1. Mediterranean Cruise Market Dynamics and Value

2. Objectives Provide a brief overview of the cruise market Provide a brief overview of the cruise market Establish the role of the Mediterranean within the cruise market Establish the role of the Mediterranean within the cruise market Consider the changing dynamics of cruising in the Mediterranean Consider the changing dynamics of cruising in the Mediterranean Examine the value of cruise tourism Examine the value of cruise tourism Consider the future outlook Consider the future outlook

3. Market Overview

4. Growth in Main Cruising Destinations

5. Europe v Caribbean

6. Main Source Markets Main Source Markets

7. Comment on Main Source Markets World cruise tourists – 18.8 (17.5) million in 2010 World cruise tourists – 18.8 (17.5) million in 2010 North America – 11.0 (10.4) million North America – 11.0 (10.4) million European cruise tourists – 5.5 (5) million of which: European cruise tourists – 5.5 (5) million of which: –UK – 1,621,000 –Germany – 1,219,000 –Italy – 889,000 –Spain – 645,000 –France – 387,000

8. Europe to 2017 6.8 million

9. Growth of Cruise Capacity in the Mediterranean

10. Key Regions for Cruising in the Mediterranean Western Mediterranean, mainly the area bounded by Eastern Spain, the French Riviera, Western Italy and the North African coastline (49.44% potential passenger throughput); Eastern Mediterranean, the remainder of the Mediterranean, except the Adriatic and Ionian Seas (34.90%); Adriatic, the lands bounded by the Adriatic Sea, together with Western Greece (14.36%); Black Sea (1.29%). Mediterranean growth 2010-11 – +17.6%

11. Growth of Cruise Capacity in the Mediterranean by Region

12. Dynamic Changes to the Fleet Structure in the Mediterranean

13. Key changes in regional deployment In 2006 panamax and post panamax ships were more commonly found in the West By 2011, while still behind the West, Eastern Mediterranean is now seeing more panamax (30%) and post-panamax (30%) ships while large (20%) and medium (15%) ships have fallen back This trend towards the larger ships will continue in the eastern Mediterranean in future Ports that wish to play a full part in the market need to adapt their facilities to receive such ships if they are to gain the full benefits of future market growth

14. Value of Cruise Industry Activity

15. Europe Cruise industry activity in Europe generates significant expenditures in 4 main areas. These are: Cruise industry activity in Europe generates significant expenditures in 4 main areas. These are: –Shipbuilding and ship repair –Cruise line purchases –Passenger and crew expenditures –Compensation of cruise line employees

16. Europe

17. Total Economic Impacts €35.2 (€34.1) billion in total output in 2010 €35.2 (€34.1) billion in total output in 2010 €14.5 (€14.1) billion in direct spending €14.5 (€14.1) billion in direct spending €9.3 (€9.0) billion in employee compensation €9.3 (€9.0) billion in employee compensation 307,526 (296,288) jobs 307,526 (296,288) jobs Each €1 million in direct expenditure generated Each €1 million in direct expenditure generated –€2.42 million in business output, and –21 jobs paying on average over €30,100

18. Total Cruise Industry Output Generated in Europe 2005-10

19. Total European Employment Generated by Cruise Industry 2005- 10

20. Direct Expenditures by Country 2010

21. The Value of a Cruise Tourist in 2010 On average a typical cruise tourist is worth around €100 if all direct impacts are taken into account On average a typical cruise tourist is worth around €100 if all direct impacts are taken into account

22. Impact and Value of Cruise Industry Activity in Greece - 2010 Direct Expenditure - €579.6m Direct Expenditure - €579.6m Of which: Of which: –Passengers - €360.3m –Shipbuilding (repair) - €22.7m –Employee compensation - €0.2m –Cruise line purchases - €196.4m Jobs – 11,612 Jobs – 11,612

23. Prospective Value of Cruise Industry Activity in Istanbul - 2011 At least 465,700 cruise tourists are expected to visit Istanbul in 2011 At least 465,700 cruise tourists are expected to visit Istanbul in 2011 Assuming European average value of a cruise tourist of €98 the direct value of this business is €45.64 million Assuming European average value of a cruise tourist of €98 the direct value of this business is €45.64 million €1 million in cruise industry expenditure generates €2.42 m in business output and 21 jobs paying €30,100, thus: €1 million in cruise industry expenditure generates €2.42 m in business output and 21 jobs paying €30,100, thus: –Business output at Istanbul - €110.45 million –Jobs – 959 –Compensation - €28.85 million

24. Conclusions Signs are good - cruise industry looks set to grow significantly in the Mediterranean in 2011 Signs are good - cruise industry looks set to grow significantly in the Mediterranean in 2011 Outlook overall is excellent but there are some clouds on the horizon Outlook overall is excellent but there are some clouds on the horizon Eastern Mediterranean looks well placed to continue to benefit from cruise industry activity in 2011 and beyond Eastern Mediterranean looks well placed to continue to benefit from cruise industry activity in 2011 and beyond Additional investment in facilities is needed to support the continuing dynamic changes in the structure of the cruise fleet Additional investment in facilities is needed to support the continuing dynamic changes in the structure of the cruise fleet