CRUISE INDUSTRY SOURCE MARKET REPORT

CRUISE INDUSTRY SOURCE MARKET REPORT New Zealand 2014 www.cruising.org.nz 1

#1 cruising DeStiNatioN in australia Sydney the Gateway Port for Australasian Cruising Two cruise terminals one destination CRUISE INDUSTRY SOURCE MARKET REPORT New Zealand 2014 CONTENTS Executive summary 2-3 Total passenger numbers 4 World perspective 5 Key destinations 6 Demographics 7 Cruise duration 8 State of the art facilities: Newly upgraded overseas Passenger terminal offering improved facilities and efficiency in the heart of the city, ready for next generation cruise ships Award winning White Bay cruise terminal providing state of the art operational capabilities 24/7 deep water access Visit www.portauthority.com.au enquiries +61 2 9296 4962 ABOUT Cruise Lines International Association (CLIA) Australasia One Industry, One Voice Celebrating its 40th Anniversary in 2015, Cruise Lines International Association (CLIA) is the unified voice and leading authority of the global cruise community. As the largest cruise industry trade association with 15 offices globally, CLIA has representation in North and South America, Europe, Asia and Australasia. CLIA s mission is to support policies and practices that foster a safe, secure, healthy and sustainable cruise ship environment for the more than 23 million passengers who cruise annually, as well as promote the cruise travel experience. Members are committed to the sustained success of the cruise industry and are comprised of the world s most prestigious ocean, river and specialty cruise lines; a highly trained and certified travel agent community; and other cruise industry partners, including ports, destinations, ship developers, suppliers, business services and travel operators. For more information, visit www.cruising.org.nz www.cruising.org.nz 1

EXECUTIVE SUMMARY More New Zealanders than ever before chose to embark on a cruise holiday in 2014, with passenger numbers swelling 10.6 per cent to a record high of 65,609. New Zealand was one of only three international markets to record a double-digit increase, ranking third in the world for growth in 2014 behind Australia (20.4 per cent) and France (13.6 per cent). The number of New Zealand cruisers has more than doubled over the past five years, with the market delivering an annual average increase in passenger numbers of 17.3 per cent since 2009. Although the overall size of the New Zealand cruise market remains modest by international standards, the proportion of the country s population experiencing a cruise continues to grow. In 2014, market penetration reached 1.4 per cent (up 0.1 per cent from 2013), placing New Zealand ahead of much larger traditional source markets such as Spain and France, and on par with Italy. New Zealand is well positioned for further growth as a source market in 2015 as cruise capacity is bolstered across Australia and the South Pacific, and CLIA members position more ships in key Asian ports. Other key findings of the New Zealand 2014 Cruise Industry Source Market Report include: 65,609 NEW ZEALAND PASSENGERS The South Pacific once again secured the largest proportion of passengers (31.4 per cent), with the region posting 12.7 per cent growth A 45 per cent increase in New Zealanders cruising domestic waters saw the local market recover from a dip in 2013 Europe ocean cruising remained the leading longhaul destination, accounting for 18.3 per cent of all New Zealand cruisers River cruising s rise continued unabated with passenger numbers increasing 31.2 per cent to pass the 5000 mark for the first time. www.cruising.org.nz 3

TOTAL PASSENGER NUMBERS WORLD PERSPECTIVE A 10.6 per cent surge pushed New Zealand cruise passenger numbers past the 60,000 mark for the first time in 2014 to reach a new record of 65,609. New Zealand passenger numbers have increased by almost 150 per cent since figures were first compiled in 2006, with the country registering an average annual growth rate of 13.8 per cent since that time. The 2014 result was achieved largely as a result of solid growth in the number of New Zealanders cruising local waters and the South Pacific, as well as those experiencing the Mediterranean and river cruise voyages around the world. 56,479 59,316 65,609 10.6% Around the world, a total of 22.1 million people experienced a cruise in 2014. For an emerging cruise market with a relatively small population, New Zealand once again stood tall on the global cruise stage. The country s growth rate of 10.6 per cent trailed only Australia (20.4 per cent) and France (13.6 per cent), and outperformed large, well-established markets such as Germany (5 per cent) and North America (2.7 per cent). By attracting more than 65,000 cruise passengers, New Zealand also lifted its market penetration to 1.4 per cent of the population (up from 1.3 per cent in 2013), placing it on par with Italy and ahead of Spain (1 per cent) and France (0.9 per cent). With CLIA members promoting new ships, ports and itineraries to an increasingly sophisticated cruise audience, the market outlook for 2015 and beyond remains buoyant. TOTAL PASSENGER NUMBERS 0 23.5% 48,037 31.7% 42,887 38,968-14.9% 35.6% 30,215 29% 31,633 26,510 14% -18.8% 2006 2007 2008 2009 2010 2011 2012 2013 2014 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 4.2% 3.4% 2.4% 2.2% 1.4% 1.4% 1.0% 0.9% 0.0% Australia North America UK/Ireland Germany Italy New Zealand Spain France Major Cruise Market Penetration Rates 25.0% 20.0% 20.4% 15.0% 13.6% 10.6% 10.0% 5.0% 0.0% -5.0% Australia 2.7% North America UK/Ireland -4.8% 5.0% Germany Italy -3.1% New Zealand Spain -4.4% France -10.0% Major Cruise Market Growth www.cruising.org.nz 5

