WORKING THE CRUISE MARKET IN THE NT

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1 WORKING THE CRUISE MARKET IN THE NT Darwin Cruise Ship Terminal 20 November 2012 Richard Schoonraad Manager, Cruise Sector Development

2 AGENDA Tourism NT Market Overview Cruise Lines who s who? Getting your product to the Cruise Lines Designing tours to suit cruise passengers Have you considered the crew? Tourism Top End and Tourism NT Questions and comments

3 Tourism NT s Objectives Develop potential of the cruise sector to grow the visitor economy Promote Darwin as the preferred North Australian gateway Provide commercial opportunities for operators Maximise economic impact

4 Tourism NT s role Cruise ship attraction Home base operations Port visits Experience Development Creating exciting on-shore experiences Influencing cruise lines Working distribution partners Infrastructure & Facilities Marine Tourism operators Service providers

5 MARKET OVERVIEW

6 GLOBAL SOURCE MARKETS Cruise passengers numbered 20 MILLION for the first time ever in 2011! Rest of World 14% Europe 30% North America 56% Source: International Cruise Council of Australia

7 SOURCE MARKETS - Europe Switzerland 2% Benelux 2% Scandinavia 5% Austria 2% Other Europe 4% France 7% United Kingdom 29% Spain 11% Italy 16% Germany 22% Source: International Cruise Council of Australia

8 SOURCE MARKETS Rest of World % average annual growth Passenger Numbers ( 000) % average annual growth 15% average annual growth Source: International Cruise Council of Australia

9 Cruise Passengers Australia , , , ,381 Passenger Numbers 500, , , , , , , , , (est.) Year Source: International Cruise Council of Australia, Cruise Down Under

10 Cruise Ship Visits - NT Cruise Ship Visits Cruise Ship Visits include the number of times a cruise ship has visited Darwin. One ship may visit multiple times each visit is counted Estimate Year Source: Darwin Port Corporation

11 Darwin Cruise Visitors (Passengers and Crew) No. of people Days in Port is calculated using a formula that takes into account the number of passengers or crew likelyto go ashore, and counts passengers and crew alighting and disembarking on cruises that turn around in Darwin Year PAX-Actual PAX-Days in Port CREW-Actual CREW-Days in Port Expon. (PAX-Actual) Source: Cruise Down Under, Darwin Port Corporation, Tourism NT

12 Expenditure Passengers and Crew Direct Expenditure ($ millio on) Represents spending by passengers and crew on meals, food and wine, tours, entertainment, gifts and transport while in port. Passenger expenditure also includes pre/post-cruise spending on these items Year Passengers Crew Source: Cruise Down Under

13 EXPENDITURE Passenger, Crew, Operational Direct Expenditure ($ million) This includes operations and capital expenditure by cruise lines while in port, including port charges, pilotage, towage, bunkering, fuel, food and water, waste disposal, security, baggage handling, terminal improvements, vessel refurbishment, etc Year Operator Passengers Crew

14 CRUISE WHO S WHO - CCL

15 CRUISE WHO S WHO - RCI

16 CRUISE WHO S WHO - Independent

17 CRUISE DISTRIBUTION Demand side Consumer Cruise Specialist / Travel Agent Cruise Line Ground Handler (Inbound Operator) Product Supply side

18 SHORE EXCURSIONS Official cruise line tours Pre-booked either at time of cruise booking, pre-departure, or onboard prior to arrival Cruise line has limited program to offer Cruise line revenue stream Usually on a charter basis Trend is in decline Security for you you know in advance Security for passengers

19 INDEPENDENT TOURS Internet research from planning phase right up to departure Bookings through various channels (agents, direct, online, TTE, etc.) Might only book on day of arrival MUST fit into cruise schedule Security for passengers if you re late back, the ship will leave without them!

20 SHORE EXCURSION TRENDS UNIQUE experiences things they can t do in other destinations (culture, nature) TIMELINESS excursion must be back on time FREE TIME pax want to explore the port and get a feel for the destination LOCAL FEEL pax want to meet locals and experience lifestyles DECLINING more pax are looking for smaller group experiences or doing own thing

21 A WORD ABOUT OH&S Our cruise season is during our hottest, most humid time of year Market is generally older, more frail WATER WATER WATER Properly trained guides (qualifications, first aid, preparedness) Steps, ramps, wheel-chair needs Take appropriate amount of time Pick the highlights of your product, not everything about it!

22 YOUR PRODUCT IN MARKET Through Cruise Lines Need to work with Ground Handlers (ITOs) Long term development and commitment Know your target market Rigid pricing and operations Safety, insurance requirements Independent Work with Tourism Top End Highlight your options on your website Cruise optimise your website Maintain price integrity Be flexible with departures, but not with returning!

23 CRUISE DEVELOPMENT CYCLE Cruise Down Under Tourism NT Darwin Port Corporation Ground Handlers Contract 2 years - 18 months Sales months Departure 6 months to a week Arrival Cruise Line Pitch 2-3 years

24 NEXT STEPS Assess your product Contact ground handlers Website updates Training of your guides Keep Tourism NT informed Ask Tourism NT or Tourism Top End for further details

25 TOURISM NT S ACTIVITIES Development of the Cruise Sector Activation Plan Cruise Line itinerary planner guide Destination guide development Home-Base Feasibility Study Attending major cruise events: Cruise Down Under Conference Seatrade Miami (Cruise Shipping Miami) Business Development activities with cruise lines in Australia and overseas

26 USEFUL LINKS Darwin Port Corporation website List of cruise ship visits for next 2-3 years Updated regularly Tourism NT E-newsletter from CEO Workshops Ground Handler list Cruise Sector Activation Plan (FEB 2013)

27 QUESTIONS

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