Increasing Canada s Market
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1 ACPA ANNUAL MEETING Increasing Canada s Market Share in Cruise September 2018
2 Worldwide Capacity 4% Alaska 1% Canada/New England 5% Alaska 1% Canada/New England 16% Asia/Pacific 26% 33% % Other Europe Caribbean 20% Other 13% Asia/Pacific 27% Europe 33% Caribbean Industry capacity includes: AIDA, Azamara, Carnival, Celebrity, Costa, Crystal, Cunard, Disney, HAL, MSC, NCL, Oceania, P&O Australia, P&O UK, Princess, Pullmantur, RCI, Regent, Seabourn, Silversea, TUI, Dream, SkySea, Star (China only), Viking **Capacity in APCDs
3 North American Homeport Capacity 5% Canada homeports 5% Canada homeports FULL YEAR 95% US homeports FULL YEAR 95% US homeports 2017 Canada homeports 9% % Canada homeports SUMMER & FALL (MAY-OCT) 91% US homeports SUMMER & FALL (MAY-OCT) 89% US homeports
4 Canadian Homeport Capacity % Eastern Canada Homeports 17% Eastern Canada Homeports 82% Western Canada Homeports 83% Western Canada Homeports Industry capacity includes: AIDA, Azamara, Carnival, Celebrity, Costa, Crystal, Cunard, Disney, HAL, MSC, NCL, Oceania, P&O Australia, P&O UK, Princess, Pullmantur, RCI, Regent, Seabourn, Silversea, TUI, Dream, SkySea, Star (China only), Viking **Capacity in APCDs
5 Industry Capacity % CAGR Capacity will grow 44% next 10 years, 4% on annualized basis Maintaining share would provide meaningful increase in economic activity Source: Seatrade Orderbook Firm Newbuild Orders Capacity: Lower Berths
6 Industry Capacity CANADA/NEW ENGLAND ALASKA +10% CAGR +17% CAGR Growth in Canada/New England & Alaska outpacing industry growth CAGR: Compound Annual Growth Rate
7 Seasonal Capacity Mix Summer Growing in Canada New England INDUSTRY 80% 76% 72% 68% +10% CAGR % 24% 28% 32% +38% CAGR Summer (Apr-Aug) Fall (Sept-Nov) CAGR: Compound Annual Growth Rate
8 Guest Ratings SATISFACTION APPEAL 2017 RCL Guest Ratings Guest ratings strong in region with satisfaction slightly outpacing appeal
9 Eastern Canada Turn Ports # OF INDUSTRY CALLS Quebec City Montreal New terminal in Montreal upgrades experience, but limited to small ships Quebec City is one of the highest rated ports in the region and functions both as a home port and a port of call New terminal, recently announced, will also enable growth in turnarounds and a consistent experience Opportunity in the region to develop new itineraries roundtrip Montreal & Quebec to Atlantic Canada & Newfoundland complementing existing routes Source:
10 Eastern Canada Ports of Call # OF INDUSTRY CALLS Halifax is most visited of the Eastern Canada ports New infrastructure coming on line in several ports including Sydney and Charlottetown, which will help facilitate growth Port modernization program in Saint John will facilitate the arrival of the world s largest cruise ships Source:
11 Western Canada Turn Ports # OF INDUSTRY CALLS Vancouver, British Columbia, Canada Alaska is the primary region served by Western Canadian ports Alaska industry growing and at record levels Port congestion and lack of terminals in the homeports and port of calls are limiting growth Lines are upsizing ships due to lack of berths, putting pressure on infrastructure Some of the larger ships calling in Alaska can no longer call Vancouver due to bridge heights and terminal sizes Alaska ports of call also will need to expand piers as well as tour development Source:
12 Western Canada Ports of Call # OF INDUSTRY CALLS Victoria continues to capture almost all port calls in the region Included on almost all Seattle based Alaska itineraries Highest appeal of ports in the region Opportunities for other ports to grow & build product Victoria Other Source:
13 Global Overview Australia Croatia Germany Japan Norway Singapore
14 Summary How can regional approaches to cruise tourism be transformed into a national strategy? Opportunity to learn from all region can successes targeting families in Alaska be replicated in Eastern Canada during the summer months? National focus on upgrading infrastructure key to keep up with new ships What are the opportunities for new markets for cruise? China is one of the faster growing sectors and outbound travel is an opportunity for Canada New routes & itineraries can re-energize and expand existing markets How have other regions & countries worked with the cruise industry, tourism, local operators, to the economic benefit in a sustainable way? Important to work together to carefully plan infrastructure which respects guest experience, impact to communities, and environment New experiences and attractions may need to be developed
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