRoyalCaribbean notably bythetwonew‘world’s largest’ capacity deployedintheCaribbean, This hadbeendrivenbytheextra first significant growth forseveralyears. will stillhaverisenagainafter2010’s prices midwaythrough theyear. political wranglinghitdemandand even ifthedebtcrisisandrelated America marketstartedmore robustly, year progressed. an impactonthebottomlineas In a similar way to 2011, Carnival In asimilarwayto2011,Carnival There hasbeenahandfulof The sizeoftheEuropean cruise But –despitetheMENAand Passenger numbersfor2011,though, Fortunately, though,theNorth THAMM 13 ECC 2011/2012 Report

up again?Will theAmericanships be will happenifandwhentheEuro goes rate, whichraisesthequestion:What are exploitingtheEuro:Dollar exchange exploited. potential isstillfarfrom beingfully geopolitical conditions–andits market –despitetheuncertain 1.3%, thisisstillahighlyappealing large-scale intoEuropean waters. North Americanlineshavemoved CEO PierfrancescoVago. “Thatiswhy seems strongest,” saysMSCCruises ships where thedemandforcruises and Asiahavealready reached. passengers markwhichSouthAmerica Australia istargeting the1million revenue issetto continuetogrow. share ofpassengersand international contributors and–overallthe Australia andAsiaare alsosignificant Europe, althoughSouthAmerica, outside NorthAmerica. Corporation andRCCL–are nowfrom two largest cruisecompanies–Carnival globallybythe and revenues earned fact abouthalfthepassengerssourced in 2001decliningto73%by2010.In with theNorthAmericanshare of90% marked changeoftheirownsourcing, member linesisclearlyreflected inthe and brandexpansionpoliciesofCLIA being drivenbythenewdeployment happen. growth whenthatovertakingwill comparative levelofNorthAmerican by 2020,anditsimplydependsonthe will doubletomore than10million that thenumberofEuropeans cruising passengers. America astheleadingsource for cruise ten, Europe willovertakeNorth over thenexttenyearsasinpast disparity betweenthetwomarkets there continuestobeasimilargrowth 50% NorthAmericans. cruises typicallyincludinglessthan have apassengermixonMediterranean and HollandAmericaLine(HAL)–will American brands–PrincessCruises North Americans.Two ofitsNorth is likelytoproduce alowershare of passenger sourcing (aswithRCCL) “But itisalsoclearthesecompanies “With marketpenetrationofjust “Cruise companiesare movingtheir The majorityofthesecomefrom That thisEuropean growth islargely Most operatorsare certainlyconfident The factisthatif–aslikely on year,” he says,“asshipscanalways in oroutofaparticularmarketyear excitedabout capacitygoing get very on destinationslikeEurope. “Idonot impact themobilityoffleetscould have well asWest) andalsoAustralia.” North America–from Europe (Eastas nearly 50%ofpassengersfrom outside America; butwehavebeensourcing plan tosource primarilyfrom North high airticketcostisanissue,aswedid Mediterranean thisyear, hesays: “The Cahill. and CEOGerry North America,”saysCCLPresident programme primarilyfrom outside deliberately goneouttosource a October 2012. SpiritgoingtoAustraliafromCarnival a shipoutsideNorthAmerica,with its firstyear-round deploymentof Europe thisyear, andisalsoplanning to exclusive focus.Ithasreturned which hasalwaysbeenitsmain,almost beyond theNorthAmericanmarket dedicated togoafternewmarkets.” said: “Mostofournewcapacityis ship CelebritySilhouette,RCCL’s Fain Celebrity Cruises’latestSolstice-class European companiesfollowthem?” redeployed tohome waters–andwill 2011 projected 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 Year But heagrees withVago aboutthe Regarding thebrand’s tothe return “It isthefirsttimewehave CruiseLinesislooking Even Carnival But, speakingatthenamingof Source: CLIA CLIA passengers 11,680,000 10,781,000 10,198,000 10,093,000 10,247,000 10,078,000 9,671,000 8,870,000 7,990,000 7,472,000 6,637,000 Passengers North American 73% 73% 76% 78% 82% 84% 87% 85% 84% 86% 90% Share * Excludesrivercruise companies Cruise line* Windstar Cruises TUI Cruises Star Clippers Silversea Cruises SeaDream Yacht Club Seabourn CruiseLine Saga International Royal Caribbean Cruises Regent SevenSeas Pullmantur Princess Cruises Phoenix Reisen Pearl SeasCruises Paul GauginCruises P&O Cruises Oceania Cruises Norwegian CruiseLine MSC Cruises Louis Cruises Iberocruceros Hurtigruten Holland AmericaLine Hapag-Lloyd Cruises Fred. OlsenCruiseLines Disney CruiseLine Cunard Line Crystal Cruises Croisières deFrance Costa Cruises Compagnie duPonant Celebrity Cruises Carnival CruiseLines Azamara Cruises AIDA ECC andCLIA Member linesof 4,320,000 4,023,000 3,244,000 2,912,000 2,316,000 1,928,000 1,509,000 1,590,000 1,536,000 1,176,000 862,000 Passengers International 27% 27% 24% 22% 18% 16% 13% 15% 16% 14% 10% Share • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ECC • • • • • • • • • • • • • • • • • • • • • • CLIA 15 ECC 2011/2012 Report

we willbeableto doso–although passengers, butweare notsure if pressure onustomitigatethatcost. million, andthere willbealotof could beintheregion of$100–$150 our world.Thefinancialimplications Baltic andNorthSeaECAswillchange sulphur ratesofthefuelweusein scheduled loweringoftheallowable single itinerary.” “It iscausingustore-evaluate every makes thatmore difficult,” saysCahill. question thattheNorthAmericanECA closer toourconsumer, and there isno coastline. be effective around theNorthAmerican Baltic andNorthSeawillshortly which are currently inplacethe in EmissionsControl Areas (ECAs) sulphur fuelrequirements, particularly increase withthe introduction oflow- decisions, anditsimpactwillonly factor indeploymentanditinerary collars ratherthandirect hedges. risk mitigation,albeitthrough option purchases hasbeenconsideringfuel unlike RCCL–doesnothedgeitsfuel Corporation,which– that Carnival CCL in1996,anditissignificant 10% ofwhatitisnowwhenhejoined volatile. 2011, anditspricingremains highly destinations, includingEurope. shift incruisecapacityawaytoother distances betweenportshasseena the higherfuelcostsduetolonger problems withcrimeinMexico, and real andconsumer-perceived the mainsource market(California), combination ofapooreconomyin routes: theMexicanRiviera,where a of thelongest-establishedcruise another’s loss. market togrow.” you thendoneedextracapacityforthe exactly whatyouwant,forawhile.But in capacity, the price goes up – which is always fillourships.Ifyoudonotput between supplyanddemand,aswe change thefollowingyear. be moved–andtheyare. Soitcanall “We topass onparttoour willtry AIDA President Thammsays:“The “Our goalhasalwaysbeentoget Fuel costhasbecomeasignificant Cahill pointsoutthatfuelcostonly The costoffuelhasrisensharplyin This iscurrently thecaseforone But onedestination’s gaincanbe “There isalwaysarelationship a muchwiderrange ofpassengers, new ships,”hesays,“weare targeting have beenonoffer. “With ourlarge out theupsideoflowerprices that as thekeytool.” other, andusingthevalueof cruising land holidaysratherthanfrom each overall marketbytakingshare from 2008 levelsaswewillbeincreasing the sector. Thesewilldriverecovery to of scalethatweare creating inthe on stockearnings. upscale brandswithclientsdependent UK andNorthAmerica. start intheEurozone butspread tothe of financialcrisis2.0”,whichcould of“somekind Sebastian Ahrens warns particularly withintheEurozone. the prevailing economic situation, be tempered with cautiondueto so there isreason foroptimism.” technological advancesinourindustry, challenges willstimulatesuch fueloption? alternative might weachieveifcanadoptsome of solarorwindpower–sohowmuch there hasbeenno significantutilisation paradigm changeinthetechnology– more fuel-efficient. ago. Andournextshipswillbeeven by about50%compared with15years passenger nightsothatitisnowdown reduced theconsumptionoffuelper accept lowerprofitability? the addedcost,orwillwejusthaveto can saveenoughinotherareas tooffset emissions. Thequestioniswhetherwe use lowersulphurfuelandreduce our Germany atleast,thatwedoneedto there isastrong publicperception, in MSC CruisesCEOVago alsopoints “But thepositivesare theeconomies “This wouldparticularlyaffect Hapag-Lloyd ManagingDirector This optimismhas,though,to “My expectationisthatthese “This hasbeenachievedwithouta “With eachnewclassofshipwehave ECAs willchangeourworld." we useintheBalticandNorthSea allowable sulphurratesofthefuel “The scheduledloweringofthe 40 millionbeyondthat. increase of50%–andcontinuetowards 30 millionoverthecoming15years –an global cruisepassengernumbersto reach 3–5%. from therecent 6–8%annuallyto capacity growth willgraduallydrop a proportion oftheoverallfleet, between 2005and2010.However, as will notfallfarshortofthepeakyears additional berthsaddedeachyear ships willalsomeanthenumberof policies. evolving technologiesandoperational the economiesofscalebutthrough much more efficient –notjustthrough existing brandfleets.Theywillalsobe larger thantheaveragewithin ships willcontinuetobesignificantly during thepastfivetotenyears. ambitious thanthatwhichtookplace capacity growth shouldbeslightlyless a generalacceptancethatfuture thecruisecompaniesshare concerns, equally bycostandenvironmental efficiency, whichisbeingdriven consumption andothercosts.” become more efficient intermsoffuel are abletopay. Soweallneedto once hadintermsofthepricesthey consumers somuchmore. where higherair fares meantheycost we reduce thenumberofflycruises seasons indifferent destinations,so better yieldmanagementandtoextend fantastic prices. people intocruising,youhavetooffer to enlarge thebasebyattracting new other leisure sectors.But,ifyouwant advertising –muchmore thanmany and are spendingalotofmoneyon Nonetheless projections remain for The increased sizeofthesenew There willbefewer orders, butthe Alongside thisfocusonoperational “They donothavethechoicethey “At thesametimewehavetoinvestin 17 ECC 2011/2012 Report www.meyerwerft.com O win therace? Can European shipyards policy beingemployed aspartofa pricing andsuspectaloss-leading from theEuropean shipbuilders. pricing policyhascomeunderattack built cruiseshipsadecadeago,and its Japanese yard –Mitsubishiwhichlast This lowercostisbeingoffered bya by the50%capacityrisepervessel. drop thatcanonlybepartlyexplained series ofships(builtinGermany)–a to more than$260,000fortheirlast about $200,000perberth,compared threat ofcompetitionfrom Asia. shipbuilders inEurope bytheemerging for theestablishedspecialist And thissituationisbeingexacerbated order tosecure whatorders theycan. more price-flexible thaneverbefore in shipbuilders havefoundtheneedtobe financing vehicle. applicable –themostcost-effective the shipbuilderandalso–where the mostadvantageouspricefrom add more capacity untiltheysecure the positionofbeingabletowait cruise brandsfindthemselvesin of globalcruisecapacity, most being takenbythemajorplayers. measured approach tocapacitygrowth fact, primarilyareflection ofthemore for thelongerleadtimewhichis,in brand, thisisnotthemainreason size willbethelargest todateforeach year gapinsteadofthenormaltwo. 2015. Inotherwords, athree- orfour- Cruises andAIDAnotuntil arrive until2014,andthoseforP&O Cruises shipsordered thisyearwillnot years. Yet theCostaCruisesandTUI dateswouldbeabouttwo delivery announcements andthescheduled dates. timing oftheirdelivery They accuseitof‘unsustainable’ The twonewAIDAshipswillcost With theslowdowninorders, With therecent rapidexpansion Although –inmostcasestheship Normally, thegapbetweenorder cruise sectorhasbeenthe new shiporders from the features ofthemostrecent ne ofthehighlysignificant Carnival CruiseLines Disney CruiseLine 2012 Brand Princess Cruises 2013 AIDA Cruises 2016 Costa Cruises MSC Cruises Line Norwegian Cruise Celebrity Cruises Oceania Cruises Cruises Hapag-Lloyd Sea Cloud AIDA Cruises Ponant AIDA Cruises Note 2 Princess Cruises 2014 Line Norwegian Cruise TUI Cruises International Royal Caribbean Costa Cruises P&O Cruises 2015 AIDA Cruises International Royal Caribbean TUI Cruises the contractwascancelledfollowing outbreak ofcivilwar. 2 ShipbuilderisnegotiatingwithMSCCruises totakeovertheLibyan-ordered vesselonwhich 1 SeaCloudHussarwillbeadelayeddelivery duetobankruptcyofshipyard. **option *double occupancy New shipsonorder/optioned 2012–2016

Carnival Breeze Disney Fantasy Ship TBA MSC Divina TBA Reflection Celebrity Riviera Europa 2 Sea CloudHussar AIDAmar TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA** TBA** 130,000/4,631 124,000/4,000 Tonnage/berths 139,000/3,600* 125,000/3,250* 114,200/3,780 140,000/4,087 143,500/4,000* 122,000/3,150 65,000/1,260* 39,500/516* see note1 71,000/2,644 10,700/264 71,000/2,644 140,000/4,087 139,000/3,600* 143,500/4,000 97,000/2,500 158,000/4,100 132,500/4,928 141,000/3,611* 125,000/3,250* 158,000/4,100* 97,000/2,500 5/12 tba TBA/15 4/12 Due 4/13 3/16 6/12 4/12 4/13 10/12 4/12 4/13 5/12 6/13 9/13 12/12 4/14 4/14 TBA/14 TBA/14 10/14 10/14 3/15 3/15 4/15 140 546 738 899 735 650 726 742 840 768 530 360 565 140 575 711 735 840 546 1,032 788 804 650 1,032 Cost ($million) 19 ECC 2011/2012 Report Wheelmark and U.S. Coast Guard approved

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Box 1662, D-38286 Wolfenbuettel/Germany Phone +49 (0) 5331 89-207 Fax +49 (0) 5331 89-418 e-mail: [email protected] MKN – Master of Performance www.mkn.eu markets suchas China.” Inthe could alsobegrowth from emerging second halfofthe1990s,andthere the replacement ofshipsbuiltinthe from 2020,“Whenitwillbetimefor among them.” is simplyasmallercaketobedivided European cruiseshipbuilders–there are notenoughtofeedallthespecialist Antonini. “Atthemomentorders says FincantieriChairmanCorrado their capitalinvestmentprogrammes,” costs managementsohavesoftened financial constraintsandoperating developments. well placedtomonitorrecent , hasbeenparticularly of thepastdecade,Italianshipbuilder of thisdecade. was originallyexpectedforthefirsthalf annual averageofeightshipswhich at best,whichwouldfallshortofthe this totalwillincrease onlytoabout35 and theMiddleEastmakeitlikelythat geopolitical situationinNorthAfrica together withtheunpredictable from 2012through 2016. andTUI)fordelivery International (plus twooptionsforRoyalCaribbean the Libyanorder, there are 20ships half ofthelastdecade. were experienced duringthesecond 12–14 orders/deliveries ayear, which tothedaysof returns cruise industry there isstillsomewaytogobefore the stimulating orders across thesector, now onoffer are playingapartin to beoperatedbyaChinesecompany. reportedly contractedforacruiseship ship project, andaChineseyard is already involvedinaresidential cruise the cruisesector. OneKorean yard is China, whichalsohavedesignson lower-cost competitorsinKorea and targeting European rivalsbutalsotheir buttowintherace.” survive… as saying“We won’t aimjustto shipbuilding, anexecutivewasquoted intention lastyeartore-enter cruise market-leading role inthissector. long-term plantoundermineEurope’s But hedoespredict bettertimes “Cruise linesare strugglingwith The sectormarketleaderformost The continuingeconomicdownturn Excluding SeaCloudHussarand Although thelowershipyard prices Japanese shipbuildersare notjust When Mitsubishiannouncedits government, ithasovercomegovernment, size innovation andlobbyingofregional Cruises (RCCL). /Celebrity Caribbean International Corp.),NCLandRoyal AIDA (Carnival order bookcontainsshiporders from and otherbrands.Infactitscurrent CruiseLine(NCL) as forNorwegian Caribbean CruisesLtd.(RCCL)aswell Corp.)andRoyal & Plc(Carnival Corporation has builtforbothCarnival with allthemajorplayers,sothatit spot. Ithasdevelopedrelationships for thenumber-one cruiseshipbuilder Werft isnowchallengingFincantieri to improve itscompetitiveness. technology andotherproduction areas also requires more investmentinnew (Sestri), butFincantieriisclearthatit development atoneofitsyards heated protests from theworkforce. contractor staff), were rejected after workforce (andamajorcutbackinsub- yards, andthelossof2,500its8,500 closuretemporary oftwoitseight dwindled; butinitialplansforthe wanted todownsizeasitsorder book These cametoaheadinMay, whenit dogged byproblems withtheunions. sell-off, andhasalsocontinuedtobe desire forafull or partialgovernment cruise orders. not entirely –due tothedrop off in way, itslossesnoware largely –but its peakordering years.Inthe same cruise shipbuildingsectorduring largely builtonitsleadershipin the years ofprofitability, whichhadbeen year oflossesin2011. show itissetforitsthird successive clear from Fincantieri’s results –which the urgency ofthiscurrent situationis sector,particularly intheLuxury but increasing bytheendofdecade, what weoffer tothecustomer.” and tochangethewaywework, accelerate ourplansforinnovations is apitythatweneededcrisisto Hardelay agrees. “But,”hesays,“it quality andefficiency”. shipbuilders to“increase ourproduct meantime heacceptstheurgency for Through itsowninvestment, Germany’s privatelyownedMeyer There are plansfora€70million It hascontinuedtobethwartedinits The 2009/10lossesfollowedseven He alsoseesnewbuildorders STX FranceGeneralManagerJacques own increased productivity. increase inorders togoalongsidetheir and prosper, there doesneedtobean to placenewbuildorders. supply newbrandswiththepotential markets inAsia,notablyChina,to they are alllookingtoemerging room formanoeuvre, whichiswhy does notgivethemagreat dealof with theresources toorder newships intorelativelyindustry fewcompanies 2016 andpossiblybeyond. level (currently $3.4billion)through to probably remain flatatabout2013’s revenues availablefrom thesectorwill over thenextfewyearsandgross none are immune. impact offewercruiseshiporders, placed thanotherstoweatherthe specialist cruiseshipbuildersare better more ships,plus twooptions. company butalsoorders foruptotwo the civilwarbyaLibyanshipping taking overtheorder placedbefore MSC Cruises,isconsideringnotonly Cruises lastSeptember. with orders from bothTUIandPonant has recently shown signsofrecovery global economiccrisishitin2008,but arguably thehardest hitwhenthe STX Group. Itscruiseorder bookwas France) –ispartoftheSouthKorean comprises yards inFinlandand shipbuilder –STXEurope (which and 158,000tonnesrespectively. for shipsofmore than143,000tonnes orders,Royal CaribbeanInternational enabled ittowinthelatestNCLand along theriverEms.Thissuccess its Papenburg yard andalsodeliver limitation ontheshipsitcanbuildat Mitsubishi STX Europe Fincantieri Meyer Werft Shipbuilder For the cruise shipbuilders to survive For thecruiseshipbuilderstosurvive The polarisationofthecruise There are goingtobefewerorders However, althoughsomeofthe Its largest customerofrecent years, The third majorspecialistcruise Source: ECC,from lines/yards Current order book by shipbuilder 2 4 (plus1) 7 7 (plus1option) Ships 21 ECC 2011/2012 Report 22 ECC 2011/2012 Report T benefit mostfrom thecruisesector;it manufacturing remainsto theindustry shipbuilding continued,whichiswhy shipbuilder –MeyerWerft. also thesuccessofitsspecialistcruise the numberofGermanscruisingand reflecting thesignificant increase in direct expenditure bytheindustry year-on-year, with20%growth in Germany wasthetopperformer remained , theUKandGermany. administrative offices. 5,000 intheirvariousheadquartersand ratings ontheirshipsandafurther European nationalsasofficers and lines themselvesemploy50,000 the totalabove300,000.Thecruise 4% more jobswere created –bringing record €35.2billion,andafurther by 3%. its contributiontoEurope’s economies boosted bycruising European economies Total jobs Direct jobs Total compensation Direct compensation Total expenditure Direct expenditure Europe’s pre-eminence incruise The topthree countries tobenefit Its totalexpenditure reached a Economic impactoftheEuropean cruiseindustry strong performance,increasing trends in2010withanother continued tobuckeconomic he European cruisesector Source: ECC(G.P.Wild/BREA) 311,512 150,369 €10.0 billion €4.6 billion €32.2 billion €14.2 billion 2008 sign ofaslowdowninthegrowth of passenger sectors. as theynowdomostoftheothernon- to dominatethatsectorofshipbuilding, Chinese aswellJapanese–moving about Asianyards –Korean and couple ofyears. trend couldstart tostabilisewithina orders hasbeguntoaccelerate,sothis dropped by8.5%;butthelevelof on cruiseshipbuildinginEurope 2010 theeconomicimpactofcruising that area ofthe sector’s contribution.In in cruiseshiporders, whichisaffecting nearly €2billion. with financial andbusinessservices, other majorsectortobenefitwas €2.7 billionfrom theindustry. The more than and utilitiessectorearned commission onsales,thetransportation travel agents€860millionin of thejobs. expenditure, andmore thanaquarter accounted fornearlyhalfofthedirect On theupside,though,there isno There are, though,someconcerns There hasbeen a slowdownrecently With cruiselinespayingEuropean 296,288 143,235 €9.0 billion €4.3 billion €34.1 billion €14.1 billion 2009 307,526 150,401 €9.3 billion €4.4 billion €35.2 billion €14.5 billion 2010 which theytravelled were operated increase on2009. spent €3.1billionashore –an8% Between them,passengersandcrew for anaverageof€16pershore visit. ashore ineachport. proportion ofcrew are allowedtogo by cruiseshipcrew members.Onlya million (outofapotential13.2million) million portvisits. more foracombinedtotalof25.2 attracted more cruisevisitors–6% active inthecruisesectorduring2010 meant thatthe250European ports were European. 5.3 milliondoingso,4.2(77%) starting theircruisesinEurope. Ofthe increase inthenumber ofpassengers cruising in2010meantasimilar cruising withinEurope. already showna clearpreference for Europe, especiallyasEuropeans have economic impactofthesectoracross project acontinuedincrease inthe market leader. America, whichhaslongbeenthe fact overtakingthenumberfrom North double bytheendofdecade–in number ofEuropeans cruisingwill Indeed there are projections thatthe for theregion over thenextfewyears. ensure increased economicbenefits – cruisingwithinEurope. This should – bothEuropean andnon-European nor inthenumberofthosepassengers the numberofEuropeans cruising, Two-thirds ofthe198shipson Their totalspendwas€87million Alongside thosevisitswere 5.3 Also inevitably, theseaddednumbers The 9%increase inEuropeans It isreasonable, therefore, alsoto capacity). Thisrepresented aslight ships (butlessthantwo-thirds ofthe accounted forthree-quarters ofthe for mostbrands.European brands Europe, whichisaseasonaldestination growth againin2012. by 22%thisyear, andthere willbe Remarkably thatfigure hasincreased for 27.69millionpassengernights. the yearwas3.47millionpassengers in 2010.Theircombinedcapacityfor of themfrom NorthAmericanbrands) in recent years, attracted 162ships(52 become ayear-round cruisedestination Cruise Line. Mediterranean forUSbrandNorwegian Epic–operatinginthe Norwegian to Europe –the4,100-passenger largest-capacity shipyettobedeployed trend iscontinuing thisyear, withthe capacity isslightlyhigherat37%.This larger, too,sotheirshare oftheoverall American brands.Thesetendtobe deployed intheregion byNorth is anincreasing numberofvessels by Europe-based brands,butthere Passengers 2007 18.82 million Total Rest EU+3 Total(top six) France Germany UK Italy Passengers 2007 Country 4.29 million Exactly 100 ships cruised in Northern Exactly 100shipscruisedinNorthern The Mediterranean,whichhas Cruise visitorstoEuropean countries Cruise passengersembarkinginEurope Source: ECC(GPWild/BREA) Source: ECC(GPWild/BREA) Source: ECC(GPWild/BREA) Economic impactbycountry2010 14,476 2,325 12,151 580 972 1,186 2,306 2,569 4,538 (€ million) Direct spend Passengers 2008 21.71 million Passengers 2008 4.69 million 3.0% –7.7% 5.4% –3.0% –16.1% 6.0% 20.2% 6.7% 4.8% on year Change political upheaval.StPetersburg (0.43 slipped rightbackthisyearfollowingits popular portsofcall,butTunis willhave (0.85 million)were thetopthree most Dubrovnik (0.97million)andTunis completed thetopten. Denmark, Sweden,theUKandMalta top themillionmarkwhilePortugal, million) were the othercountriesto Greece (4.5million), slippedtothird. second andtheprevious numberone, million) movedupfrom third to 21% ofthetotal,whileSpain(4.9 million passengervisitsrepresented but intheworld–during2010.Its5.4 cruise destination–notjustinEurope 3.5 millionthisyear. visits grow from 3.1millionin2010to to haveseencruisepassengerport EuropeNorthern –theBalticexpects increase inpassengernights. in2011witha17% hasreturned curve substantial growth; butthatupward dip incapacity, afterseveralyearsof Naples (1.1 million passengers), Naples (1.1millionpassengers), (1.8 France (2million)andNorway Italy tookoverasthenumberone The leadingcruiseregion within

Passengers 2009 23.78 million Passengers 2009 4.84 million 307,526 63,938 243,588 11,612 13,012 25,219 36,084 58,604 99,057 (€ million) Jobs 9,278 1,323 7,955 227 577 766 1,313 2,120 2,952 tion Compensa- Passengers 2010 25.20 million Passengers 2010 5.28 million Hamburg andKiel. deployed from Germanportssuchas of Europe, andasmore shipsare growth continuestooutstriptherest to closeasGermansource market passengers; butthatgapislikely with lessthan7%ofhomeporting popularity, attheexpenseofflycruises. UK–UK cruisesgrowing muchfasterin six homeportingpassengers,with 9.3% increase on 2009. and drinketc.).Thistotalrepresented a (on accommodation,portfees,food billion onairfares andatthehomeport embarking passengersspent€1.5 airfares iftheyflew tojointheship. also spentanaverageof€215on €61 spentateachportofcall.They city wasnearly€70,compared with embarking passengersinahomeport (mainly onpre- andpost-cruisestays). at ahomeportthanportofcall since passengersusuallyspendmore generally greater economicbenefits, homeporting. Theycanthusreap Italy andSpaindominateEuropean –ishelpingboth a singleitinerary at achoiceofseveralportswithin where passengerscanstarttheircruise ahead ofItaly’s Civitavecchia. among Europe’s leadinghomeports, retained itsnumberoneposition cruises initsports,andBarcelona than oneinfivepassengersembarking ports. Spainwassecond,withmore beginning theirvoyageinoneofits three passengerscruisinginEurope to homeports,withmore thanonein Europe.heading itinNorthern port, withonlyLisbon(0.45million) million) remained theBaltic’s leading Germany iscurrently adistantfourth, The UKaccountedforoneinevery Between themthe5.3million In 2010theaveragespendby An increase ininterportingcruises– Italy alsotoppedthelistwhenitcame Change 2010vs2009 6.0% Change 2010vs2009 9.1% 23 ECC 2011/2012 Report 24

