UNWTO World Tourism Conference Cruise Tourism Global Perspective

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1 UNWTO World Tourism Conference Cruise Tourism Global Perspective William Harber, VP Market Development, Carnival Asia Melaka, Malaysia, October 2013

2 Cruising is 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 1

3 Carnival Corporation & plc 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

4 Carnival Corporation 2014 Asia offices & port visits 3

5 Full year/ partial year home ports announced for Asia Costa: Shanghai, Tianjin, Hong Kong, Keelung, Singapore, Yokohama Costa Atlantica Costa Victoria Princess: Yokohama, Kobe, Sapporo, Singapore, Shanghai Sapphire Princess Diamond Princess Sun Princess 4

6 The cruise industry has growth potential on a global basis 2102 annual percent of population to cruise US Australia UK Germany Italy 3.4% 2.8% 2.7% 1.9% 1.4% Japan Korea China 0.02% 0.02% 0.01% 5 Source: Carnival Corporation & plc proprietary research

7 We forecast significant cruise industry growth in Asia 3.7 million guests by million guests by % of global cruise market by Source: Projected number of cruise guests. Carnival Corporation & plc proprietary research

8 Economic impact of the cruise sector (USD$) $51.1B in Europe $42.3B in US $2.9B in AUS Overall Impact Direct Spending Overall Jobs Compensation Indirect/ Induced Contribution k jobs in Europe 356k jobs in US 2k jobs in AUS 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

9 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 8

10 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 9

11 To obtain the benefits, we need to work together to Grow the awareness of cruising Develop ports for cruise ships Develop destinations for guests Relax visa paperwork & expedite customs 10

12 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. 11

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