A Seatrade RESEARCH REPORT 4 400 The Future of Cruising - Boom or Bust? A Worldwide Analysis to 2015 by Tony Peisley Seatrade Communications Ltd 42 North Station Rd, Colchester, Essex, C01 1RB, UK Telephone: 44 (0) 1206 545121 Fax: 44(0) 1206 545190 www.seatrade-global.com www.cruise-community.com
Contents SEATRADE COMMUNICATIONS LTD I The Future of Cruising - Boom or Bust? A Worldwide Analysis to 2015 I CONTENTS I _ Page LIST OF TABLES v I EXECUTIVE SUMMARY 1 I BOOM OR BUST? 1 I PROFITABILITY 2 I SUPPLY AND DEMAND 2 I SOURCE MARKETS 3 I DOMINANCE OF MAJOR PLAYERS 3 I CRUISE SHIPBUILDERS 3 I ECONOMIC IMPACT 4 I DESTINATIONS AND PORT DEVELOPMENTS 5 I RIVER CRUISING. 6 ISUPERYACHTS 6 I ISSUES 6 I CHAPTER 1 9 PROFITABILITY SOARS AS MARKET SHARE GROWS FOR MAJOR CRUISE COMPANIES I TOP THREE SHARES SET TO GROW 9 ICLIA BRANDS RECENT PERFORMANCE 10 I CARNIVAL CORPORATION 2005 RESULTS 12 I ROYAL CARIBBEAN CRUISES 2005 RESULTS 16 I STAR CRUISES GROUP 2005 RESULTS 20 I OTHER CRUISE COMPANY FINANCIAL RESULTS 24 I CHAPTER 2 25 FLEET GROWTH, CRUISE SECTOR TRENDS AND BRAND PROFILES I INCREASING SHIP SIZES AND CAPACITIES 25 I NEW SHIPS ON ORDER 26 I SHIPS SCRAPPED OR WITHDRAWN FROM SERVICE 27 IAVERAGE SHIP CAPACITIES 28 I SUPPLY/DEMAND TO 2015 29 I SECTOR TRENDS 29 I SECTOR OVERVIEWS 31 I BUDGET 31 I CONTEMPORARY AND PREMIUM 32 I LUXURY 34 I OWNERSHIP OF BRANDS 35 I BRAND CAPACITIES TO 2010 37
SEATRADE COMMUNICATIONS LTD Contents I Contents 1 BRAND PROFILES 1 CONTEMPORARY^ 1 BUDGET 1 PREMIUM 1 SOFT ADVENTURE, EXPEDITION AND COASTAL 1 SAIL CRUISING 1 LUXURY 1 CHAPTER 3 STRONG GROWTH AHEAD FOR MAJOR AND EMERGING SOURCE MARKETS 1 WORLDWIDE PASSENGER NUMBERS 1 SOURCE MARKETS 1 NORTH AMERICA IUK 1 CONTINENTAL EUROPE J 1 GERMANY 1 ITALY 1 SPAIN 1 FRANCE 1 REST OF EUROPE 1 REST OF THE WORLD ASIA 1 CHINA 1 JAPAN 1 INDIA 1 ARABIAN GULF 1 AUSTRALASIA ' 1 LATIN AMERICA 37 37 63 74 93 95 96 121 132 134 138 139 140 144 145 147 148 148 150 I CHAPTER 4 153 INDUSTRY HIGHLIGHTS ECONOMIC IMPACT OF CRUISING I CRUISING GENERATES MORE THAN $30BN FOR US ECONOMY 153 I STATE BENEFITS 158 I PORT CANAVERAL STUDY 161 I CRUISING'S IMPACT ON CANADIAN ECONOMY. 162 I EUROPE ADOPTS IMPACT STUDIES POLICY 167 SOUTHAMPTON PORT STUDY 170 I STUDY PLANNED FOR AUSTRALIA 174
Contents SEATRADE COMMUNICATIONS LTD I Contents I CHAPTER 5 v. _ 175 CRUISE TOURISM TRENDS AND PORT DEVELOPMENTS I HOMELAND CRUISING 175 I NORTH AMERICAN PORT DEVELOPMENTS 177 I FLORIDA AND THE GULF 177 I EAST COAST - USA AND CANADA 182 I WEST COAST-USA AND CANADA 187 1 ALASKA 190 I HAWAII 191 I CARIBBEAN 192 I MEXICAN AND OTHER CENTRAL AMERICAN PORTS 199 I BERMUDA 204 I MEDITERRANEAN CRUISING PROSPECTS 204 I MEDITERRANEAN PORT DEVELOPMENTS 207 I ITALY 207 I SPAIN J 211 I OTHER MEDITERRANEAN PORT DEVELOPMENTS 214 I CRUISE TOURISM TRENDS IN NORTHERN EUROPE AND SCANDINAVIA 219 I NORTHERN EUROPEAN PORT DEVELOPMENTS 222 I UK AND IRISH PORT DEVELOPMENTS 227 I ARABIAN GULF, RED SEA, INDIA, INDIAN OCEAN AND AFRICA 234 I ASIAN CRUISE INFRASTRUCTURE PREPARED FOR GROWTH 238 I AUSTRALASIAN CRUISE TOURISM REVIEWED 241 I AUSTRALASIAN PORT DEVELOPMENTS 242 I SOUTH AMERICA, 245 I CHAPTER 6 247 NEWBUILD COSTS AND OTHER SHIPBUILDING TRENDS I NEW SHIPS ON ORDER 247 I RISING COST OF NEW SHIPS SINCE 1980s 248 I SHIPBUILDERS'MARKET SHARES 250 I SHIPBUILDER PROFILES 251 IFINCANTIERI 251 IMEYERWERF 254 ICHANTIERS DE L'ATLANTIQUE 255 IAKERFINNYARDS 257 IREFURBISHMENTTRENDS 260 I NEWBUILD ISSUES. 261 I FUTURE ORDER PATTERNS 261
) SEATRADE COMMUNICATIONS LTD Contents I CHAPTER 7 265 NEW AND ONGOING CHALLENGES FACING CRUISE INDUSTRY I AMERICANS WITH DISABILITIES ACT 265 I NOROVIRUSES - AN ONGOING BATTLE 268 I ENVIRONMENTAL INITIATIVES 271 I SECURITY - WHO PAYS THE PRICE? 275 I CHAPTER 8 279 ALTERNATIVE PRODUCTS - RIVER CRUISING AND SUPERYACHTS I RIVER CRUISING 279 I EUROPEAN SECTOR SET FOR MORE DEVELOPMENT AND GROWTH 280 I RIVER CRUISE OPERATOR DEVELOPMENTS 283 I MAJOR SOURCE MARKETS: I EUROPE 285 I NORTH AMERICA 287 ISUPERYACHTS 290 IORDERBOOK 292 I CHANGING SIZE OF YACHTS 293 I FRACTIONAL OWNERSHIP 294 I MARINA AND PORT DEVELOPMENTS 296 I CREW ISSUES 297 I SUMMARY 298