ECC 2011/2012 Report S markets are included)shouldriseto when theemerging European Eastern increases tomore than5.5million 2011. achieve anothersubstantialincrease in ‘Arab Spring’–theyare oncourseto disruption causedbytheeventsof issues withintheEurozone andthe but demandstillgrows Tough yearforEurope Total rest Caribbean and Atlantic Islands Mediterranean/ Destination Total Others Portugal Switzerland Austria Benelux Scandinavia France Spain Italy Germany UK Country The 5.45million2010total(which Source: ECC European cruisemarketbydestination Source: ECC European oceancruisepassengers and –despiteseriouseconomic double digitgrowth in2010 recorded theirfourthyearof ales ofcruisesinEurope 4,422 183 28 65 59 92 123 310 497 682 907 1,477 2008 (’000) 4,422 1,036 737 2,649 2008 Passengers (’000) 4,944 182 30 76 80 110 173 347 587 799 1,027 1,533 2009 (’000) 4,944 1,235 884 2,825 2009 as European CruiseCouncil(ECC) economy thatyear, andagainin2011. – reached €2.2 billion fortheItalian just onecruiseline–CostaCruises boost forEuropean economies. Europe in2010–thisisawelcome or AtlanticIslands;16%inNorthern Europe –61%intheMediterranean Europeans choosetocruisewithin about 6millionbytheendofthisyear. This issignificantattimewhen – The impactfrom theactivitiesof Since more than three-quarters of 5,452 171 41 91 93 126 168 387 645 889 1,219 1,622 2010 (’000) 5,452 1,242 907 3,303 2010 10% –6% 37% 17% 16% 15% –3% 12% 10% 11% 19% 6% 2010/2009 Change 10% 1% 3% 17% 2010/2009 Change variety offactorsatwork. UK,believesthere isa leader Carnival choice from 2013. UK cruiseswillbecomethemajority possibilitythatUK– years, withevery flycruises toalmost50:50injusteight will haveshiftedfrom 2:1infavourof between theno-flyandflycruises market grows again–to1.73million. UK passengers,sothattheoverall another jumpinthenumberofUK– fall to895,000in2012,offset by 969,000 to950,000. of flycruisepassengers–downfrom is alsoevidenceofafallinthenumber rise to760,000passengers;butthere cruising outofUKports,witha16% evidence ofthenewpopularity million isestimatedfor2011. in 2010,afurtherriseof5%to1.71 After 6%growth inpassengernumbers UK market Europe.as Eastern countries andalsoScandinaviaaswell emerging markets,too,intheBenelux the board ofWestern Europe with for growth. Growth, though,isacross penetration, leavingplentyofscope and Germany–havelowlevelsof and mostestablished–theUK of development,buteventhelargest within Europe are atdifferent stages goal ofsustainablegrowth.” and thepublic–toshare theultimate – theindustry, NGOs governments, to dobusinessandforallstakeholders “but weneedittoremain agoodplace tourism destination,”saysLefebvre, its positionastheworld’s numberone growth atanaverageofjust1.7%. out –EUeconomieswere seeingGDP Chairman Manfredi Lefebvre points “Firstly,” hesays,“UK–UKport David Dingle,CEOofUKmarket But itwillalsomeanthatthebalance There are projections forafurther Within thattotal,there isincreasing The individualsource markets “Cruising ishelpingEurope maintain low-cost packagesoffered here. But was theUK.Sowesawalotofvery were muchcloser tohome. movements [related totheArabSpring] also lesswillingbecausethemilitary Europeanscome, whileSouthern were some NorthAmericansreluctant to sourcingreliant oninternational found flycruise product intheUK:brands overstatement oftheMediterranean cruise calls. parts ofthatregion lessattractivefor with theeventsearlierthisyearmaking that hasbeenaffected byother issues, flycruise destinationfrom the UK; and cost issomuchhighernow. Caribbean flycruises,becausetheflight Passenger Dutyhashadanimpacton not thepassenger. because itwillbepayingfortheflights, in thecruiselinemakinglessmoney: only bereflected eitherinthefare or adds cost,”saysDingle,“andthatcan brands’ deploymentdecisions.“Flying commercial realities affecting cruise than theportsofcall.” more abouttheonboard experience people are realising thatacruise is facilities ofthebiggershipsgrow, flight costincluded.Asthesizeand cruising isbettervalue,asthere isno 2012 2011 2010 2009 2008 Year “The default market to turn to “The defaultmarkettoturn “This ledtosomethingofan “But theMediterraneanislargest “There isnodoubtthattheUK’s Air The turnaround isalsodueto Source: UKPassengerShippingAssociation/IRN *estimated market UK andIreland ocean 1,730,000 1,710,000 1,622,000 1,533,000 1,477,000 Passengers *1.2% *5.4% 5.8% 3.8% 10.5% on year Change cut hasremoved theirabilityto rebate us, are stilldoingsoand–becauseour considerable amountsofbusiness with working well. the fringes,butgenerallyithasbeen will alwaysbesomedetractorson of ourpricing”.Henowsays:“There company “wantedtoregain control to secure sales. that commissiontoconsumersinorder for themtorebate someorevenallof retail agents,andsoreduce thescope UK tocutbasiccommissionlevelsfor behind thisyear’s decisionbyCarnival low prices. which soldhighvolumesofcruisesat profile collapsesoflarge travelagencies there havealso been acoupleofhigh- levels ofdiscounting.Inrecent years abouthigh decline hasledtoconcerns overseas holidayproducts are in which isgrowing whenmostother between themforbusinessinasector travel agents,andfierce competition passengers booktheircruisesthrough costs lessthan£500. sevencruisesstill although oneinevery price increasing by8%to£1,421– £2.3 billionin2010,withtheaverage holiday business. becoming partoftheUK’s mainstream cruise, soitisclearthatcruisingnow ago onlyonein25packageswasa resident isnowacruise.Ten years ninepackagestakenbyaUK in every the inclusivetoursector, meansone combined withconsolidationwithin market nextyear.” putting more flycruisesontheUK for 2012,there willbelessneedfor withdrawal from theMediterranean since there hasbeenabitofcapacity “Our core distributors,whodid CEO Dinglesaidatthetimethat This situationwasoneofthedrivers More thanthree-quarters of Total cruisesalesrevenue reached The growth ofcruising’s popularity, number of flycruise passengers.” number offlycruisepassengers.” but thereisalsoevidenceofafallinthe popularity ofcruisingoutUKports “There isincreasingevidenceofthenew seeing an upturn intheUK,”Dingle seeing anupturn to prove tobemore substantial. out ofUKports,thatgrowth couldyet Cruises continuingtoexpandcapacity similar response during2012.” booking holidays.Iexpecttoseea more normalbehaviour–including they hadfeared to andtheyreturned people realised itwasnotasbad nothing muchchangedeconomically, Butthen,although consumer concern. there wasaperiodofenormous meltdown towards theendof2008, because peopleare bookinglater. with theoccupancylevelalittlelower that are actually alittlehigher, but ‘when’ andnot‘if’. people book–andIdobelieveitisstill increase. Itisjust aquestionofwhen is thatthedesire tocruisecontinues they shouldbook.Butthegoodnews affecting people’s decisionsastowhen the economiccircumstances. Thisis declining, whichisnotsurprisingin too –consumerconfidencehasbeen the UK–andincreasingly inEurope, ground onticketedyields.” dollars,” hesays,“itneedstostandits growth andshare ofthosemarketing competing marketsanddestinations. and deployingships,inavarietyof option ofinvestingmarketingmoney, cruisecompanieshavethe international means globalisation oftheindustry bookings theydoforus.” reduced retained margins from telling usthattheysignificantly will beoffering theircustomers. have more certaintyinthepricesthey their commissionsoheavily–theynow “By 2015Ibelievewewillbe That said,withthelikesofCelebrity “Immediately aftertheeconomic “For 2012weare achievingprices This hasnotbeeneasyin2011.“In “For theUKtogetfuture capacity Dingle alsopointsoutthatthe “We havenothadanytravelagents DINGLE 25 ECC 2011/2012 Report

that Germanywillaccountfor25% doubled to10millionpassengersand the decadeIthinkEurope willhave more “Bytheendof conservative. Director Sebastian Ahrens isslightly million. be reached just five yearsafterthe 2 – suggestthatthe3millionmarkwill Royal CaribbeanCruisesLtd.(RCCL) backed byGermany’s TUIAGand Cruises, thejoint-venture cruisebrand than thatintheUK. penetration levelwouldstillbelower of Germany’s larger population,its following year. However, because will alsoovertaketheUKmarket years laterin2015. set totopthe2millionmarkjustsix passengers in2009,Germanyisnow than fourdecadestoreach 1million market forcruising. the fastest-growing European source established –are nowinvestingin market, otherbrands–bothnewand up amoribundGermancruise owned AIDACruiseshavingwoken The ambitiousexpansionofCarnival- German market downturn.” the firstonetostartcomeoutof in,theUKcouldbe As thefirstcountry already beenagooddeficit reduction. in Europe and,asaresult, there has than almostanyothergovernment faster toimplementausteritymeasures here was concludes. “Thegovernment 2020* 2017* 2015* 2012* 2011* 2010 2009 Year Reiseburo undReisebeeranStalterverband Source: ECC,BRDKreuzfahrten, Deutsche * TUICruisesprojections Hapag-Lloyd CruisesManaging The sameprojections –madebyTUI If thishappens,itislikelythat The result isthat,havingtakenmore passengers German oceancruise 3,084,000 2,485,000 2,054,000 1,502,000 1,353,000 1,219,000 1,027,000 Passengers talking aboutthe decrease inthe per prices.” right passengerspayingthe mean anything–theyhavetobe the number ofextrapassengersdoes not that“byitself,the Thamm warns average durationofcruisefellonly4%. cruise in2010falling10%whilethe yields withtheaveragepricepaidper aboutcruiseticketpricesand concerns 2008 downturn. continuedtorecoverindustry from the sales increased bynearly6%asthe products. In2010andinto2011their – 9,600ofthemsellingleisure travel more than10,300 operatingin2010 agency networksintheworld,with distribution network.” agents willremain ourmosteffective –willgrow,Internet butIbelievetravel tour operators. brands are more likelytosellthrough mainly withagentswhileinternational revenue, withnational brandsworking travel trade.Itdelivers88%ofthesales stronga very relationship withthe is tremendous,has and theindustry “The growth intheGermanmarket doing therightthings.” “But thisdoesdependonallofus – 2.5millionofthattotal,”hesays. Source: ECCfrom (DeutscheReiseVerband) DRV Average duration(days) Average rateperday(€) Average pricepercruise(€) Revenue (€billion) Passenger nights But TUI’s Vogel points outthatjust AIDA CruisesPresident Michael As intheUK,though,there are Germany hasoneofthelargest travel “Direct sales–including thoseviathe TUI CruisesCEORichard Vogel says: cruise market German ocean 9.7 194 1,881 1.9 9,951,889 2009 its larger Fantasia classshipsinoneor probably require thehomeporting of German passengers,whichwill the capacityofitslargest shipstodate. including twowhichare almosttwice five years,andhasfourmore onorder, added anewshipineachofthepast ship toitsfleetnextyear. AIDA has for 2013,andisaddingaPremium Lloyd, hasordered ship anewLuxury German portsthisyear. which operatedprogrammes from three the Germancruisemarket–asisCosta, clearly optimisticaboutthefuture of option forasecond),TUICruisesis and onenewbuildonorder (plusan €1,090. to a2%riseintheaverageprice growing 11%to€472million–thanks to 433,000in2010,withrevenues which sawa9%increase inpassengers This includestherivercruisessector, total touroperatorrevenues at11.7%. industry, evaluatingitscontributionto context ofthebroader Germantourism market alsoputsthesectorinto brands.” along withafewinternational German touroperatorsdominated compared with ten yearsago,when diems were always going tocomedown operate thelarger ships,averageper “Because ofthewaythatlinesnow diems doesnottellthewholestory. MSC Cruiseshastargeted 200,000 The otherTUI-ownedbrand,Hapag- With asecondshipaddedthisyear The DRV oftheGermancruise survey 9.3 182 1,696 2.1 11,337,000 2010 –4% –6% –10% 11% 14% year Change on 27 ECC 2011/2012 Report 3 One of the World’s Leading Registries 3 A quality and respected flag 3 Active participant at the IMO 3 Active Shipowners Association 3 Established Legal System OFFICES WORLDWIDE: 3 • London t: +(44) 20 7562 1300 Inspectors Worldwide • nEW YoRK t: +(1) 212 829 0221 3 On all Regional MOU Whitelists • nASSAU t: +(1) 242 356 5772 3 Stable Democratic Government • PIRAEUS t: +(30) 210 941 1603 • HonG KonG t: +(852) 2522 0095 • toKYo t: +(81) 3 6400 8306 • LEER t: +(49) 0491 912 1787 www.bahamasmaritime.com

BMA ECC Report Mag Ad 148.5x210mm NOV 2011.indd 1 25/11/2011 09:33

Improving reception facilities to protect the sea

Port of Helsinki accepts, at no extra cost: • oily waste from engine room (sludge), black/grey water and solid waste • sorted waste (metal, glass, cardboard, energy) P.O. Box 800, FI-00099 Helsinki, Finland Tel: +358 9 310 1621 The port should be notified in advance if these services will be required. Fax: +358 9 310 33802 For more information, please see Instructions for vessels at our website. E-mail: [email protected] www.portofhelsinki.fi

Helsinki.indd 1 06/09/2010 00:09 this yearforacombined9,000calls ships havevisited22portsinItalian local economies.Forexample,Costa transit callstomore ports,regions and benefits ofhomeportingcompared to It alsospreads the enhancedfiscal cruises closertomore passengers. significant benefitsasitbringsthe onboard operations,there are the samedirection. ismovingin Caribbean International brandRoyal – andnowinternational brand inthemarket–MSCCruises been followedbythesecond-largest leader Costa,thesametemplatehas passenger mark. is nowapproaching the1million than doubleinsixyears,sothatit in drivingtheItalianmarkettomore homeport –hasplayedamajorpart rather thanoffering justasingle at different portswithinanitinerary allowing passengerstojoinacruise The developmentofinterporting– Italian market other travelproducts. to launchsomeown-brandcruiseand that onesupermarket–Lidlisabout other travel,andithasbeenreported become involvedinsellingcruisesand other mainstream retailers have already more ofthecountry’s ports. 2010 2010 2009 2008 2007 Year Source: ECC Although interportingcomplicates Major Germansupermarketsand Originally developedbymarket Italian cruisemarket 645,000 889,000 799,000 682,000 640,000 Passengers going tobeeasier toattractmore the sizeofGermany’s; soitwasalways Europe, anditcertainlydoesnothave market toalmosteverywhereelse in market whichcounts. their holidays.Itistheshare ofthat for domestically andinternationally tourism marketandhowmanytravel more relevant tolookattheexisting the samepenetrationineach.Itisfar populations andassumeyoucanget important nottolookatequivalent multi-year project.” at different rates,butitisalwaysa as regards itineraries.Marketsdevelop products foreachmarket–particularly but wealsohavetocreate relevant understand howtheproduct works. travel tradeandtheconsumerto Michael Bayley. “Ittakestimeforthe says ExecutiveVPInternational markets doesnothappenovernight,” own office inParis.“Developingnew market RCCLhasrecently openedits rather slowgrowth oftheFrench passengers inthefuture. road tobecomingamajorsource for there are clearsignsthatitisonthe the results for2011 are known,and cruise sectoriswidelyexpectedwhen Another record yearfortheFrench French market Alpitour World). agency –Welcome Travel (partof 50% stakeinthelargest Italian travel by Costa’s recent decisiontotakea travel agents,asituationunderlined Ravenna. elsewhere inItaly, notablyTrieste and from . MSC –Divinawillhomeport Next yearthelatestnewshipbuiltfor higher thantheywere tenyearsago. 9–10%. Thoserevenues are ten times revenues andoperatingprofits upby year andtheterminaloperatorseeing topping 2millionforthefirsttimethis withpassengernumbers International, like Costa,MSCandRoyalCaribbean of theincreased deploymentsofbrands 50% upon2010. and 4millionpassengermovements– “France is a very different“France isavery tourism Hapag-Lloyd’s Ahrens says:“Itisalso “We are increasing ourinvestment, In aneffort tofurtherstimulatethe New homeportsare beingdeveloped Venice hasbeenamajorbeneficiary Cruises are primarilysoldthrough company ­ 2011, whicheffectively movedthe of twonewsistershipsin2010and This followsthesuccessfulintroduction French brand– PonantCruises recent shiporder whichwasplacedbya continue wasunderlinedbythemost year. Optimismthatthisgrowth will 400,000 French cruisepassengersthis now accelerated,andthere willbesome Germans thanFrench tocruising.” offbeat itineraries anditsdistinctive for thesmallsizeofitsships, saturated. farfrombut themarketisvery being word ofmouth.Thisisnowhappening, creates itsowngrowth through that thinking aboutyourholiday. into one,soitrequires anewwayof hotel, resort anddestinationallrolled word ofmouth.Acruiseshipisa lagging behindwascruising,”hesays. and theonlyproduct thatIcouldsee sold mostkindsofholidayinFrance, companies includingClubMed.“I worked forotherFrench leisure travel Sales andMarketing,havingpreviously Ponant asExecutiveVice President sector.five-star Luxury adventure andexpedition –intothe smaller ships(onesail-assisted)onsoft 2010 2009 2008 2007 2006 Year Source: ECC But therateofgrowth inFrancehas “Ponant wasalready wellknown “But themore itgrows, themore it “The problem wasinspreading the Philippe Mahouinrecently joined French cruisemarket – whichoperatedthree 387,000 347,000 310,000 280,000 242,000 Passengers 29 ECC 2011/2012 Report 30

ECC 2011/2012 Report introduces alarger ship. passengers to60,000in2012when it expects toincrease from 25,000French Pullmantur. Croisières deFrance ofRCCL’ssubsidiary Spanish brand Croisières deFrance, whichisa more than40,000in2012. Cruises andAzamaraClubto Celebrity Caribbean International, ofitsthreethe carryings brandsRoyal office inplace,RCCLexpectstodouble passengers in2011and,withitsnew and MSCCruisescarriedmore French reason whyFrancecannotmatchthat.” now theSpanishmarket,andseeno trains, coachesandaccommodation. Europe withgoodhighways,highspeed one ofthebestinfrastructures forthatin important.AndthatFrancehas very that drive(rail)-tobusinessisbecoming is investinginterminalsandweknow cruise growth. We seehowMarseilles again inSeptember. were stillvolatile andlevelspickedup to seewhathappened.Stockmarkets got thesensethatpeoplewere waiting of alltheeconomicissues,butwejust across themarketinAugustbecause regular cruisegoers. helped broaden theappealbeyond design sectionsofmagazines,which strong interest from lifestyleand the totalare newtoPonant. are nowfirst-timecruisers,and50%of holidays. About25%ofourpassengers resortsnormally gotoluxury fortheir were abletoattractpeoplewhowould their adventurous itinerariesmeant we The uniquedesignoftheshipsand generated plentyofinterest inthem. doing withthenewships,andit French cruiseconsumers. source ratherthanareservation toolfor has nowbecomeanessentialinformation us wasouruseofonlinemedia,which mainly intheprintmedia.Butcrucialfor we alsospentmore ondirect marketing, passengers. are stillrelatively smallwithjust 265 the newgenerationofships,which easy tobuildonthatplatformwith French touch.Soitwasrelatively This isinadditiontothesalesof Both marketleaderCostaCruises “I lookatthesizeofItalianand “France isonlyatthebeginningofits “There wasaslowdown inbookings “The styleoftheshipsalsodrew “We usedittoconveywhatwewere “There wasalotofmediaattentionand Ibero Cruceros dominance,sothe year –inthefaceofPullmantur/ being thelatesttopullout,earlier this come andgone–HappyCruises Spanish brandstart-upswhichhave stepped intotakeitover. Corporation&Plc) this case,Carnival before oneofcruising’s bigtwo(in – wassetupbyaSpanishcompany Cruceros, which–likePullmantur committing tothisnewkindofholiday.” what theywillbespendingbefore to first-timers,astheyknowexactly because ourall-inclusivepricingappeals pointforthesector.an entry Thisis cheapest, wedopositionourselvesas first-time cruisepassengers. which meansthatmanySpanishare their reach. would previously havefounditoutof new segmentsofthepopulationwho cruising hasbecomeaffordable to not happened,ithasmeantthat Although wewouldratherthathad prices havebeenheavilydiscounted. economy hasalsoensured that much betterknowninthemarket. have ensured that cruisingisbecoming products, becausethecompetingbrands were previously takingotherholiday and continuestodoso. badly– hurt theSpanisheconomyvery whichhas the economicdownturn growth hassinceaccelerated,despite multibrand market,”hesays,“andits years ago. fully fledgedcruisemarketaboutfour believes thatSpainonlybecamea Strategy andBusinessDevelopment, Markets,Manager International brand’s Vice President andGeneral Spain in2001. cruises (asPullmanturCruises)outof its firstshipandbeganoperating retail, tourandairlineoperator, bought strong growth forthepasttenyears. the Spanishcruisemarkethasbeen capacity, buttheunderlyingtrend in way duetoshort-termreductions in There havebeenhiccupsalongthe Spanish market There havebeenafewothersmall Number twointhemarketisIbero “Although ourbrandisnotthe “Our repeat business isabout10%, “That competitivenessinaweak “We havebeenattractingpeoplewho “That waswhenitbecameaproper But IgnacioAguileraCarmona,the Spanish travelgroup Pullmantur, a multi-channel. today’s consumerneeds,andtheseare channel aswehavetorespond to opened upadirect sellingonline channel used.“Earlierthisyearwe distributor, theywillnotbetheonly travel agentswillremain akey train, road andairlinkstotheports.” infrastructure withitsgoodhighspeed and alsobecauseofthecountry’s contributor becauseofitswealth, are wellinland.Madridisamajor of thewealthierregions, evenifthey the factisthatwealsodowellout homeports drivessomeofthesourcing, sourcing isnationwide. major homeports,Carmonasaysthat of , MálagaandValencia as the markethascomefrom theuse agency traininginourcruiseproduct.” our sales,andmore control overthe “as wellasgivingusbettermargins on our consumerreach,” saysCarmona, own. “Thisisonewayofopeningup will sellallcruisebrands,notjustits a 200-shopchaincalledNautaliawhich agents, andPullmanturrecently setup Cruises. Cruise Line,CostaCruisesandMSC Norwegian Caribbean International, brandssuchasRoyal international main competitionnowcomesfrom 2010 2009 2008 2007 2006 Year Source: ECC He alsomakesitclearthat,while “Although theadjacencyof Although muchofthegrowth in Distribution ismainlythrough travel Spanish cruisemarket 645,000 587,000 497,000 518,000 391,000 Passengers ship inRotterdam year-round. boosted byHAL’s decisiontohomeport a emerging Netherlandsmarkethasbeen looking toextendtheirseason.The brands cruises operatedbyinternational stimulated byearlyandlateseason mini- markets inScandinaviaare being Elsewhere inWestern Europe, local The rest ofEurope the prices.”. quality oftheproduct andthevalueof the samerelationship betweenthehigh concludes, “solongaswecanmaintain potential oftheSpanishmarket,”he fjordsNorwegian forthefirsttime. so in2012weare goingtothe coupleofyearsforourrepeaters,every us,” saysCarmona. about thosemainstream itinerariesfor or theBalticsothere isnothingobsolete have notcruisedintheMediterranean there are stillmanySpanishpeoplewho just 1.2%penetrationofthemarket, innovating withnewitineraries.“With the sameneedforPullmanturtokeep in more mature markets,there isnot and creating interest inthefirstplace.” TV are goodfor establishingbrands marketing media,though,asthingslike complex product. the timeandspacetoconveywhatisa relatively cheap, anditmeanswehave them asamajormarketingtool.Itis products likeours,soweare using influence onpeople’s perceptions of that thesocialmediahaveastrong “I amconfidentinthelong-term “But wedoneedsomethingnew Unlike longer-established brands “We stilluseotherconventional “In thesamewaywehavelearned key to significant growth.” key tosignificantgrowth.” formation ofanationalbrandisoften “In newcruisemarkets,the situation remains potentiallyvolatile, The MiddleEastNorthAfrica(MENA) Deployment anditinerarytrends Europeto otherEastern markets. distribution, andthesamecould apply corporation withgoodaccessto there isaRussianbrandfrom a brand. evolves intotheformationofanational chartering ships,whicheventually travel agentsornichetouroperators Bayley. “Itusuallybegins withlarge significant growth,” saysRCCL’s of anationalbrandisoftenkeyto Europesold inEastern markets. homeport forseven-daycruisestobe positioning itselfasapotential will makethecruisesworkthistime. purchasing Europe powerinEastern the improved economiesandincreased However thebrandnowbelievesthat successful. but hadnotbeenvery been triedbetween2006and2008, out ofTrieste in2012. will bethemainsource foritscruises EuropeansRussians andotherEastern Mediterranean, andCostasaysthat Magic onthebrand’s tothe return early summercruisesofCarnival passengers whobookedonthe at thelarge numbersofRussian Russia slowlygrowing. east oftheregion, withmarketslike attracting more passengersfrom the Many brandsoperatinginEurope are EuropeEastern potential “It isonlyamatteroftimebefore “In newcruisemarkets,theformation The Greek port of Heraklionis Similar programmes hadpreviously CruiseLineswassurprised Carnival stimulating itseconomy.” cansubstantially contributeto industry difficultvery situation,butthecruise enormously.whole country Itfacesa economy forward andbenefitthe ofShipping topropelMinistry its by 10%. embarking theircruisesthere hasfallen switches], thenumberofpassengers Greece thisyear[becauseoftheMENA there havebeenmore transitcallsin different interpretations. Although and unclear, andleadstoall sortsof and nationaleconomies. positive impactonthelocal,regional an activitywhichwouldhaveavery viable forlinestohomeportinGreece, the desired effect ofmakingitmore to thecabotageruleswillnothave cruising.” hampered thedevelopment ofGreek strength ofthetrade unionshaveall continuously changingstrategyandthe the lackofaclearlegalframework, always beenatopdestinationbut… ideal area forcruising, andithas Costakis Loizousays:“Greece isan opportunity. the cruisesectorbelievesisamissed This, though,onlyhighlightedwhat particular –wasthemainbeneficiary. Mediterranean –andGreece in the beginningofyear, theEastern longer before reinstating them. whileothersare waitingalittle tomakingcallsinTunisreturned and with somebrandshavingalready “Greece powerful needsavery blurred“The newlegislationisvery He believesthattherecent changes Louis CruisesExecutiveChairman When itinerarieswere changedat BAYLEY 31 ECC 2011/2012 Report ECCreport2011-12_MedCruiseA4.pdf 30/11/11 19:25:10

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K Cruise norway The ultimate natural experience

Terje Rakke/Nordic Life, Region Stavanger

Johan Wildhagen/Innovation Norway Bjørn Eirik Østbakken/Innovation Norway FrithjofBergen Fure/InnovationTourist Board / Robin Norway Strand

Norway`s long coastline of 1300 nautical miles provides immense possibilities for creative and interesting itineraries in all seasons. Today, cruise ships call at about 38 different Norwegian cruise ports, with 1678 cruise calls in 2011 and more than 2 million visitors. Norway is the leading nature- based cruise destination in Europe.

