Tourism Industry Conference Cruise 7th April 2015

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Overview

Understanding

the Cruise

Product

Growth

Potential of

Cruise

Ideas for

Exploration

Singapore: A

Major Cruise

Hub of Asia

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Growth Potential of Cruise

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Cruise Industry Highlights

Singaporeans comprise

anything from between 40-60% of passengers on-board international cruise lines sailing out of the island republic.

Cruise packages were

'snapped up' at the recent National Association of Travel Agents Singapore (NATAS) Travel Fair.

It is the other lucrative way in which travel agents can make money from the burgeoning cruise passenger market selling shore excursions along the route

As well as earning free cruises and attending well-catered training sessions, most travel agents are

paid a standard 10 per cent.

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Source: CLIA 2014 State of the Cruise Industry Report

Growth of Cruise Globally

7.5 CAGR (05-14)

Growth > rest of travel trade at 3.8%

%

Source: CLIA Industry Outlook 2015; UNWTO

35 New-ships by 2020

22% Source: Cruise Industry News

Strong growth in cruise sector outpacing general travel forecast

21.7 Mil Source: CLIA 2014 State of the Cruise Industry Report

Passengers carried for 2014

Bigger and more innovative ship

22% increased capacity

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35.5%

19.5% 15.0%

10.6%

6.0%

6.0% 4.5% 2.9%

Capacity Market Share (2015)

Caribbean

Mediterranean

Other markets

Europe

Asia

Australia/Pacific

Alaska

Alaska 2014: 4.5% 2015: 4.5%

Caribbean 2014: 37.3% 2015: 35.5%

S. America 2014: 3.3% 2015: 2.9%

Europe 2014: 11.1% 2015: 10.6%

Mediterranean 2014: 18.9% 2015: 19.5%

Other markets 2014: 14.5% 2015: 15.0%

Asia 2014: 4.4% 2015: 6.0%

Australia/Pacific 2014: 5.9% 2015: 6.0%

-4.83%

-12.12%

-4.50%

+36.36%

+3.17%

+3.45%

+1.69%

Growth of Asias Cruise Market

Strongest growth in ship deployments is in Asia

Source: CLIA 2015 State of the Cruise Industry Report These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB

Source: Singapore Cruise Centre; SATS-Creuers

Growth Trajectory of Cruise in Singapore

Top 5 source markets (2014)

Singapore India Australia Malaysia Indonesia

787 717

1018 926

640

394 334 392 380 430

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

857 943 920 1,139 1,014 942 913 1,030 890

Over the next 3 4 years, a 5 8% CAGR in passenger throughput is expected, outperforming the CAGR of 4% from 2005 2014.

Total Throughput (000)

No. of Ship Calls

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Singapore: A Major Cruise Hub of Asia

1) Excellent Air Connectivity A Global Air Hub

Strong support from partners in Aviation:

Best Business Class

Airline Seats in the World (World Airline Awards 2014)

Worlds Best Airport (Skytrax World Airport

Awards 2015)

Good air-lift facilitates Fly-cruise and Cruise-fly services

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Singapore: A Major Cruise Hub of Asia

2) World-class Cruise Infrastructure

Marina Bay Cruise Centre Singapore

Officially opened in October 2012

Operated by SATS-Creuers Cruise Services

Finger pier with 2 berths (360m and 330m)

Singapore Cruise Centre

Opened since 1991

Operated by Singapore Cruise Centre Pte Ltd.

