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Latest Trends on Black Sea Cruise Tourism Sector


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Latest Trends on Black Sea Cruise Tourism Sector

  1. 1. Latest Trends on Black SeaCruise Tourism Sector
  2. 2. Focus on key industry trends and explores thepotential of cruise tourism development in the BSR throughan intra-regional perspective.Explores issues of international competition, emergingmarkets, product analysis, and destination capacity in termof both regulatory and infrastructural elements.Aim to grasp the deeper value of transnationalpartnerships including public authorities and organizedinterest groups without ignoring challenges that arise fromthe current economic climate, ongoing bilateral disputes andthe lack of a well-established brand for the whole area.about the report
  3. 3. Trends & Statistics: Cruise TourismBSR Cruise Tourism Sector: AnOverviewBSR Challenges & OpportunitiesKey ConclusionsContents
  4. 4. Trends& Statistics
  5. 5. Latest Trends: GeneralCruise tourism has enjoyed steadygrowth throughout the emergence andescalation of the economic crisisfrom 2008 to 2011 the cruise industry recorded annualincreases of 8.7%, 7.4% & 9.7% per year(European Cruise Council)
  6. 6. Latest Trends: GeneralCruise industrydirect expenditures 2011€15 billion - 3.3% increasefrom 2010Passenger & crewspending in Europeandestinations 2011€3.4 billion expenditure(ECC, 2012a)
  7. 7. Latest Trends: GeneralGeneral pattern of growth for2013 in comparison with2012Ships are getting largerincreasing carrying capacity and efficienciesBut also requirements on port infrastructureLuxurious cruise ships increaseAnd they tend to visit more destinations
  8. 8. Latest Trends: Source Markets20.6 millionCruise passengersworldwide in 2011(ECC, 2012a)
  9. 9. Latest Trends: Source MarketsFive-year Growth TrendEuropean-sourced passengershave expanded by 77% from3.4 million in 2006 to over 6million in 2011
  10. 10. Latest Trends: Source MarketsBut..Penetration in new source markets  a key issuefor the industry’s future.
  11. 11. The vast majority of cruise port calls inEurope are at the Mediterranean and Balticports.Including the Black Sea and Atlantic Isles theregion as a whole includes around 250 portsvisited by cruise ships.Latest Trends: Destinations
  12. 12. The top 10 destinationcountries accounted for84% of cruisepassenger visits in2011.The top 4 are in theMediterranean andaccounted for 2/3 of allEuropean passengervisits(G.P. Wild Int., 2012)Latest Trends: Destinations
  13. 13. Destination playsdominant roleamong all cruisersclassifications,before costFactors Influencing Cruise Selection(CLIA’s 2011 Cruise Market Profile Study)Latest Trends: Destinations
  14. 14. Cruise tourism industryconsolidated structure4 companies accounting for 86% ofglobal marketCarnival Corporation and MSCCruises leading EU segmentLatest Trends: Market Condition
  15. 15. Rising trend affecting cruise tourism development(e.g.) – the Danube has gradually contributed to Serbia visitation growthMore than 20.000 passengers from the UK river cruise market visited in 2012- an entry market for new vessels with facilities for the main target segment ofbaby boomersLatest Trends: River Cruises
  16. 16. BSR CruiseTourism SectorOverview
  17. 17. BSR appearance is quite recent in thegeography of cruise industry despite itsproximity to the major Mediterraneanmarket.BSR Cruise Tourism SectorNew Kid on the Block
  18. 18. “the tourist destinations visited bycruise ships are closely linked withthe zones in which cruise linesoperate ”WTO 2010
  19. 19. Most BSTIP member countries are basicallypreoccupied with the expansion of their sea cruisedestinations (Bulgaria, Georgia, Romania, Russia,Turkey, Ukraine and Greece),some countries are gradually making their path to themarket of river cruises (Bulgaria, Romania, Serbia,Ukraine and Moldova),and others examine how they can gain secondarybenefits from the expansion of cruises in the BSR(Armenia, Azerbaijan).BSR Cruise Tourism SectorNew Kid on the Block