Check out our cruise calendar at www.cruise-norway.no T and cruiselines are currently underdiscussion by both for berthallocationandcommunication linesbetweenports bookings bythelinesandfordouble-booking byports. could incorporatepenaltyfeesboth forlatecancellationof proposal from theportsthat,once inplace,thesystem ports from October2011)althoughtheydisagree withthe basisbymember plan (adoptedinitiallyonavoluntary days orevenhoursbefore thecall. ports, withsomeonlyallocatingspecificberthsjustafew appeal withinasetperiod.Currentlybetween policiesvary being allocated,adecisionthatthecruiselinecouldthen being received. responding orconfirmingwithinonemonthofthe request 14 monthsbefore thecall-time,whileportscommitto reservations whichisdesignedtoprevent doublebookings. region underwhich portsmaintainalistingofberth voted tobringinaunifiedallocationsystemacross the association ofMediterraneanports(MedCruise)recently system introduced ports,membersofthe byNorwegian helping tofindsolutions. of influentialcruiseportassociationsandnetworksisnow different portsindifferent countries.Howevertheemergence also bytheindividualisticapproach toberthallocationsby the cruiselinestooperatemostpopularitineraries,and touristic services. on portinfrastructure butalsoonthelocaltransportand congestion, withsimultaneouscallsputtingpressure notjust the Mediterranean,inparticular, isapotentialcauseof emerging cruiseportsintheregion. a costorbenefit? Are cruisecalls This issueandthespecificsofbooking deadlines,criteria Cruise companieshavegenerallywelcomedtheMedCruise ofthe berth The portswouldalsoindicatethecategory Cruise lineswouldberequired tomakebookingsabout Noting thesuccessofmore transparent berthallocation It isasituationexacerbatedbythecompetitionbetween The increasing number andcapacityofcruiseshipsin both haveimportantimplicationsforexistingand and escalatingfuelotheroperationalcosts– –fast-risingpassengernumbers cruise industry he twokeycurrent trends within theEuropean creating seasonallybasedtariff schemes.We cannotbe consumer pricesinorder tosellthecruises. port costs,aswemustdowhen we are havingto reduce the but wecan–byworkingtogether –dosomethingtocontrol should theyinevitablygoup? past three orfouryears–wasjustnotgoodenough.Why for 2012anditsreason –thattheyhadbeenfrozen forthe elements are increasing ourcosts. cruises thantheyare today, whilefuel pricesandother single MSCcall. would stillmeantheportwastrebling itsincomefrom a have gonedowntosomethinglike$5($15,000)–which employed thesameeconomiesofscaleaswedo,itshould but infactithasgoneupto$15($45,000)when,iftheport ship tothesameport. called ataparticularport.Today wesenda3,000-passenger ship, itcostus$10foreachpassenger–$5,000whenwe strategy. even more into account whendecidingourdeployment competitive asweare now. A more pragmatic approach isvitalifweare toremain as stakeholders involved,includingportsanddestinations. Operating Officer NeilPalomba. Middle EastandNorthAfrica,”saysMSCCruisesCorporate global economiccrisisandthegeopoliticalsituationin charges, theyare lookingforreductions. proposed cancellationpenalties.Ratherthanincreased port particularly exercised byadditionalcostssuchasthe put inplace. cruise companiesandMedCruisebefore thenewsystemis “We alsoneedtoworktogetherextend seasonsby “We cannotdomuchaboutbringing thefuelpricedown European“Recently onemajorNorthern portraisedtariffs “Ten yearsago,consumerswere payingmore fortheir “If thefeehadstayedsame,itwouldcostus$30,000 “Ten yearsago,whenwewere operatinga500-passenger “We are unabletopaymore taxes,socosthastobetaken “There are seriousimplicationsforallthecruisesector “We liveintoughtimes,withmanychallengessuchasthe In thecurrent economic climatecruisecompaniesare 35 ECC 2011/2012 Report 36 ECC 2011/2012 Report most likelywewill notcallanymore. infrastructure whichmeansitwillcostusmore tocall,itis will becomeeventougherthanit isnow. Ifportsbuildnew authorities shouldbecomemore proactive. cruise touristsoftencomebackfor alandstay. Alltourism over theworldtodiscoverEuropean citiesandregions –and weekwebringthousands oftouristsfrom Every services. all business sectorswesupport. also inareas likeshipmaintenanceandallthemanyrelated activity –inEurope andglobally–notjustintourismbut decide howtooptimisethebusiness. in this,soweneedtobringallthestakeholderstogether are penalisedbyhavingtopayheadtaxes.There isnosense region, and cruise lines are spending all the marketing . Yet theshipsbringtourists–andtherefore money–tothe rarelyterminals, butvery withthelocaltourismauthorities. tourism authorities,”hesays.“We workwithportsand stakeholders, too.“There isagenerallackofsupportfrom development ofports.” Such atrend will affect notjusttouroperators but alsothe will needtodevelopmore shorttours–excludinglunch. allowing ustosailmore slowlyandsavefuel? portat8am?Orwould10ambeOK, need tobeinevery to decidewhetherweneedstaysolonginports.Do come atalliftheystartincreasing theirdaysatsea? the amountoftimetheystay, orevenwhethertheywillstill reduce thenumber oftimestheycometotheportand/or what theimpactwillbeonthem? emissions,” saysPalomba,“buthavetheportsthoughtabout implications ofnewregulations suchasthoseonsulphur complex. the wintermarket.” costs forlateyearcalls,”hesays,“aswereally wanttogrow charges. likelythattheywouldintroduce “Itisvery lower ports are opentonegotiationlowertheiroff-season season, weare lookingfor30%cutsinportcosts.” than intheMediterranean.Thusiftheywanttoextendtheir Europe;in Northern buttheportcostsare somuchhigher are challenging,sowewouldliketohavealongerseason the same. it difficult tokeeptheshipthere beyond2012ifcostsare be thesameinshoulderaspeak.Sowewillfind Europeseason inNorthern nextyear, butrevenues willnot says:“WeOperations FelixEichorn willhaveanextended consumer pricesforthecruiseare totallydifferent.” expected topaythesamepricesinlowseasonwhen “In thefuture, competitionbetweenportsforcruise calls yearwegeneratebillionsofEuros“Every ingoodsand “The cruisesectorisadynamicsource ofeconomic “We are effectively bringingthemtouristsforfree; yetwe abouttheothercruisetourism Palomba isconcerned “This willhaveanimpactonshore touroperators,who agrees. “Ourworldischanging,”hesays.“WeEichorn have “We are doingourhomework.Portsmustdotheirs.” “Have theyaskedthemselveswhethertheshipswill “We are alreadyhard workingvery tounderstandthe But theoverallportcostssituationacross Europe remains Cruise BalticDirector BoLarsenbelievesthatitsmember “The positioningvoyagestoandfrom theMediterranean AIDA CruisesVice President Yield ManagementandFlight together onissues likethese.” cruise lines,thelinesneedports. Soweallneedtowork allowed bylawtoreduce. are expensivebuttheyhavefixedtariffs whichtheyare not to getthecityinvolved.Forexample, weknowthepilots from cruiseshipcalls.ThatiswhywefoundedtheHCC– only getasmallamountofmoneycompared tothecity Chairman StefanBehnsays:“Asaterminaloperator, we appreciate whatisatstake.Hamburg CruiseCentre thriving cruisetourismsector.” $30,000 tostoptheshipsforfourhours.Nowithasa through decidedtopayus thecanal,sogovernment Panama, eventhoughmanycruiseshipswere going cruise tourism. driven bytheportsbutcommunitiesthatdependon out. “Theyare subsidising thefees–butthisisnotbeing programmes toencouragethattraffic back,” Tercek points agenciesare comingupwith going down,somegovernment talk toaboutloweringcosts.” ports northetourismauthoritiesthatare therightpeopleto tourism issues,”hesays.“Asaresult itisoftenneitherthe “Therefore theircostsare regulated, andoftennotguidedby Europe entities. are publiclyownedbyquasi-governmental Development JohnTercek pointsoutthatmostportsin communities. reduce theeconomic benefitsfrom cruisetourism forlocal tomakesure thatlocaltaxationdoesnot local governments believes there is aneedtoestablish“asoliddialogue”with their competitionbefore comingtouswithhighercosts.” that costwithnearbyports,”hesays. whether higherportcostscanbejustified,andalsocompare Morganand ItinerariesCrystal agrees. “We alwayslookat requirement comesin,isonlyjust around thecorner.” tourism. 2015,whenthenewlow-sulphur/high-costfueluse we wanttokeepourcostsdown. because wewanttobecometerminaloperators,but talk tous.We already partnerinvariousdevelopments–not “At theendofday, though,asmuchportsdoneed There are clearsignsthatestablishedcruiseports longagothere“Not very wasnocruisetourismto “In theCaribbean,where summercruisetraffic hasbeen Royal CaribbeanCruisesLtd.Vice President Commercial UKHeadofFleetShore OperationsDavidPickett Carnival “Ports needtoknowtheirownbackyard andrecognise Princess CruisesDirector MarketPlanning,Development “Ports shouldworktounderstandtheeconomicsofcruise “So before makingthatkindofinvestment,theyneedto totally different.” prices forthecruiseare low seasonwhenconsumer pay thesamepricesin "We cannotbeexpectedto P alomba members andto cruiselines,too.Itshouldhelp them allbe March 2014. lastOctoberandMedCruise willbeinvolveduntil the inauguralmeetingtakingplace atCosta’s GenoaHQin various environmental targets isonlyinitsfirstphasewith project. Thiswide-rangingfundingprogramme toreach Cruises andotherteamsworkingwithintheEU’s LIFE+ the associationaswemoveforward. one ofarangeenvironmentally-related challengesfacing of agrowing cruisemarketintheMediterraneanwillbejust logistical issueandIbelievethatresponding tothedemands impact onpassengers,crew andthelocalcommunities. be proactive inavoidingorlesseninganypotentialnegative problems inspecificports.Thisgivesthemampletimeto ofsuch will ensure that portsandlineshaveanearlywarning congestion problems, itisanimportantstepforward asit cancellation penaltiesbefore theirimplementation. any on commonregional policiesandguidelinesconcerning such feesasMedCruisesuggestedthere firstbeagreement cancellation penalties. though, argue againstanyfuture impositionof call meeting inBrusselsJune. then presented before theannualEuropean CruiseCouncil approved bytheMedCruiseGeneralAssemblyinAthensand Cruise ShipBerthBookingandConfirmationprocess -was rapid increase in cruisecallshasbrought forsome ports. designed toalleviatesomeofthecongestionissuesthat move forward so effectively withanewberthallocation system this yearandwealsohavenearly30associatemembers. them. Thosememberportsreached 100forthefirsttime will findevenmorebeingprovided supportandservices for traffic thatwehavealready seeninour region. ensure thatwebuilduponthetremendous growth incruise stakeholdersto member cruiselinesandotherindustry President -toensure thatthistrend continues. and relevance inrecent timesand itismyaim-asitsnew This associationhasreachedrespect newlevelsofindustry By Stavros Hatzakos,newpresident ofMedCruise will aidgrowth More collaboration We believetheproject outcomewillbebeneficialtoallour As partofthisdevelopment,wehavejoinedwithCosta Congestion is,ofcourse,anenvironmental aswella Although -onitsownthesystemwillnotsolveall In fact,noneofthememberportshasyetintroduced any There, itgotconsensus from cruiselineswhich did, The newsystem-calledtheUnifiedMediterranean It hasbeenthrough theirsupportthatwehavebeenableto In theprocess, MedCruisemembers andassociatemembers We willcontinuetocollaboratewiththeECCandit's positively asmy predecessors in thisrole. I amlookingforward totakingtheassociationforward as President andBoard ofDirectors willleaveanewlegacyand of cultures andbackgrounds soitisinevitablethateach assumes anevengreater importancewithinglobal cruising. north tosouth. and large from across theMediterranean –westtoeastand in lookingtorepresent thevarietyofdifferent ports:small from sectorandalsothepolicyofassociation theEastern association, thisreflects thegrowth inmemberportscoming rather thansignallinganychangeofemphasiswithinthe insteadoftheWesternthe Eastern Mediterraneanbut, meetings withlineswouldbepractical. that ablanketrecommendation forportstoholdtariff but -aseachhasitsownpricingpolicydoesnotconsider its supportofmore timelycommunicationfrom theports discuss anysuchproposed increases, MedCruise expressed and preferably a priormeetingbetweenportandlineto meeting forearliercommunicationofporttariff increases requirements. to ensure theyare compliantwiththenewenvironmental more proactive measures aboutimplementingthenecessary Board ofDirectors MedCruise electsnewpresident and Freitas, FigenAyan andGiampiero Costagli. Stavros Hatzakos,CarlaSalvadó,MaríaCano,Bruno Livio Ungaro, BojanBabic,KristijanPavic,LotfiElAjmi, Photo: lefttoright,Yuriy Vaskov, MarijanPetkovic, This associationisalarge familyrepresenting avariety It isthisapproach thatwillensure thattheMediterranean I amthefirstMedCruisepresident tobebasedin In response torequests from cruiselinesattheBrussels 37 ECC 2011/2012 Report

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www.foreship.com Phone +358-20-730 9090 Fax +358-20-730 9091 but alotofmodifications andnewsolutionssuch asnew sequentially adoptedbytheIMO. water, anti-foulingandrecycling conventionsthathavebeen designs,” Antoninipointsout,“as wellasthenewballast requirements To andtheSafeReturn Portconceptinnew East. advancing ourtechnologicaledgetocompetewiththeFar innovation ofproduct designandconfiguration,while products andenergy-saving solutionswithinabroader environmental performance.“We need todevelopgreen of itsmajortasksistodelivershipswithmuchimproved greenhouse gasemissions.” agreed upon.Itsobjectiveisclear, though:to contain the cruiseshipstandards havealsoyettobedefinedand says. revolution –not anevolutionfrom paststandards,” Antonini and conventionsare yettobedetermined,astheyare a challenges. “Thereal impactofthenew‘green’ rules expectations.” targets andtomatchdifferent nationallifestylesand says, “weneedtotailorshipsmeetsizeandpassenger department. clear missionstatementfrom thecompany’s owndesign according toFincantieriChairmanCorradoAntonini,isthe design, energy-efficient andeconomicaltooperate.”This, “The nextgenerationofshipsneedstobeflexible ship design dominate new Green issues “There havebeennogreat technologicalbreakthroughs, hasalready“The industry hadtoincorporatenewstability But theshipbuildingsectorhaslongappreciated thatone “Pending istheEnergy Efficiency DesignIndex,forwhich But safetyandtheenvironment represent thegreatest “With diversificationnowthekeyforcruisebrands,” he during refits aswellfornewbuilds. to bothconventionalshaftaswell aspoddedpropulsion – reduction inrequired propulsion power, andcanbeapplied and ferries.TheForeship Efficiency Skegprovides a2% – thesternward extensionofthekeel–forcruise ships and propulsion areas.” working onenergy-saving solutions. Managing Director JanneLietzen.“Butwehavealready been environmental regulations willmeanforshipdesign,”says projects forthecruisesector. a varietyofnewbuildand–increasingly –refurbishment this shipdesignandengineeringcompanyhasworkedon Foreship comesin.With offices inHelsinkiand Turku, engineers –whichiswhere companiessuchasFinland’s concerned.” new environmental regulations comingdownthe lineare saving concepts.Itisimportanttokeepaheadasfarany “We are workingalotonnewpropulsion andenergy- technical plants.” respect newsafety standards byintroducing redundancies in dedicated tocabinsandentertainmentwiththeobligation allocation ofspacestobalancetheneedmaximiseareas use ofnewinsulationmaterials. ventilation systems,more efficient lightingsystems andthe hull shapes,wasterecoveryfrom heating,coolingand Lietzen acknowledges thathiscompanyhasbeen affected Recently Foreship developedanewtypeofcentralskeg “There isalotofscopeforimprovements withinthehull “We are allwaiting toseeexactlywhatallthe To dothisrequires helpfrom navalarchitects andmarine STX FranceGeneralManagerJacquesHardelay says: themainchallengeis “As farassafetyisconcerned, 39 ECC 2011/2012 Report The single answer to all Ship Recycling questions

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Feel free to contact us for any questions or to make an appointment. address: telephone: Scheepmakershaven 59 +31 (0) 6 5367 7232 3011 VD Rotterdam e-mail: the Netherlands [email protected] lost through thereduced frequency ofnewbuildorders. does fallwellshortofcompensating fortherevenue being largeone very ortwosmallernewbuilds.Soitscontribution about $1billionayear, whichisstilljusttheequivalentofa themout.” to carry European shipbuildersandtheirsuppliersare wellequipped no ordinary refits intermsofcomplexityandcost.But new safetyandgreen-related regulations andthesebecome with thebrand’s otherships. reductions from energy efficiency andanoverall alignment the introduction improvements, ofrevenue-earning cost Fincantieri’s are Antonini,“theirreturns quitea lothigher. efficient thantheaverageshipincompanies’fleets,”agrees one,” hepointsout. ashipandavoidhavingtoorderon tomodernise anew refurbishment work. “There are alotofthings you canfocus current orders slowdowninthesimultaneous increase in we canusuallyfindsolutionstomakeitpossible.” new features on thenewbuildsintoolder, smallerships, and otherissueswithretrofitting someofthe more ambitious programmes,” hesays.“And,althoughthere can bestability refurbishments. inbusinessfromcontinue; buthehasseenadistinctupturn situation tocontinuewhiletheglobaleconomicproblems by theslowdowninnewbuildorders, andexpectsthis Nevertheless these shipmakeoversare stillawelcome The totalamountbeingspenton theseprojects iscurrently changesforcompliance with “Add tothisthenecessary “Such arefit canmeanlifeextensionforashipthrough “As newshipsare bothlarger andconsiderably more fuel- STX’s Hardelay alsoseessomecompensationforthe “All themajorplayersseemtohaveongoingrevitalisation energy.” energy.” so savingfueland hull forthatspeed, can optimisethe frequent speed,we hulls forthemost “By designing AntoninI powered bothbyLNGandsails. concept ship.The3,000-passenger cruiseshipwouldbe remains underreview. route. Itspotentialapplicationforthecruisesectortherefore ranging itinerariesratherthana year-round AtoBferry issues are quitedifferent forcruiseshipsoperatingwide- powered byliquefiednaturalgas(LNG),butthe refuelling arrangement.” liquidandgasfuelin adual the mainenginestoburn or byinvestinginequipmenttotreat thegas,orconverting low-sulphur fuel, will havetobeachievedeitherbyburning consequences offloodingifcollisionscanbeavoided.” and otherincidents.We donothavetoconcentrateonthe a reality, usingtechnologytoavoidcollisions, groundings for 22knots. optimised for20knotswillbedifferent from oneoptimised the hullforthatspeed,sosavingfuelandenergy. Ahull designing hullsforthemostfrequent speed,wecanoptimise less propulsion power. Thestartingpointisthespeedas,by save onfuel.” sectioninorderand usingsiliconpaintontheunderwater to of ourbrief.We are evenfine-tuningtheshapeofhulls, onboard toreduce electricalconsumptionare regularly part challenge,” hesays.“Findingwaystooptimiseenergy use changes withcuttingemissionsprobably thenumberone conversion work. much newshipdesignisalsoplayingapartinrefits and etc. –butthesameenvironmental agendathatisdriving mega-ships –bowlingalleys,icerinks,climbingwalls asked toretrofit themore ambitiousfeatures ofthenew special floorcoverings.” cafés–andtheuseofheavy-dutymateriallike and Internet digital equipmentonboard –including interactivescreens seems tohavebecomehistory. with parallelentertainingoftheotherhalfpassengers for open-seatingdining.Thetraditionaltwo-seatingdining with saunas,treatment andfitness rooms. adding newones,inorder toinstall healthandspaareas balconies. to existingcabinsandpartlyinstallednewwith Artania forPhoenixReisen,weaddedbalconystructures our recent conversionsofMeinSchiff 2forTUICruisesand demands. older shipscanalsobemodifiedtomeetthelatestpassenger outtobesuccessful,theownerwillthenseeifhis these turn Lloyd Werft ManagingDirector RudigerPallentin,“but,if just asilluminatingaboutdesigntrends asnewbuilds. additional revenue stream forthe shipbuilders,andare also STX Francehas,however, produced aplanforan‘Eoseas’ STX Europe forViking isbuildingaferry Linethatis Pallentin says:“Reducingexhaustgassulphuremissions “Looking ahead,somedaye-guidedvesselsmaybecome Antonini says:“More hydrodynamic hullforms require “Environmental factorswillforce someofthebiggest Pallentin saysthattheLloydWerft yard hasnotyetbeen “Other trends includeinstallationorupgradingofnew “We are alsobeingaskedtomodifyexistingdiningrooms “Another trend isconvertingexistingpublicareas, or “There isclearlyademandformore balconycabins.In “The testbedsfornewconceptsare newbuildings,”says 41 ECC 2011/2012 Report WÄRTSILÄ® is a registered trademark. is a registered WÄRTSILÄ®

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Wärtsilä now offers the marine industry total solutions that cover everything from design to lifecycle service. This makes our solutions uniquely efficient and environmentally sound. Read more about what we can do for you, wherever you are: wartsila.com. I opportunities. particularly theemphasisontotal lifecyclecost,alsocreates more effort.” Yet atthesametimenew approach, and “As youimprove efficiency, additional step every requires efficiency isevenmore importantthanbefore.” It hastobenoted,though,thatwiththeincrease infuelcost, potential forlookingatsolutionsbeyondfuelconsumption. values andlifecyclecost. on fuelconsumption,ithasnowshiftedtoenvironmental “Whereas thefocusmanyyearsbackwasalmostsolely of CruiseBusinessatmajorengineprovider Wartsila. improving engineperformance,saysFred Danska,Director the waytheyapproach theirtaskhasalsochanged. environment hascometoassumeever-greater importance, to theenginedevelopersandtheywilltellyouthat,as the search forgreater engineefficiency inotherways. Talk to cutemissionslookingcertaindrivethemhigherstill. fuel costsontheriseandenvironmental regulations aiming Strang, “thecostofwhichcomesrightoff yourbottomline.” Vice President forMaritimePolicyandCompliance Tom an evolvingscience Engines – “As adirect result wehavebeenabletomakeuse of This isanincreasingly arduous process since, heremarks, “The focusonlifecyclecostsespeciallyincreases the The pastfiveyearshaveseensignificantdevelopments in The goalofenvironmental sustainabilityhasalsodriven And it’s anevenmore pertinentconsiderationnow, with consumption,” points out Carnival Corporation&plc consumption,” pointsoutCarnival case today. “Itisdrivenbytheneedtoreduce fuel grail fortheworld’s cruiselines,andthatremains the mproving energy efficiency hasalwaysbeenaholy and validatorto consider –suchastheimpacton the combining technologiesbringssystems risksforthedesigner major impactontheoverallefficiency oftheship.However, integrate thesetechnologiesasa system, whichwillhavea of emissionabatementtechnology. “Thenextpartisto engine technology–which,hesays, islookingatallkinds collaborative effort todevelophigh-efficiency, low-emission operate reliably.” technology stillhasabitoftestingtodoensure itcan also goingintoexhaustgasrecirculation systems,butthat at asawaytoclawbacksomeofthattrade-off. Work is existing technologieslikeheatrecoveryare beinglooked emissions performancealsoreduce efficiency. Asa result, VI, forinstance,alotofthedevelopmentsthatimprove particularly withdieselengines. emission levels,itcancreate adirect trade-off withefficiency, environmental performance.Aswelooktoattainlower the sametimewehaveseenanincreasing focuson rather thanrevolutionaryoverthepastfewyears.At developers mustdealwith. environmental impactalsoposesproblems thatengine points outthattheintensifyingfocusonindustry’s Leader atleadingclassificationsocietyLloyd’s Register, emerging technologythatisnowbecomingcost-effective.” such ascommonrail.Two-stage turbo-charging isanother technologies thatwouldnothavebeencost-effective earlier, Duffy alsocitestheHercules Project –themajor “When youlookattherequirements ofMarpolAnnex “Progress [inenginedevelopment]hasbeenincremental Duncan Duffy, EngineeringSystemsSubjectMatterTeam

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BrainCoral_EuroCruiseReport_181011.indd 1 19/10/2011 16:35 cooperating inthis, backedbytheEuropean Union andthe typified bytheHercules Project. Nolessthan43entitiesare existing businessrelationship, orthekindofconsortium the order oftheday–whetheramongcompanieswithan more efficient andmore sustainable, collaborationwillbe cruise shipsofthefuture continuestobeasstrong asever. Wartsila’s belief inliquefiednaturalgasasacore fuelforthe it topthree millionrunninghoursondual-fuelengines. gas ordieselfuel–acommitmentthatthissummersaw engines, whichallowthesameenginetobeoperatedwith as awhole.” are alsoworkingonimproving theefficiency ofpropulsion and fuel-injectiontechnologyaswellturbo-charging. “We continuing onthispath,developingthecombustionprocess save fuel.” electricity. Inthiswaywecanbothreduce emissionsand through whichexcessheatenergy canbeconvertedto says. “Wartsila hasalsobeendevelopingrecoverysystems major positiveimpactonreducing environmental load,”he combustion ofgasproduces lowemissions,andhasa very fortheindustry.realistic alternative distribution network–before theycanpassmusterasa onboard ships,andtheneedtodevelopaneffective a rangeofsolutions–includingsafetyanddesignchallenges the industry,” saysDuffy, thoughhenotesthatitmustdeliver instance, andliquefiednaturalgashasalotofinterest across testifiestothecorrectnessindustry ofthatapproach. And heargues thatthebreadth ofworkgoing on across the at atimewhentherulesinmanyareas are stilldeveloping. solutions iscriticaltodrivingtechnologicaldevelopment integrity ofthepropulsion systemasawhole.” As the industry continues todevelopenginesthatareAs theindustry both The companyisalsocontinuingitsworkondual-fuel Looking forward, DanskasaysheanticipatesWartsila Danska, too,championsthemore catholicapproach. “The “Fuel cellsforpowergenerationare beingtested,for He saystheincreasing regulatoryfocusongoal-based system asawhole.” of thepropulsion impact ontheintegrity to consider;suchasthe designer andvalidator systems risksforthe technologies brings “Combining Duffy just around the corner. of enginedevelopmentandutilisation, thefuture isalways otherareaengine performance.Inmaintenance, asinevery fromintervals runninghourstoactualneeds,as indicatedby being developed;thisisdesigned tochangemaintenance advances. Dynamicmaintenance planningisthenextstep vessels inthefleet. If successfultheCBMprogramme willbeextendedtoother – itwillformthebasisfordecisionsonengineadjustments. lubricating oil,watertreatment, overhaul reports andfueloil for trends analysis.Combinedwithadditionalanalysis–of this informationissentashore totheenginemanufacturer constantly monitorscriticalparametersandinformation, (CBM). SomeofitsshipshaveinstalledaCBMsystemthat programme ofcondition-basedoperationandmaintenance RCCL. performance. Thistooisanevolvingscience,according to maintenance toengineefficiency andenvironmental customer’s operationalcosts’–surfaceinthatstatement. – ‘improved fueleconomyandthepredictability ofthe how earlyandoftenthecruiselines’perennial concerns the future isakey partofthearrangement,itisalsostriking joint technicalcooperation. predictability with innovation,andprovides a model for which accompaniedtheannouncementthatitcombines Operations Capt.William Wright saidinthejointstatement engine monitoringsystemsandtheirassociatedsoftware. optimisation. It also covers thedevelopment of future remote engine componentdevelopmentandfuelconsumption maintenance planning,spare partslogisticsoptimisation, maintenance supportagreement withWartsila. also recently signed whatitclaimsisagroundbreaking four specialisedtravellingdieselmaintenanceteams,it are “reliability andtotaleconomy”. them theWartsila 46,theguidingprinciplesofwhich,hesays, Aasen. Ahefty102ofthoseenginesare from Wartsila –78of to MarineTechnical AssociateVice Services President Anders with totalledinstalleddieselpowerof1,275MW, according Club Cruisesbrand,has118dieselenginesinoperation, complex andfar-reaching. and enginemanufacturers are also becomingincreasingly agreementsfocus. Supplyandservice betweencruiselines importance ofthatrelationship hascomeintoevencloser regulatory landscapehasbecomemore urgent, the greater engineefficiency andcompliancewithachanging 365 daysayear.” this isapieceofequipmentthathastowork24hoursday, been agoodpartnership,andnecessarilyso,”hesays,“since relations withtheenginemanufacturers. “There hasalways Swiss government. RCCL isalsolookingbeyondtheseinnovationstofuture The companyisevaluatingtheeffectiveness ofanew What thedealalsounderlinesisimportanceof Yet ifinnovationandthedrivetodevelopengineof SeniorViceRoyal CaribbeanInternational President Marine The five-yeardealcovers29shipsandincludes Though RCCLhandlesitsmaintenancein-house,using Royal CaribbeanCruisesLtd.(RCCL),includingitsAzamara As shipsizesandfleetshavegrown, andtheneedfor According toStrang,cruiselines havealwayshadgood 45 ECC 2011/2012 Report USA 14534 NY Pittsford, Rd, Callingham 87 Marine Lubricants www.idudesign.com Environmental responsibility.

