ACPA ANNUAL MEETING Increasing Canada s Market Share in Cruise September 2018
Worldwide Capacity 4% Alaska 1% Canada/New England 5% Alaska 1% Canada/New England 16% Asia/Pacific 26% 33% 2017 2019 19% 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
North American Homeport Capacity 5% Canada homeports 5% Canada homeports FULL YEAR 95% US homeports FULL YEAR 95% US homeports 2017 Canada homeports 9% 2019 11% Canada homeports SUMMER & FALL (MAY-OCT) 91% US homeports SUMMER & FALL (MAY-OCT) 89% US homeports
Canadian Homeport Capacity 2017 2019 18% 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
Industry Capacity 2018-2028 +4% CAGR Capacity will grow 44% next 10 years, 4% on annualized basis Maintaining share would provide meaningful increase in economic activity 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Source: Seatrade Orderbook Firm Newbuild Orders Capacity: Lower Berths
Industry Capacity 2016-2019 CANADA/NEW ENGLAND ALASKA +10% CAGR +17% CAGR 2016 2017 2018 2019 2016 2017 2018 2019 Growth in Canada/New England & Alaska outpacing industry growth CAGR: Compound Annual Growth Rate
Seasonal Capacity Mix Summer Growing in Canada New England INDUSTRY 80% 76% 72% 68% +10% CAGR 16-19 20% 24% 28% 32% +38% CAGR 16-19 2016 2017 2018 2019 Summer (Apr-Aug) Fall (Sept-Nov) CAGR: Compound Annual Growth Rate
Guest Ratings SATISFACTION APPEAL 2017 RCL Guest Ratings Guest ratings strong in region with satisfaction slightly outpacing appeal
Eastern Canada Turn Ports # OF INDUSTRY CALLS 136 127 78 Quebec City Montreal 86 2017 2018 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: www.cruisecal.com
Eastern Canada Ports of Call # OF INDUSTRY CALLS 151 159 85 79 67 73 71 60 17 13 10 13 8 10 2017 2018 37 26 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: www.cruisecal.com
Western Canada Turn Ports # OF INDUSTRY CALLS 258 238 Vancouver, British Columbia, Canada 2017 2018 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: www.cruisecal.com
Western Canada Ports of Call # OF INDUSTRY CALLS 233 241 2017 2018 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 37 25 Opportunities for other ports to grow & build product Victoria Other Source: www.cruisecal.com
Global Overview Australia Croatia Germany Japan Norway Singapore
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