1. Mediterranean Cruise Market Dynamics and ValueBy
Peter Wild
G. P. Wild (International) Limited

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

3. Market Overview

4. Growth in Main Cruising Destinations

5. Europe v Caribbean

6. Main Source Markets

7. Comment on Main Source Markets
World cruise tourists – 18.8 (17.5) million in 2010
North America – 11.0 (10.4) million
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. Dynamics of the Market

11. 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 – +17.6%

12. Growth of Cruise Capacity in the Mediterranean by Region

13. Dynamic Changes to the Fleet Structure in the Mediterranean

14. 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

15. Value of Cruise Industry Activity

16. Europe
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

17. Europe

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

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

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

21. Direct Expenditures by Country 2010

22. 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

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

24. Prospective Value of Cruise Industry Activity in Istanbul - 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
€1 million in cruise industry expenditure generates €2.42 m in business output and 21 jobs paying €30,100, thus:
Business output at Istanbul - € million
Jobs – 959
Compensation - €28.85 million

25. Conclusions
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
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

26. Thank you