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Chevron Global Lubricants 115427->European Cruise Council Full-page 210x297mm Clarity Ad.1.indd 1 10/27/11 8:56 AM L major oilcompanies inabidtogaugetheirexposure but, difficult. Thecruiselinesare debatingtheissuewith should sufficient fuelnotbeavailable. accepts thatthisisunlikely, butitdoeswantaderogation the proposed fuelrestrictions. TheEuropean Cruise Council the proposal becomeslaw. Itwantsadelay, ordilutionof elsewhere in2020. Channel in2015,orthe0.5%limitsduetocomeintoeffect control areas intheBalticSea,NorthSeaandEnglish unavailable, whetherthe0.1%fuelapplicabletoemission inthecaseofsufficientthe industry low-sulphurfuelbeing Marpol AnnexVI,acompromise canlivewith. theindustry Before itsrelease theECsuggesteditslanguagewouldmimic on thesulphurcontentofmarinefuel,released inJuly. Commission’s proposed amendmentstotheexistingdirective fuel availabletomeettheshippingindustry’s needs. And after2020there simplywillnotbeenoughcompliant compliant fuelsnotbeingavailableatallberthsinports. that after2015there maybeoperationalchallengeswith fuel becomeincreasingly restrictive,fears thecruiseindustry availability. Asthelimitsonsulphurcontentofmarine deadline forimplementationisloomingominouslyclose. that are devilishly difficult toansweratatime whenthe regulation which, formanyintheindustry, posesquestions counts. of theemerging ofrulesanswerspositivelyonboth tapestry the cruiseindustry, itisfairtosaythat,byandlarge, much assume apivotalrole inthedailylifeandfuture planningof surroundings, andenvironmental regulation comesto fuel availability Derogation and Judging thelikelihoodofthatsituation arisingremains asawholeiseagerforchange beforeThe shippingindustry It wasnottobe:inparticular, itomittedaderogation for These fearshavebeenexacerbatedbytheEuropean Chief amongtheindustry’s isthequestionoffuel concerns There are exceptions,however. Onesuchissulphur promulgate: reasonableness andclarity. requirements ofitsregulators, andtherulesthey ike manyindustriesthecruisebusinesshastwomajor As concern risesoverman’sAs concern impactonhis it be in the right place?” it beintherightplace?” enough [low-sulphurfuel].Butwill “For 2015therewillprobablybe to confront. the cruiseindustry, anditsregulators, maynecessarily have made,” Harrisonnotes.Sooneror later, thatisaprospect that sufficient quantitiesisnotbeingmade,andunlikelytobe investment required toproduce 0.5%sulphurfueloilin cost ofdesulphurisation.“Myunderstanding isthatthe 0.5% isaboutlogisticsandproduction capacity.” 0.1% gasoilissueismore aquestionofeconomics,whereas 0.5% fueloilisthereally trickyhurdle toovercome. The will beavailable,”saysHarrison,“butIwouldanticipatethat availability. “Theshort answer is,nobodyknowsifthefuel don’t seeanydilutionordefermentcoming.” abouttheconsequences after.see thishappenandworry I political imperativefortheEUandmemberstatesisto be watered downortheirimplementationpostponed.“The Association,saysitisunlikelythattheruleswill Industry don’t thinkitisanunreasonable request.” arguing thatthere isplentyofprecedent forthisinEUlaw. “I fuel that gets the Hetoo best arguesreturn.” for a derogation, have. Forthemit’s pure economics.Theywillsellthekindof depends entirely onthemarket,anddemandthey feeling isthatthey’re notgoingtoguaranteeanything.It President Environmental Stewardship. “Theoverriding RCCL’s GlobalChiefEnvironmental Officer and Vice than not. five yearsinimplementingthe2020limitsismore likely believe thataftertheexperienceof2015,adelayupto altogether different matter. Indeed,manyintheindustry dramatic increase indemandforlow-sulphurfuel,isan probably beenough.Butwillitintherightplace?” at themoment.WhatIcansayisthatfor2015there will discussion. “We are notatlibertytopubliciseourviews Policy andComplianceTom Strangnotes,itisasensitive Corporation&plcViceas Carnival President Maritime It isalsoaboutinvestment,andthecomparativelyhigh A derogation onfuelismore likely, giventhedoubtsover Trevor Bunker Harrison,ActingCEOattheInternational “We’ve allreached outtotherefiners,” saysJamieSweeting, The supplysituationin2020,whenthere issettobea

Strang 47 ECC 2011/2012 Report 48

ECC 2011/2012 Report R occasional blind alley. Foralmosttwoyears itexperimented anything, aslongithasapositiveeffect.”willing totry and AzamaraClubCruises,putsit:“WeInternational are President forMarineTechnical atRoyal Caribbean Services and reduce emissions.AsAndersAasen,Associate Vice continues tofocusonfindingnewwaysimprove efficiency fuelsarena forsomeyears,and leaders inthealternative shipbuilders tostealamarch ontheircompetitors. commercialisation and–notcoincidentallyallowJapan’s powered vesselsinabidtospurdevelopment,speed was reported tobedrawingupnewsafetyrulesforLNG- of ascramble.ThusinNovemberJapan’s transportministry designs. Theregulators, necessarily, are alsogettinginvolved. maker Wartsila toshipbuilderIncatworking onLNG-based environmentally from friendlyfuels,witheveryone engine natural gas(LNG). sun, biogasrecovered from wastetreatment andliquefied a 105,000dwtconceptcruiseshippowered bywindand and theFrench shipbuilders ofSTXEurope unveiled Eoseas, intent. barely amonth goes bywithoutsomenewstatementof fuels intocruiseshipdesignandoperation.Onthisscore isfocusingincreasinglyindustry onincorporatingalternative can onlygosofarinreducing emissions,however, sothe and henceship-generatedpollution.More efficient engines existing enginesmore efficient, thereby cuttingconsumption of cruisingonourenvironment. come upwithcost-effective newwaystoreduce theimpact to shipbuilders,cruiselinesclassificationsocieties– solution? Is LNGthe That open-mindedapproach hasledRCCLdownthe Royal CaribbeanCruisesLtd(RCCL)hasbeenamongthe And evenontheregulatorysideitisbecomingsomething LNG isaparticularfavouriteinthesearch for This summer, forinstance,StirlingDesignInternational Much ofthisbroad-based effort hasfocusedonmaking across arangeofsectors–from equipmentmakers by regulation are nowbeingmatchedbyefforts grail withinthecruiseindustry. Thecurbsimposed eining inshipemissionshasbecomealmostaholy for short-seashipping. Evenhere, distributionremains a as anobviousfirstchoiceforLNG totakehold,atleast new fuel. ship thataddressed thenumerous challengesposedbythe Yards asfarback2007to produce anLNGconceptcruise fuel oil.Wartsila, forinstance,combinedwith thethen-Aker tomarine increasingly onLNGasasustainablealternative distribution networkisproblematic.” down there, whichdefeatstheobject.InUSlackofa get LNG;butnotsailingoutofMiami.You have totruckit a yearago.IfyousailoutofBostonorNewYork, youcan want touseLNG,butit’s achallenge. We didastudyonit distribution remains anissue,certainlyintheUS.“We really before itsefficiency isdoubled.” year,”going downevery Aasensays,“anditwon’t belong its cost-effectiveness willcontinuetoimprove. “Itspriceis energystick withsolarasanauxiliary source, confident that difference.” will NeverthelessRoyalCaribbeanInternational is almost110MWintotal;so85kWdoesn’t maketoomuch He alsonotesthat“ifyoulookatthepowerplantofOasis,it million, “Soitprobably won’t bepaidbackinmylifetime.” would getanaverageofabout50–60kWover12hours.” covering almostthewholetopofship.Onagooddaywe of theSeas,”saysAasen.“We haveabout85kW, withpanels – are more promising. “We installedsolarpanelsonOasis we stopped.” the endofday, thetotalfootprintwasoneofreasons meant theywere notquiteasgreen astheywere billed.“At frequently, soitwasnotcost-effective.” reducing theirworking life.We hadtochangethemmore that itwasdamagingtheturbinestoextent Millennium-class vessels.“Butthen,”saysAasen,“wefound with biofuelsonRadianceoftheSeasandCelebrity’s More recent discussionshavefocusedontheBalticSea In Europe, isconcentrating meanwhile,thecruiseindustry LNG hasalsobeenonRCCL’s radar, thoughAasensays Aasen quipsthatthecostofsystemwasabout$1 energyOther foraysintoalternative –suchassolarpower Not onlythat,buttheproduction process forthebiofuels significant challenge;but,asforEurope asawhole,the long-term environmental benefitsofashifttoLNGcould planned torunonLNGinport” equipped withdual-fuelenginesthatare “Our newgenerationofshipswillbe well maketherequired investmentworthwhile. management,” saysAIDACruisesEnergy and Environment ManagerBastianTesching, “theadvantage of LNGisthatitresults incutsNOxandSOx emissions, aswellemissionsofparticulatematter. “From thepointofviewenvironmental CO2 emissionsmayevenbealittlebitlower, butatthe very leastthreevery ofthefourmainemissionsstreams can be reduced considerably.” to howLNGwillcompare withtraditionalmarine On thecostfront, hesays,questionsremain as fuel oil.Itisnotenoughsimplytocompare spot when itisinport.” first stepweare lookingatrunningashiponLNG if youplantorunitonLNGwhen itisatsea.Asa prices inNewYork orRotterdam. Amongother how tobunkerandwhatthatship hastolooklike How toguaranteesafetyisakey issue, especially considerations there are bunkeringissuesand technically howsuchshipsshould bedesigned. transport costs,dependingagainonthesupply been adoptedintoSOLAS. situation andtheneedtomoveLNGby depth, andregulations inthisarea havenotyet “Until theyare,” hecontinues,“itisnotclear pipeline orship. guidelines. Butithasnotyetbeendefinedin a formativestage.“Themostcrucialpointis LNG, andhavecomeupwithpreliminary the safetyofpassengers,”notesTesching. the detailofhowtobuildashiprunon Germanische Lloyd,havelookedinto “Some parties,suchas[classificationsociety] In termsofvesseldesign,therulesare stillat the nextthree years,butcertainlyinthenextfive toten.” tomarinefueloil]–maybenotin solution [asanalternative about atimeframe,butLNGiscertainly thenumber-one it willcome.“Iamoptimistic,”hesays.“Itisdifficult totalk system. for theintroduction androll-out ofanewLNGdistribution Europe iswellaheadofotherEuropean regions inpreparing Hamburg orRotterdam maynotyetbedeveloped,Northern functioning systemontheground. the infrastructure thatwouldtransformtheconceptintoa forward totheLNGsuppliersandportslookingcreate to move for LNGuse.Itisalsoconveyingitseagerness for newbuildings.” retrofitting shipsforsuchasolution.“Itwillhave tobejust considerations alsomeanthatthere isalmostnoprospect of density, butthetankshavetobecylindrical.”Thesespace oil tankwouldeatup.Thisisnotentirely duetoLNG’s lower amount ofspace–three timesthevolumethataheavyfuel bunkering, whichhastobeassafepossible. point below60°C,”saysTesching. “Anotherpointisfuel at leastonpassengerships,nofuelisallowedwithaflash overcome onthewayfrom here tothere. “SOLASsaysthat, towards LNG-powered ships.” on LNGinport,”saysTesching. “We seethisasthefirststep be equippedwithdual-fuelenginesthatare plannedtorun high populationdensities.“Ournewgenerationofshipswill minimise theimpactofvesselemissionsonportscallwith It maytakealittletime,butTesching atleastisconfident He saysthatwhiletheinfrastructure inmajorportssuchas Tesching saysAIDAiscurrently studyingthepossibilities “Space onboard isanissue,ofcourse.LNGrequires ahuge Numerous technicalandregulatorychallengesmustbe looksto This akeyconsiderationasthecruiseindustry Tesching 49 ECC 2011/2012 Report 50

ECC 2011/2012 Report A strips outthesludge from theconversionprocess, including into benigncalciumsulphate. from theengineandconvertsmuchofsulphurtherein being pumpedintoascrubberwhere itmeetsexhaust gases of thatyear. process anddestinedforonshore disposal–beganinAugust water from thescrubberandsludgeresulting from the monitoring –notjustofengineemissionsbutalsowash Wartsila dieselenginesintheearlymonths of 2007and and instrumentationwasinstalledononeofthevessel’s five for 1,500passengersand600crew. Thescrubber, piping the Zaandam,a238m,61,000gtcruiseshipwithcapacity by Hamworthytoremove SO2andparticulatematter, was efficiency seawaterscrubberdeveloped oftheKrystallon and thePortofSeattle. and Environment Canada,thePugetSoundCleanAirAgency partners includingtheUSEnvironmental Protection Agency scrubber pilotproject withthebackingofawiderange among theleaders.Fouryearsagoitlaunchedaseawater into theirvessels,HollandAmericaLine(HAL)hasbeen fuel, provided theyachievetherequired results. tousinglow-sulphur under MarpolAnnexVIasanalternative sulphur from theexhaustgasstream. Scrubbers are permitted systems, or‘scrubbers’,thatwouldstripouttoxinssuchas of SO2intotheatmosphere. against time against time technology –arace Emissions The washwaterthenproceeds through amulticyclonewhich Hamworthy’s designisanopen-loopsystem,withseawater The testplatformfortheproject, whichaimedtotestthe Of thecruiselinesnowworkingtoincorporatescrubbers Prominent amongtheseisworkonexhaustgascleaning identify alternative methodsofreducing emissions identify alternative of marinefuel,strenuous efforts are underwayto introduction ofnewlimitsonthesulphurcontent lookstowardss thecruiseindustry the is nowunderstoodtobeupandrunning again. with thosewash-waterfiltration issues. TheHALpilotproject duly haltedtheproject in2010sothatHamworthycoulddeal water discharge andalightsheenonthewater. Thecompany personnel inKetchikannoticedsoot particlesinthewash- ports ofKetchikanandSkagway. Aweeklatershipboard Zaandam’s scrubberinportVancouver andintheAlaskan attention. have surfacedsincethepilotproject beganthathaverequired suggestions asregards itsowntechnology, thoughotherissues on sulphuremissions.Hamworthyhasstrongly refuted such the seacangenerateenoughCO2tomore thanoffset thegains to havesuggestedthatwashwaterreturned Some observers scrubbing process, posedisposalproblems. whichmayinturn environmental safetyofthewashwatergeneratedin they canalsointroduce environmental issuesoftheirown. not beviabletoaddscrubbersallthemainengines.And industry. Theyare difficult andexpensivetoinstall,itmay ECA whichextends200milesoffshore. Sea andtheEnglishChannel,aswellNorthAmerican European emissioncontrol areas oftheBalticSea,North 0.1% limitwhichisduetogointoeffect in2015the 0.5% sulphurcontentdistillateoil. particulate matter, reductions itsaidwere equivalenttousing scrubber removed roughly 75%oftheSO2and 57%ofthe tothesea.Theentirereturned process isheavilymonitored. adjuster thatraisesthewater’s pHtonearneutralbefore itis petroleum hydrocarbons andmetals,thenanacidity Royal Caribbean Cruises Ltd. (RCCL) is another company Royal Caribbean Cruises Ltd.(RCCL)isanothercompany At theendofAugust2008HALstartedoperating There have,for instance, beenquestionsaboutthe Scrubbers donotyetappeartobeanunalloyedboonforthe More isneeded, though,tobringemissionsdownthe In earlytestingin2007and2008HALfoundthatthe RCCL’s workonadvancedwastewater treatment systems. about marinisingleading-edgeshoreside technology,” hesaysof manufacturers and25different systemslater, alot we’velearned environmental itwellinthiscasetoo. “Ten gainswillserve or 11 its shipswithstate-of-the-arttechnology aimedatsecuring amounts ofwaterbeingpumpedaround theship.” equipment withalarge amountofelectricityandsignificant There are majorsafetyconsiderationswhenyou’re installing in theprocess ofrefining thedesignandinstallationprocess. explains. “There isaseriesoflevelsyouhavetogetto.We are without significantflooding. Stewardship. “Thewaterwasabletogothrough thesystem Environmental Officer and Vice President Environmental in September,” notesJamie Sweeting, RCCL’s GlobalChief technology onboard anddidarough trialforafewdays and 1,360crew, asitstestvessel.“We’ve installedthe a 154,407gtvesselwithcapacityfor4,375passengers however. RCCLhadidentifiedIndependenceoftheSeas, company claims. 77% ofCO2and66%NOXfrom theexhaustflow, the on anoiltankeritsucceededinstrippingout99%ofSO2, an ultra-low-frequency waveelectrolysis treatment. Tested Bureau ofShipping, operateswithoutchemicalsbutusing Global Technology andalready verifiedbytheAmerican gains achieved. harmful sideeffects thatmightinwholeorpartnegatethe and CO2from theexhauststream, andwithout generatingthe new systemdesignedtoremove notjustSO2butalsoNOX today’s environmental challenges.Lastyearitoptedtotesta leading thecharge ondevelopinginnovativeresponses to Sweeting believesthatRCCL’s longexperience inretrofitting “We treat thisaswe doanymajorconstructionproject,” he Its applicationtocruiseshipsremains aworkinprogress, CSNOX, asystemdevelopedbySingapore-based Ecospec pumped aroundtheship.” significant amountsofwaterbeing with alargeamountofelectricityand when you’reinstallingequipment “There aremajorsafetyconsiderations technology across anentire fleet.” to sixengines.Itisgoingtakea longtimetodeploythis Independence oftheSeas,wehave dozensofshipswithfour a long-termproject. “Evenifweinstallthistechnologyon global economy, isunderintensefinancialpressure. regulators atatimewhentheindustry, alongwiththewider other engines.”Heisclearlyhopingforflexibilityfrom the inthe you farmore flexibilityintermsofthefuelyouburn effectivevery ifyouare lookingatthebusinesscase.Itallows natural gascanbewidelyusedasacore fuel,forinstance. distribution questions,tonamebutthree, before liquefied deployment. Cruiselinesmustanswersafety, designand require timetomature, givensignificantobstaclestoearly being oneofthem,hestresses. Manyofthesesolutionswill require responses, arangeofcomplementary scrubbers the additionalcostsofspecialisedmanpower.” says. “There are maintenancecostsandoperatingcosts, thesesystems,”Sweeting in termsofmaintainingandservicing of steeplinglow-sulphurfuelprices.“There are issuesweface ardent hopethattheycanthereby alleviatethe financialpain the developmentofscrubbertechnologyiscruiselines’ is another;afterall,oneofthegreat drivingrationalesbehind the IMOequivalencystandard. systems toworkcontinuouslyfordaysonendwhilemeeting look todofit-for-purpose testing,”theaimbeingtogetthese running withthesystembyendofthisyear. “Thenwewill says theaimistohaveIndependenceofSeasupand solution. Icertainlyhopeitwillbepartofourarsenal.”He successful, butitisalsoextremely premature to sayitisa Either way, heleavesnodoubtthatthiswillnecessarily be “In termsofscrubbers,”Sweetingsays,“averagingwouldbe Responding totheregulatorydemandsoffuture will Functionality isoneissue,butofcoursecost-effectiveness “We are extremely keenfor[theCSNOXsystem]tobe Sweeting 51 ECC 2011/2012 Report 52 ECC 2011/2012 Report E sulphur policy The need to harmonise the 0.5%limitwill beputbackuntil2025. study concludethatthere are problems withfuelavailability, study whichisduetobecompleted by2018.Shouldthat 2020–subjecttoafuelavailability again to0.5%on1January is duetodrop 2012,and thenfall to3.5%asof1January and enoughsafeguards toprovide reassurance. some concessions,butnotsomanyastoscupperthedeal– together attheIMOwasasoundcompromise –including Indeed, formanyintheindustry, thepackagehammered “A packageofmeasures thatwaspretty wellthoughtout.” means MarpolAnnexVI,whichStrangcharacterisesas difficultbe very challengingforus.” tomanage,andvery not lotsofvariationsonatheme,region byregion. Thatwould regulation, are goingtohaveanythingwewantinternational Compliance Tom Strangsays.“We havealwayssaidthatifwe Corporation &plcVice President forMaritime Policy and regulations administered onaglobalbasis,asCarnival EU regulatoryapproach toSO2emissions. remain, andnowhereconcerns more sothaninthedeveloping solutions thatitcanlivewith.Onsomeissues,however, uncertainty. as possible–particularlyinthesetimesofrisingeconomic scientifically justifiedobjectivesinascost-efficient manner in arguing forachievableemissionsreductions that achieve hasbeenprominentthe policydebate,cruiseindustry tightening thelimitsonemissionsofarangepollutants. through regional bodiessuchastheEU,regulators havebegun through theUN’s MaritimeOrganisation International or Under Marpol Annex VI, the sulphur content of marine fuels Under MarpolAnnexVI,thesulphur contentofmarinefuels regulation In termsofsulphuremissions,international The industry’s focushasalwaysbeenonsecuringglobal By andlarge hasbeenabletocraftcompromise theindustry Among themyriadstakeholderswhohavecontributedto emerging asakeyarea offocus.Inresponse, whether environment, andemissionsfrom shippingare to furtherenhancetheprotection ofthenatural urope iscontinuingtoworkdeveloppolicies to achievetheresults desired, andequivalencymeasures without otherinstrumentssuchas averagingitwillbedifficult incorporated intotheindustry’s approach. Butheargues that such asscrubbersandtheuseofliquefied naturalgas(LNG), emissionsabatementmechanisms, eager” toseealternative first,” saysStrang. necessarily comelater. “We wanttogetitsortedoutintheUS 27-member European Uniontoaccommodate–would environment ofEuropea –withitsrulesstillinflux,and a financialupsideaswell.”Themore complex regulatory opportunities todeliverabetterenvironmental benefit,with the newlimits. a significantimpactontheindustry’s costsasitstrivestomeet technologies; eventhough,asStrangpointsout,itcouldhave with thefocusofDirective muchmore onalternative over aperiodofoperation–are onlymentionedinpassing, a singleshipoverspecificvoyage,orindeedfleetofships under whichpermissibleemissionsmightbeaveragedoutfor amendments made,suchasthewayscrubbersare treated.” There are alsoanumberofareas where wewouldliketosee plating, withadditionalrequirements overandaboveMarpol. the middleofnextyear. overgold- Butwehaveconcerns Directive goes,” says Strang.“We willknowonlytowards through theindustry. the differences are significantenoughtohavesentashudder remain, andinsome areas there are changesinlanguage.And is broadly inkeepingwithMarpolAnnexVI.Howevergaps supposed tomirror theIMO’s approach and,sure enough,it 2010 andissettofallfurther, 2015. to0.1%,asof1January and theEnglishChannel–limitdropped to1%on1July sensitivity comprising,inEurope, theBalticSea,NorthSea The European Commission,hesays,is“obviouslyvery “We are workingin theUSinparticularonthis.Itcreates The treatment of equivalencies–suchasfuelaveraging, “We don’t knowwhatweare goingtogetasfartheEC This summer’s European proposal onsulphuremissionswas In theso-calledemissioncontrol areas –areas ofparticular from thedirective’s provisions (on anindividualvoyagebasis) include afuelavailabilityclausethat wouldexemptships troublesome elementoftheEUproposal isitsfailure to Alaska’s headtax. sulphur rules,hesays,couldbetwo tothree times thatof cruise linestodeployelsewhere. Thecostimpactofthenew spending, slasheddemandforAlaskacruises,andprompted of aswingeing$46headtax,whichhesaidsavagedcustomer the affected cruisedestinations.HecitesAlaska’s introduction on vesselitineraries,andthustheeconomicprospects of implementation ofthenewEUdirective couldhaveanimpact in theportsandfarbeyond. livelihoods are affected” –notjustatthecruisecompaniesbut companies andtheirstakeholders.”Headdsthat“people’s are todoisminimisethefinancialburden trying forthe is]lookingforloopholes,whenwhatwe [the industry its targets. regulators achieves tobe open-mindedonhowtheindustry a productive andamajoremployer, industry heexpectsthe andtheneedtoavoidpenalising of theeconomicdownturn heargues.everyone,” Andalso,giventheincreasing severity the regulations, it shouldbeconsidered awin-winfor the emissionsreleased intotheatmosphere are in linewith Cruises Ltd.,agrees. “Aslongasyoucandemonstratethat Vice President Environmental Stewardship atRoyalCaribbean Commission hasto“lookattheirwholetoolbox”saysStrang. environmental, aswelleconomic,sense.TheEuropean areas andlessheavily outtosea,couldwellmakesound the sametoken,cuttingemissionssharplyclosetopopulated average outtheemissionsoverwholevessel,”henotes.By with, thedevelopmentofnewtechnology. should beseenassupportiveof,ratherthanincompetition All theseare significantissues,butperhaps themost thatinflexibilityintheframing and Sweeting alsowarns “Unfortunately, somepeoplejumptotheconclusionthat Jamie Sweeting,GlobalChiefEnvironmental Officer and “If youhavescrubbersononeortwoengines,wantto theme, regionbyregion.” regulation, notlotsofvariationsona to haveanythingwewantinternational “We havealwayssaidthatifwearegoing our shoulders.” passenger demands,sothecostof thesechangeswillbeon In thelongerterm,heconcludes, “We havetooffer whatthe catalogues wellinadvancesowe can’t justchangeourplans.” “OurpassengersreceiveAt thesametime,heobserves, the about whatTom Strangcalls“distortionsinthemarket”. restrictions insomeareas thanothers,Balbitooisconcerned hurdles before itcanbewidelydeployed. cold ironing facesahostofpractical,technicalandregulatory suitable fornewbuildingsratherthanexistingtonnage.And says. LNGlacksadistributionnetwork–andappearsmore they are noteasytoinstall,andtheyareexpensive,”he very certainly notbeready for2015. from beingwidelyapplicableacross –andwill theindustry abatementmechanismsare alongway so manyalternative notes, thefuelavailabilityissueisparticularlysensitivesince find fuel,howonearthcanyoucomply?” reasonableness,” headds.“Ifyougotoaportanddon’t of non-availability, aspertheIMO.We are justaskingfor a clauseincludedthatallowsforexemptioninthecase you are notguaranteed adequatesupply. There shouldbe difficult portby2015.Itisvery every tocomplywhen EU proposals, particularlyonfuelavailability. the IMO.”Headmits,however, overthe to“deepconcerns” todealwiththosewithin settings,itisbesttotry international environmental issuespertainingtolarge bodiesofwaterin shipping industry, webelievethat,regarding of governance the IMO,”saysSweeting,“and,aspartofglobal compliant fuels. berth, oraspartofamore fundamentalfailure inthesupplyof in theeventofafuelshortfall–eitheratparticularportor As to the question of itinerary changesinresponse As tothequestionofitinerary tighter “There are stillsomeproblems withthescrubbertests, As MSCCruisesEnvironmental Coordinator FrancescoBalbi “We thatitwon’t are concerned bereadily availablein “We supportedtheEUinharmonisingitspolicieswith Strang 53 ECC 2011/2012 Report 54