  20. 20. BSR Cruise Tourism market share within the wholeMediterranean has always been less than 1%(European Commission, 2009; GP Wild International, 2012;),BSR Cruise Tourism SectorMarket Share of Cruise RegionsRegion 2005 2006 2007 2008 2009 2010 2011Caribbean 48.0% 46.4% 43.5% 39.9% 39.5% 40.7% 40.4%Mediterranean 15.3% 16.5% 18.9% 21.5% 20.9% 20.0% 21.0%NorthernEurope5.0% 5.3% 5.1% 5.8% 6.3% 7.3% 8.3%Asia/Pacific 4.3% 5.6% 6.2% 6.7% 6.0% 7.1% 5.8%Other 27.4% 26.2% 26.3% 26.1% 27.3% 24.9% 24.5%Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
  21. 21. The new MedCruise Statistic Report, 2ndedition 2011Western Med Portsare still hosting thebiggest number ofpassengers butAdriatic and EastMed increased theirshares in 2010Black sea is still in lowposition, but has a lot ofpotential for growing.BSR Cruise Tourism SectorPassenger Movements – Cruise Calls
  22. 22. Black Sea showsthe largest % ofseasonality incruise trafficBSR Cruise Tourism SectorSeasonality Patterns
  23. 23. Evident Fall Peak in theBlack Sea(MedCruise stats)BSR Cruise Tourism SectorSeasonality Patterns
  24. 24. majority of the UNDP BSTIP member countries have experiencedsubstantial increases of international tourist arrivals over the lastdecadeandoffer a rich portfolio of attractions and products related toalternative forms of tourismBSR Cruise Tourism SectorPositive ProspectsRank 2012 Baltic Sea Destinations Change 2012 Vs 2011 Black Sea Destinations Change 2012 Vs 20111 Copenhagen 23.7% Istanbul 23.5%2 Stockholm 4.0% Odessa 8.6%3 St. Petrsburg (4.2%) Yalta 10.5%4 Tallinn = Constantza 40.7%5 Rostock 50.0% Sochi 16.3%6 Helsinki (0.44%) Nessebar 29.2%7 Kiel (7.9%) Sevastopol 24.7%8 Oslo (0.29%) Varna (11.9%)9 Gdynia 38.5% Trabzon 21.6%10 Gothenburg 33.8% Sinop (4.7%)
  25. 25. BSR Cruise Tourism SectorPositive ProspectsGreat potential for the development of17 cruise ports and their wider areasacross the six countries that surroundthe inland sea (GP Wild International,2012)Overall growth trends in BSR Cruisepassengers despite identifiedseasonality patterns
  26. 26. Istanbul and Ukrainianports including Odessa andYalta have the lion’s sharein port calls, but there isalso significant demand forNesebar and Constantza.BSR Cruise Tourism SectorPassenger Movements – Port Calls
  27. 27. BSR Cruise Tourism SectorDestination Portfolio EvaluationCruise lines building a destinationportfolio, examine:1. local availability of adequateinfrastructure,2. low tariffs, and3. a plethora of on-shore activities
  28. 28. BUT additional factors ASSESSEDat a regional level are:• favorable climatic conditions,• security terms,• reinforcement facilities, and• the combination of differenttypes of attractions.BSR Cruise Tourism SectorDestination Portfolio Evaluation
  29. 29. BSR Cruise Tourism SectorBSR Destination Product MixContemporary metropolis (Istanbul) |ancient sites (Burgas) |UNESCO cultural & natural sites |architectural combinations of old & modern elements(Constantza) |Danube Delta |Royal & Baroque vibes (Odessa) |Seaside resorts (Yalta) |Eternal Cities of the World (Kerch) |Spa Towns (Sochi) |Picturesque natural settings (Amasra, Rize) |Developing/transforming urban settings (Batumi) |
  30. 30. Challenges &Opportunities
  31. 31. Challenges & Opportunities:Ports Connections + Fly-Cruise OperationsConnection between portsand airplanes across theBSR; fly-cruise operations,homeports, and the futurerole of Odessa
  32. 32. The special role of Istanbul especially in thelight of new infrastructure investments and thegrowing expansion of Turkish Airlines;Challenges & Opportunities:Role of Istanbul & Turkish Airlines
  33. 33. Legislative frameworkand funding sources ofthe importantinvestments thatcurrently take place inmany ports(e.g. Burgas, Sevastopol,Sochi, Batumi, etc);.Challenges & Opportunities:Legislative Framework & Funding Sources for NewInvestmentsIntegration of infrastructure investments with urbanregeneration plans