KEY DESTINATIONS PASSENGER TRENDS The South Pacific remained unchallenged as New Zealand s most popular cruise destination in 2014. Passenger numbers grew by 12.7 per cent to 20,577, representing 31.4 per cent of the total market. Europe retained its second-place position, with passenger numbers increasing by a relatively restrained 4.8 per cent to 11,988 (18.3 per cent of the market) although within this figure Mediterranean cruising increased 5%. Europe s waterways also fuelled a 31.2 per cent increase in the number of New Zealanders experiencing river cruising, with passenger figures reaching a record 5464. In 2013, a reduction in local cruise offerings precipitated a fall in the number of New Zealanders exploring domestic ports. In 2014, the destination rebounded strongly, with passenger numbers climbing 45 per cent to reach 7519 (11.5 per cent of the market). At the same time, a reduction in the availability of roundtrip cruise itineraries from New Zealand to Australia resulted in a notable decline in passengers cruising Australian waters in 2014. The destination posted a 41 per cent decrease on 2013, with 4633 passengers. BOOKING PATTERNS The proportion of New Zealand passengers booking their cruise less than six months prior to departure grew from 39 per cent in 2013 to 47.8 per cent in 2014. A further 42.4 per cent of passengers continued to book their voyage between six and 12 months before departure, with 9.8 per cent reserving their cabin more than one year ahead of travel. 6-12 months 42.4% 12 months plus Less than 90 days 9.8% 17.3% 3-6 months 30.5% Alaska s passenger numbers slipped by 4.2 per cent in 2014, but this was more than offset by the impressive 46.1 per cent growth registered for the Caribbean region, including the Bahamas and Panamal Canal, and 44.1 per cent growth for the Other Americas region, including Hawaii, Eastern Canada, Mexico and South America. Asian passenger numbers also increased in 2014 by a respectable 30.8 per cent. PASSENGER AGE The extensive range of destinations, ships and itineraries offered by CLIA members once again ensured cruising s appeal resonated with New Zealanders of all ages. >70 19.3% <40 20.1% DESTINATION GROWTH DESTINATION 2012 2013 2014 GROWTH 2014 V. 2013 South Pacific 11,024 18,257 20,577 12.7% Europe 10,617 11,435 11,988 4.8% New Zealand 6,233 5,184 7,519 45.0% River Cruising 3,502 4,166 5,464 31.2% Australia 5,302 7,855 4,633-41.0% Other Americas 2,466 2,990 4,310 44.1% Alaska 3,440 4,090 3,919-4.2% Caribbean 1,792 1,800 2,629 46.1% Asia 1,911 1,745 2,283 30.8% World Voyages 1,082 1,152 1,251 8.6% Other 668 642 1,036 61.4% 2014 DESTINATION SHARE* OTHER 1.6% WORLD VOYAGES 1.9% ASIA 3.5% CARIBBEAN 4.0% ALASKA 6.0% OTHER AMERICAS 6.5% AUSTRALIA 7.0% RIVER CRUISING 8.3% SOUTH PACIFIC 31.4% NEW ZEALAND 11.5% EUROPE 18.3% Over the past two years the New Zealand cruise market has witnessed a drift towards both ends of the age spectrum with the proportion of passengers aged 65 years and older rising from 31 per cent in 2013 to 33.5 per cent in 2014 and the number of passengers aged under 40 increasing from 17 per cent to 20.1 per cent. At the same time, the proportion of passengers falling into the 41-50 years bracket declined marginally to 13.7 per cent in 2014. PASSENGER ORIGIN The North Island was the sole source of New Zealand s cruise market expansion in 2014, with passenger numbers growing 15 per cent to 53,799 (representing 82 per cent of the total market). By comparison, the South Island contributed 11,810 passengers, a 5.2 per cent decline on 2013. 66-70 14.2% 61-65 11.7% 56-60 10.7% 51-55 10.3% 82% 41-45 5.5% 46-50 8.2% Total 48,037 59,316 65,609 10.6% 18% *See page 9 for definition of cruise destinations. 6 www.cruising.org.nz www.cruising.org.nz 7