Finger pier with 2 berths (310 m and 270m)

3) Strong Ancillary Services

Ship Repairs and Refurbishment Players include:

Ground Handlers Players include:

Port Agents Players include:

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Singapore: A Major Cruise Hub of Asia

4) Tropical Climate and Calm Waters

Conducive conditions for year-round cruising Favourable position to attract winter home-porting deployments from the Northern

Hemisphere and Southern Hemisphere

4 days SIN-Malaysia 7 days SIN-Vietnam-Thailand-

Malaysia

Access to cosmopolitan cities, pristine beaches and UNESCO heritage sites e.g. Malacca, Borobudur

Southeast Asia Itineraries

8 days SIN-Vietnam-Hong Kong-

Xiamen-Shanghai

North Asia and Australia Itineraries

5) Proximity to SEA and Beyond

14 days SIN-Darwin-Brisbane-

Sydney

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Singapore: Significant Milestones

2012 2013 2014 2015

Opening of Marina Bay Cruise Centre Singapore

Singapore awarded Destination of the Year

Singapores first vessel christening in 20 years: Silver Discoverer

3,807-pax Mariner of the Seas replaces 2,076-pax Legend of the Seas Home-porting of largest-ever

ship in Asia: Voyager of the Seas (3,840-pax)

10 maiden calls including RCIs newest, most innovative ship:

First-time ever brands in Singapore: Carnival Cruise Line, MSC and TUI Cruises

Refurbishment of Singapore Cruise Centre

Sapphire Princess Seasonal Homeport

Celebrity Century Seasonal Homeport

Signed a 3-year multi-million dollar partnership with Princess Cruises

Quantum of the Seas

Signed a 3-year multi-million dollar partnership with Costa Cruises

Carnival Corp opens regional headquarters in Singapore

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STBs Cruise Vision

Develop Singapore as Asias Year-round Homeport of Choice - Capitalise growth to maximise economic benefits

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STBs Cruise Strategy

Policy and regulation reviews to support a conducive business environment

Raising capabilities of industry partners to drive growth and extract greater yield from Cruise

Securing pipeline of cruise ships deploying out of Singapore

Growing local and

regional source markets for cruise passengers

Strengthen Southeast Asia as an attractive cruising playground

Facilitating development of local and regional cruise infrastructure

Growing the business Building the industry Infrastructure

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Charting the Way Forward

Increasing the awareness of cruising e.g. Advertorials in local dailies, Indonesia and Australia, television features, radio interviews etc.

Representing SG and SEA at international trade shows

Support for cruise lines activities via Cruise Development Fund

Shorex Ideation workshop India Cruise Forum Trade FAMs

Examples of recent initiatives

Shore Excursion Ideation Workshop Nov 2014

Regional Familiarisation Trip for Cruise Lines to Southeast Asia

Increasing awareness of SEA to encourage ship

deployments to the region

Advertorials in local dailies

Expanding the source market of cruisers locally and in the

region

Increasing industrys understanding of cruise

potential and establishing business links

Representing SG and SEA at international trade shows

India Cruise Forum Feb 2015

Advertorials in key source markets such as Indonesia

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Understanding the Cruise Product

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Carnival Corp. 45%

RCCL 24%

Star Cruises/NCL

7%

MSC 7%

Others 17%

Market share by passenger capacity

Source: The Global Cruise Industry (2013) presented by Cruise Industry News

Key Cruise Operators in the Cruise Sector

ROYAL CARRIBEAN CRUISES LTD.

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Passenger Carried

6000+

3000+

2000+

1000+

10 A380 planes

Evolution of the Cruise Industry

1970s

1980s

1990s

2000s

Cruise ships are getting bigger in recent years

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360 views in the North Star

On-board Offerings

Innovative On-board Activities

Bumper Car Arena

Water Playground On-board Sky Diving High Element Courses

Sea Walk

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Pool Deck Party Broadway Musicals

