2011 State of the Cruise Industry Michael Crye Executive Vice President Cruise Line International Association October 12, ...
26 CLIA Member Lines Executive Partners:  Cruise Newfoundland; Labrador and Corner Brook Port Corporations; The St. John's...
Celebrating a History of Passenger Growth Over the Years Average Passenger Growth Rate 1980-2010: +7.5%
<ul><li>16.0 million passengers (+ 6.6%) </li></ul><ul><li>•  11.68 million passengers – North America, 73% </li></ul><ul>...
New  CLIA Ships: 2008–2011
2011 New Ships = $4.6 billion Investment
  Canada/New England Cruise Market
Canada/New England Market <ul><li>Over the past decade the bed day capacity and passenger arrivals in the CNE market has a...
Canada/New England Market <ul><li>Since 2002 passenger embarks in CNE have more than doubled. </li></ul><ul><li>The CNE sh...
Passenger Expenditures <ul><li>Atlantic Canada Passengers </li></ul><ul><ul><li>More than 95% of passengers report going a...
CNE Passenger Source Markets <ul><li>Passengers cruising in the CNE market are sourced from around the globe….but more tha...
ECA UPDATE
North American Emission Control  Area
ECA Requirements
Range of Options for ECA <ul><li>Compliance via distillate fuel consumption </li></ul><ul><li>After treatment devices </li...
Alternatives & Equivalencies <ul><ul><li>MARPOL Annex VI, Regulation 4 provides for broad equivalencies:  </li></ul></ul><...
Goal Regarding Operational Equivalencies <ul><li>Work within the existing MARPOL Annex VI framework to provide equal or gr...
Potential Averaging Programs <ul><li>Vessel Averaging </li></ul><ul><ul><ul><ul><li>Single vessel or within and between ve...
Population/Distance Weighted Averaging Significant emission reduction benefits: ship close to shore and population centers...
<ul><li>Ongoing engagement with US EPA, US Coast Guard, & Transport Canada </li></ul><ul><li>Discussions with flag States ...
[email_address] DISCUSSION AND QUESTIONS?
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Michael Crye

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Michael Crye

  1. 1. 2011 State of the Cruise Industry Michael Crye Executive Vice President Cruise Line International Association October 12, 2011
  2. 2. 26 CLIA Member Lines Executive Partners: Cruise Newfoundland; Labrador and Corner Brook Port Corporations; The St. John's Port Authority; Cruise the St. Lawrence Association; Halifax Port Authority; Port of Sydney; Saguenay Port Authority; he Port of Saint John-New Brunswick Canada; and Tourism Quebec.
  3. 3. Celebrating a History of Passenger Growth Over the Years Average Passenger Growth Rate 1980-2010: +7.5%
  4. 4. <ul><li>16.0 million passengers (+ 6.6%) </li></ul><ul><li>• 11.68 million passengers – North America, 73% </li></ul><ul><li>• 4.32 million passengers – International, 27% </li></ul>CLIA 2011 Passenger Forecast
  5. 5. New CLIA Ships: 2008–2011
  6. 6. 2011 New Ships = $4.6 billion Investment
  7. 7. Canada/New England Cruise Market
  8. 8. Canada/New England Market <ul><li>Over the past decade the bed day capacity and passenger arrivals in the CNE market has almost doubled. </li></ul><ul><li>The CNE share of global capacity has been fairly stable between 1.5 and 2%. </li></ul><ul><li>Its growth has come in spurts with increases in excess of 30% in 2000, 2004 and 2007. </li></ul><ul><li>Since 2008 capacity has remained fairly stable but passenger arrivals have increased by more than 10%. </li></ul>Cruise Capacity in the Canada/New England Market Source: CLIA
  9. 9. Canada/New England Market <ul><li>Since 2002 passenger embarks in CNE have more than doubled. </li></ul><ul><li>The CNE share of embarks in North America has increased from 6.4% in 2002 to10.2% in 2010. </li></ul><ul><li>Its growth has also come in spurts with increases in excess of 20% in 2003, 2004 and 2010. </li></ul><ul><li>Growth leaders have been New York and Baltimore, especially over the past two years . </li></ul>Embarkations in the Canada/New England Market Source: Port Authorities and BREA
  10. 10. Passenger Expenditures <ul><li>Atlantic Canada Passengers </li></ul><ul><ul><li>More than 95% of passengers report going ashore for an average of 4.7 hours. </li></ul></ul><ul><ul><li>85% of these passengers reported purchasing a shore excursion at an average cost of $53 per passenger. </li></ul></ul><ul><ul><ul><li>84% of shore excursions were purchased from the cruise lines. </li></ul></ul></ul><ul><ul><li>Passengers that went ashore spent an average of $93 per passenger. </li></ul></ul><ul><ul><ul><li>Tours, clothing and souvenirs account for 80% of the onshore expenditures </li></ul></ul></ul><ul><li>New York Passengers </li></ul><ul><ul><li>Almost half (46%) of embarking passengers have a pre- or post-cruise stay of 2 nights. </li></ul></ul><ul><ul><li>Passengers with an overnight stay spend an average of $437 per passenger during their visit. </li></ul></ul><ul><ul><ul><li>Lodging ($274) and food and beverages ($65) account for 75% of their expenditures. </li></ul></ul></ul><ul><ul><li>The average expenditure across all passengers is $213. </li></ul></ul><ul><li>7-Day Itinerary (4 calls) - $585 of onshore expenditures per pax </li></ul><ul><ul><li>3,000 passenger ship will generate $1.75 million in total passenger expenditures </li></ul></ul>Source: BREA
