UNWTO World Tourism Conference

Cruise Tourism Global Perspective

William Harber, VP Market Development, Carnival Asia

Melaka, Malaysia, 21 – 23 October 2013

▪ A relatively new vacation product in Asia

▪ Freedom of travel and cultural connections

▪ Many leisure options on one ship and a new destination every day

▪ Something for every friend and family member to enjoy together

▪ An opportunity for leading destinations to accelerate the growth of the global tourism industry

Cruising is …

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Carnival Corporation & plc

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▪ Largest cruise company in the world (10 cruise brands)

▪ 102 ships with 7 more ships on order

▪ 10 million of the world’s 20 million cruise guests (50% market share)

▪ 90,000 employees

▪ USD$15 billion in revenue in 2012

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Carnival Corporation 2014 Asia offices & port visits

▪ Costa: Shanghai, Tianjin, Hong Kong, Keelung, Singapore, Yokohama

▪ Princess: Yokohama, Kobe, Sapporo, Singapore, Shanghai

Full year/ partial year home ports announced for Asia

Costa Atlantica Costa

Victoria

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Sapphire Princess

Sun

Princess

Diamond Princess

2102 annual percent of population to cruise

The cruise industry has growth potential on a global basis

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Japan

China

Germany

Italy

UK

US

Korea

Source: Carnival Corporation & plc proprietary research

Australia

3.4%

2.8%

2.7%

1.9%

1.4%

0.02%

0.02%

0.01%

We forecast significant cruise industry growth in Asia

3.7 million

guests by 2017

7 million

guests by 2020

20% of global

cruise market by

2020

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Source: Projected number of cruise guests. Carnival Corporation & plc proprietary research

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Economic impact of the cruise sector (USD$)

42.3

19.6

17.4

5.3

$42.3B in US

Source : Contribution of Cruise Tourism to Economies of Europe 2012, (BREA report) Contribution of Cruise

Tourism to UK 2012, (BREA report) Contribution of NA Cruise Industry to US Economy in 2012

356k jobs in US 326k jobs in Europe 2k jobs in AUS

2.9

1.7

0.8

0.4

$2.9B in AUS

51.1

20.9

13.6

16.6

Overall Impact

Direct Spending

Overall JobsCompensation

Indirect/ InducedContribution

$51.1B in Europe

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Economic impact falls into many categories …

▪ Shipboard and shoreside job creation

▪ Goods and services for guests and crew

▪ Commissions paid to travel agents

▪ Port facilities, infrastructure, ship supplies

▪ Ship maintenance, repair and construction

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Malaysia: a local perspective on the cruise sector

▪ Malaysia’s Economic Transformation Programme as identified 12 high impact projects (EPPs) across 5 themes

▪ Cruise tourism, under the theme of “Family Fun,” is targeted for 3X growth by 2020

▪ Malaysia is strategically located as a cruise destination, with numerous ports available for year-round cruising • 6 primary ports identified by the government – including Melaka – and numerous

secondary cruise destinations are also present

▪ To coordinate planning and policy recommendations, a Malaysian Cruise Council has been established • Co-chaired by the Secretaries General of the Ministry of Tourism & Culture and the

Ministry of Transport

• Involves both public and private sector representation from the industry

To obtain the benefits, we need to work together to …

Develop

ports for

cruise ships

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Develop

destinations

for guests

Grow the

awareness of

cruising

Relax visa

paperwork &

expedite

customs

Some final thoughts …

1. Cruising is one of the safest, most affordable and enjoyable vacation

experiences available today.

2. Cruise line, passenger and crew spending generates nearly USD $100 billion

globally and create 750,000 direct and indirect jobs, amounting to nearly USD

$40 billion in wages on a global basis.

3. The safety of guests and crew is our #1 priority and fundamental to our

business. A United Nations agency – the International Maritime Organization

(IMO) – mandates global standards for the safety and operation of cruise ships.

4. Cruise lines are also 100% committed to preserving clean air and pristine

waters wherever we operate.

5. The industry has a vested interested in protecting the global ocean

environment, not only because it’s the responsible thing to do – but also

because clean oceans and beaches are essential to the cruise experience.

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