  34. 34. Influence of Mega-events such as thewinter Olympics and the Formula 1Grand Prix in Sochi in 2014Challenges & Opportunities:Mega-Events = Increased Destination Awareness
  35. 35. Challenges & Opportunities:VISA Issuesmost countries around theBlack Sea still practice oldregulations based on a setof legal and administrativebarriersInitiatives to simplify visa procedures viabilateral agreements and lifting limitations onparticular categories
  36. 36. Challenges & Opportunities:Common Tariff Policy
  37. 37. Development of on-shoreactivities on the basis ofcommon quality standards andwith the aim of promotingfurther the tourism product ofeach locality and country.Challenges & Opportunities:On-Shore Activities Development
  38. 38. Challenges & Opportunities:Multiculturalism as key competitive advantageMULTICULTURALISM the essence of BSR Competitive advantage:“the Black Sea is one of the newest and underexploreddestinations that can offer such a diverse mosaic of experiences”(National Cruise Manager of Intercruises), which are adirect consequence of“the very interesting mix of completely different cultures andcountries”
  39. 39. International tourism development through thedevelopment of economic-political projects in BSR, hasbeen hindered due to bilateral disputes and ethnictensions over time.Challenges & Opportunities:Geopolitical ConditionsMulticulturalism does not onlysummarize the BSR productcharacteristics and brand but is alsothe source of geopolitical tensionsintra regionally(hindering tourism development).
  40. 40. Turkish travel market:6.3 mil in 2011Challenges & Opportunities:Major Source Markets in the RegionRussian travel market:40.8 mill in 201130% to Ukraine & Turkey
  41. 41. Challenges & Opportunities:Intra-Regional Positive Developments‘Working Group on Cooperation inTourism’ run by the ‘Organization of theBlack Sea Economic Organization’(BSEC)Recently approved by member statesMemorandum on Multiculturalism of theBlack Sea to “increase the support ofthe projects towards co-creation andpromotion of common tourist products”in the international tourism market.
  42. 42. Challenges & Opportunities:Intra-Regional Positive DevelopmentsNetworking Development: The United Nations Development Programme – BlackSea Trade and Investment Programme (UNDP BSTIP), currently funded by Greeceand Turkey, develops networking arrangements.Ongoing deliberations among the Black Sea port authorities and otherstakeholders (e.g. MedCruise, Cruise Europe, Association of Black and Azov SeasPorts (BASPA)
  43. 43. KeyConclusions
  44. 44. The incorporation of the BSR in future deploymenttrends depends bothon private sector strategy ANDthe flexibility of authorities at a regional and locallevel to upgrade their territories, promote them in aconsistent manner, and negotiate effectivelypartnership terms with cruise lines.Flexibility is the Key
  45. 45. Cruise lines and emerging destinationsneed to assess opportunities in order tobalance the distribution of availableresources and attract passengerswithin, but also beyond the majorsource markets.Beyond the KnownWorld
  46. 46. An Intra-Regionalperspective to cruisetourism as means ofdealing withinternationalcompetition, emergingmarkets and productdevelopmentRegional Business = RegionalPartnerships
  47. 47. the future of Black Sea is in ouropinion tied up with its growth as awhole destination joining the effortsto strengthen wider Black Sea ItinerariesGiovanni Spadoni, President of MedCruise, during hisBurgas, 2011 presentation
  48. 48. Destinations need to:set common targetscoordinate initiativesassess the influence of geopolitical conditionsand institutional frameworksCoordination at theCore
  49. 49. 2013 seems to be the right time todevelop initiatives based on a flexiblenetwork with a clear agenda and avisionary missionThe Time is Now!
  50. 50. Thank You