Transcript THE PROSPECTS OF PESCARA TO BECOME A CRUISE …

THE PROSPECTS OF PESCARA
TO BECOME A CRUISE CENTER
IN THE ADRIATIC SEA
A CHALLENGE FOR THE CITY
AND THE REGION
A PRESENTATION
BY
GEORGE MICHAELIDES
TOURISM CONSULTANT
PESCARA 28.02.2008
CRUISE MARKET OVERVIEW
• 2008 800 mill world tourism
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15 mill cruise
tourists, 100 mill med tourists only 1% are
cruise tourists
Cruise industry as a business sector, is booming
annual growth of 8%. By 2015, 6.3 mill
passengers.
12 mill Americans
Cruise every year
3 mill Europeans
By 2015 15 mill Americans
6.3 mill Europeans
CRUISE MARKET OVERVIEW
• 37 cruise ships valued at US$22 billion set
for delivery by 2012.
• In 2008 more than 270 ships will be
offering all types of cruises. More than 100
in the Med.
CRUISE MARKET OVERVIEW
• Cruise companies, shipbuilding yards and cruise
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passengers now account for €8.3 bill of direct
expenditure in Europe.
In 2005 US$480mill was paid in commissions to
European Travel Agents.
Within Europe cruise passengers spent an
average of US$100 at their port of embarkation
and an average of US$50 at each port of call on
their cruise itinerary.
CRUISE MARKET OVERVIEW
• Cruising is back to Europe where it was
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invented. 38 cruise companies are operating in
Europe and Med.
By 2010 Europe could experience a million more
cruise tourists.
Only one percent of the 300mill Europeans go
on a cruise.
Since 1980, European yards have delivered more
than 97% of all cruise ships worldwide.
CRUISE MARKET OVERVIEW
• Travel Agents remain the biggest source of first
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time cruise customers.
Top Med ports host 60% of cruise vessel
embarkation or 75% of potential pax throughput
Venice, Barcelona, Palma, Piraeus, Savona,
Genoa, Civitavechia, Limassol.
Rapidly expanding global cruise market is
presenting challenges, but also opportunities for
smaller ports and less visited coastal
destinations.
TOP EUROPEAN COUNTRIES IN
TERMS OF CRUISE PASSENGERS
• UK
• Germany
• Italy
• France
• Spain
• Cyprus
• Russia
1,500,000 (2008)
800,000
350,000
274,000
200,000
60,000
50,000
“IN EUROPE, SUMMERTIME CONGESTION
AT MANY OF THE LARGER PORTS IS
PROVIDING OPPORTUNITIES FOR
SMALLER SEAPORTS TO BECOME PORTS
OF CALL, AND, IN SOME CASES, NEW
PORTS OF EMBARKATION”
www.cruiseshipping.net
“OPENING UP LESS VISITOR PORTS TO
CRUISE TRAFFIC SPREADS THE WEALTH
AND PROVIDES PASSENGERS WITH
ACCESS TO NEW INLAND AND COASTAL
DESTINATIONS – AN IMPORTANT
CONSIDERATION WITH AN
INCREASINGLY SOPHISTICATED AND
WELL-TRAVELED PASSENGER BASE.
www.cruiseshipping.net
WHAT THEY SAID AT SEATRADE
EUROPE ABOUT PORTS AND
DESTINATIONS
• Michael Thamm
Hamburg: It is not about attractions [on
offer] but the infrastructure is not here to
attract cruiseships. As soon as we see
more investment here there will be more
cruiseships.
WHAT THEY SAID AT SEATRADE
EUROPE ABOUT PORTS AND
DESTINATIONS
• Nigel Lingard – Marketing Director
Fred Olsen Cruise Lines
Let’s get it right for the passenger and
focus less on fighting each other.
WHAT THEY SAID AT SEATRADE
EUROPE ABOUT PORTS AND
DESTINATIONS
• Mai Elmar – Executive Manager,
Cruise Europe
Don’t fight each other but co-operate.
Look at quality not quantity. Look at what
is in it for us, not what is in it for me.
