National Observatory on cruise tourism in the Mediterranean

May 2010

www.slea.it

Cruise Industry in the Mediterranean

During 2008, there have been 42 active cruise companies in Europe, for a total of 129 cruise ships and sleeping accomodations for over 116,000 guests;Extra European companies (mainly american) amount to 63 ships and 71,300 sleeping accomodations

In the Mediterranean during the 2008, 159 cruise ships for a total of 166,742 sleeping accomodations have been active, for a total sleeping accomodation capacity of 166,742 (an average of

Source: European Cruise Council, 2009

Cruise Lines

A characteristic of this sector is a high concentration of multibrand cruise groups.

77.6% of total capacity in the hands of 5 economic subjects involved in the business. The main italian cruise lines are Costa Crociere (part of Carnival Corporation &PLC) and MSC Crociere. Fonte: Seatrade Cruise Review, 2007

The top 5 cruise groups worldwide

Cruise demand at a global level

A sector that didn't experience the crisis

The cruise industry is a sector that has keèt grpwing in the last 25 years, mainly stimulated by demand in North America. From 1998 to 2008, passengers have more than doubled, reaching 16.24 millions.

From 1998 to 2008, North America, even though keeping the lead in this segment, has lost some of its market shares in favour of European destinations.

1998 2008

Passengers

(in mln)

% Passengers

(in mln)

%

North America 5,4 69,3 10,29 63,4

Europe 1,71 22,0 4,5 27,7

Other countries 0,68 8,7 1,45 8,9

Total 7,79 100,0 16,24 100,

0Source: G.P. Wild (international) Limited from PSA, CLIA, ECC, other sources

Cruise demand at a global level (1)

In Europe during 2008 around 4 and a half million people have bought a cruise, 30% more than 2006.

The first ECCs for 2009 confirm a further growth of cruise demand: passengers which have chosen a cruise vacation in Europe are 4.95 millions, 12% more than last year.

Fluxes in Europe regard mainly two destination areas: the Mediterranean, which is also the second destination at a global level, and Northern Europe.

Italy in the European context (1)

One third of cruise tourist come from United Kingdom, followed by Germany (20%).

At the third place is Italy, with 15% amounting to 682,000 cruise tourists, +32% from 2006.

The initial data processed by ECC in 2009 indicate a further growth: United Kingdom has reached one and a half million cruise tourists, Germany one million and Italy 790,000.

2008

Passengers(x 1.000)

Market share

UK 1.477 33,4

Germania 907 20,5

Italia 682 15,4

Spagna 497 11,2

Francia 310 7,0

Altri Paesi 550 12,4

Totale 4.423 100,0

Source: European Cruise Council, 2009

Italy in the European context (2)

Around 4.7 million cruise tourists embark from european seaports.

At the first place in terms of embarks, we find the italian seaports with 1.6 million passengers.

Spain in at the second place, with 1 million embarks, mainly in the seports of Barcellona and Palma.

At the third place is UK, with Southampton and Dover.

European Cruise Passengers by source country (top five) – 2008Country Passengers %

Italy 1.682.000 35.9Spain 1.038.000 22.1UK 724.000 15.4Greece 472.000 10.1Germany 215.000 4.6source: European Cruise Council, 2009

Italy in the European context (3)

Among the favourite destinations in the Mediterranean we find the baltic areas.

The first 10 destinations amount to 85% of visits during 2008.

Italian ports are in the first positions, with 5 million visits during 2008.

European Cruise Passengers by country of destination (top ten) - 2008Country Passengers %Italy 4.993.000 23.0Greece 4.269.000 19.6Spain 3.600.000 16.6France 1.787.000 8.2Norway 1.460.000 6.7Portugal 786.000 3.6Malta 512.000 .4Sweden 433.000 20United Kingdom

406.000 1.9

Estonia 377.000 1.7Fonte: European Cruise Council, 2009

Italy in the European context (4)

The italian supremacy is even more evident if we analyze the numbers regarding passenger traffic in European ports.

At the first place is Barcellona, followed shortly after by Civitavecchia; both are included as main seaports in terms of global cruise traffic.

All seaports have experienced a growth during the last years, justifying investements in infrastructures and commercial capacity, backed by many port authorities.

Italy in the European context (5)

Among the main italian ports, in addition to Civitavecchia, we find Naples, Venice, Livorno and Savona. Italy is one of the places where international demand has been rapidly growing during the last years:

It has been assessed that our ports will receive, within 2010, almost 9 million passengers (5% increase on 2009), for a total of 4500 visits by cruise ships, almost 7% more. (Cemar Observatory)

It is important to underline that for many communities cruise traffic represents an important share of the economy: mainly in the cases of Venice and Savona, where cruise traffic amounts to 70% of the total number of passengers.