On-board Offerings

Endless Entertainment

Movies under the Stars

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On-board Offerings

Princess Cruises Pool

Spa Treatments

Facilities to Relax and Rejuvenate

Gymnasium Variety of Pool Options

Meeting & Networking Facilities

Lounges Conference Room Theatre

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Cruise Itineraries

Alaska

Tracy Arm Fjord

Skagway

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Cruise Itineraries

Bahamas

Saint Kitts

Saint Lucia

Mexico

New Jersey

Caribbean

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Cruise Itineraries

Europe Norway

Artic Circle

Greece

Spain

Italy

Denmark

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Cruise Itineraries

Australia/New Zealand

Doubtful Sound

Brisbane

Darwin

Dunedin

Sydney These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB

Cruise Itineraries

Asia

Korea

Japan

India

China

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Cruise Itineraries

Southeast Asia

Thailand Malaysia

Philippines

Indonesia

Singapore

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Advantages of Cruising

Multi-destination experience Convenient no need to unpack or arrangement logistics to get from destination to destination Many experiences both on-board and on-shore e.g. activities, meal options, entertainment Suitable for different groups of travellers e.g. elderly, couples, families and singles Value for money i.e. All-in one fare covers accommodation, meals, activities

A convenient, value-for-money way to enjoy a myriad of experiences

On-board activities On-board entertainment Variety of dining options

All-inclusive Fare Pack and unpack only once These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB

Advantages of Cruising

Multi-destination experience Convenient no need to unpack or arrangement logistics to get from destination to destination Many experiences both on-board and on-shore e.g. activities, meal options, entertainment Suitable for different groups of travellers e.g. elderly, couples, families and singles Value for money i.e. All-in one fare covers accommodation, meals, activities

A vacation option suited for different groups of travellers

Adults

Children Couples

Singles These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB

Categories of Cruises

Type

Size Mid to Large (2,000 to 6,000+ pax) Small to Mid (700+ to 3000+ pax) Small (100 to 700 pax)

Length of Sailing

Short 3,4,5 night cruises 4 - 7 night cruises 7 nights & longer

Price Point Up to USD 150 per person per day

Up to USD 230 per person per day

Up to USD 480 per person per day

Profile of Passengers

Predominantly families and couples

Predominantly couples and retirees

Predominantly couples and retirees

Cruise Experience

The affordable mass market cruise ; Offers amenity- filled experience in a casual environment.

More up-scale experience, ships are usually designed to offer greater space and comfort for each passenger.

Cruise ships offer luxury with personalised experience in a more intimate setting e.g. butler service. Cruise experience tends to be more inclusive such as including alcoholic beverages in the package.

Presence in Singapore

78% 12% 10%

Contemporary Premium Luxury

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Type of Ship

Size Small (

Passengers debark and explore destination before they return to the ship Possibility of half/full day shore excursions

Sailing starts and/or end in Singapore and there is a turnaround of passengers Possibility of passengers to do pre and/or post stays in Singapore Possibility of half/full day ground tours

Home-ported (70%)/Turnaround (21%) sailings

Port-of-call (10%) sailings

Types of Cruise Ship Calls

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Understanding Cruise Passengers

Source: CLIA 2011 Cruise Market Profile Study Source: CLIA State of the Cruise Industry 2014 Report Source: CLIA State of the Cruise Industry 2015 Report

Average age: 45 - 55 years Increasing number of families and

honeymoon couples

Passenger growth coming from younger generation travellers especially Millennials

*Varies according to type of ship and itinerary

Seeking unique/exclusive/memorable experiences

Staying connected with friends and family through Wi-Fi and phone connectivity

Group Travel

Love for themed cruises and foodcations

General Demographics*

Consumer Cruise Trends

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Understanding Cruise Passengers

Source: CLIA State of the Cruise Industry 2015 Report Source: CLIA 2011 Cruise Market Profile Study

Short duration for shore excursions (Shorex)

Fast-pass in attractions Accessibility to attractions from cruise terminals

May visit attractions in large groups

Capacity to accommodate groups and high influx of passengers at one time

Seeking unique/exclusive experiences

Niche tours/intimate venues

Some cruise passengers may be elderly with mobility challenges Elderly-friendly facilities

~70% of cruise travellers use a travel agent to plan and book cruise vacations

Cruise travellers tend to plan their vacation 4.9 months prior and make a booking 3.3 months before the trip

Booking Patterns

Cruise Passengers Needs

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Ideas for Exploration

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Ideas for Exploration

Shore Excursions

City tours

Back-of-house / exclusive experiences

Local cuisine cooking classes

Business tours on technology/design etc.