WHAT THEY SAID AT SEATRADE
EUROPE ABOUT PORTS AND
DESTINATIONS
• John Tercek – Vice President
commercial development, RCCL
It is still a discussion of infrastructure,
when we go to a port and there is hardly
ever anyone there from tourism
WHAT THEY SAID AT SEATRADE
EUROPE ABOUT PORTS AND
DESTINATIONS
• Philip Naylor – General Manager
fleet, marine and shore operations,
Carnival UK
The people that take a tour, it can make
their cruise. It is the thing they remember
most.
WHAT THEY SAID AT SEATRADE
EUROPE ABOUT PORTS AND
DESTINATIONS
• Mark Ittel – partner, Bermello, Ajamil
& Partners
Congestion is the biggest factor in an
unsatisfying visitor experience.
MAJOR TRENDS
• Price sensible market
“Cruising for all”
• Lifestyle/ Ready to pay
• Niche Markets
Matching the historical and natural
fascination ashore with a good value for
money product at sea. Special prices to
entice first time cruisers.
FACTORS THAT ARE TAKEN INTO
ACCOUNT FOR THE DEPLOYMENT OF
CRUISE SHIPS
• Most cruise operators are fundamentally dependent
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on destinations. We are in the business of selling
dreams and we have to make sure that dreams
come true. We really need your help in this matter.
Before a final decision is made to start cruising in a
region, a certain decision process is followed:
Research
Analysis
Discussions
Between: Legal, Financial, Sales, Marketing,
Technical Departments
Port Agents
General Sales Agents
The ships
Head
Offices
Decision
FACTORS THAT ARE TAKEN INTO
ACCOUNT FOR THE DEPLOYMENT
OF CRUISE SHIPS
• MAIN OBJECTIVES:
– Profit contribution
– Value for money
– Extension of the season
• Deployment should match the interest of
the cruise lines passengers.
FACTORS AFFECTING THE CHOICE
OF A PORT
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Location/ Downtown?
Season
Tourist attractions/ Amenities/ Unique tour options
Port facilities/ Cruise dedicated berths/ Handles
ships of any size
Cruise terminal/ Full service port
Hotel infrastructure
Comfortable and efficient clearance customs and
immigration procedures/ embarkation/
disembarkation
FACTORS AFFECTING THE CHOICE
OF A PORT
• Safety/ Political instability. Cruise lines commit
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themselves over a year in advance an cannot be
exposed unduly to high risk areas.
Reasonable distances between ports of call.
Customer loyalty. Cruise lines are looking for new
destinations for the highly valued repeat passenger.
Air connections/ airline capacities/ fly-cruise and
stay
Rail and cruise/ Drive and cruise
Navigation
FACTORS AFFECTING THE CHOICE
OF A PORT
• Market appeal/ Will it sell?/ Passenger
satisfaction
• Regional costs: Port, infrastructure costs,
ground handling costs, excursion prices,
passenger transit costs i.e. Hotels, flights,
short cruises combined with another
holiday activity make the cost
consideration even more important.
• For short cruises big volume of tourist
traffic in the region.
FACTORS AFFECTING THE CHOICE
OF A PORT
• Dynamic marketing drive by tourism
authority cooperative marketing effort.
• Legal aspects.
• Cruise friendly business environment.
• Courtesy shuttle bus service.
• Local suppliers.
• Cooperation with other local cruise
oriented stakeholders.
SOME MORE FACTORS AFFECTING
THE RELATIONSHIP BETWEEN
PORTS AND CRUISE LINES
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Economic impact of cruise passengers
How to increase revenue from passengers
Taxation
Sourcing of supplies for sale to cruise ships.
Vessel capacity (cater to a vessel size, which is
manageable)
Improvement of port infrastructure
Port state control/ Environment protection
Safety standards
Increasing cruise passengers in order to return for a land
based holiday.
QUESTIONS THAT NEED AN
ANSWER BY PORTS
• What do we offer now?
• What can be done better?
• What needs to be planned or invested and
by whom?
These questions need to be discussed
openly with cruise lines in order to
establish a long lasting relationship.
