Measuring economic effects of cruise tourism - Port of Tallinn perspective Sirle Arro, Port of Tallinn at the Workshop Measurement of regional economic effects caused by cruise tourism, Gdansk Gdansk / Poland, June 26th-27th 2017
Port of Tallinn: Economic Impact of Cruise Tourism Sirle Arro
Business Fields Passengers Shipping 10 mil passengers a year Cargo 20 mil tons a year Real Estate Industrial parks 86 ha Old City Harbour 50 ha Ferry shipping - 2 mil passengers a year; Ice-breaker Botnica
HARBOURS FROM CARGO TO CRUISE Tallinn Muuga Harbour Old City Harbour Paljassaare Harbour Paldiski South Harbour Saaremaa Harbour
Old City Harbour Esto ia s Biggest Touris Gateway Passengers (ferries, cruises, yachts), Ro-Ro TERRITORY AQUATORY TOTAL LENGTH OF BERTHS NUMBER OF BERTHS MAX. DEPTH MAX. LENGTH OF A VESSEL 54.2 ha 75.9 ha 5 km 25 10.7 m 340+ m
Cruise piers
Cruise ships & passengers Tallinn Number of cruise calls, passengers (,000) 600 500 400 300 200 100 0 passengers calls 519 520 500 480 474 416 438 440 391 376 292 327 298 305 268 284 293 295 297 314 280 271 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cruise passengers by citizenship (2015) 2010 Russia 2% Finland 2% rest 139 17% Germany 28% France 3% Australia 3% Spain 5% Kanada 5% Italy 5% Great Brittain 13% USA 18% Source: Borderguard Board
TALLINN OLD TOWN: Nordic jewel
Tallinn The highlight of Baltic cruise UNESCO World Heritage site Harbour located in the city center Close to the Old Town and main tourist attractions Dedicated cruise quays and cruise vessel service area Berthing places for 4-7 cruise ships Attractive discount system on port dues Memorable welcome Highly rated by cruise companies and cruise passengers
Impact of Cruise Business
Number of passengers 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 5% 6% 5% 5% 5% 11% 10% 10% 10% 9% 82% 82% 83% 84% 84% 2012 2013 2014 2015 2016 Other Cruise passengers Paldiski-Kapellskär Tallinn-St. Petersburg Tallinn-Stockholm Tallinn-Helsinki
Port of Tallinn Total Income ( 2016) cruise 6% Shipping 16% other 6% cargo [PERCENTAGE] ferry 32%
Desti atio s Income from Cruise Tourism Port fees, Airport fees Navigation and pilotage fees Agency fees Ship supply Shore excursions Passenger spendings Crew spendings Crew changes Etc. Indirect impact
Port dues 2017 Tonnage charge 0,48 EUR/GT Mooring charge 88/114/134 EUR/ per operation Passenger fee 1,46 EUR/passenger Discounts: 2nd & 3rd call 35% 4th & 5th call 55% from 6th call 65% Special agreements for turnarounds
Economic Impact Surveys Passenger and crew spendings survey Ordered by Cruise Baltic and Port of Tallinn in 2015 and in 2012 Conducted by G.P.Wild Survey Period: May October Number of Surveys Returned 2015: Passengers: 937 Crew: 239
Number of hours spent ashore Passengers 97% of the survey respondents reported that they went ashore in Tallinn. The typical passenger spent an average of 5.0 hours ashore. The average length of a purchased onshore tour was 4.0 hours. Five or More Hours 53% Four Hours 28% One Hour or Less 2% Two Hours 3% Three Hours 14%
Spendings on tours About 54% of the cruise passengers that went ashore purchased a shore excursion. 151 to 200 10% 101 to 150 13% More than 200 4% Less than 50 37% Passengers visiting Tallinn who purchased a tour spent an average of 93 per party or 44.90 per passenger for their tour. 76 to 100 17% 51 to 75 19% Cost of Shore Excursion Per Party
New museums Tallinn Estonian Food Museum Tallinn Museum of Orders of Knighthood Carved Stone Museum
Other individual spendings Passengers reported spending another 34.90 per passenger while ashore for other goods. 70% of passengers purchased local crafts and souvenirs at an average price of 16.80 per purchase and a weighted average of 11.71 per passenger visit. Another 60% of the passengers made purchases of food and beverages with an average expenditure of 11.61 per purchase and a weighted average of 6.94 per passenger visit 25% of the passengers made purchases of clothing with an average expenditure of 25.29 per purchase and a weighted average of 6.27 per passenger visit. Purchase Categories Share of All Onshore Purchasers Average Spend per Purchase Weighted Average Spend per Passenger Food and Beverages at Restaurants & Bars 59.8% 11.61 6.94 Taxis/Ground Transportation 12.7% 14.64 1.87 Watches & Jewelry 10.9% 41.85 4.56 Clothing 24.8% 25.29 6.27 Local Crafts & Souvenirs 69.7% 16.80 11.71 Entertainment/Night Clubs/Casinos 0.6% 17.73 0.10 Museums & Galleries 11.0% 7.71 0.85 Other Purchases 15.6% 11.61 2.60 Total Other Expenditures per 34.90 Passenger Ashore