Case Study

Celebrity Cruises organised a 7N Presidents Cruises hosted by then-PCEO Michael Bayley in 2014 for loyal guests

Impact/Opportunity: Cruise operators, ground handlers and

experience owners collaborated to deliver wow experiences for guests on-board

E.g. hot air balloon, helicopter flight etc. Exclusive experiences were well-received by

guests and contributed towards a memorable sailing

Potential repeat visits to attractions and positive word-of-mouth/publicity These slides are property of STB and shall not be reproduced and/or redistributed without permission

from STB

Ideas for Exploration

MICE Events On-board

On-board meeting facilities

Boardroom

Lounges

Theatre

Benefits for MICE travellers

All-inclusive fare

One-stop venue

Exciting on-board offerings for participants and accompanying pax

Multi-destination experience

Extend stay in Singapore pre/post cruise

Seamless airport to

ship connectivity

Year-round option for MICE events

Case Study

Aflac, the largest provider of supplemental insurance in the U.S, chartered Carnival Ecstasy for a combined incentive/convention for 1,800 pax.

The event included a black-tie dinner and on-shore award presentation

Impact/Opportunity: Cruise operators and event organisers

collaborated to deliver a creative and customised experience for guests

E.g. personalised letters from the captain, name plates on stateroom doors, individual bon voyage gifts etc.

Event received positive reviews and Aflac booked another cruise ship for another program

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Ideas for Exploration

On-board Special Demonstrations

On-board showcase by industry stakeholders

SATS Ltd. worked with RCI to showcase their award-winning chocolatier, Then Chui Foong, on-board a 3N Legend of the Seas holiday cruise

The highlight of the sailing was Chui Foong creating a chocolate sculpture in front of guests in the ships Centrum

Impact/Opportunity: Heightened publicity of product/service to cruise

passengers Other similar showcases on board e.g. Cooking Nanta

serve as a unique selling point which agents can highlight to potential consumers

Case Study

Cooking NANTA performance These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB

Ideas for Exploration

Themed Cruises

Music Festival on-board Character Themed Cruise

Sports-themed Sailings

Case Study

Formula 1 Singapore Grand Prix

The Melbourne Cup is hosted in Melbourne annually and P&O Cruises specially organises several themed sailings

Impact/Opportunity: Heightened publicity of event to cruise passengers Cruise operators, travel agents and ground handlers

leveraged the marquee sports event to theme the sailing

E.g. Cup Day Gala Breakfast hosted by a race celebrity, VIP access to a suite at the race, Behind-the-scenes tour of the racecourse, Special collectibles

Themed cruise packages have a unique selling proposition to consumers and provides additional sales potential for agents

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Ideas for Exploration

Exclusive Pre/Post Cruise Experiences

Gala Dinner at Gardens by the Bay

Amazing race concept of exploring precincts

Case Study

As part of its round-the-world cruise, Crystal Cruises wanted to host its guests to a special event at marquee ports along the sailing

Impact/Opportunity: Cruise operators and ground handlers collaborated to

organise an exclusive Gala Dinner for guests at Gardens by the Bay

Guests were kept entertained by specially choreographed performances telling the tale of Singapores history and culture

Exclusive event was well-received by guests and contributed towards a memorable sailing and potential repeat visits

Event generated revenue for a wide spectrum of stakeholders e.g. venue providers, event organisers etc.

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In Summary

The rate of growth of cruise ships deployments is strongest in Asia, and Singapore projects a 5 - 8% CAGR in passenger throughput in the next 3 - 4 years.

Cruising is fast gaining traction amongst local and regional travellers as a new holiday option.

Cruise passengers are increasingly seeking exclusive and

unique experiences. Industry partners can tailor/package products and services to cater to the needs of this new market segment.

Strong support from STB, cruise associations and cruise lines through training, business facilitation and other initiatives, to welcome more industry players to leverage these growth opportunities.

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Thank you

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