PESCARA A CRUISE CENTRE?
• As a port of call
• The fly-cruise and stay concept. The
longer cruise for the local market.
• The mini cruise concept (the development
of a regional brand).
• The ferry-cruise concept.
CAN WE DEVELOP A SHORT
CRUISE BRAND FOR PESCARA?
The model is different, in the sense that the product
resembles a traditional cruise rather than a ferry crossing
to visit a neighboring country, the round trip includes all
the usual cruise arrangements, such as full meals and
entertainment on board. The product is offered in a
uniformed way to all passengers and the only factor
affecting prices is cabin size and amenities.
Although the ships are not of the highest luxury
standards, services, cleanness and quality of food
onboard are of very high standards, thus offering value
for money. This, combined with the fascinating
destinations, creates an ideal opportunity for first timers
to enjoy cruising.
THE MAIN REASONS THAT
MOTIVATE
• The destination (Sightseeing)
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– New Dimension to the holiday
The price. It’s affordable for all ages and budgets.
The itinerary.
The duration of the cruise.
All inclusive experience from the pick up point of the
Hotel.
The idea of cruising for first timers
Shopping
Enjoyable and Entertaining
The ship and its facilities
THE HALLMARKS OF A SHORT
CRUISE
• All inclusive
• Comfortable Ships
• Entertaining
• Attentive Service
• International Cuisine
• Casual Elegance
• Visits to places of historical significance
• Good value for money
POSSIBLE TYPES OF CRUISES FOR
PESCARA
1. PORT OF CALL
– Adriatic Itinerary
Italy
Roma (Pescara)
Venice
Ravenna (Florence)
Slovenia
Koper
POSSIBLE TYPES OF CRUISES FOR
PESCARA
Croatia
Dubrovnik
Split
Korcula
Montenegro
Kotor
Albania
Saranta
Greece
Corfu
- Adriatic-Aegean-Istanbul
POSSIBLE TYPES OF CRUISES FOR
PESCARA
2. Home Port
– Mini Cruises
– Ferry mini cruises
– 7day cruises, 10day, 15day for the Italian
Market
DETERMINANTS FOR THE
DEVELOPMENT OF HOME PORT
CRUISING. THE CASE OF PESCARA
• Two major market segments
A. The local market – Italians
B. Foreign tourists
Determinants
The ability to convince Italians
to go on a cruise from Pescara
DETERMINANTS FOR THE
DEVELOPMENT OF HOME PORT
CRUISING. THE CASE OF PESCARA
• The volume of tourism of the country/ region
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from where the cruise originates.
The attractiveness of the destinations in Adriatic.
The type of tourist and their spending power.
The structure of the travel trade and tour
operating industry both in the country itself and
the countries from where tourism originates.
The role of representatives of the tour
operators.
THE SHORT TERM PROSPECTS FOR
DEVELOPMENT OF PESCARA AS A
CRUISE CENTRE DEPENDS MAINLY ON:
• Selling the idea that Rome is in the
Adriatic Sea!!!!!
• Promoting to the Italians the idea of
shorter and longer cruises from Pescara.
• Ability of niche marketing by local
authorities.
THE SHORT TERM PROSPECTS FOR
DEVELOPMENT OF PESCARA AS A
CRUISE CENTRE DEPENDS MAINLY ON:
• The ability to ensure product prepackaging
and prepaying and continuous presence in
the brochures of Tour Operators.
• Better segmentation and more accurate
pinpointing of the target groups.
• Motivating the Travel Agents to sell the
mini-cruise product.
THE SHORT TERM PROSPECTS FOR
DEVELOPMENT OF PESCARA AS A
CRUISE CENTRE DEPENDS MAINLY ON:
• Convincing the National Tourist Offices that mini-
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cruises to nearby countries add a new dimension
to the holidays in their own country an that the
mini-cruise is a strong selling point in their
promotional efforts.
Selling the idea of “A Holiday within a Holiday”
to the tourists.
Marketing the cruises for American, Japanese
and Chinese tourists.
THE BENEFITS FOR PESCARA
• Enhance the image of the city and region in tourism.