  11. 11. CNE Passenger Source Markets <ul><li>Passengers cruising in the CNE market are sourced from around the globe….but more than half reside in the northeast quadrant of the U.S. </li></ul><ul><li>Survey data from 2007 for Atlantic Canada ports showed: </li></ul><ul><ul><li>60% of passengers lived in the northeast quadrant of the U.S. </li></ul></ul><ul><ul><li>30% lived elsewhere in the U.S. </li></ul></ul><ul><ul><li>10% resided outside of the U.S. </li></ul></ul><ul><li>Survey data from 2010 for New York showed: </li></ul><ul><ul><li>50% of passengers lived in the northeast quadrant of the U.S. </li></ul></ul><ul><ul><li>35% lived elsewhere in the U.S. </li></ul></ul><ul><ul><li>15% resided outside of the U.S </li></ul></ul>Source: BREA
  12. 12. ECA UPDATE
  13. 13. North American Emission Control Area
  14. 14. ECA Requirements
  15. 15. Range of Options for ECA <ul><li>Compliance via distillate fuel consumption </li></ul><ul><li>After treatment devices </li></ul><ul><li>Alternative fuels (Biofuels; LNG; Shorepower) </li></ul><ul><li>Equivalencies </li></ul><ul><li>Review operations </li></ul>“ Cruise lines are the environmental leaders in the marine industry. They’ve invested millions in state-of-the-art wastewater treatment systems, recycling equipment and training programs. The ships carry a dedicated environmental officer whose main duty is to ensure compliance with applicable environmental regulations.” Peter Lehmann, James Bay Neighbourhood Association April 24, 2011 (Times Colonist)
  16. 16. Alternatives & Equivalencies <ul><ul><li>MARPOL Annex VI, Regulation 4 provides for broad equivalencies: </li></ul></ul><ul><ul><ul><li>“ any fitting, material, appliance, or apparatus to be fitted in a ship or other procedures, alternative fuel oils, or compliance methods used as an alternative” if they are “at least as effective in terms of emission reductions.” </li></ul></ul></ul><ul><li>Potential alternatives or equivalencies include: </li></ul><ul><ul><ul><ul><ul><li>Mechanical removal (scrubbers) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Alternative fuels or non conventional propulsion </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Emissions Averaging </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Other means not yet identified. </li></ul></ul></ul></ul></ul>
  17. 17. Goal Regarding Operational Equivalencies <ul><li>Work within the existing MARPOL Annex VI framework to provide equal or greater public health and welfare benefit in a more economically efficient manner by: </li></ul><ul><li>1. Focusing sulfur emission reductions where they provide the greatest benefit </li></ul><ul><li>2. Ensuring that air quality is not degraded for any persons affected by cruise ship sulfur emissions </li></ul>
  18. 18. Potential Averaging Programs <ul><li>Vessel Averaging </li></ul><ul><ul><ul><ul><li>Single vessel or within and between vessel fleets </li></ul></ul></ul></ul><ul><li>Weighted Averaging </li></ul><ul><ul><ul><ul><li>Account for dispersion of emissions, secondary PM formation and population exposure </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Achieve lower emissions close to shore where impact is most significant </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Achieve lower emissions closest to major population centers </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Allow higher sulfur levels far from shore and far from population centers </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Total population impact at or below levels achieved by spatially uniform ECA </li></ul></ul></ul></ul>
  19. 19. Population/Distance Weighted Averaging Significant emission reduction benefits: ship close to shore and population centers Limited emission reduction benefits: ship far from shore and major population centers High Emissions Weighting Factor Low Emissions Weighting Factor Voyage Segment A Voyage Segment B
  20. 20. <ul><li>Ongoing engagement with US EPA, US Coast Guard, & Transport Canada </li></ul><ul><li>Discussions with flag States initiated & ongoing </li></ul><ul><li>Engagement with other shipowners </li></ul><ul><li>Briefing of selected US Congressional staff </li></ul><ul><li>Discussions/Briefings with Transport Canada </li></ul>ECA ACTIVITIES
  21. 21. [email_address] DISCUSSION AND QUESTIONS?
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