Survey 2015 Attributes of Crew Visits 56% of the crew respondents reported going ashore during the current cruise call in Tallinn. Another 40% who did not go ashore during the current call did so at least once in the previous month. The typical crew member spent an average of 2.3 hours ashore. Four Hours 9% Three Hours 22% Five or More Hours 6% Two Hours 38% One Hour 25% Number of Hours Ashore
Survey Crew Onshore Expenditures 2015 Crew visiting Tallinn reported spending an average of 20.57 while ashore. Purchases of food and beverages accounted for 36% of average spending by crew. Purchases of clothing accounted for another 31% of their average expenditures. Purchases of local crafts and souvenirs accounted for 13% of their average expenditures. The top three expenditure categories (food and beverages, clothing and local crafts) accounted for 80% of crew average onshore expenditures. Purchase Categories Average Spend per Purchase Share of All Ashore Weighted Average Spend per Crew Food & Beverages at Restaurants & Bars 29.29 25.2% 7.38 Taxis/Ground Transportation 10.61 3.7% 0.39 Watches & Jewelry 111.67 1.2% 1.36 Clothing 68.66 9.3% 6.42 Local Crafts & Souvenirs 32.22 8.5% 2.75 Museums & Galleries 4.00 1.6% 0.07 All Other Purchases 45.20 4.9% 2.20 Total Expenditures per Crew Ashore 20.57
Cruise port village Authentic souvenirs & Best selection
Estimated Passenger and Crew Spending 2012 Transit passengers visiting Tallinn spent an average of 56.70 on tours and retail shopping accounting for 86% of their expenditures. Crew visiting Tallinn spent an average of 22.61 on food and beverages, entertainment and retail goods accounting for 72% of their expenditures. Average Expenditure per Passenger/Crew Category Transit Crew F&B & Entertainment 4.82 6.75 Tours & Ground Transportation 27.33 1.56 Retail Goods 21.48 9.52 Other Purchases 3.07 4.78 Total 56.70 22.61
Total Expenditures Survey 2012 Passengers and crew spent an estimated 26.4 million during 2012 Transit passengers accounted for 95% of the total with crew accounting for the remaining 5%. Passengers and crew spent 12.1 million on tours and other ground transportation, accounting for just over 45% of their total expenditures. Passengers and crew spent another $10 million on retail items, accounting for 38% of their total expenditures. Total Expenditures Category Transit Crew Total F&B & Entertainment Tours & Ground Transportation Retail Goods Other Purchases Total 2,123,229 12,038,974 9,462,026 1,352,347 24,976,578 417,295 96,442 588,541 295,507 1,397,785 2,540,525 12,135,416 10,050,567 1,647,854 26,374,363
Economic Impact Passenger and Crew Spending 2012 The 26.4 million in passenger and crew spending generated an estimated 177 direct jobs The transportation sector (primarily tour operators) had the highest direct employment impact with 63 jobs The wholesale and retail sector had the second highest direct impact with 32 jobs The hospitality sector (primarily restaurants and entertainment venues) benefitted from 23 jobs Industry Wholesale & Retail Trade Transportation & Utilities Direct Expenditures Millions Direct Employment Direct Compensation Millions 4.48 32 1.15 12.17 63 1.25 Hospitality 2.54 23 0.61 All Others 7.18 58 1.30 Total 26.37 177 4.31
Economic Impact Passenger and Crew Spending 2012 The 26.4 million in passenger and crew spending generated an estimated 50.6 million in total (direct + indirect) output throughout Estonia. This output resulted in the employment of 365 residents of Estonia paying 9.07 million in compensation. Because the direct impacts account for about 45% of the total impacts, the total impacts remain concentrated in the trade and transportation sectors. However, the indirect impacts do spread into other sectors, including manufacturing, business and financial services to name a few. Industry Total Output Millions Total Employment Total Compensation Millions Manufacturing 9.10 37 1.64 Wholesale & Retail Trade Transportation & Utilities 6.60 106 1.77 21.40 89 2.88 Hospitality 2.60 29 0.63 Financial & Business Services 6.60 69 1.39 All Others 4.30 35 0.76 Total 50.60 365 9.07