ECC 2011/2012 Report T content inmarine fuel,itisGHGemissionsthat mightbe (GHG), theleadingculpritinclimate change. sensitive initsregulation, thanemissionsofgreenhouse gas its effects, more urgent initsamelioration,ormore politically environmental improvement, no issueismore significantin by 2020,and180–250milliontonnesannually2030. haveenteredannually thatwouldotherwise theatmosphere emissions from shipping,removing 45–50milliontonnes likely success.ItbelievesthatitcouldhelpslashCO2 come intoforce in2013. newbuilds, andtherefore reductions inemissions,itisdueto spurring continuousimprovement intheenergy efficiency of minimum energy efficiency levelfornewships.Aimedat an Energy Efficiency DesignIndex(EEDI)that requires a to MARPOLAnnexVI,themeasures includemostnotably Committee (MEPC)meetingintheformofanewchapter4 new measures to cutcarbondioxideemissionsfrom ships. carbon issues Addressing the For allthefurore surrounding efforts tocurbsulphur In thewidercontextofEuropean –andglobal The IMOisunafraidtomakeboldpredictions astoits A dopted atJuly’s MarineEnvironment Protection and regulators come togetherbehindmandatory So itwasreassuring thissummertoseeindustry notoriously sensitive,andattimesincendiary, area. he environmental regulation ofshippingisa solution, sothecruise industry, inparallelwiththeIMO but says Ashdown.“There isnotgoingtobeaone-size-fits-all bulkers ortankersforinstance,is inapplicabletocruising, load, meansthattheformuladevised forothershiptypes, engines, alongwiththepowerdemands oftheirhotel EEDI. along withro-ro vessels,are amongthosenotyetcovered by embracing 72%ofemissionsfrom newships”.Cruiseships, energy-intensive segmentsoftheworldmerchant fleet,thus “has beenpurposefullydevelopedforthelargest andmost part, oftheglobalfleet.AsIMOputsit,itsfirstiteration more efficient thanthosethatare beingbuilttoday. years from now, shipsare beingbuilt that are significantly up withnewtechnologyandinnovation;sothat20or30 than thelast,andthatdesigncharacteristicsare ratcheted to makesure that eachgenerationofshipsismore efficient terms oftheoperatingefficiency ofvessels,itisdesigned and OperationsattheEuropean CruiseCouncil,putsit:“In hasbeenabletounitegoodeffect.maritime industry with thecaveatthatmuchworkremains tobedone,the for allthat,thisisalsoanissuewhere, byandlarge and termed thegorillainroom asfarregulation goes.Yet The factthatcruiseshipsare powered bydiesel-electric As itstandstheEEDIcoversonlypart,thoughasignificant As RobertAshdown,Director forTechnical, Environment between thecarbon cutsyouachieveandwhatis neededto ships through theEEDI.Thenyouhavetolookatgap Management Planandtheoperating efficiency ofnewlybuilt global fleetisaddressed through aShipEnergy Efficiency issues,” Ashdownnotes.“Operating efficiency inthe challenge. “Itisoneofthree pillarsinaddressing carbon in thechartermarket,nottomentionsellingshipon. meet theenergy efficiency criteriamayencounterdifficulties As Ashdownsays,aship-ownerwhosenewvesseldoesnot organisations are advisingtheirmemberstoresist usingit. the EEDIsuchasChina–thoughanumberofshipping of awaiver–measure insertedtoplacateopponentsof monitored. Initscurrent form,italsoincludesthepossibility of themechanism–notleasthowitwillbecalculatedand cost-efficient solutionstobeused”. required energy-efficiency isattained,enablingthemost to useinshipdesignthestakeholders,aslong mechanism thatleavesthechoiceofwhichtechnologies The EEDIis,according totheIMO,a“non-prescriptive routesto seekoutandfollowalternative tothesameend. regulation, and with itsexplicitencouragementofefforts propulsion systems. efficiency –suchasimproved hulldesignormore effective on methodsotherthansimplydepoweringtoimprove fuel toport,areon safereturn alsoputtinganincreased focus commercial reasons forfuelefficiency.” the impactoffuelcostsavings,sothere are alwaysgood these vesselsbuytheirownfuelandtheyseedirectly relationships to getintheway. Thecruiselinesthatown business model,”saysAshdown.“There are nochartering this wouldbethecase.“Cruisingisessentiallyaconsumer Public-spiritedness aside,there are soundreasons why safety andenvironmental sustainabilityintoitsvessels. the technologicalboundarieswhenitcomestobuilding industry’s mostproactive overrecent yearsinpushing share. and efficiency shipping”,wouldseemto ofinternational weather conditionsisofvitalimportancetoensure thesafety installed powertomaintainsafenavigationinadverse says explicitlythatit“supportstheviewaminimum installed powerweneed.”ItisaviewthattheIMO,which power availabletous.Itisimportantthatwehavethe considerations, andwewanttofeelcomfortablewiththe installed power. option wehave[forachievingefficiency gains[isto reduce approach. We don’t wanttoget toasituationwhere theonly thing indesigningtheseindicesistoallowflexibilityof have alsostressed,“Theimportant flexibilityiseverything. commercial ship-ownerssuchas BIMCOandIntertanko and buildthemintoanewformula.” into accounttheparticularcharacteristicsofcruiseships, back tothenextsessionofMEPCyear. Itwilltake separately, isdevelopingitsownapproach thatwillbetaken The EEDIisonlypartoftheresponse totheGHG Major questionsremain overthepracticalimplementation This chimestoowiththeIMO’s commitmenttogoal-based changesinotherareas,Regulatory suchasinnewrules The cruisesegmenthasbeenamongtheshipping wehavesignificantsafety “In thecruiseindustry As Ashdownnotes,andorganisations representing or alevyfitsour sectorbest.” he concludes,“toseewhetheran emissionstradingscheme need toseeadetailedproposal, anddoadetailedanalysis,” will always engagewiththeregulator.the industry “We will Ashdown notesthatevenifthis isasub-optimaloutcome, shortly. Itiscruising’s least favouriteoption,though own regional proposal measures ifnointernational surfaces will makegoodonitspromise tomoveforward withits hypothecation oftaxes. body. Andothercountries are strongly opposedtothe a taxes,towhatitmayseeasanunelected,unaccountable resistant topayinglevies,whichcouldbecharacterisedas protocol, andfrom countriesliketheUSwhichmayprove under noobligationtocutemissionstheKyoto among developingcountries,whoreason thattheyare market-based measures.” Amongthosehurdles isresistance still significantpoliticalhurdles before theycan deliver already. Nowtheyneedtoprogress toaction.Butthere are at theleastcost,”Ashdownsays. to choosethesolutionthatprovides thelargest carboncuts cruise companieswithwell-staffed backoffices. “We want the commercial shippingmarket,holdlittlefearforlarge schemes, forinstance,whichcauseshuddersinpartsof on themosteffective wayforward. Emissionstrading remainsIMO, andthecruiseindustry opentosuggestions deliver, theEUhasindicatedthatitwilltakeaction.” that dealwithaviationandmaritime.Andifthesetwofailto on ClimateChangeisalsolookingatimposingmeasures the IMO.ButUnitedNation’s FrameworkConvention asawhole,“isthatitshouldbeaddressedindustry through based measures. industry, andthatgapcanbeaddressed through market- meet thedemandsofregulator. Cruisingisahigh-growth The European cruiseindustry’s isthattheEU concern IMO] the [at “A lotofgoodgroundwork hasbeendone A numberofproposals are currently onthetableat “Our view,” hesays,alongwiththatoftheshipping installed power.” gains] istoreduce [for achievingefficiency only optionwehave to asituationwherethe “We don’twanttoget Ashdown 55 ECC 2011/2012 Report 56 ECC 2011/2012 Report for shipandshore standards required Consistency of T parameters. Helsinki Commission(HELCOM)requirements requirements, andindeedtogobeyondtheneweffluent a lottocomplywithincreasingly stringentwaste water possible.” only waytoensure thisistodoitthemselvesas much as treated tothehighestpossibleenvironmental standard. The the end’,itisimportantthattheybesure thatthewasteis treated ashore. Consideringthattheoperatorsare ‘liableto port andfrom daytoday, andsonotplannable. port, withonshore treatment costsdiffering from portto treatment ismuchcheaperthandisposingofthewastein standards are knownandcanbeinfluenced.Onboard technology fortwomainreasons,” hesays. investment. “Ownersare lookingtogetthebestavailable is around €10million,Deerberg notes–aconsiderable cruiseshipnewbuilding treatment plant on amodern discharge. the collaborationbetweenshipsandportswhere they also argues thatfuture progress willdependconsiderablyon improve wastetreatment inthecruiseindustry, Deerberg regulations become evertighter. “Over theyears,”Deerberg says,“operatorshaveinvested “Second, anoperatorcannotbesure howthewastewillbe “First, onboard operationcostsandenvironmental The costofbuildingandinstallingastate-of-the-artwaste But iftheshiphaslongbeenfulcrumofefforts to it, isonlylikelytocontinueasenvironmental Deerberg SystemsCEOJochenDeerberg describes years inonboard wastetreatment –aprocess that,as hasinvestedheavilyoverrecenthe cruiseindustry through intergovernmental cooperationbetweennineBaltic crafted byHELCOM,whichworks toprotect theBalticSea new Balticnutrientremoval standards. tomeettheproposedseparately couldallowtheindustry and DevelopmentWei Chensaystreating grey water debate onwastetreatment. HamworthyHeadofResearch bacteria andvirusesare eliminatedonboard.” result forallbiowaste,andensureperfect burn-out thatall interfacesensureare a worthmentioning.Thesemodern “Developments inconnectingliquidandsolidwastesystems shore facilitiesandflexibleinoperation.And,henotes, helping tokeepshipsasindependentpossiblefrom technologies. new oralternative possible whenitcomestowastetreatment, thehuntisonfor time whenthefocusisonmakingshipsasselfsufficient as for instance,are increasingly limited.Inresponse, andata used foronboard wastetreatment; incineration systems, also havinganimpactonthekindofprocesses thatcanbe values.” stream intothe Baltic, really needtoreach these high though representing thetiniestfractionofnutrient legislators are in discussionwhetherornotpassengerships, to beinstalledandusedonboard. to complymaybeavailableonlandbutitmustmarinised [for theBalticSea]are nowunderdiscussion,astechnology In termsofregulations, hesays,theBalticSeaAction Plan The BalticSeaisthefocalpointofcurrent intense Deerberg citesconvertertechnologyasoneadvance Increasingly stringent environmental requirements are “This raisesinitialinvestmentcosts,andowners if weare developingsomething that isreally required bythe a demonstrablebenefitfortheenvironment. We havetoask rules havetoareal scientificjustification and produce technologies are compliant.Atthesametime,those stringent We havedoneagoodjobwiththe cruise lines,andthose developed advancedwastewater treatment technologies. discharges. of thebenefits–anddrawbackstighter restrictions on not onlygrounded insciencebutthattakeaholisticview marine andland-baseddischarges, andforrulesthatare to callformore consistencyinthestandards required of industries.” metal andammonia,whichare notrequired ofland-based alsohastomeetlimitsondischargesships. Theindustry of for smallercommunities,instance,but70%cruise discharges. Therulesonlyrequire 30%nitrogen removal to cruiseshipsare farmore stringentforlike-for-like land-based industrieswithcruiseships,therulesapplying the balanceissomewhatdistorted.“Whenyoucompare ecological healthoftheBalticSeaby2021. respective discharges.” Theactionplanaimsto restore the sense sinceitislinkedtotheenvironmental impactoftheir and more relaxed forsmallcommunities,whichmakes plants,” saysChen.“Theseare more stringentforbigcities point. states andtheEuropean goodreference Union,isavery “Over the past ten years,” he says, “the industry has “Over thepasttenyears,”hesays,“theindustry iswithinits rights Chen believesthatthecruiseindustry When itcomestoshipping,however, Chensaysthat “It setsoutthestandards forallland-basedwatertreatment stringent forlike-for-likedischarges.” applying tocruiseshipsarefarmore industries withcruiseships,therules “When youcompareland-based improving therelationship.” can onlyexisttogether, therefore allpartiesmustworkon environmental impact,”heconcludes.“Shipsandports ships andgreen portsworkhand-in-handtolower the reallymake theshippingindustry sustainable,whengreen environmentally optimumway”. ship andshoreside willbecriticalindealingwithit“inthe with 5,000peopleonboard –thatcooperationbetween waste generatedbyacruiseship–28tonsdayforvessel shore-side mustbethewayoffuture. He argues thatgreater understandingbetweenship-sideand develop newtechnology, onthebasisofamovingtarget.” rules three times.Thecruiselinescan’t operate,andwecan’t “Over thepastfiveyearsAlaskahaschangeditsdischarge making atoxicdischarge,” quipsChen. passenger poursaglassofdrinkingwateroverboard, heis ashore of1,000 micrograms perlitre. “Itmeansthatifa from acruiseship,compared withalimitfordrinking water 3.1 micrograms ofdissolvedcopperperlitre of discharge industry’s bêtenoiroverrecent years.Chencitesalimitof carbon emissions.Itisaquestionofbalance.” for instance,thatremoving more nutrientscanincurmore tighter discharge limits,”henotes.“Butsometimesweforget, andthatdoesproduceindustry atangiblebenefit. “A functioningship-shore interfaceistheonlywayto Deerberg concurs,notingthatsuchisthesheervolumeof Predictability is almostasimportantreasonableness. muchthe When itcomestobalance,Alaskahasbeenvery “We havemore andmore regulation, pursuingtighterand CHEN 57 ECC 2011/2012 Report 58 ECC 2011/2012 Report T environmental processing and/or recycling of ourwaste.” stand onlycertifiedcompaniesthat guaranteethesafeand grey andblackwater. Behindthewastereception should and incineratorashtomedical chemicalwasteto cover allwastetypes,from paper, glass,plastics,metal Lucienne Damm,“portwastereception facilitiesshould – toshouldertheirpartofthewasteburden. state efforts –notjustintheBalticbutEurope asawhole islessthanimpressedBaltic, thecruiseindustry withport on thedischarge ofnutrientsfrom passengershipsintothe fair tosaythatwhileHelcomisintentontighterrestrictions debate overwastetreatment, recycling anddisposal.Itis an increasingly importanttestingground inthecontinuing come squarely intoHelcom’s sights. to cleanupthisprecious seagainground, thecruising has wherever adequate facilitiesare available–astheefforts commitmenttodischargevoluntary allwastewaterashore amount toeutrophication. Evenso–anddespitetheECC’s levels intheBalticSea,andsocontributesaminuscule not justinEurope butaround theworld. a potentialmodelforsimilarefforts inotherregional seas– Sea ActionPlan.Indeed,theHelcomactionplanisviewedas danger ofecologicalbreakdown, notablythrough itsBaltic this issueintheBalticarea, hasbeenworkingtoallaythe (Helcom), thevehicleforintergovernmental cooperationon nutrients inthewater. eutrophication, thebuild-upofalgaecausedbyanexcess fail theindustry Port reception facilities But thereality fallssomewhatshort ofthisideal.“Inthe “Ideally,” saysTUICruises Environmental Manager For theindustry, meanwhile,theBalticSeahasbecome Passenger shippingaccountsforlessthan0.1%ofnutrient Small wonderthenthattheHelsinkiCommission on themarineecosystem–mostnotablythrough both onlandandatseahasputanincreasing strain marine area. Over recent decadeshumanactivity here isnodenying thattheBalticSeaisathreatened facilities, especially forrecycling, andtheyare building new being made,nonetheless. with solidwasteinparticular. Hebelievessomeprogress is former considerablybetterequipped thanthelattertodeal European andsouthern ports,withthe between northern is completelywasted.” even thinkaboutrecycling. Insomewaysourworkonboard a bigproblem. Notasingleportissustainable.Theydon’t “But whentheyarriveataMediterraneanporthave exorbitant costs.We are penalisedfortheslightestthing. in Italy, andreally forinstance–we haveinadequateservice, able toprocess 95%ofourrecyclable material.Meanwhile– Mediterranean, weare 20yearsaheadoftheports.We are began yearsago,withISO14001.“Now, inthe industry’s drivetoimprove itsenvironmental management Compliance Director EmilioTombolesi saysthecruise waste beingtippedintothesametruckonreaching land. nothing forcrew moraletoseecarefully separatedflowsof port togetittherecycling plant.”Headdsthatitdoes sorted andseparatedbefore discharge, butitis uptothe buying compressors,is compactorsandsoon.Everything cooperation. Insomeportsit’s justnotthere. 95% ofoursolidwaste,forinstance,butweneedtheir help oftheshore side.Itwouldbepossibleforustorecycle handling ofwaste,”hesays,“buttobeperfectweneedthe Balbi agree. “We aretoimprove alwaystrying ouronboard own environmental standards require.” unable totreat our different wastecategoriesinthewayour today’s statusquo.IntheMediterranean,someportsare Baltic, weneedportfacilitiesthatare farmore efficient than “We are workingwithCivitavecchiatoimprove their MSC’s Balbinotesthatthere isasignificantdifference “We trainourcaptainsonseparatingrecyclables,” headds. Corporation&PlcMaritimePolicyand Carnival “We havespentalottoreach thestateofartonboard, MSC CruisesEnvironmental Coordinator Francesco in amannerthat isbothpracticableandfair”. “meets theenvironmental objectivesoftheBalticSeastates Ashdown saidinthewakeof decision,theagreement Director forTechnical, Environment andOperationsRobert an increasingly frustratedcruiseindustry. ButasECC first SpecialArea. 2013,theBalticSeawasspecificallydesignated as a January ships. With theamendmentsduetocomeintoeffect on1 areas fortheprevention ofsewagepollutionfrom passenger Annex IVofMarpolallowingforthedesignationspecial Environment Protection Committeeadoptedamendmentsto MaritimeOrganisation’sIn JulytheInternational Marine and evenpassengersonboard are asking‘Whysegregate?’” separately. goesintoonecontainer, Everything sothatcrew recyclable fewportsare waste,butvery abletohandleit advanced wastetreatment andare abletodeliversegregated or onlypossibleatexcessivecost.Mostshipshavevery needs. Specialorhazardous wasteisaparticularproblem, we donotfeelthere isaseriousapproach tomeeting our chemicals withoutaffecting thebudgetforgarbageoffload.” fee system–agoodwayforshipstogetridofoldpaintand accepting ‘specialwaste’free ofcharge usingthe non-special “All portsare recycling offloaded garbage,andsomeare “though pricingisabithigh”.IntheBaltictoo,shesays, Sea, forinstance,shesaysgarbagecollectionisefficient neighbours.IntheNorth ports are ahead of theirsouthern funds are short.” partly aconsequenceofthecurrent economicsituation,as Europe.but theyare not yetatthelevelofnorthern Itis toimprove,Genoa istrying andsoare someSpanishports, they should.Ifonlymore portsactedlikeCivitavecchia. structures according tooursuggestions–justas Marpolsays In isolationthiswouldhardly havebeenenoughtosatisfy Progress iscoming,however, atleastonthesewagefront. The situationintheMediterraneanisworse.“Inmostcases TUI’s Dammagrees thatinsomeareas atleastnorthern recyclable material.” We areabletoprocess95%ofour “We are20yearsaheadoftheports. plan ourtours.” wastes incertainportsalongour routes, wewillhavetore- decisively. “Ifwecan’t getridofourdifferent accumulated planning decisionsmoreitinerary andmore,” she concludes future. advantage inthecompetitionforcruiseshipvisits facilities andinfrastructure willbe‘the’competitive port have toacknowledgethatadvancedandmodern sewage, wecan’t commitnottodischarge intothesea.” autonomy. “Untiltheports havethefacilitiestohandleour waste reception.” have justStockholmandHelsinkiintheBalticwithadequate probably bepostponed,”believesBalbi.“Itisnotsufficient to important fortheportsthemselves. Going forward, embracing theirrole islikelyto bejustas whose efforts havenotbeenreciprocated inmanyports. to invest,inonboard wastetreatment installations, but thathasinvestedheavily,for acruiseindustry andcontinues that maybeinagivenportonday. structure, andavailable tomeettheneedsofallships a shore-side connection, ideallythrough theno-special-fee to handleaminimumof200m3wasteperhour, direct to provide thoseadequatefacilities.Thismeansthecapacity notes thattheportswillhavetobemonitored toensure they facilities” asaprelude tothedealcomingintoeffect. their facilitiestopermitshipsdischarge sewageintothose termed “theobligationsofallBalticSeaportstoupgrade the agreement explicitly acknowledgeswhatAshdown “The availabilityofefficient portfacilitieswillinfluence “Over thelongerterm,”Dammargues, “portauthorities He addsthatMSC’s vesselshavetwo tothree days of “If youlookattoday’s situation,thenewrequirements will The ports’acceptanceoftheirdutiesinthisarea iscritical Having achievedthiscompromise solution,Ashdown Most hearteningfrom thecruiseindustry’s pointofview, TOMBOLESI 59 ECC 2011/2012 Report 60

ECC 2011/2012 Report A environment is finally resulting ina regulatory response. the damagecausedbyhumanactivity tothenatural is understandableatatimewhen increasing alarm over shipping. international update theregulations governing technical committeesandsub-committees whichmonitorand represents theinterests–makeup ofthecruiseindustry Association(CLIA), which the CruiseLinesInternational states andfrom organisations non-governmental –including associate members.Technical expertsfrom thesemember and hostsrepresentatives of169UNmemberstatesandthree agency (setupin1948)hasaspecialisedstaff ofaround 300 security andenvironmental sustainabilityofshipping,thisUN maker offirst resort. MaritimeOrganisationto theInternational (IMO)astherule free-moving transportandtourismassets,itwillalwayslook it plotstheconstructionanddeploymentofworld’s most national orregional considerationsare takenintoaccountas would meanchaos. across theworld’s oceans–demandsit.Patchworkregulation diverse mixofpassengerssailingonmulti-calljourneys manned bymultinationalcrewsanincreasingly serving global solutions ECC favours And these committees have a very fullworkload,which And thesecommitteeshaveavery Based inLondonandwithresponsibility forthesafety, As aresult,willseektoensure though theindustry that very characterofthebusiness–enormousvessels very regulated asfar as possibleonaglobalbasis.The it isonlynaturalthatcruisingseekstobe s afast-growing withaglobalpresence, industry emissions inshipping, notesCLIAExecutiveVice President proposals nextyear. IMO’s MarineEnvironment Protection Committeewithits shipbuilders andclassificationsocieties. Itwillgobacktothe Ship SafetyForum,whichbrings togethership-owners, differentwith very loadcharacteristics–through theCruise ships –typicallypowered bydiesel-electricenginesand differentstudying aformulaforthevery needsofcruise as oiltankersandbulkcargo isnow carriers,theindustry currently focusesonconventionallypowered shipssuch over howtocombatclimatechange. recognising differing sensitivitiesinthecontinuingdebate goals whilesurmountingsignificantpoliticalobstaclesand successfulprocess”describing itas“avery thatachievedits efficiency designindexonGHG reduction,” saysDarr, work concludedtoputinplacethefirst-everenergy without undulypenalisingthebusiness. produce meaningfulprogress inprotecting theenvironment lesson inhowregulatorscancometogetherto andindustry Programmes BudDarrthenewmechanismsare anobject just that. the releasenewmechanismscalculatedtodo ofmandatory prime area offocus attheIMO,andresulted thissummerin Cutting greenhouse gas(GHG)emissionsfrom shippingisa EEDI isonlyoneelementinthe emerging response toGHG Though theEnergy Efficiency DesignIndex(EEDI) welcomesandapplaudstherecent“The cruiseindustry According toCLIADirector ofEnvironmental andHealth sufficient quantities. Furthermore thesulphurlimitsare in theeventthatrequired fuelisnotavailablein absence ofafuelavailabilityclause permittingaderogation compromise doesanythingbut,mostobviouslyinthe regulation designedtomirror theIMO’s carefully crafted asawhole.Aproposedin theshippingindustry EU sulphur debateisproving considerablymore combustible Baltic Sea,theNorthSeaandEnglishChannel, are quiteencouragedwiththediscussionswehavehad.” on this,and work withtheUSandCanadiangovernments are soinclinedtopermitthisapproach. We will continueto Darr. “We believethere isplentyofroom forflagstatesthat provide thesameorimproved benefitsatalowercost,”says sulphur fuelstotheshipsthatneedthem. to theIMO,includingcostoftransportinglower new sulphurlimitshavenotbeenconsidered insubmissions imposed fuelstandards. Headdsthatsomeimpactsoftight could prove more beneficialtopublichealththan rigidly populated areas, whilepermittinglightemissionselsewhere, those emissionswhere itreally counts,suchascloseto developing ameansofmonitoringemissions,andlimiting pursuit of“outcome-basedstandards”. Headdsthat across afleet. ofanindividualshipor averaging, eitherovertheitinerary fuels,ortheconceptofvessel of scrubbersoralternative this standard.” These‘equivalencies’mayincludetheuse “But weare looking atallthepossibilitiesthatexisttoreach of theirtimewithintheboundariesECA,”saysDarr. significant impactoncruiseshipsthatspendsomeorall limited to1%,dropping to0.1%by2015.“Itwillhavea Pollution from Ships(MARPOL). ConventionforthePrevention of 2010 totheInternational introduction followsamendmentswithintheIMOinMarch 200 milesoutfrom thecoastofUSandCanada.The Emissions Control Area (ECA)comesintoforce, extending heat aslight.InAugustofnextyeartheNorthAmerican limiting sulphuremissionscontinuetogenerateasmuch preference [onapossiblesolution].” complex issue,andoursectorhasnotyetexpressed any community tolookatmarket-basedmeasures. Itisavery not sufficient thenextstepisfor theIMOandglobal environment asfarpossible. If thetechnicalmeasures are Because ofthecomplianceissueswewantaglobalregulatory “Regionalregulationsays Crye. isanathematoshipping. include thattoo. if shippingcan’t cometosomekindofagreement itwill its proposals, andhasmadeno bones aboutsayingthat crafting anemissionstradingsystem.Ithasincludedaviation Commission hasalready takensomeratherboldstepsin “One oftheoutstandinginfluenceshere isthattheEuropean at theIMOmayprompt action from theEuropean Union. on theagenda,andhere difficulties infindingaconsensus they are unlikelytobe–market-basedmeasures willalsobe IftechnicalmeasuresMichael Crye. are notsufficient –and In theEuropean Union,meanwhile,withitsECAsinthe “There isthepotentialthrough operationalequivalenciesto notesthatthisapproachCrye chimeswiththeIMO’s Within thisECAthesulphurcontentofmarine fuelis As theGHGemissionsdebatecontinues,discussionson “It isthespectre motivatingallofustomoveforward,” “We wouldlikeaglobal standard, applicableinthe US.” resolve,” says,addingthat, as onregulation Crye ingeneral, requirements onvessels.“Thisisanissuewewouldliketo York inparticular – are looking toimposemore stringent legislation onballastwater.” Anumberofstates–New prohibited from goingbeyond IMOregulations ornational discharges. Unfortunately, intheUSvariousstates are not permit, aswelltopendingUSregulations onballastwater “ItiscloselytiedtotheUSvessel general soon,” saysCrye. the solution.” part oftheproblem. Butweare certainlywillingtobepartof eutrophication problem intheBaltic.We are aminuscule areas anindustry responsible forlessthan0.1%ofthe viable option,”hesays.Atthesametime,notes,“We “That leavesshoreside discharge andtreatment asthemost of nutrientreduction required reliably andconsistently. there isnotreatment plantavailablethatcanmeetthelevel pointsoutthat being debatedwithintheIMO,butCrye some opposition. hadachieveditsobjectivesonthisissuedespite industry have adequatereception facilities,”hesays,addingthatthe have itspecifiedthatthere isaburden onthe port statesto area forsuchdischarges. “We feltitextremely importantto of sewageintheBaltic,whichistobedesignatedaspecial was theagreement onspecialrequirements for thedisposal advance foritsinterests attheIMOearlierthisyear. This on thefuelsuppliers.” to ensure thefuel isavailable,”Darradds,“butnoobligation review, andbuildonitfor2018.” is thatitpreferable todoapreliminary[fuelavailability] stresses.and notpoliticalconsiderations,”Crye “Ourview availability questioniscriticalfortheindustry. solutions likelytobeslowinthedevelopment,fuel far toolatetobemeaningful.With abatement alternative a review offuelavailabilityin2018–adatemanyviewas due todrop to0.5%innon-ECA watersfrom 2020,with EU lawwithoutfurtherchangesoradditions. IMO aresubsequentlyincorporatedfaithfullyinto hope toensurethattheregulationsadoptedby after theinternationalnegotiationsECCandCLIA the IMO.ByinfluencingEUbefore,duringand likely coordinatedpositionsofthe27EUnationsin IMO meetingstotryestablishandinfluencethe IMO andalsoworkextensivelywiththeEUbefore members routinelyjointheCLIAdelegationat the needsofglobalcruisesector. ECCstaff and forwards attheIMOarethosethattrulyreflect ters toensurethatthepositionsitadoptsandtakes works closelywiththeECConallregulatorymat- shares manyofthesamemembersasECCand at theInternationalMaritimeOrganization.CLIA association and,assuch,representstheindustry CLIA isthecruiseindustry’s internationaltrade “The ballastwaterconventionisalsoduetocomeintoforce The dutyofvesselstotreat suchwasteonboard isstill secured saystheindustry another On apositivenote,Crye totakemeasures“There isasoftobligation ongovernments “Decisions mustbebasedonscienceandstatisticalanalysis 61 ECC 2011/2012 Report 62 ECC 2011/2012 Report C than that,shesays, itwillbeaboutriskassessment, and it, willdependonhowmember states interpret it. Other of thedirective, andtheindustry’s abilitytoworkwith industry’s AsPittordis concern. notes,theeffectiveness passage; buthealthwassubsequently removed, to the and safetywere includedasvalidreasons fordenying conditions thatgounnotified.Inthedraftproposal, health passengers withwheelchairs,forinstance,thaninvisible their agentsofanexistingconditioningoodtime. Meanwhile, passengersare expectedtonotifycruiselinesor meansoftransportfortheaffectedalternative passenger. and touroperatorsmustmakereasonable efforts tofind safety mightbecreated. Insuchcasescarriers,travelagents while safeguarding therighttorefuse passageifathreat to PRMs anddisabledpassengers. while continuingtoeasethepathcruisingforitsmany eager toensure a regime thatwasworkableforcruiselines (PRM) tookdelicatenegotiation,withthecruiseindustry for disabledpersonsandwithreduced mobility wanted, [but]itisalotbetterthantheoriginalproposal.” ended upwithisvaluable.Thoughitnotexactlywhatwe Tourism andConsumerAffairs sub-committee,“Whatwe have And, according toMariaPittordis, whoheadstheECC’s rights isduetocomeintoeffect inDecemberofnextyear. Cruise Council’s activities. passenger rightshavebeenatthecore oftheEuropean to afocusonsuchareas asconsumeraffairs. In thiscontext branch ofthetourismbusiness,onotherhand,hasled been tothefore. Theindustry’s statusasafast-growing construction andoperation,environmental regulation has rights thesameway? interpret passenger Will memberstates Pittordis saystheproblem isless fortheindustry As agreed, itbarsdiscriminationagainstsuchpassengers In particularthenewprovisions ontransportconditions After intensenegotiation,anewregulation onpassenger On thetransportside,andparticularlyintermsofship regulation iscoming thickandfast. sectors oftheEuropean economyinwhich complex worldsoftransportandtourism–two ruising isunusualinstraddlingtheincreasingly adhered toforitbeeffective. bonding around Europe would needtobeestablishedand be difficult toputintopractice,minimumstandards for he addsthat,sinceacentralised bondingschemewould a numberofstatesforthesamepackage. situation inwhichoperatorsare forced tobondseparatelyin member stateshouldbeacceptedinothers,thusavoidinga to seeactiononsecurityandbonding. addressed, particularlyeager forinstance,withtheindustry establish commercial uniformityacross Europe mustbe further press itscase. in thedirective itwillbe2012before ithasthechanceto consideration isgiventothepossibleinclusionofairlines here, thoughafterayearinthedoldrumswhile concern age. updated fortheInternet to protect consumersofpackageholidaysandisnowbeing Package Travel Directive, whichwasfirstintroduced in1990 agreement. more specificlanguage thatmightcutacross the existing document akintoapassenger’charter, ratherthanadopting undermine whatwehavealready built.’ talks withtheCommissionandsaid‘Whateveryoudo,don’t with onecoveringalltransportmodes.We havehadinformal and theEuropean Commissionisconsideringcomingforward Tim Marking. different transportmodes,”explainsECCSecretary General proposals thathavebeenadoptedinrelation to allsortsof three orfouryears, theEuropean Unionhasput forward implementation ofthedirective, however. “Overthepast partners andpassengers. communicating rightsandresponsibilities tobothbusiness In principlethismakessoundpractical sense,though Marking argues thatinsolvencyprotection schemesinone Issues abound.Thefailure oftheoriginalDirective to thereFor thecruiseindustry are severalareas of Another focusofactivityfortheECCinthisarea isthe Marking addsthat,reassuringly, theECseemsintentona “Now wehavearangeofspecificpassengerrightsdirectives, There remains adegree ofuncertaintyaround the considers aspecific proposal unlikely, atleastinthenext VAT forpassengertransportaround Europe.” TheECC European Parliamentthattheymightlookataharmonised “But there havebeensuggestionsfrom theECand complicated toadminister,”makes itvery says Marking. VAT businesses,which becausetheyare international aviation andpassengershippingsectorsare exemptfrom passenger transportasonearea theymightexamine.“The the European authoritieslookingatpossiblereforms and supportive ofthatapproach.” isvery “and theindustry has beenputforward byMedCruise,”Markingobserves, planning difficult. “Astandard approach [toberthallocation] cruise centres) thatstillprevails inGreece andthatmakes berth allocation(longsupersededinmostmajorEuropean protests model of andstrikes,tothefirst-come,first-served issues rangefrom disruptiontoshore excursionsdueto some oftheissuesthatmakebusinessdifficult there. Those contributing toGreece’s recoveryandeagertohelpresolve income forthecountry.” recognised part of theeconomy, thatcouldgenerateextra countries,” Markingnotes.“InGreece, forinstance,itisa can beamajorstimulusforrecoveryincertainEuropean websites andmultiplesuppliers. fromassemble theirownpackageontheInternet multiple to match–evenwhere, asissooftenthecase,passengers treated asasingle packagewiththecontrols and protections eagertoseeentirewith theindustry individualbookings to bothcarrierandpassenger. wouldliketoseesuppliersalsomadeliable,– theindustry package –from cruisetoflight,coachtransferexcursion aspectof specific instancesacarrierisliableforevery pricing. Onliability, meanwhile,where exceptinvery rules onbrochures, toallowthembepublished without for greater flexibility –andatightrelaxation ofthevery Value AddedTax isalsobecomingamajorissue,with The cruiseindustry, hesays,isenthusiasticabout The ECCisalsoactiveonthetourismfront. “Tourism So-called dynamicpackagingisanotherissueofconcern, Pricing isanotherareaeager ofdebate,withtheindustry have alreadybuilt.’ you do,don’tunderminewhatwe the Commission and said ‘Whatever “We havehadinformaltalkswith application isaproblem.” borders. Thelawisfine,”headds,“butforthemoment the sametimetheyare implementingtherestrictions atthe visas, socrew memberscanhavetrouble gettingthem.At all memberstatesare geared uptoissuethesemultiple-entry he concedesthatpracticalissuesare stilltoberesolved. “Not and onlypermittedinrare circumstances. whereby visasare issuedattheborder issharplyscaledback, the oldsystem Inturn, the European concerned. country point ifdesired. Thevisascanbeacquired atanembassyof a particularport,andtotravelwithinEurope from thatentry visaspermittingaseafarermultiple-entry toenterEurope by their shipsinEuropean ports. Philippines havealsohadgreat difficulty joining orleaving time crew members from countriessuchasIndia andthe 2013, are alsoin theworks. including astrategyforsustainablemarinetourismduein toeasethevisasituation.Otherinitiatives, and trying Administration laterthisyear, exchangingideasontourism to release ajoint statementwiththeChineseNationalTourist tourists tocomeEurope, andannouncedthattheyhope from certaincountries. set upataskforce toeasethegrantingofvisascitizens Malmstrom, whoisresponsible forhomeaffairs, agreed to responsible andentrepreneurship, for industry andCecilia stimulating growth andeconomicrecoveryinEurope.” this October, tourismwasrecognised asakeyelementin Marking says,“AttheEuropean Tourism ForuminKrakow for thefuture, and cruisingislikelytobenefitasa result. As Marking. two years;“Butwewillmonitorthesituationclosely,” says “It is a very positivedevelopment,”saysMarking, though “It isavery A newvisacodelookstoresolve thatquestion,introducing Visas are notanissuesolelyfornon-EUtourists. Forsome They are talking particularlyaboutencouragingChinese At thatmeetingAntonioTajani, ECVice President Tourism muchintheEU’s isnowvery sightsasanindustry Marking 63 ECC 2011/2012 Report 64