CRUISE DURATION LENGTH OF CRUISE Voyages of 8-14 days remained the most favoured cruise duration for New Zealanders in 2014, with this category representing 51.8 per cent of passenger numbers (34,011 cruisers), a 6.3 per cent increase on 2013. The largest growth, however, was seen in the 5-7 day range, where numbers rose by 40 per cent to 15,628 passengers (representing 23.8 per cent of the total market). The availability of more short duration voyages - in part designed to entice first-time cruisers - also contributed to a 23.1 per cent increase in the number of passengers opting for itineraries of four days or less. In total 6433 New Zealanders cruised for 1-4 days in 2014, equating to 9.8 per cent of the overall market. 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - ESTIMATED SEA DAYS The total number of days that passengers spend at sea provides another valuable measure of a cruise market s underlying growth. An analysis of passenger numbers and cruise duration data reveals that in 2014 New Zealand cruise passengers spent a record 679,168 days at sea a 3.5 per cent increase on 2013. The average length of a cruise holiday for New Zealanders in 2014 was estimated at 10.4 days a decrease on last year s estimate of 11.1 days. The result reflects the heightened availability and popularity of shorter duration cruises. 0-4 DAYS 5-7 DAYS 8-14 DAYS 15-21 DAYS 22+ DAYS Average Length of Cruise for New Zealand Passengers 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 461,451 573,323 520,188 2014 2013 2012 2011 2010 655,946 679,168 2010 2011 2012 2013 2014 Estimated Annual Sea Days for New Zealand Cruise Passengers DEFINITION OF CRUISE REGIONS Cruise region ALASKA OTHER AMERICAS THE CARIBBEAN REGION ALL ASIA CRUISING AUSTRALIA SOUTH PACIFIC NEW ZEALAND MEDITERRANEAN NORTHERN EUROPE OTHER WORLD VOYAGES RIVER CRUISING Includes All Alaska cruising Hawaii cruising Eastern Canada and New England cruising Bermuda cruising Mexican Riviera and Baja South America cruising Caribbean and Bahamas Panama Canal crossings South-East and North Asia cruising Australian circumnavigations and coastal cruising South Pacific cruising and Trans-Pacific crossings New Zealand coastal and Trans-Tasman cruising Mediterranean (Eastern and Western) Black Sea and Canary Islands British Isles Norway, Scandinavia and Baltic region Africa, UAE and Middle East Cruising Antarctica Trans-Atlantic crossing World Voyages Europe river cruising Asia River Cruising Other river cruising International Cruise Council Australasia Inc. T/A Cruise Lines International Association (CLIA) Australasia Suite 1, Level 9, 132 Arthur Street, North Sydney NSW 2060 Australia Tel: +61 2 9964 9600 Fax: +61 2 9964 9599 Web: www.cruising.org.nz CRUISE LINE MEMBERS AIDA Cruises AMA Waterways Amadeus by Luftner American Cruise Lines American Queen Steamboat Co. APT Group Aqua Expeditions Avalon Waterways Azamara Club Cruises Carnival Cruise Line Celebrity Cruises Costa Cruise Lines Croisieres de France CroisiEurope River Cruises Cruise & Maritime Voyages Crystal Cruises Cunard Disney Cruise Line Emerald Waterways Evergreen Tours Fred Olsen Cruise Lines Hapag Lloyd Cruises Hebridean Island Cruises Holland America Line Hurtigruten Island Cruises Lindblad Expeditions Louis Cruises Mekong Waterways MSC Cruises Norwegian Cruise Line Oceania Cruises P&O Cruises Australia P&O Cruises World Cruising Paul Gauguin Cruises Pearl Seas Cruises Phoenix Reisen Cruises Ponant Princess Cruises Pullmantur Regent Seven Seas Riviera Travel Royal Caribbean International Saga Scenic Tours Seabourn SeaDream Yacht Club Shearings Holiday Silversea Cruises St. Helena Line Star Cruises Swan Hellenic Tauck River Cruises The River Cruise Line Thomson Cruises Travelmarvel TUI Cruises Un-Cruise Adventures Uniworld Boutique River Cruise Collection Voyages of Discovery Voyages to Antiquity Windstar Cruises 8 www.cruising.org.nz www.cruising.org.nz 9

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