Economic Impact Passenger and Crew Spending 2012 Other major highlights of the total economic impacts include: Every 1 million in passenger and crew spending generated 14 jobs in Estonia. On average each of these jobs paid 24,800 in employee compensation. The trade, transportation and hospitality sectors accounted for about 67% of the direct impacts. Financial & Business Services 19% Hospitality 8% Personal Services & Govt 6% All Other Sectors 4% Manufacturi ng 10% Wholesale & Retail Trade 29% The manufacturing, financial, business and personal services sectors accounted for nearly 55% of the indirect impacts. Every 10 direct jobs generated by passenger and crew spending resulted in about another 11 jobs elsewhere in the economy of Estonia. Transportati on & Utilities 24% Total Employment Impact
Survey: Foreign vistors in Tallinn Cruise Passengers Survey ordered by City of Tallinn and conducted by TNS Emor in 2014 : On average, cruise passengers spend 4,2 hours in Tallinn. The main activities are sightseeing, walking around the city, shopping and going to cafes/restaurants. 75 % of cruise passengers spent money during their visit to Tallinn. Average total spending per person during one day was 71 EUR. Total direct impact 25,56 mln EUR The majority of cruise passengers spent money on souvenirs and gifts as well as food and drink. www.visittallinn.ee
Average spending per person per day Average spending per person per day (in EURO)
Turnarounds
Economic impact: 5 turnarounds vs 5 transit calls (Tallinn 2012) Turnaround 7204 pax Pax spendings [PERCENTAGE] Port [PERCENTAGE] Transport + tours 12% Airport [PERCENTAGE ] Port [PERCENTAGE ] Transport + tours 11% Supply 2% Pilotage, fairways Pilotage, fairways 4% Agency fees+luggage 7% Supply [PERCENTAGE] Airport [PERCENTAGE] Pax spendings [PERCENTAGE ] Agency fees 1% fees 9% Transit 3367 pax Total turnover of turnarounds was 2,3 times higher than of transit calls
Other impacts Image: Positive spread of word of Tallinn & Estonia 98% of all cruise passengers would very likely or quite likely recommend a trip to Tallinn to their friends or acquaintances. Returning visitors: ca 47% will very likely or quite likely return for land based vacation 52% of the crew respondents reported that they were either very or extremely likely to return to Tallinn for a land-based vacation.
Likelihood of visiting Tallinn again % of all visitors belonging to the target group
Recommendation to visit
Other spendings Medical sector Flowers Local food products Spare parts, consulate fees, bycycle repair, glasses,.. whatever product or service you might think has been ordered.
In conclusion We have reliable data about passenger spendings We have more or less reliable data about crew spendings We have reliable data about port dues We have some knowledge about the products and services order by cruise lines, but there is lack of information about cruise line spendings and orders New possible study??
SAAREMAA HARBOUR Enjoy the most beautiful and purest nature on the Baltic Sea! Passengers (yachts & cruises), cargo TERRITORY AQUATORY TOTAL LENGTH OF BERTHS NUMBER OF BERTHS MAX. DEPTH MAX. LENGTH OF A VESSEL 10.08 ha 44.3 ha 460 m 3 + floating drydock 10 m 200 + m
Cruise ship calls & passengers Saaremaa Passengers Calls Cruise calls, passengers 8 7 6 5 4 3 2 1 4,909 7 6 6 2,581 1,974 5 1,031 2 0,683 5,655 8 3 1,121 14 6,456 7,500 10 3,623 5 2 0,719 7 1,525 0
SAAREMAA Different Estonian experience A magical island in the middle of the Baltic Sea Folklore, heritage and history Traditional lifestyle with a modern twist Attractive and suprising green break from cities Dedicated cruise quays Beloved holiday destination for Estonians
Kuressaare castle from the 14th century: Among the medieval castles in the Baltic countries this is the one that has survived best.