ECC 2011/2012 Report A extremely seriously, and weare always lookingatnewways honest relationship. stilltakesthesethings Theindustry Control,” Marshallsays.“It’s important tohaveanopenand usual bodies,suchastheEuropean Centre forDisease guidelines formanagingsuchoutbreaks. as theUK’s healthprotection agency, oftenhavetheirown healthdepartments, such developed overtime.”Government that isimportant.Thatgoeshand-in-handwithprocedures notes. “Itishowyoumanageandcontrol virusesonboard committee. the European CruiseCouncil’s healthandhygienesub- Legal Director atRoyalCaribbeanCruisesandChairof with viraloutbreaks,” saysRuthMarshall,International at sea. takes particulardelightinthemerest hintofavirusoutbreak subjected. Itisfairtosaythatthegeneralinterest media but alsobecauseofthescrutinytowhichcruiseshipsare the impactonguestsorknock-oneffect onthebrand, consequences ofgettingitwrong –notjustintermsof complete withtimeandthelessonsofexperience. and hygienepoliciesthathavebecomemore focusedand score, withone cruise lineafteranotherintroducing health high aspossible. health concern Europe thekey Consistency across “We workcloselywiththehealthorganisations andthe “It isnottheshipsthemselvesthatcauseproblem,” she goodrecord itselfhasavery “The cruiseindustry dealing That focusremains intense,inpartbecauseofthe Over theyearsithasperformedincreasingly wellonthis in ensuringthatitsstandards ofhygieneare as core,at itsvery cruisinghasaparticularinterest waters oftheworldandhascustomersatisfaction thatsellsdreams anindustry holidaysonthe epidemiological surveillance and outbreakepidemiological surveillance investigation. inspections onshipssailingEuropean watersandfor for developingastandardised methodologyforhealth integrated EUshipsanitationprogramme. also aimstoprovide thebasisfordevelopmentofan associations, it departments toportandcruiseindustry from healthministriestouniversitymedical government of cruiseshipsandferrieswithintheEU”. and control ofpublichealththreats topassengersandcrew in 2006,asitswebsitedescribes,to“examinetheprevention achieve”. ShipsanwassetupbytheEuropean Commission this area “istiedinwithShipsanandalltheyareto trying to country, orporttoport. emerge onboard, whethercruiselinetoline,country the degree ofuniformity inhandlinghealthproblems that between theindustry’s idealandanimperfectreality isin practices, broadly applied.Where there isacleargap action isoftencritical,there isapremium onhavingbest if theyfeelill.”Again,itisabouthavingprocedures inplace. an illnessforinstance,ortocontactadoctor, free ofcharge, ofgoodbehaviour,patterns washingtheirhandsiftheyhave our guests.We havetoencouragethemfollowgeneral on land,shesays,“Itistruethatweare muchcloserto communicable diseasesatseaare nodifferent from those to communicatinghealthproblems. Thoughoutbreaks of being aware oftheir ownresponsibilities whenitcomes to developourknowledgeandimprove ourpractices.” More specificallyitsobjectivesincludeassessing theneed Assisted byabroad rangeofpartnersaround Europe, Marshall saysthatwhatprogress isnowbeingmadein In anarea such as healthandhygiene,where swift,targeted As Marshallalsopointsout,muchdependsonpassengers few yearsbefore itisuptothestandard wewouldlike.Itis stakeholders involved,”Marshall believes,“itwillbequitea for allinspectors. managed byacoordinating bodyandwithproper training programme, shestresses, ifitisnotconsistentacross Europe, to bedelivered consistently”.There isnopointhavinga expect themtobedeliveredhighstandard, toavery and organisation that“whilethesearegoodideas,we very efforts, Marshallsays,butithasalsostressed tothe which coversmobilityandtransport. Directorate GeneralforHealthandSafety, andDGMOVE, the backingofDGSANCO,European Commission’s gut feelingofaninspectorcomingonboard.” Shipsanhas based onfirmscientificevidence–ratherthan,say, the is certainlythatofhavingaconsistent,balancedapproach consistency atahighlevel.“OneofthebenefitsShipsan programmes to“trainthetrainers”. seafarers andport healthprofessionals, aswell as designing area includescreating andpilot-testingtrainingmaterialfor diseases onboard cruiseshipsandferries.Itsworkinthis andcontrolmanagement, surveillance ofcommunicable out, coveringsuchareas asshipsanitation,outbreak sanitation certificates. inspections toformalisingguidelinesfortheissuanceofship and control ofcommunicablediseasesandsanitation fromon everything developingamanualfortheprevention Medicine oftheUniversityThessalyinGreece. Itfocuses “For allitsgoodintentionsandthose ofthemultiple ishighlysupportiveofShipsan’sThe cruiseindustry A broad aimofalltheseefforts, Marshallsays,istoensure Training isparticularlycritical, asShipsanpoints Its ShipsanTrainet project isledbytheDepartmentof people mixandmingle.” in othereverydaywalksoflifewhere health issues]oncruiseshipsthan “We probablydomore[toaddress everyday walksof lifewhereeveryday people mixandmingle.” more [toaddress healthissues]oncruiseshipsthaninother That’s frustrating,”Marshallsays,“becauseweprobably do slightest thinghappensittendsto getblownupinthepress. and hygieneonitsships. out thatitiscommittedtothehigheststandards ofhealth it mustalsocontinuetobediligentingettingthemessage disease control wherever ithasadegree ofcontrol. working toenhanceprocedures forpassengerprotection and the widerprocess ofimprovement andstandardisation while path ithasset,interactingwithotherstakeholderstodrive regulators, willcontinueonthe Marshallsaystheindustry health andhygiene. European stampofapproval, intheformofanotation,for movement overthepastyearonideaofdevelopinga may feelmore comfortable signinguptoit.” yet inplace.Infourorfiveyearsthatmaychangeandwe memorandum ofunderstandingbecauseallthepartsare not forward, andwe are notyetinapositiontosignup said thatwedon’t thinklegislationisnecessarilytheway project willeventuallybeconveyedtotheindustry. “We’ve it remains unclear inwhatformtheresults oftheShipsan from thesamehymnsheet”maybeevenmore of atrial. tosing togeteveryone and time-consuming,while“trying people uptotherequired standard isnecessarilylaborious the waybureaucracy works,”shesays,addingthattraining “Because cruisingisaboutpeople’s holidays,whenthe It isanarea wherewillnotrelent, shesaystheindustry and As itawaitsprogress, andeventuallyclarity, from the By thesametokenthere appearstohavebeenlittle Progress iscoming,shesays,butitstillearly days,and Marshall 65 ECC 2011/2012 Report 66

ECC 2011/2012 Report profiles Members 67 ECC 2011/2012 Report 68 ECC 2011/2012 Report safety andenvironmental standards. quality,operate incompliancewiththehighestinternational environment extremely seriously. Accordingly, AIDAships takes itsdutytowards itsguests,employeesandthe the RedSea. Western Mediterranean,theFarEast,ArabianGulfand Central America,SouththeAtlanticIsles, Canada. Duringthe winter, AIDA ships sail in the Caribbean, Mediterranean, theBlackSeaandNewEngland the AIDAshipssailinNorthSea,Baltic as wellGerman-stylefoodandentertainment. German-speaking market,includingcrew restaurants. AIDA’s product isespeciallytailored forthe formal diningoptions,includingbuffets, grillsandexclusive addition, AIDA’s shipsincludeavarietyofinformaland lifestyle, choice,informality, friendlinessandactivity. In experience withanemphasisonahealthyandyouthful “Theatrium”. such asthe“Brauhaus”micro-brewery andAIDA’s hallmark vessels are notedfortheirinnovativecustomerfeatures, scheduled toenterservicebetween2012and2016.The operates 8contemporaryships,with4additionalvessels recognized cruisebrandintheGermanmarket.AIDA AIDA, whichbeganoperatingin1996,istheleaderandmost www.aida.de Aida Cruises Michael Ungerer – Paul Soulsby– Michael Thamm– Senior management www.aida.de [email protected] +49 (0)381/20270722(servicecenter) +49 (0)381/444-0(reception) Germany 18055 Rostock Am Strande3d Headquarters As the market leader in the German cruise market, AIDA As themarketleaderinGermancruisemarket,AIDA AIDA vesselscallonover170ports.Duringthesummer, AIDA offers anexceptionallyrelaxed, yetactive,cruising

Senior Vice PresidentSenior Vice &CFO President Senior Vice PresidentSenior Vice Operations Newbuilding (May2013) AIDAmar (May2012) Under construction AIDAcara AIDAaura AIDAvita AIDAluna AIDAbella AIDAdiva AIDAblu AIDAsol Ship Name Phone: 18055 Rostock Am Strande3d AIDA Cruises Germany Sales &marketingoffice www.aida.de [email protected] Phone: Fleet +49 (0)381/20270722(servicecenter) +49 (0)381/444-0(reception) Capacity 2,194 2,194 1,180 1,266 1,266 2,050 2,050 2,050 2,192 2,194 71,304 71,304 38,557 42,289 42,289 69,203 69,203 69,203 71,304 71,304 Tonnage destinations, includingItaly, Greece andTurkey. immersive experienceswithAzamaracruisetoursinmany ways toseetheworld.Travelers alsocanchooseevenmore self-driven travelerswhoare searching fornewandbetter Isles, Croatia, HolyLandandBlackSea. British Isles,WesternEurope, French andItalianRivieras, Greek European destinations,includingtheBalticandScandinavia, a destination,bydayandnight.Thecruiselinesailsto in order toprovide guestsopportunitiestofullyexperience late-night departuresstaysatportsofcalls andovernight relaxing ambiancetouniquedestinations,delivered uniquely. boutique-style, 694-guestshipseachoffer asophisticated,yet ways toseetheworld.Thecruiseline’s twoEuropean who lovecruisingandare interested innewandimmersive up-markettravelers 2009, thecruiselinecaterstodiscerning, Founded in2007andre-launched asAzamaraClubCruisesin www.azamaraclubcruises.com Azamara ClubCruises Harri U.Kulovaara , Michael Bayley, Brian J.Rice, Lawrence Pimentel, Richard D.Fain, Senior management www.royalcaribbean.com +1 3055396000 , FloridaUSA 1050 CaribbeanWay Royal CaribbeanCruisesLtd Headquarters Azamara ClubCruises’guestsare active,experienced,and Azamara ClubCruisessailsaround theglobe,withmore Executive Vice PresidentExecutive Vice & ChiefFinancialOfficer RCCL Executive Vice President, RCCL ExecutiveVice International Chairman andChiefExecutiveOfficer RCCL Executive Vice President,Executive Vice MaritimeRCCL President andChiefExecutiveOfficer Azamara Quest Azamara Journey Ship Name www.AzamaraClubCruises.com Helen Beck,Director ofEMEA IRs EMEA IRs-RCLCruisesLtd Representativesnetwork of41International (IRs). Royal CaribbeanCruisesLtd.hasanexpansive www.azamaraclubcruises.co.uk Dominic Paul,VP&Group Managing Director United Kingdom-RCLCruisesLtd(UK&Ireland) www.AzamaraClubCruises.com Belen Wanguemert, GeneralManager Spain -RCLCruisesLtd(Spain) www.AzamaraClubCruises.com Roar Meidal,GeneralManager Norway -RCLCruisesLtd(Norway) www.AzamaraClubCruises.com Gianni Rotondo,ManagingDirector Italy -RCLCruisesLtd(Italy) www.AzamaraClubCruises.com Tom Fecke,GeneralManager Germany -RCLCruisesLtd(Germany) www.AzamaraClubCruises.com Frederic Martinez,ManagingDirector France Sales Offices Fleet - RCL Cruises Ltd (France) - RCLCruisesLtd(France)

Capacity 700 700 30,000 30,000 Tonnage

69 ECC 2011/2012 Report 70

ECC 2011/2012 Report ropes courses. Fun Shipsthere are evenspectacularwaterparksand 2–15 infourseparateagegroups –andonboard thelatest free programme ofdaytimeactivitiesforyoungstersaged enjoyed inthecosypianobars. in thethree-tier theatre; more intimateinterludescanbe headed byspectacularBroadway-style stageshowsperformed reservations-only steakhouse.Night-timeentertainmentis room serviceforsnacks.Manyshipsevenhaveasophisticated Mexican cuisine,anda24-hourpizzeriaround-the-clock from elegantrestaurants toinformalbistros, orientalor such aswinetastingandquizzes/poolgames.Diningranges activities include ahugechoiceofsportsalongsidealternative the state-of-the-artCloud9Spaandfitnesscentres. Activities activities tosuitpassengersofalltypesandages–including atmosphere, andtheshipsboastextensiveamenities throughout thesummerseason. on 12-nightMediterraneancruisesfrom Barcelona and Venice Breeze operating anew3,646-passengerFunShipCarnival England andAlaska(from Seattle). totheCaribbean,Mexico, Canada&New and California itineraries cruisingfrom mostmajorFloridaports,NewYork operates 23‘SuperLiners’onmore than40mainly3–7-night ‘FunShips’some yearsago.Itnow the launchofitsmodern Corporation) broke themouldoftraditionalcruisingwith CruiseLines(amemberofCarnival innovative, Carnival As theworld’s largestcruisecompany, andoneofthemost www.carnivalcruise.co.uk www.carnival.com CruiseLines Carnival Ireland Wendy Lahmich, Lynn Narraway , ManagingDirector, UKandIreland Senior managementUK Tel: Miami, FL33178 3655 N.W. 87thAve Headquarters oneofthebestkids’clubsafloat,offersa Camp Carnival, FunShipsareCarnival knownfortheirrelaxed andinformal For summer2012thecompanywillreturntoEurope, +1 3055992600

Director, Sales andOperations,UK Fantasy Ecstasy Sensation Fascination Imagination Inspiration Paradise Elation Spirit Carnival Destiny Carnival TriumphCarnival Victory Carnival ValorCarnival Liberty Carnival FreedomCarnival Splendor Carnival DreamCarnival Magic Carnival Ship Name Carnival BreezeCarnival Under construction [email protected] www.carnivalcruise.co.uk. Reservations: United Kingdom Sales Office Fleet 0845 3510556 Capacity 2,040 2,040 2,040 2,040 2,040 2,040 2,040 2,040 2,124 2,124 2,124 2,124 2,642 2,758 2,758 2,974 2,974 2,974 2,974 2,974 3,006 3,646 3,646 3,646 70,367 70,367 70,367 70,367 70,367 70,367 70,367 70,367 88,500 88,500 88,500 88,500 101,353 102,353 102,353 110,000 110,000 110,000 110,000 110,000 113,000 130,000 130,000 130,000 Tonnage Canada, Europe andSouth America. also offers immersivecruisetour experiencesinAlaska, America, andyear-round intheGalapagosIslands.Celebrity Europe, Hawaii,thePacificCoast,PanamaCanalandSouth Canada/NewEngland, theCaribbean, Bermuda, California, The ultimateinpremium cruising,CelebritysailsinAlaska, an unmatchableexperienceforvacationers’precious time. as thecuisine;andamazingservice,allcreated toprovide experiences where thedesignofvenuesisasimportant with itscool,contemporarydesignandwarmspaces;dining ,joinsthefleetinFall2012. the nextseveralyears.ThelastoffiveSolsticeclassships, – aprogramme thatstartedin2011andwillcontinueover has nowledtothe“Solsticizing”ofitsMillennium-classfleet of shipsin2008,representing aUS$3.7billioninvestment, easy elegance. widely variedshore excursionsandanoverallatmosphere of exotic AquaSpaSM,gourmetcuisine,excitingentertainment, as anindustryleader, praisedforitspersonalized service,the Since Celebrity’s firstsailingin1990,ithasbeen recognised line, andhasoneoftheyoungestmostinnovativefleets. Celebrity Cruisesistheworld’s highest-ratedpremium cruise www.celebritycruises.com Celebrity Cruises Harri U.Kulovaara , Michael Bayley, Brian J.Rice, Daniel Hanrahan, Richard D.Fain, Senior management www.royalcaribbean.com +1 3055396000 Miami, FloridaUSA 1050 CaribbeanWay Royal CaribbeanCruisesLtd Headquarters luxury,Celebrity Cruises’iconic‘X’isthemarkofmodern The successfulintroduction ofCelebrityCruises’Solsticeclass Executive Vice PresidentExecutive Vice & ChiefFinancialOfficer RCCL Chairman andChiefExecutiveOfficer RCCL Executive Vice President, RCCL Executive Vice International President andChiefExecutiveOfficer Executive Vice President,Executive Vice MaritimeRCCL Celebrity Xpedition Celebrity Century Celebrity Mercury Celebrity Reflection Ship Name www.celebritycruises.com Helen Beck,Director ofEMEAIRs EMEA IRs-RCLCruisesLtd Representatives41 International (IRs). Royal CaribbeanCruisesLtd.hasanexpansivenetworkof www.celebritycruises.co.uk Dominic Paul,VP&Group ManagingDirector United Kingdom-RCLCruisesLtd(UK&Ireland) www.celebritycruises.es Belen Wanguemert, GeneralManager Spain -RCLCruisesLtd(Spain) www.celebritycruises.no Roar Meidal,GeneralManager Norway -RCLCruisesLtd(Norway) www.celebritycruises.it Gianni Rotondo,ManagingDirector Italy -RCLCruisesLtd(Italy) www.celebritycruises.de Tom Fecke,GeneralManager Germany -RCLCruisesLtd(Germany) www.celebritycruises.com Frederic Martinez,ManagingDirector France Sales Offices Fleet - RCL Cruises Ltd (France) - RCLCruisesLtd(France) Capacity 100 1,800 1,850 2,050 2,050 2,050 2,050 2,850 2,850 2,850 2,850 2,850 2,000 71,000 78,000 91,000 91,000 91,000 91,000 122,000 122,000 122,000 122,000 126,000 Tonnage 71 ECC 2011/2012 Report 72 ECC 2011/2012 Report Salvador deBahiaforBraziliancruises inthewinter. during spring,summerandautumn andrepositions to maximum 752passengers. France, builtin1981andtotallyremodelled in2008fora French like. and thekindofstateroom decorations andamenitiesthatthe speaking tourguidesonshore excursions,highqualityfood, with French ‘artdevivre’ onboard: French ambiance,French- countries withanoriginalconcept. and increase thecruisemarket inFranceandFrench speaking dedicated totheFrancophonemarket.Itsaimisdevelop and cruise line,ownedbyRoyalCaribbeanInternational de vivre’ cruisevacation.CDF Croisières deFranceisaFrench CDF Croisières deFranceoffers anallinclusiveandFrench ‘art www.cdfcroisieresdefrance.com Croisières deFrance The shipoperatesMediterranean cruisesfrom The companybeganoperationsinMay2008withBleude CDF Croisières deFranceisoffering an‘all-inclusive’product, Bleu deFrance Ship Name Anne Lederer, MarketingManager&Press relations [email protected] Rose-Marie Blomme,SalesDirector South [email protected] Olivier Boudard, SalesDirector North Antoine Laccarière, GeneralManager Senior management [email protected] +33 173775920 75011 Paris 8 rueduDahomey Headquarters Fleet Capacity 748 37,301 Tonnage at sea. PONANT anditsuniquepromise tothosewholovebeing moments ofrelaxation aboard elegantyachts. where noattentiontodetail isspared –andunforgettable inspired cuisineinanintimate environment –adiscreet service only accessibletosmallcapacityships.DelightsofaFrench- have conceivedit. fleet todayandsymbolizethe«ArtofCruisingatSea»aswe shipping tradition. established in1988,isanintegralpartofFrance’s great The onlyFrench cruiseshipline,CompagnieduPonant, www.ponant.com La CompagnieduPonant www.ponant.com [email protected] or +3348866657 Booking Department:+33488666400 France 13008 Marseille 408 Avenue duPrado Compagnie duPonant Headquarters This atmosphere madethe signature ofCOMPAGNIE DU Legendary destinationsandworld’s mostsecretive ports, Fiveshipsofcharacter, flyingtheFrench flagcompriseour

Delivery June2014 Under construction Le Ponant Le Levant Le Diamant L’Austral Ship Name +33 (0)488666432 [email protected] Philippe Mahouin,EVPSalesandMarketing Worldwidesales Sales Office Marketing PresidentPhilippe Mahouin,ExecutiveVice ofSalesand Véronique President Saade,DeputyExecutiveVice Jean EmmanuelSauvee,CEO Senior management Fleet

Capacity 264 64 90 226 264 264 10,944 1,443 3,504 8282 10,944 10,944 Tonnage 73 ECC 2011/2012 Report 74 ECC 2011/2012 Report largest cruiseoperator. Corporation &plc(NYSE/LSE:CCL;NYSE:CUK),theworld’s fiscal year. CostaCrociere S.p.A.is amemberofCarnival that recorded revenue ofatleast50millioneuros theprevious in Mediobanca’s 2010surveyofover3700Italianenterprises most profitable companies andranks49thintermsofsales Iberocruceros. CostaCrociere S.p.A.isone ofItaly’s top10 and comprisesthebrandsCostaCruises,AIDACruises 2010, CostaCrociere S.p.A.isthelargestItaliantravelgroup enhancing Italianexcellencearound theworld. the ItalianRepublicGiorgioNapolitano,forpromoting and ‘2010 Leonardo PrizeforItalianQuality’bythePresident of in 32countriesworldwide.CostaCruiseswasawarded the of trust,esteemetc.)the600largestenterpriseslocated scores are ameasure ofthecorporatereputation (interms placed firstamongItalian‘serviceindustry’companies.Pulse study,Reputation Pulse’2010international CostaCruisesis the highestenvironmental protection standards. Inthe‘Global notation certifyingthattheyare operatedincompliancewith ships intheCostafleethavebeenassignedRINA’s Green Star the protection oftheMediterraneanSeasince2005.All Costa Cruiseshasbeenanofficial partnerofWWFItaliafor (OHSAS 18001,2007)andquality(UNIENISO9001,2008). in 2001),environment (UNIENISO14001,2004),safety standards socialaccountability(SA8000,issued governing certification ofcorporatecompliancewiththehighest Register) withtheBEST4,anintegratedsystemofvoluntary and willbedelivered inSpring2012andOctober2014. cruise. Two more newshipshavebeenordered from Fincantieri the FarEast,IndianOceanandRound-the-World Sea, theCaribbean,SouthAmerica,UnitedArabEmirates, Europe,destinations intheMediterranean,Northern Baltic Together theyoffer thechancetovisitsome250separate each withherowndistinctivecharacteristicsanduniquestyle. relaxation. dream holidayswiththeutmostintermsoffunand best inItalianstyle,hospitalityandcuisineproviding years itsshipshavepliedtheseasofworld,offering the Costa CruisesisEurope’s no.1cruisecompany. Forover60 www.costacruises.com Costa Cruises www.costacruise.com [email protected] +39 0105483.1 Piazza Piccapietra46,16121Genova, Italia Headquarters With revenues of2.9billioneurosWith and2.15millionGuestsin Costa CruiseshasbeencertifiedbyRINA(ItalianShipping Its fleethasatotalof15ships,allflyingtheItalianflag,