• Direct benefit to the port authority, city council and
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stakeholders.
Multiplier effect to the local and regional economy.
New dimension of the tourist product
Repeat tourism
Open-up new markets
Pescara should be motivated by the potential economic
benefits of the cruise business of the future and develop
the road map for an effective and productive approach
to cruise tourism.
CRUISE SHIPS
Large Resort Ships
(over 1000 pax)
Mid-size Ships
(500-1200 pax)
Small Ships
(200-500 pax)
SHIPS FOR PESCARA
74
Boutique Ships
(50-200 pax)
CRUISE COMPANIES IN NICHE
MARKETS
• Easy Cruise
• Swan Hellenic Discovery Cruise
• Iberocruceros
• Silversea
• Azamara Cruises (Royal Caribbean
Celebrity)
• Seabourn
• Classic International Cruises
CRUISE COMPANIES IN NICHE
MARKETS
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Club Cruise Entertainment
Club Med
Costa
Crystal
Peter Deilmann
Dolphin Maritime
Elysian Cruises
Explorer Cruises
Fred Olsen
CRUISE COMPANIES IN NICHE
MARKETS
• Golden Star
• Hansa Kreuzfahrten
• Hapag Lloyd
• Hebridean
• Iberojet
• Kristina Cruises
• Louis Cruise Lines
CRUISE COMPANIES IN NICHE
MARKETS
• Majestic Intrn.
• MSC
• Oceania
• Orient Lines
• Page + Moy Holiday
• Phoenix Seereisen
• Pullman Tur
CRUISE COMPANIES IN NICHE
MARKETS
• Saga
• Salamis
• Seadream
• Star Clippers
• Star Cruises
• Thomson
• Transocean
• Voyages of Discovery
PORTS IN THE REGION
PORT
LENGTH(m)
DRAUGHT(m)
Bari
310
12
Civitavecchia
875
Ravena
261
9.45
Trieste
No limit
18
Venice
295
8
PESCARA
170
7.5
Zadar (Croatia)
200
8
Split
200
8.2
Rijeka
400
7
Koper
420
12
Dubrovnik
330
12
Korcula
270
6
Kotor (Montenegro)
Saranta (Albania)
(30 calls, 17000 pax)
DEVELOPMENT IN THE REGION
• Trieste terminal passaggeri to be privatised.
• KOPER: 2007, 80 calls compared to 35 in 2006
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(turn arounds of classic international arion) €10
mill investment in terminal building.
Out of 35 top ports in the Med
Venice banks 3rd, Dubrovnik 10th
The other Italian top ports are Naples, Savona,
Livorno, Genoa, Palermo, Messina. All on the
west coast of Italy.
DEVELOPMENT IN THE REGION
• Ports should not compete with each other but
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complement each other.
Split has started working on the lengthening of
the pier.
Venice has plans to build a new two-storey
terminal covering 13000 sq.m in order to be able
to handle simultaneous berthing of two large
ships.
By 2010 Ravenna will have a new terminal and
two of its four berths will be able to
accommodate cruise ships up to 300m.
Dubrovnik is also investing in new berthing
facilities and a new cruise terminal
CLOSING REMARKS
Dear colleagues,
The purpose of my presentation was to share
with you some thoughts related to the
development of Pescara as a Cruise Centre.
With its proximity to the fantastic Adriatic Ports,
the readiness to develop the port facilities and
nearness of Pescara to the main attraction of
Rome, Pescara has a good chance to be
established as one of the most vital and
important Cruise Centres in the region.
CLOSING REMARKS
At a time when cruising attracts more and more
enthusiasts and the classic beach holiday turns
increasingly into an experience-oriented journey
on the sea, the Adriatic ports are asked to play a
more dynamic role in the cruise business. The
new travellers whether on a short or longer
cruise hold out a wide variety of opportunities
for cruise operators, ports but also for the
destinations. It is up to us in the cruise business
and the tourist industry to make the most of it.
Pescara has a good potential to make Rome an
Adriatic Destination. Therefore a destination
oriented approach based on Rome is a must.