Italy in the European context (6)

Traffico crocieristico nei principali porti del Mediterraneo

  2000 2007 2008Var. %

2007/2008Var. %

2000/2008Barcellona 573.571 1.765.838 2.069.651 17,2 260,8Civitavecchia n.d. 1.586.101 1.818.616 14,7 n.d.Isole Baleari1 622.663 1.219.886 1.314.090 7,7 111,0Naples 405.639 1.151.345 1.237.075 7,4 205,0Venice 337.475 1.003.529 1.215.088 21,1 260,1Dubrovnik 130.869 686.000 851.961 24,2 551,0Livorno 228.996 713.114 848.861 19,0 270,7French seaports1 300.778 559.411 762.092 36,2 153,4Tunis 185.656 721.592 694.829 -3,7 274,3Savona n.d. 761.002 770.801 1,3 n.d.

Source: MedCruise e Autorità portuali

1) aggregate

cruise traffic in italian ports (1)

For what concerns italian ports, a ìn additional survey has been conducted analyzing cruise traffic, dividing emarks/disembarks and transits.

This is a distinction that allows us to better inderstand if a terminal has to be considered a Home Port (starting and/or ending point of a cruise) or Port of Call (intermediate stop).

Even though this distinction is becoming always less important, due to the fact that many companies allow embarks in transit ports, it is in any case important knowing how to tell the difference between these two categories, because this may have a huge impact on cruise tourism generated by the territory.

The main italian home ports are Savona, Venice, Trieste and Genova, while the others are ports of call. An exception is Civitavecchia, which has a double role, both as an embark/disembark and as a transit port.

cruise traffic in italian ports (2)

source: elaborazioni SL&A su dati Medcruise e Autorità Portuali

1) figures: 2007

cruise traffic in italian ports (3)

Fonte: MedCruise e Autorità Portuali

Cruise traffic in the main italian ports

  2008 Market Share% on total

passengersCivitavecchia 1.818.616 22,6 42,7 Naples 1.237.078 15,4 20,6 Venice 1.215.099 15,1 70,6 Livorno 848.861 10,6 27,4 Savona 770.801 9,6 69,2Genova 547.905 6,8 16,8 Palermo 538.721 6,7 22,2 Bari 465.739 5,8 25,2 Messina 337.117 4,2 3,5 Cagliari 89.871 1,1 23,9 Trieste 87.331 1,1 57,0 La Spezia 49.656 0,6 n.d. Portoferraio 21.502 0,3 n.d. Ravenna 8.867 0,1 n.d.

The impact of cruise industry in 2008 (1)

During 2008 in Europe the direct expenses created by the cruise industry (from cruise companies and its passengers) amounted to 14.2 billion euros (+10%compared to the previous year). These 14.2 billions have generated 150.000 workplaces, for a total of 4.6 billion euros of remunerations.

Each million euro invested in the cruise industry has “produced” 2,27 million euros of related industries and 22 working places, giving an average wage of 32,100 euro.

Fonte: European Cruise Council, 2009

The impact of cruise industry (2)

Italy is the country tha benefits the most from cruise related industries, which explains the importance of this sector for the entire economy.

Italy in 2008 was accountable for:

- 30% of the total european direct expenses for a total of 4,3 billion euros (+9% increase form previous year)

- 31% of generated workplaces from industrie linked to european cruises, for a total of 97,000 employed and salaries for 3 billion euros.

The impact of cruise industry (3)

Fonte: European Cruise Council, 2009

Direct expenses in the cruise industry

Related industries: working places

The impact of cruise industry 2008 (4)

Country

Direct expense(€ in mln)

Growth rate(cfr 2007)

Working places

Remunerations

(€ in mln)

Italy

4.318,00 +9% 97.152

2.975,00

Germany

2.351,00 +15% 41.560

1.568,00

United Kingdom

2.263,00 +13%

49.015

1.947,00

Frane

1.399,00 +21% 18.265

818,00

Spain

1.042,00 +10% 22.397

595,00

Finland 902,00 +12%

14.268

533,00

Top six

12.275,00 +12% 242.657

8.436,00

Others

1.941,00 +1% 68.855

1.558,00

Total 14.216,00 +11%

311.512

9.994,00 Fonte: European Cruise Council, 2009