New Order Costa Fascinosa Under construction Costa Voyager Costa Allegra Costa Classica Costa Romantica Ship Name Improvement Communication Information Technology Matti Heikkinen Antonio DeRosa Marco Diodà Gori, Ernesto Beniamino Maltese Giuseppe DeIaco Norbert Stiekema Gianni Onorato, Pier LuigiFoschi, Senior management Fabrizia Greppi Alessandro Centrone, Manfred Ursprunger, Finance AdministrationandControl Compliance &Auditing Fleet Oct 2014 ,

Vice PresidentVice QualityStandards Vice PresidentVice Excellence &Continuous , Spring 2012 , Vice PresidentVice Corporate Marketing& President , Chairman andCEO Vice PresidentVice Technical Operations , , Vice PresidentVice Cruise Operations CIO & Vice PresidentCIO &Vice Corporate Executive Vice PresidentExecutive Vice Sales&Marketing , Vice PresidentVice andCFOCorporate Executive Vice PresidentExecutive Vice FleetOperations Vice PresidentVice CorporateHumanResources 4,928 3,780 Capacity 920 1,000 1,680 1,697 2,394 2,680 2,680 2,826 2,826 3,470 3,470 3,780 3,780 3,780 3,780

132,500 114,500 25,000 28,400 53,000 53,000 75,200 85,700 85,700 92,600 92,600 102,600 102,600 114,500 114,500 114,500 114,500 Tonnage

World Cruisein1922. as wellWorld Cruises– Cunard beingthefirsttooffer a Europe,Northern theCaribbean,CanadaandNewEngland voyages includetransatlanticcrossings, theMediterranean, andQueenElizabeth.Cunardservice, QueenVictoria which operatestheonlyregularly scheduledtransatlantic names inshipping. famous inthecruiseindustry–supportedbyoneofoldest across theAtlantic.Buttoday’s fleetistheyoungestandmost inaugurated in1840thefirsttimetabledsteamshipservice Mail betweentheUKandNorthAmerica,indoingso Cunard Linewasformedin1839principallytocarrytheRoyal www.cunard.com Cunard Line Reservations: +44 2380655000 SO15 1FT. 100 HarbourParade House Carnival Headquarters The fleetcurrently consists offlagshipQueenMary2, 0845 0710300 Queen Victoria Queen Victoria Queen Elizabeth Queen Mary2 Ship Name Anja Tabarelli, Director Sales&Marketing +(49) 4041533143 20095 Hamburg Brandsende 6-10 Cunard Line Germany Customer Service Jan Swartz,ExecutiveDirector, Sales,Marketingand +6617531000 Valencia, CA91355 Suite 200 24303 Town CenterDrive Cunard Line North America SalesOffices International Richard Curtis,HeadofMarketing Peter Shanks,President andManagingDirector David Dingle,ChiefExecutiveOfficerUK Carnival, Senior management Fleet Capacity 2,014 2,092 2,620 92,000 148,500 90,000 Tonnage 75 ECC 2011/2012 Report 76 ECC 2011/2012 Report Disney Cruise Line Disney CruiseLine ports, Galveston,Texas andNewYork. 2012). Alsoin2012,theDisneyMagicwillsailfrom twonew Coast (sailingtheMexicanRivieraandAlaskanitinerariesin including therepositioning ofDisneyWonder totheUSWest Fantasy. Thisexpansionallowsformore varietyofitineraries, family cruisingwithtwonewships,DisneyDream andDisney and muchmore. than anyothership,trulyunforgettablediningexperiences spacious accommodationsafloat,more originalentertainment legendary guestservice.Guestsenjoysomeofthemost assets –masterstorytelling,world-classentertainmentand and heritageofTheWalt DisneyCompany’s best known fantasy onlyDisneycancreate. can recharge andkidscanimmersethemselvesinworldsof providing asettinginwhichfamiliescanreconnect, adults from pint-sizedcruiserstosea-savvyveterans.Thefocusison member ofthefamilybelieveswascreated justforthem– Disney CruiseLineoffers auniquefamilyvacationthatevery www.disney cruises.com London, England Tom Wolber, ChiefOperatingOfficer Celebration, Florida Karl Holz,President, DisneyCruiseLine Senior management Headquarters Disney Cruise Line is continuing to expand its blueprint for Disney CruiseLineiscontinuingtoexpanditsblueprintfor Disney’s successincruisinghasbeenbuiltuponthelegacy [email protected] +1 8009513532 FL32830-0299 Lake BuenaVista, PO Box10299

Disney Fantasy(2012) Under construction Disney Dream Ship Name [email protected] Jackie Morris,HeadofCommercial –UK +44 2082221073 United Kingdom Hammersmith, LondonW69PE 3 QueenCaroline Street Walt DisneyParks&Resorts United Kingdom [email protected] Jeff President, James,Vice Sales +1 4075663691 FL32830 Lake BuenaVista, PO Box10000 Disney CruiseLine USA Sales offices Fleet Capacity 4,000 2,700 2,700 4,000 128,000 83,000 83,000 128,000 Tonnage from some ofthebestmusicandcomedy acts around. exciting varietyofliveentertainment throughout theircruise, Music &Laughterprogramme provides guestswithan and ‘Photography’,astheychoose. Fred. Olsen’s popular guests todipinandoutofsubjects, suchas‘Wine-tasting’ winning programme ofspecial-interest cruiseswhichallows Caribbean. the fjords andtheArctic, andtinyislandsinthePacific of nature’s mostwondrous sights,suchasthesceneryof of Fred. Olsenshipsmakes themidealforexploringsome – ‘IndianOcean’and‘Around theWorld’. Thecompactsize Mediterranean, BalticandNorway, tothelong-voyageroutes regional UKports. Sterling. Cruisesdepartmostlyfrom avarietyofconvenient market, asthelanguageonboard isEnglishandpricesare in company timeandagain. atmosphere onboard, andmanyguestscruisewiththe They offer awarmwelcomewithfriendlyandrelaxed standards, withthelargestcarryingonly1,350guests. Black Watch andBoudicca–are allsmallbytoday’s Fred. OlsenCruiseLines’fourships–Balmoral,Braemar, www.fredolsencruises.com Fred. OlsenCruiseLines Onboard Fred. activitiesinclude Vistas, Olsen’s award- Itineraries rangefrom popular European areas, suchasthe These shipsandcruiseshavegreat appealtothe50-plusUK Black Watch Boudicca Braemar Balmoral Ship Name Kate WooldridgeSalesManager , International Rachael Jackson,PublicRelationsManager Richard Chilvers,Director ofITandFacilities Peter Deer,Commercial Director Susana Entrena, Director ofHotelOperations Matt Grimes,Director ofPlanningandLogistics Nathan Philpot,SalesandMarketingDirector Mike Rodwell,ManagingDirector Senior management www.fredolsencruises-vistas.com www.fredolsencruises.com Email: [email protected] Reservations: Tel: UK Ipswich, Suffolk IP15LL White HouseRoad Fred. OlsenHouse Headquarters Fleet +44 (0)1473292200 +44 (0)1473742424 804 Capacity 880 929 1,350 24,344 43,537 28,388 28,613 Tonnage 77 ECC 2011/2012 Report 78 ECC 2011/2012 Report is fluentinEnglish. onboard are provided inbothlanguages,andthe entire crew information, announcements,lectures andsafetydrills moment theysteponboard. Travel documents aswell English-speaking passengersfeel comfortablefrom the cruises(German/English),whichensureinternational that and willbenamed‘Columbus2‘. Hapag-Lloyd CruisesfleetasthesuccessorofColumbus, bareboat charterofOceania Cruises’Insignia. totheexistingEuropa.alternative Europa. TheEuropa 2willofferandcasual5-star amodern segment oftheHapag-LloydCruisesfleetalongside ship ofthesamenamewillbepositionedinluxury its product offering by2013:Forthefirsttimeever, asecond onboard atmosphere, isleavingthefleetinMay2012. South Seas.MSColumbus,a3-starplusshipwithrelaxed Antarctica, theNorthwestPassage,Amazonand regions andfordestinations‘off thebeatentrack’,such as (four starsplus)are bothdesignedfortravelinpolar Hanseatic (theonly5-starexpeditionship)andMSBremen Berlitz CruiseGuidesinceitscommissioningin1999.MS been awarded thecoveted5-starplusdistinctionby land programmes andattractivetravelcombinations. unique character, hundreds ofdestinations,onboard and independent. TUIisEurope’s leadingtravelgroup. the group’s cruiseshipdivision,butisfunctionallyfully Lloyd isawhollyownedsubsidiaryofTUIAGwithin of premium, luxuryandexpeditioncruises.Today Hapag- Hapag-Lloyd CruisesisoneofGermany’s foremost providers www.hl-cruises.com Hapag-Lloyd Cruises Since 2004Hapag-Lloydhasincreased itsnumberof As ofApril2012,theshipwillbeintegratedinto The premium segmentwill beenhancedbythetwo-year Additionally Hapag-LloydCruiseswillstrategicallyextend MS Europa, theflagship,isonlycruiselinertohave Hapag-Lloyd Cruisesoffers fourshipswiththeirown MS Bremen MS Hanseatic MS Hanseatic MS Europa MS Columbus MS Columbus2 Ship Name [email protected] Negar Etminan,HeadofPRandspokeswoman Dr. Wolfgang Flaegel,ManagingDirector spokesman Sebastian Ahrens, ManagingDirector andManagement management Senior [email protected] +49 (0)403001-4580 Booking information: [email protected] +49 (0)403001-4600 Germany D-20095 Hamburg Ballindamm 25 Headquarters Fleet

Capacity 164 184 408 420 698 Tonnage 6,752 8,378 28,890 15,000 30,277 the world’s mostdesirabledestinations. Cruise Linesoffer excitingandenrichingcruisevacationsto wide rangeoflifestylesandbudgets.TheWorld’s Leading a commitmenttoqualityandvalue,theselinesappeal Costa Cruises.Sharingapassiontopleaseeachguestand Princess Cruises,CunardCruiseLineand Line,Seabourn CruiseLines, Cruise Linesalliance,whichincludesCarnival America LineisamemberoftheexclusiveWorld’s Leading ‘Mariner’s Dream’ beds. stateroom amenitieshighlightedbyflat-panelTVsandplush The NewYork teens-onlyactivityareas; andall-new Times; demonstrations andclasses;ExplorationsCafépowered by celebrated guestchefsandculinaryexpertsprovide cooking of-the-art onboard showkitcheninwhichmore than 60 Center, magazine,astate- presented byFood&Wine more thanUS$525million.ItshowcasestheCulinaryArts enhancements across itsfleet–acommitmenttotalling and PanamaCanal. Caribbean, Alaska,Mexico,Canada/NewEngland,Europe Grand World Voyage andpopularsailingstoportsinthe America, Australia/NewZealandandAsiavoyages,a seven continents.HighlightsincludeAntarctica, South or dependencies;itstwo-to108-dayitinerariesvisitall cruises to320portsinmore than100countries,territories Holland AmericaLine’s fleetof15shipsoffers nearly500 www.hollandamerica.com Holland AmericaLine Joe Slattery, Technology Larry Calkins, Services/ PortOperations/Planning/Tour Operations Paul Goodwin, President,Dan Grausz,ExecutiveVice FleetOperations Guest Programs President,Rick Meadows,ExecutiveVice Marketing,Sales, Stein Kruse,President andCEO Senior management Reservations: +18777245425 Fax: +12062817110 Tel: +12062813535 300 ElliottAve. West, Seattle,WA 98119 Headquarters The highest-ratedpremium cruiselineintheworld,Holland The companyfeatures Signature ofExcellence Vice President, Sales&Marketing Vice International Senior Vice PresidentSenior Vice ofFinance&Information Executive Vice President,Executive Vice OnBoard Revenue

Prinsendam Ryndam Maasdam Statendam Veendam Amsterdam Rotterdam Rotterdam Volendam Zaandam Zuiderdam Oosterdam Westerdam Noordam Eurodam Nieuw Amsterdam Ship Name [email protected] +44 8453510557(Reservations) Holland AmericaLineUK United Kingdom Tel: 0900-SAILHAL(0900-7245425) Holland AmericaLine Netherlands www.hollandamerica.com.au Holland AmericaLine Australia Sales offices Fleet

Capacity 835 1,206 1,258 1,260 1,350 1,380 1,404 1,432 1,432 1,916 1,916 1,916 1,918 2,104 2,106

Tonnage 37,983 55,819 55,575 55,819 57,092 62,735 61,859 61,214 61,396 82,305 82,305 82,348 82,318 86,273 86,700 79 ECC 2011/2012 Report 80

ECC 2011/2012 Report limited portfolioofproperties related toitsoperations. transportation, freight and shipchartering,andithasa Spitsbergen. explorer cruisesintheAntarctic andaround Greenland and a backdrop ofbreathtaking scenery. Alsooffered are goods andpassengerstoisolatedcommunitieslyingamidst ports almostnevervisitedbycommercial liners,delivering Norwegian coastallifeforgenerations.Theycallatremote and people. opportunity toencounterincredible environments, wildlife that gobeyondtherealms ofothercruiselines,providing an maritime experienceandafleetof13shipsitoffers voyages 117yearsof and dramaticcoastlinesontheplanet.With adventurous voyagestosomeofthemostbeautiful,remote Hurtigruten isrenowned foritscomprehensive and www.hurtigruten.com Hurtigruten [email protected] +47 81003030 Norway 8514 Narvik PO Box43, Havnegata 2, Hurtigruten ASA Headquarters Hurtigruten’s otherbusinessactivitiesincludebus Hurtigruten’s shipshavebeenanintegralpartof MV Nordstjernen MV Lofoten MV Fram MV Vesteraalen MV KongHarald MV Nordlys MV Richard With MV Nordkapp MV Nordnorge MV Polarlys MV Trollfjord MV Finnmarken MV Midnatsol Ship Name Hans Rood, Trond Overas, WenselDag Arne , Anders Olstad, Ole Frederik Hienn, Glen PeterHartridge, Torkild Torkildsen , Kathryn Beadle, Hurtigruten Limited United Kingdom Kaspar Berens, ManagingDirector Hurtigruten GMBH Germany Sales Offices Olav Fjell, Senior management Fleet Chief ExecutiveOfficer. Sales Director Product, Marketing&PRDirector Chief FinancialOffice Managing Director Director Maritime&Technical Operations Deputy ChiefExecutiveOfficer. Director LegalAffairs Head ofPricing&RevenueManagement Capacity 400 400 500 560 691 691 691 691 691 737 822 1,000 1,000 r 2,191 2,621 12,700 6,261 11,204 11,204 11,205 11,386 11,386 11,341 16,140 15,000 16,151 Tonnage presently showingonallvessels. at seawiththeprestigious company‘ElClubdelaComedia’ Incluido deMarca® hence itsdecisiontocontinueoffering thesuccessfulTodo durations of11or12days. Iberocruceros alsooffers aselectionoflongercruiseswith their stayonboard. Guests thehighestlevelofcomfortandsatisfactionduring professionals whoare continuouslyworkingtoprovide 1,900 Guests. medium size,itslargestoffering amaximumcapacityof style. Iberocruceros operatesthreevesselsof modern specializes inoffering aproduct withadistinctiveSpanish The cruisecompany, ownedbyCostaCrociere SpA, www.iberocruceros.es Ibercruceros Luis Grau,DeputyGeneral Manager Alfredo Serrano,GeneralManager Senior management Email: [email protected] Reservations: 902282221 Tel: +34913349350 (Ciudad Empresarial Adequa), 28050Madrid,Spain Avenida deBurgos,89.Planta 4ª.Edificio3-Las Tablas Headquarters Moreover Iberocruceros offers thebeststand-up comedy Iberocruceros strivestoaccommodateeveryGuestneeds, As noveltiesfor2012,besidesthetransatlanticcruises, The companyhasateamof2,000highlyqualified

Grand Mistral Grand Holiday Grand Celebration Ship Name [email protected] +34 913349350 Pedro Costa,SalesManager [email protected] +34 913349350 Sofía Amar,Marketing&CommunicationDirector (Ciudad empresarial Adequa),28050Madrid,Spain Avenida deBurgos,89.Planta4ª.Edificio3-Las Tablas Sales Offices Fleet Capacity 1,807 1,848 1,910 48,200 46,052 47,626 Tonnage 81 ECC 2011/2012 Report 82 ECC 2011/2012 Report Mediterranean. Piraeus, Istanbul,Limassoletc,todestinationsalloverthe operates cruisesfrom variousEastMedports,suchas Mediterranean. in theEastern cruise programmes, becomingthespecialistcruiseoperator Louis Cruiseshasovertheyearsevolvedandexpandedits MediterraneanfromCyprus totheEastern early’70s. Cruises startedoperatingshortcruisesoutofLimassol, Memories! with agenuinesmile,leavingthemenricheda…Seaof onboard experience,sumptuouscuisineandwarmservice Mediterraneanfor atrulyenjoyable waters intheEastern money. LouisCruiseswelcomesitspassengersto itshome exciting anduniqueitinerariesoffering great valuefor cruising,LouisCruisesmeticulously preparesinternational anarrayofdestinationsand26yearsexperiencein With www.louiscruises.com Louis Cruises Chris Theophilides , BusinessDevelopment Director Charis Papacharalambous,Sales&MarketingDirector Captain GeorgeKoumpenas,OperationsDirector George Paschalis,CFO Louis Loizou,DeputyManagingDirector Costakis Loizou,ExecutiveChairman Senior management Tel: +302104583400 Greece 185 36Piraeus Louis Building,8Ampatieloustreet, Louis Cruises(HQGreece) +357 22588000 Cyprus 2025 Strovolos, Nicosia Louis House,20,Amphipoleosstreet Louis Cruises(HQCyprus) Headquarters Today, withafleetofninecruiseships,LouisCruises A memberoftheLouisgroup, foundedin1935,Louis

Calypso Sapphire Orient Queen Coral Louis Cristal Emerald Thomson Spirit Thomson Destiny Louis Majesty Ship Name [email protected] +33 142669725 Louis CruisesFrance France [email protected] +39 0105740043 Louis CruisesItaly Italy [email protected] 0800 0183883 Louis CruisesUK United Kingdom [email protected] +30 2104583400 Louis CruisesGreece Greece Sales offices Fleet

Capacity 486 576 728 748 960 1,000 1,254 1,444 1,462 11,162 12,263 15,781 14,194 25,611 26,428 33,930 37,773 40,876 Tonnage design andoutstandinghospitality. reflected inthecompany’s reputation forsophisticated partnership raised1,000,000euros forthiscause. ensure theyreceive aproper education.Initssecondyear, the 126 vulnerableurbancommunitiesinBrazilbyhelpingto project benefitsdisadvantaged children andadolescentsin partnership withUNICEF. The‘Getonboard forchildren’ still further, inJuly2009MSCCruiseslaunchedan important numerous awards andcertifications. the healthandsafetyofitspassengersstaff, hasearned safeguarding themarineecosystem,aswellprotecting in whichthecompanyoperates.Itscommitmentto responsibility towards thephysicalandhumanenvironments is present in45countries. owned companyemploys12,000staff around theworld, and West Africa,AbuDhabiandtheEmirates.Theentirely family- and Canada,SouthAmerica,theIndianOcean Europe, theAtlanticOcean,Caribbean,NorthAmerica and offers awiderangeofseasonalitinerariesinNorthern MSC Cruisessailsthroughout theyearinMediterranean fleetcarry 1.3millionpassengers. comprising itsultra-modern Mediterranean, SouthAfricaandBrazil.The11ships MSC Cruisesisamarketleadingcruisecompanyinthe Following severalyearsofunprecedented growth, www.msccruises.com MSC Cruises Giacomo Costa Ardissone, CFO Pierfrancesco Vago, CEO Senior management +41 227038937 1208 Geneva(Switzerland) Chemin Rieu,12-14 MSC Cruises-HQ Headquarters MSC Cruisesisproud ofits Italianheritage,whichis Embracing thephilosophyofCorporateSocialResponsibility MSC believesthatgloballeadershipbringsincreased

MSC Divina Under construction MSC Opera MSC Lirica MSC Armonia MSC Sinfonia MSC Armonia MSC Musica MSC Orchestra MSC Poesia MSC Magnifica MSC Splendida MSC Fantasia Ship Name [email protected] Market International Achille Staiano,MSCCruisesCommercial Manager MSC Cruises–Istanbul, MSC Krstarenja –Dubrovnik, Croatia Sweden MSC CruisesSweden/Norway/Denmark–Stockholm, MSC CruisesUK&Ireland– London,UK MSC Cruises–Amsterdam, Netherland MSC Croisières/MSC CruisesBelux–Bruxelles,Belgium Austria MSC Kreuzfahrten –Wien, MSC Croisière/MSC Kreuzfahrten –Basel,Switzerland MSC Cruzeros –Lisbon,Portugal MSC Kreuzfahrten –Munich,Germany MSC Croisières –Paris,France MSC Cruceros –Madrid,Spain MSC Crociere –Naples,Italy Sales Offices Fleet Capacity 2,055 2,069 2,087 2,087 2,087 3,013 3,013 3,013 3,013 3,952 4,363 59,058 59,058 59,058 59,058 59,058 92,409 92,409 92,627 93,330 137,936 137,936 Tonnage 83 ECC 2011/2012 Report 84

ECC 2011/2012 Report as thefirstshowofitskindatseaunderabigtop. Dreams® &Dinnerisalsofeatured onboard NorwegianEpic the number-one entertainmentbrandforkids. Cirque the MoonDuelingPianos,GibsonGuitar, andNickelodeon, well astheofficial cruiselineofLegendsinConcert,Howlat appearing forthefirsttimeatseaonNorwegianEpic,as Cruise Lineistheofficial cruiselineofBlueManGroup, ship, NorwegianEpic,debutedinJune2010. and spring2014. , onorder fordeliveryinspring2013 4,000-passenger vessels,NorwegianBreakaway and most contemporaryshipsatsea. TheCompanyhastwo a relaxed cruisevacationonsomeofthenewestand Cruising ships,providing gueststheopportunitytoenjoy guests more freedom andflexibility. Cruising whichhasrevolutionized theindustrybyallowing cruising, mostnotablywiththeintroduction ofFreestyle a 44-yearhistoryofbreaking theboundariesoftraditional Norwegian CruiseLineistheinnovatorincruisetravelwith www.ncl.com Norwegian CruiseLine and Refurbishment Dan Farkas, CirelVincent , Bob Becker, Wendy Beck, Brian Swensen, Dave Sprechman, Captain SveinSleipnes, Crane Gladding, Michael Flesch, Howard Flanders, George Chesney, Andy Stuart, Kevin Sheehan, Senior management www.ncl.com +1 8662347350 +1 3054364000 7665 CorporateCenterDrive,Miami,FL33126 Headquarters Norwegian’s largestandmostinnovativeFreestyle Cruising Today, Norwegianhas11purpose-builtFreestyle Operations Accounting Officer Passenger Services Maria Miller, & PassengerServices Senior Vice PresidentSenior Vice &GeneralCounsel Senior Vice President,Senior Vice ConsumerResearch Executive Vice PresidentExecutive Vice ofGlobalSalesand Senior Vice President,Senior Vice Marketing Executive Vice PresidentExecutive Vice and Chief Financial Officer Senior Vice PresidentSenior Vice &ChiefInformationOfficer

Senior Vice President,Senior Vice HotelOperations Senior Vice President,Senior Vice Technical Chief ExecutiveOfficer Senior Vice President,Senior Vice Revenue Senior Vice President,Senior Vice HumanResources Senior Vice PresidentSenior Vice andChief Senior Vice PresidentSenior Vice ofFinanceandTreasurer

Senior Vice President,Senior Vice Marine

Management Operations Norwegian Getaway(2014) (2013) Under construction Sun Norwegian Pride ofAmerica Pearl Norwegian Ship Name Wieshbaden, Hessen,Germany65205 Wieshbaden, Kreuzberger Ring68 Continental Europe (Germany) PresidentFrancis Riley,Vice and GeneralManagerEurope Hammersmith, London,UKW68JA Horatio House,77-85FulhamPalaceRoad United Kingdom(London) Kevin Sheehan,ChiefExecutiveOfficer 7665 CorporateCenterDrive,Miami,FL33126 Miami Headquarters Sales offices Fleet

4,000 4,000 Capacity 1,928 2,000 2,000 2,120 2,338 2,348 2,374 2,384 2,392 2,392 4,100 78,309 77,104 75,338 80,439 92,250 91,740 93,502 93,530 93,558 93,530 153,000 Tonnage suite guests;and laptopswere addedtoPenthouse Suites. accommodations, includingBulgari forConcierge-leveland debuted onallships;bathamenities were updatedinall in more than90placesworldwide;production shows shuttles from thepiertoportcitycentre are offered cappuccino are nowmadefrom Illycoffee ofItaly; free Café nowfeatures more regional specialties;espresso and added tomenusintheGrandDiningRoom;Terrace cotton linensandduvetsaplushdowncomforter. In addition,allbedsreceived 1,000-thread-count, Egyptian and wrappedinChamomile-infusedfibre topsthemattress. of memoryfoam;atwo-inchthickcushionfilledwithgel encapsulated springsinsevenzonescovered bytwoinches proprietary Prestige Tranquility Beds composedof400 and bedsidereading lamps. Wenge walnutpanels;refrigerated minibars;wallsconces headboards withnail-headtrimmountedonfloor-to-ceiling and PenthouseSuiteswere enhancedwithcustom,tufted of itsongoingPillarsDistinctioninitiative.Staterooms enhancement ofRegatta,InsigniaandNauticaaspart Bon AppétitMagazine. Marina andRiviera-asistheCulinaryStudio,sponsored by Dining venuesare alsoavailableonthenewO-Classships, including specialityrestaurants atnoextracharge.Private being servedinawidechoiceofopendiningvenues, Cruises withcreations from therenowned JacquesPépin and willbefollowedbyRiviera–asistershipinApril2012. line’s 1,250-guestMarinajoinedthefleetinJanuary2011 aboard the684-guestRegatta,InsigniaandNautica.The Europe, Asia,Australia,NewZealand,andtheAmericas Award-winning itinerariesvisitmore than330portsin accommodations, graciousserviceandextraordinary value. Oceania Cruisesoffers unrivalledcuisine,stylish www.oceaniacruises.com Oceania Cruises An expandedmenuofJacquesPépinsignature itemswere All accommodationswere also outfittedwiththeline’s In 2011,OceaniaCruisescompletedamulti-million-dollar The culinaryexperiencetakescentre stageatOceania Riviera Under construction Nautica Insignia Regatta Marina Ship Name Bernard Carter,ManagingDirector www.oceaniacruises.com +44 8455051920 Southampton. SO142AQ Town Quay, Suite ABC,Beresford House, Oceania Cruises UK andEurope Sales offices www.oceaniacruises.com +1 3055142300 Miami, FL33122,USA 8300 NW33rd Street, Suite100 Oceania Cruises USA Headquarters Kunal Kamlani,President Senior management Fleet (April2012) 1,250 Capacity 684 684 684 1,250 66,084 30,277 30,277 30,277 66,084 Tonnage 85 ECC 2011/2012 Report 86 ECC 2011/2012 Report unnamed shipwillbeaddedtothefleetinspring2015. Dame ShirleyBassey, DBE,andanew141,000tonasyet ship AdoniawasaddedtothefleetinMay2011,namedby – officially namedbyGodmother Darcey BussellCBE.Small of alifetime,everytime.AzurawaslaunchedinApril2010 attention todetail,ensuringpassengershavetheholiday tastes combininggenuineservice,asenseofoccasionand a fleetofsevenshipsoffering holidaystailored toBritish other line.Today, astrustedcruiseexperts,P&OCruiseshas now P&OCruisescarriesmore Britishcruisersthanany since thenhasevolvedintoapopularholidaychoiceand Not longafterwardsand theconceptofcruisingwasborn contract tocarrymailtheIberianPeninsulaandbeyond. Navigation Companywasawarded thelucrativeAdmiralty mark the175thanniversaryofwhenPeninsularSteam P&O Cruisescantraceitsroots backto1837and2012will www.pocruises.co.uk P&O Cruises Carol Marlow , ManagingDirector P&OCruises David Dingle,ChiefExecutiveOfficer, UK Carnival Senior management [email protected] 0843 3740111 Hampshire, SO151ST, United Kingdom House,100HarbourParade,Southampton, Carnival UK Carnival P&O Cruises Headquarters Adonia Arcadia Aurora Oriana Oceana Ventura Azura Ship Name Fleet Capacity 710 2,016 1,870 1,828 2,016 3,078 3,100 30,200 83,700 76,000 69,000 77,000 115,000 115,000 Tonnage beaten track. combined withalargevarietyof itineraries–manyoff the season. Phoenixmeansatraditional butcasualcruisestyle worldwide includinground-the-world-cruises eachwinter vessels are touchwhichoperate classicshipswithamodern and budgets.There are ahighnumberofrepeaters. The variety ofshiptypesandproducts fordifferent demands sea orrivercruiseoffers excellent valueformoneywitha handshakes, Captain’s GalaDinner, lectures etc.APhoenix kitchen etc.;andatraditionalcruisestylewithCaptain’s production shows,openseating restaurants, excellent atmosphere; balconycabins,spa&wellnessareas, modern onboard. Cruisesfeature averypersonal,familiarandcasual ships, notmassmarketmegaliners.OnlyGermanisspoken MV AmadeaandArtania(exMVArtemis). Albatros ship ship thefleethasgraduallygrown andnowconsistsofan German stylecruisingthroughout theworld.From this one began operatingtheunforgettableTSMaximGorkitooffer 46 rivercruiseshipsaround theworld.In1988Phoenix operators/ charterers. Ithasthree seagoingvesselsand programmes. also offers beachvacations,roundtrips andspecialoriental it istheGermanmarketleaderinNilecruises–company Although cruiseholidaysare thecompany’s mainbusiness– founded in1973Bonn,theformerGermancapital. Phoenix isaprivatelyownedandmanagedcompany, www.PhoenixReisen.com Phoenix Reisen Cruising withPhoenixmeansclassicmanageablecruise (TS Albatros from 1993to2004,MVAlbatros from 2004), Phoenix isoneofGermany’s leadingclassiccruise *46 river&coastal cruiseshipsunderPhoenixCharter Ship Name MV Artania MV Albatros MV Amadea Michael Schulze,Director ofCruising Benjamin Krumpen,COO Jörg Kramer,CFO , CEO Johannes Zurnieden Senior management +49 (0228)9260-55 Germany D-53111 Bonn Pfaelzer Str. 14 Phoenix ReisenGmbH Headquarters Fleet Capacity 1,200 830 600 Tonnage 44,500 28,000 29,000 87 ECC 2011/2012 Report 88 ECC 2011/2012 Report other cruiseline. than 330destinationsaround theglobe–more than any offers itspassengerstheopportunitytoescapemore provided inanenvironment ofexceptionalcustomer service. array ofchoicesindining,entertainmentandamenities–all Stars. TheSanctuary(anadults-onlyretreat) andawide luxury andinnovativefeatures includingMoviesunderthe ships.Theyaremodern renowned fortheirAmerican-style is aglobalcruiseandtourcompanyoperatingfleetof16 One ofthebest-knownnamesincruising,PrincessCruises www.princes.com Princess Cruises Paul Ludlow,UKdirector Alan Buckelew,president andchiefexecutive officer Senior management (+1 8007746237) +1-800-PRINCESS United States CA 91355-4999 Valencia 24305 Town CenterDrive Princess Cruises Headquarters A recognised leaderinworldwidecruising,Princess [email protected] 0845 3555800 Hampshire, SO151ST, UnitedKingdom House,100HarbourParade,Southampton, Carnival UK Carnival Princess Cruises United Kingdom Sales Office spring 2014. Cruises are scheduledtoenterserviceinspring2013and Contracts tobuildtwo3,600-passenger shipsforPrincess Spring 2014 Spring 2013 Under construction Ocean Princess Dawn Princess Sun Princess Sea Princess Island Princess Star Princess Golden Princess Ship Name Fleet Capacity 3,600 3,600 680 680 1,950 1,950 1,950 1,970 1,970 2,590 2,590 2,590 2,600 2,600 3,080 3,080 3,080 3,110 30,200 30,200 77,000 77,000 77,000 92,000 92,000 109,000 109,000 109,000 116,000 116,000 113,000 113,000 113,000 113,000 Tonnage service toalmost1,000,000guestsperyear. it's shipsdeliveramazingvacations,offering award winning The companyoffers atremendous valueproposition and brandin2006. became aRoyalCaribbeanInternational recognized brandintheLatin Americanregion. Pullmantur and Panama,thecompanyaimstobemostwidely local embarkationsinBrazil,Mexico,Colombia,Venezuela American growth strategy, Pullmanturdeploys5vesselswith itsevolvingLatin in Brasil,MexicoandPortugal.Within tour-operation division. between SpainandtheCaribbeanSeaforcompany’s the European CruisePortEmbarkationsandlong-haulflights Boeing 747-400.PullmanturAirprovides charterflightsto operated byitsin-houseairtraveldivisionwithafleetof4 calling onapproximately 100destinations. daily passengercapacityof10,000,cruisingworldwide,and share, currentlyfleetof5vessels,witha operatingamodern of thecruisemarketinSpainwithcloseto45% ‘All Inclusive’concepttocruising.Pullmanturistheleader Company, foundedin1971,andfamousforintroducing the Pullmantur isaleadingSpanishTour Operator&Cruise www.pullmantur.es Pullmantur www.pullmantur.es [email protected] Reservations: +34902240070 +34 914188700 28043 Madrid,Spain Campo deLasNaciones Edificio Pórtico C/ Mahonia,Nº2,Planta5ª Pullmantur Group Headquarters Spain basedPullmantur, operatesthrough satelliteoffices The companyoffers auniquedoor-to-door flightservice, Ocean Dream Zenith Pacific Dream Empress Sovereign Ship Name & CorporateServices Product &Deployment Eric Davaille, +35.621.224.796 Pullmantur Malta Agency Reservations:+351.21.350.92.50 www.pullmantur.pt [email protected] +351.21.350.92.50 Pullmantur Portugal Purtugal Agency Reservations:+551139584800 www.pullmantur.com.br +55 1139584800 Pullmantur Cruzeiros doBrasilLTDA Brazil www.pullmantur.com.mx +52.55.54.49.77.00 Pullmantur México Mexico Sales Offices Enrique Bretos, Maria JoséYélamos, Montserrat Barriga, , José LuisFernández José LuisdeArcenegui, Luis Ávila, Eduardo López-Puertas, Antonio DiezMuro, Carlos Pedercini, Ignacio Aguilera, Gonzalo ChicoBarbier, Senior management Marketing Markets, Strategy, BusinessDevelopment , Rafael Fernández-Álava & BusinessProcesses Sonia Prieto, Fleet

Director LegalAffairs &Secretary oftheBoard Director RevenueManagement, VP HotelOperations Director &GeneralManagerPullmanturAir VP MarineOperations VP &GeneralManager, International Director Control Internal VP ChiefFinancialOfficer Director CustomerService&Web (Group ManagementExecutiveBoard) Director InformationTechnology President &CEO Director HumanResources &CSR VP LandOperations VP &GeneralManager, Sales& Capacity 1,000 1,441 1,442 1,607 2,322

35,265 47,413 47,427 48,563 73,529 Tonnage

89 ECC 2011/2012 Report 90

ECC 2011/2012 Report tai chiclasses. instructors conductdailygroup andprivatefitness,yoga as afull-servicebeautysalon.Canyon Ranch-certifiedfitness locker rooms, thalassotherapy, saunaandsteam rooms aswell weight-training equipment,juice bar, men’s andwomen’s most desirablespaamenities:massage, gymwithcardio and vessels. Theships’CanyonRanchSpaCluboffers manyofthe to operatethewellnessandfitnessfacilitiesonboard allthree Ranch, aleadingUSoperatorofdestinationhealthresorts, and somepublicrooms were substantiallyredesigned. refurbishment programme. Almosteveryarea wasupdated speakers andiPads. access.TopWi-Fi suiteshaveiPod musicsystemswithBose cotton linens,flat-screen televisions, DVDplayersand Suites includeamenitiessuchasdowncomforters,Egyptian Navigator are considered amongthemostluxurious afloat. Seven SeasMariner, SevenSeasVoyager andSevenSeas cruise industry, accommodationsonboard theline’s intimate on allofits2013cruises. inclusive offering byaddinga1-nightpre-cruise hotel package globe. Recently, Regenthasraisedthebarontheir all- all-suite vesselsvisitmore than300destinationsaround the luxury hotelpackageandgratuities.Three award-winning and spirits,sightseeingexcursionsineveryport,apre-cruise air, highlypersonalisedservice,acclaimedcuisine, finewines cruise line.Fares includeall-suiteaccommodations,round-trip Regent SevenSeasCruisesistheworld’s mostinclusiveluxury www.rssc.com Regent SevenSeasCruises In 2010,RSSCpartnered with world-famousCanyon In 2008/09RSSCcompletedamulti-milliondollarfleet-wide someofthehighestspace-per-guestWith ratiosinthe Seven SeasNavigator Seven SeasVoyager Seven SeasMariner Ship Name Graham Sadler,ManagingDirector www.rssc.com +442380682280 Southampton, SO142AQ Beresford House,Town Quay, Regent SevenSeasCruises UK andEurope Sales Offices Mark Conroy, President Senior management +1 9549406700 Miami, FL33122,USA 8300 NW33rd Street, Suite100 Headquarters Fleet Capacity 490 700 700 28,550 42,363 48,075 Tonnage Fiona, PussinBoots,KungFuPanda’s Poandothers. shows andparadeswithrenowned characterslike:Shrek, 3D theatres showingDreamWorks films,entertainment Experience onfiveofitsshipsaround theworld,including with DreamWorks Animationtooffer theDreamWorks innovative partnershipdeals,suchasworkingexclusively amphitheatre atseaknownasAquaTheater. family-friendly area featuringahandcraftedcarousel andan Park, aparkopentothesky, andBoardwalk, anoutdoor consists ofsevendistinctthemedareas includingCentral has introduced thenewneighbourhoodconceptwhich rinks, bungeejumpingtrampolinesandrock climbingwalls. shopping, diningandentertainmentvenues,iceskating H2O Zone,‘RoyalPromenades’ whichare boulevards with such assurfsimulators,aninteractivewaterparkcalledthe The companyhasintroduced manyproduct innovations for onboard dining,entertainmentandotheractivities. itineraries and cruise lengths with multiple innovative options global vacationingconsumersbyproviding awidevarietyof Panama CanalandNewZealand. Europe, Hawaii,LatinAmerica,theMiddleEast, Alaska, Asia,Australia,Bermuda,Canada,theCaribbean, a varietyofitinerariestoworldwidedestinationsincluding from offers twoto18nights.RoyalCaribbeanInternational some 62,600berths,offering cruiseitinerariesthatrange the majorcruisebrandsinvacationindustry. to achieveoneofthebroadest marketpositionsofany from thepremium segmentaswell.Thisallowsthecompany industry, thoughitsqualityenablesittoattractconsumers of thecontemporarysegmentglobalcruisevacation ispositionedattheupperend Royal CaribbeanInternational www.royalcaribbean.com Royal CaribbeanInternational Harri U.Kulovaara , Michael Bayley, Brian J.Rice, Adam M.Goldstein, Richard D.Fain, Senior management www.royalcaribbean.com +1 3055396000 Miami, FloridaUSA 1050 CaribbeanWay Royal CaribbeanCruisesLtd Headquarters isalsorenownedRoyal CaribbeanInternational for Onboard itsOasis-classshipsRoyalCaribbeanInternational Royal CaribbeanInternational’s goalistoattractanarrayof operates22shipswith Royal CaribbeanInternational Executive Vice PresidentExecutive Vice andChiefFinancialOfficer RCCL Executive Vice President, RCCL ExecutiveVice International Chairman andChiefExecutiveOfficer RCCL Executive Vice President,Executive Vice MaritimeRCCL President andChiefExecutiveOfficer Ship Name Allure oftheSeas Oasis oftheSeas Freedom oftheSeas Independence oftheSeas Liberty oftheSeas Adventure oftheSeas Explorer oftheSeas Mariner oftheSeas Navigator oftheSeas Voyager oftheSeas Majesty oftheSeas Monarch oftheSeas Enchantment oftheSeas Brilliance oftheSeas Jewel oftheSeas Radiance oftheSeas Serenade oftheSeas Rhapsody oftheSeas Vision oftheSeas Vision Grandeur oftheSeas Legend oftheSeas Splendour oftheSeas www.royalcaribbean.com Helen Beck,Director ofEMEAIRs EMEA IRs-RCLCruisesLtd Representatives41 International (IRs). Royal CaribbeanCruisesLtd.hasanexpansivenetworkof www.royalcaribbean.co.uk Dominic Paul,VP&Group ManagingDirector United Kingdom-RCLCruisesLtd(UK&Ireland) www.royalcaribbean.es Belen Wanguemert, GeneralManager Spain -RCLCruisesLtd(Spain) www.royalcaribbean.no Roar Meidal,GeneralManager Norwa www.royalcaribbean.it Gianni Rotondo,ManagingDirector Italy -RCLCruisesLtd(Italy) www.royalcaribbean.de Tom Fecke,GeneralManager Germ www.royalcaribbean.fr Frederic Martinez,ManagingDirector France -RCLCruisesLtd(France) Sales Offices any -RCLCruisesLtd(Germany) y -RCLCruisesLtd(Norway) Capacity 5,400 5,400 3,600 3,600 3,600 3,100 3,100 3,100 3,100 3,100 2,350 2,350 2,250 2,100 2,100 2,100 2,100 2,000 2,000 1,950 1,800 1,800 Fleet Tonnage 220,000 220,000 158,000 158,000 158,000 142,000 142,000 142,000 142,000 142,000 74,000 74,000 74,000 90,000 90,000 90,000 90,000 78,000 78,000 74,000 69,000 69,000 91 ECC 2011/2012 Report 92 ECC 2011/2012 Report Acromas Group. destinations thatare inaccessibletolargerships. providing onememberofthepartyisover50. (446 passengers)andisopento adult’s aged21andover interesting destinationsaboard MVQuestforAdventure Spirit ofAdventure offers arangeofdiscoverycruisesto Spirit ofAdventure new style. to expectfrom ourelegant ships,butwithacontemporary surroundings andsuperbservice thatcruisegoershavecome million poundrefurbishment. Sheoffers thesamestylish crew-to-passenger ratio. cabins andpublicrooms, single-sitting diningandahigh offer atraditionalcruiseexperienceenhancedbyspacious (661 passengers)andSagaSapphire (701Passengers). aged 40andover).Sagacurrently hastwoships–SagaRuby aged 50andover(althoughatravellingcompanionmaybe 1997, andisuniqueinoffering cruisesexclusivetopeople Saga hasbeenoperatingitsownfleetofcruiseshipssince www.saga.co.uk/cruises Saga Shipping Spirit ofAdventure andSagaShippingare divisionsofthe The smallsizeofQuestforAdventure meansshecanreach Saga Sapphire join’s thefleet inMarch 2012afteramulti- Saga RubyandSapphire are elegantshipswhich Quest forAdventure Saga Ruby Saga Sapphire Ship Name Susan Hooper, Senior management Kent CT203SE Folkestone Sandgate Enbrook Park Saga Shipping Headquarters Robin Shaw, Fleet Chief Executive,CruiseDivisionofAcromas Travel Chief Executive,Acromas Travel Capacity 446 661 701

18,591 24,492 37,301 Tonnage and Cruising. rated shipsintheworld2012 BerlitzGuidetoCruises shipsoccupyspotsamongthetenhighest- of theSeabourn polls conductedbyconsumertravel publications,andallsix consistently dominatethehighest rankingsforsmallshipsin admired vesselsintheworld’s leisure cruisingfleet.They a fewoftheadvantagesthathavemadethesemost of opendeckandthelargestspaonanyluxuryshipare just verandas, morediningoptions,generous alternative areas accommodations, over90percent ofwhichhaveprivate possible byalargervessel.Awidervarietyofluxurioussuite withaddedamenitiesandfeaturesSeabourn, made to enjoytheexceptionallevelsofservicethatdistinguish Questin2011,itenablesguests in 2010,andSeabourn segment. Alongwithitssister-ships Sojourn Seabourn 2009, hasbeenhailedas“agame-changer”fortheluxury – andalloftheabovewithnotippingrequired orexpected. Brown toiletriesandPure Pamperingtherapeuticbath menu Caviar intheSurfbeachparties;designersoaps,Molton venues; innovativeMassageMomentsondeck;festive throughout eachcruise;superbdininginopen-seating 40 percent withbalconies;complimentarywinesandspirits to spaciousaccommodationsof277square feetormore, sailing whateverthedestination.Guestscanlookforward a wealthofonboard touchesandluxuriestoassure smooth Pride,SpiritandLegend–offer ships–Seabourn Seabourn served inopen-seatingrestaurants. most desirabledestinationsandaward-winning cuisine balconies; exceptionalshoreside experiencesintheworld’s accommodations inspaciousocean-viewsuites,manywith service, withnearlyonestaff memberperguest;sumptuous areputationearned forextraordinary levelsofpersonalized intimate, all-suitevesselsroaminghas theglobe,Seabourn six critics andtravelerpollssinceitslaunchin1987.With unanimous accoladesfrom cruisingguidebooks,travel isapioneerofultra-luxurycruising thathasearned Seabourn www.seabourn.com CruiseLine Seabourn Seabourn Odyssey,Seabourn the 450-guestshiplaunchedinJune Carrying just208fortunateguestseach,thethree original Ship Name Seabourn Odyssey Seabourn Seabourn Sojourn Seabourn Seabourn Quest Seabourn Seabourn Pride Seabourn Seabourn Spirit Seabourn Seabourn Legend Seabourn John Delaney Email: [email protected] Bruce Good Press contact: Richard D.Meadows Senior management Phone: (61)291266901 North Sydney, NSW2060 15 MountStreet Australia: Phone: 08450700500 SO15 1ST Southampton 100 HarbourParade UK Sales Offices www.seabourn.com Phone: (+1)206-626-9100 Seattle, WA 98119 300 ElliottAvenue West CruiseLine Seabourn Headquarters Fleet – – Director ofPublicRelations SVP, Sales&Marketing – President Capacity 450 450 450 208 208 208 Tonnage 32,000 32,000 32,000 10,000 10,000 10,000 93 ECC 2011/2012 Report 94

ECC 2011/2012 Report and Singapore. Thecompany’s headquartersare inMonaco. maintains branchoffices in theUS,UK,Germany, Australia cultural connections. provides accesstoexclusiveexplorationsandenriching environment. AndineachfascinatingdestinationSilversea foster awelcomingonboard ambienceinanall-inclusive guests Intimate spacesandwell-travelled,international from uncompromising servicetoexquisitegourmetdining. the company’s itinerariesencompassallsevencontinents. with theinclusionofregal expeditionshipSilverExplorer offer anatmosphere ofconvivialityandcasualelegance. And Shadow, SilverWhisperandSpirit–alldesignedto Silver intimate, all-suitevessels:SilverCloud,Wind, segment, offering guestslarge-shipamenitiesonboard its the romance andspecialsensationsofthesea. because itconnotesqualityandluxuryaswellcapturing the ultra-luxurysegment.Thename‘Silversea’waschosen a pledgetobuildandoperatethehighestqualityshipsin conceived andorganisedauniquecruisecompanywith Lefebvre familyofRome,formerownersSitmarCruises, maritime andtravelexperience.Intheearly1990s Silversea isacruisecompanythatreflects generationsof www.silversea.com Silversea Cruises Christian Sauleau, Controller Alvarino Biasotti, Kenneth Watson , , ChiefExecutiveOfficerEnzo Visone Manfredi Lefebvre D’Ovidio, Senior management +377 97702424 98000 MonteCarlo 7, RueduGabian Gildo PastorCenter Headquarters Silversea caterstothecosmopolitanworldtravellerand Distinctive European stylingisreflected ineverydetail, Silversea Cruisesisrecognised asaninnovatorintheluxury Senior Vice President,Senior Vice Worldwide Financial Chief OperatingOfficer Executive Vice President,Executive Vice FleetOperations Chairman

M/V SilverExplorer M/V SilverCloud M/V SilverWind M/V SilverWhisper M/V SilverShadow M/V SilverSpirit Ship Name Yap Melvyn,RegionalSalesDirector +62 62237066 Singapore Asia Karen Christensen,RegionalSalesmanager +61 292550600 Sydney Australia andNewZealand Jerome President Danglidis,Vice Sales &Marketing Germany, SwitzerlandandAustria Director Sales&MarketingandGeneralManager Mike Bonner +44 8447709030 London UK, Ireland andMiddleEast Kenneth Watson, ChiefOperatingOfficer +1 8777609052or9545222299 Fort Lauderdale, FL33301 110 EastBroward Blvd The Americas Sales Offices Fleet

Capacity 132 296 298 382 382 540

6,072 16,800 17,400 28,258 28,258 36,000 Tonnage and fallseasons. winter andrepositions totheMediterraneanforsummer And StarFlyersailsupthePacificCoastofCostaRicain to theMediterraneanforsummerandfallseasons. spends thewinterandspringinCaribbean,repositioning Mediterranean forthesummerandfallseasons.StarClipper throughout theCaribbean.Theshiprepositions tothe adventures await. into aworldwhere uniqueexperiencesaboundandnew a bettervieworrelaxing inthenetoff thebow, guestsstep casually elegantatmosphere. Whetherclimbingthemastfor in oneunhurriedsitting,andare pampered byservices ina premier speciality cruise lines. Guests enjoy delectable cuisine a privateyacht,StarClippersisrecognised asoneofthe passengers theactivities,amenitiesandatmosphere of since Preussen inl902. flagship andthefirstfullyriggedfive-mastedsquare-rigger the twinsister-ships were joinedbyRoyalClipper, theline’s and amaximumsailingspeedof17knots.InJuly2000 tallest clippershipseverbuilt,withmainmastsrising226ft and StarClipperentered serviceintheearly1990sas providing passengerswithamega-yachtexperience. re-creating thegoldenageoftallsailingshipswhile cruiselinededicatedto Clippers, theonlymodern-day boyhood dream intoareality whenhefoundedStar In 1989Swedishentrepreneur MikaelKraffthis turned www.starclippers.com Star Clippers Capt. FarhatShamim , vice-president marineoperations Larry Haugh,vice-president sales Jack Chatham,vice-president sales&marketing Eric Krafft, vice-president Mikael Krafft, president &owner Senior Management www.starclippers.com +377978400or Brochure Request [email protected] +377 978400 98000 Monaco 4, ruedelaTurbie Clipper Palace Headquarters During thewinterandspringmonths,RoyalClippersails portsuntouchedbylargercruiseshipsandofferingVisiting Meticulously researched downtothelastdetail,StarFlyer

Star Flyer Star Clipper Royal Clipper Ship Name Jack Chatham Star Clippers USA [email protected] Diana Siderova –salesmanager Australia –Creative Cruising [email protected] Mr AsaoOhji Japan- Meridian [email protected] Mr Teris Tsafos Greece -Nereus Cruises [email protected] Beatrice Frantz France -StarClippers [email protected] Laurence Ellena Star Clippers Italy, Spain&Portugal [email protected] Olivia Van derGhinst Benelux -StarClippers [email protected] Austria -KlausHolzmann [email protected] Alison Repoulios UK -Fred OlsenTravel [email protected] Helmut Kutzner Germany -SCKreuzfahrten Sales Offices Fleet

Capacity 170 170 227

2,298 2,298 5,000 Tonnage 95 ECC 2011/2012 Report 96

ECC 2011/2012 Report board Mein Schiff 2.Thisarea only foryoungpassengersis adult-free-zone ‘Teenslounge’ isanotherinnovationon on board fortherelaxing andinvigoratingtreatments. The staff inthecenterusesgenuineseawater, specially prepared Center intheSpa&Seaarea. FortheThalassotherapies to alibraryfortakingoutbooksoriPads. passengers haveaccesstotheMeeresmaler studioaswell to knowledge,gamesandfun.Inaddition,thisiswhere innovative Meerlebenloungearea. Thisarea isdedicated on MeinSchiff 2willdiscover manymore, forinstance,the being features passengers enjoy onMeinSchiff 1,travelers identical sistership.Inadditiontothetried-and-testedwell- relaxed discoveryandcontemporary travellikeitsstructurally It isawell-beingvesselwithfocusonlimitlesspandering, individual service. room tomove,generous surroundings, highqualityand concept isaimedaboveallatcouplesandfamilieswhovalue are includedinthecruiseprice.ThePremium AllInclusive all drinksandmealsinmostrestaurants, barsandbistros Gosch Syltfish restaurant tococktailsintheTUIBaralmost delicacies intheBistro LaVela through specialtiesinthe its gueststhePremium AllInclusiveconcept.From Italian meets theirpersonaltaste.Forthisreason, TUICruisesoffers quality-conscious travelersexperienceafulfillingcruisethat personalized andattentiveserviceensures thatseasonedand cabins withbalconiesorverandas.Inparticular, the ample room onthedecksandgenerously dimensioned concept behindthewell-beingshipischaracterizedby on relaxation andthewell-beingfactor. Thearchitectural all theshipsofMeinSchiff fleet,from bowtostern contemporary well-beingholidaysatsea. brand targetstheGerman-speakingmarketandstandsfor cruise companyRoyalCaribbeanCruisesLtd.The is ajointventure ofTUIAGandthegloballyoperating TUI Cruises,formedinApril2008andbasedHamburg, www.tuicruises.com TUI Cruises Another newfeature onMeinSchiff 2istheThalasso Mein Schiff 2isthesecond shipoftheMeinSchiff fleet. TUI Cruises’firstshipisMeinSchiff 1andfocuses,like gaming consoles. equipped withthenewestgenerationofXboxKinectand body andsoul. ensure thatholidayswithTUICruiseshaveagreat effect on balconies withhammocksandrelaxation islesonthedeck personal Nespresso coffee machineineachcabin,spacious Ship Name Mein Schiff 1 Mein Schiff 2 Third ship(2014) Under construction The manyrestaurants, the1,700sqmspaarea, the Alexa Hüner,Director Communications Frank Kuhlmann,CFO Richard J.Vogel, CEO Senior management www.tuicruises.com [email protected] Reservations: +49(40)286677-111 +49 (40)286677–0 Germany 20537 Hamburg Anckelmannsplatz 1 Headquarters Fleet Capacity 1,924 1.912 2,500 Tonnage 76,998 GRT 77,302 GRT 97,000 GRT If you don’t just want to know what is happening in the cruise industry – but also why and what it means for you, read Cruise Insight - the magazine that asks all the right questions.

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Conference and Ports Summit Brussels, 25 & 26 June 2012

25 June 2012 Ports Summit 26 June 2012 Conference

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www.ashcroftandassociates.com + 44 20 899 44 123 at www.cruise-norway.no Check outourcruisecalendar based cruisedestination inEurope. nature- leading the is Norway visitors. million 2 than more and 2011 in calls cruise 1678 with ports, cruise Norwegian different 38 about at call ships cruise Today, seasons. all in provides miles nautical interestingitineraries creativeand for possibilities immense 1300 of coastline long Norway`s Johan Wildhagen/Innovation Norway norway Cruise The ultimatenatural experience 98 ECC 2011/2012 Report Bjørn EirikØstbakken/Innovation Norway

Frithjof Fure/Innovation Norway Terje Rakke/Nordic Life, RegionStavanger Bergen Tourist Board /RobinStrand Members Associate LOGOMANUAL 99 ECC 2011/2012 Report Rue Ducale 67/2 – 1000 Brussels Tel: +32 2 510 61 33 www.europeancruisecouncil.com

Tim Marking Secretary General [email protected] Tel.: +32 2 510 61 27

Rob Ashdown Director – Technical, Environment & Operations [email protected] Tel.: +32 2 510 61 34

Monica Ford PA [email protected] Tel.: +32 2 510 61 33 Fax: +32 2 511 80 92