MARITIME TRAFFIC IN THE ADRIATIC AND IONIAN MACRO REGION Split, 17th October 2018 ANDREA MOSCONI Chamber of Commerce of Ancona 1 1

Dubrovnik (only passengers) Bar Durres Igoumenitsa Patras ADRIATIC AND IONIAN REGION Passengers traffic in the Adriatic and Ionian area Koper Rijeka Zadar Split Ploce (only freight) Dubrovnik (only passengers) Bar Durres Igoumenitsa Patras Kotor (only cruise) Corfù (only cruise) Trieste Venezia Ravenna Ancona Bari Brindisi Taranto 2 2

1. FREIGHT TRAFFIC

ADRIATIC AND IONIAN REGION Freight traffic in the Adriatic and Ionian area Total movements in 2017 reached 207 million tons, +1,4% compared to 2016. Trend is positive since 2014 and current data are close to the maximum of 2006-2008; Ionian ports are now less important. Source: data collected from Local Port Authorities

ADRIATIC AND IONIAN REGION Freight traffic in the AI area – Main ports trend +4,6% Positive trend: Trieste, Koper, Rijeka, Bari, Ploce, Split, Durres, Zadar, Patras. +0,1% -0,7% +6,2% -12% +13% -3% Negative trend: Venice, Taranto, Brindisi, Ancona and Bar. Source: data collected from local Port Authorities

ADRIATIC AND IONIAN REGION Container movements in the AI area – Long term trend In 2017 container flow has overcome for the first time 3 millions TEU in the AI region. +7,4% vs 2016 +203% vs 2001 Rotterdam, 11th world port and 1st European, moved 13,6 millions TEUS in 2017. Drop after 2008 has been recovered in a really short period and current traffic is higher than 2008. Source: data collected from local Port Authorities

ADRIATIC AND IONIAN REGION Container movements in the AI area North-East ports protagonists; Relevant concentration of traffic in some ports; Central and Southern ports traffic have increased slowly and some of them decreased. Source: data collected from local Port Authorities

2. PASSENGER TRAFFIC FERRY AND CRUISE

Total Passengers in the Adriatic and Ionian Region PASSENGER TRAFFIC Total Passengers in the Adriatic and Ionian Region International Ferry and Cruise Passenger Movements 8.980.000 pax in 2017 11.050.000 pax in 2011 Evolution 2001-17 +12,6% Evolution 2016-17 +1,5% Source: data collected from Local Port Authorities 9 9

Total Passengers (ferry and cruise) – Principal ports PASSENGER TRAFFIC Total Passengers (ferry and cruise) – Principal ports Source: AIC Forum report about Maritime Traffic in A-I area 10 10

Ro-Pax Traffic Italy – Greece (number of passengers) PASSENGER TRAFFIC Ro-Pax Traffic Italy – Greece (number of passengers) AI Ports Market Share 11 11

Ro-Pax Traffic Italy – Croatia (number of passengers) PASSENGER TRAFFIC Ro-Pax Traffic Italy – Croatia (number of passengers) AI Ports Market Share 12 12

Ro-Pax Traffic Italy – Albania (number of passengers) PASSENGER TRAFFIC Ro-Pax Traffic Italy – Albania (number of passengers) AI Ports Market Share 13 13

Cruise passengers in Adriatic and Ionian ports (2010-2017) CRUISE MOVEMENTS Cruise passengers in Adriatic and Ionian ports (2010-2017) 10/17 +11,2% 16/17 -1,4% Source: AIC Forum report about Maritime Traffic in A-I area 14 14

Cruise Passengers in the Adriatic and Ionian Ports CRUISE MOVEMENTS Cruise Passengers in the Adriatic and Ionian Ports -9,9% -6,4% -9,2% +0,8% Source: AIC Forum report about Maritime Traffic in A-I area 15 15

CRUISE MOVEMENTS Adriatic cruise passengers and calls share (%) of the global Mediterranean movements Source: “Medcruise statistics report 2017”, MedCruise 16 16

Cruise Passengers Movements in MedCruise Ports CRUISE MOVEMENTS Cruise Passengers Movements in MedCruise Ports Total Cruise Passenger Visits in Mediterranean Ports, 2000-2017 Data include visits in MedCruise Ports, than the number is bigger than the number of passengers boarded. Significant and constant increase until 2011. Source: “Medcruise statistics report 2017”, MedCruise 17 17

General trends about maritime traffic in AI Ports Goods movements reached 204 million tons, +1,4% compared to 2016 and quite close to the flows of the years before the economic crisis; economy and trade of the AI area are slowly growing but... are growing. Container is the segment more performing traffic segment in the area and in 2017 it has reached 3 million TEU movements for the first time; the flow is 3 times bigger than 2001. The concentration in the North-Eastern ports (Venice, Trieste and Koper) is more and more evident. Ferry traffic is the sore point: in recent years competition from low cost flights have generated a permanent reduction of passengers along Adriatic and Ionian maritime routes. In 2017 passengers traffic increased at a rate of 1,5% reaching 9 millions, so far from 11 millions pax in 2011.

Cruise Passengers in the Adriatic and Ionian Ports In spite of a sensible decrease in 2017 (-9,9%) Venice remains the unique Adriatic and Ionian port among the Top 10 of Cruise Mediterranean destinations (the 5th after Barcelona, Civitavecchia (Roma), Palma de Mallorca and Marseille). Tourist visits are concentrated on few ports and among them there are some destinations whose ports are active only on the passengers segment (Kotor, Corfu and Katakolon). Other destinations have to increase their exposure to cruise companies, tour operators and tourists, adapt their port infrastructures and create a service of welcoming that can make tourists more aware about characteristics and attractiveness of the place. FORECAST for 2018: Cruise passengers (embark and transit) in Italian ports will increase at a rate of 8,6% but Venice should remain stable compared to 2017 then the entire Adriatic and Ionian area could suffer the effects of this performance.

AI NURECC INITIATIVE FOR CRUISE IN THE AIM Some facts from Olympia AI-NURECC event The first AI NURECC event about cruise sector and its challenges and future perspectives was held in Olympia on June 27th and one of the most relevant challenges pointed out by participants was the way to increase benefits for local communities. Our network of Chambers of Commerce, Cities and Universities should debate on this topic with the aim to imagine a general model of business for a “normal” cruise hosting port in order to strengthen the positive effect of this kind of traffic. In Olympia we realised, using traffic data, that there are different models of port in the AI area: port with a huge predominance of cruise passengers (Venice and Dubrovnik), other port specialised only on ferry passengers (e.g. Durres and Igoumenitsa), other ports that are trying to increase the cruise share (Split, Ancona and Bari). The majority of these ports manage a relevant freight traffic. Then... There isn’t a single way to deal with the topic of increase benefits for local communities.

AI NURECC INITIATIVE FOR CRUISE IN THE AIM Key factors and challenges / 1 INFRASTRUCTURE Infrastructures for big vessels and private engagement for new and big investments. Avoid cartels of cruise companies even in case of private participation to significant investments for new infrastructures. Modern and efficient Terminal design; integration with a welcoming Waterfront. Distance and easy connection with the centre of the city. Coexistence of different segments of traffic in the same port area. ECONOMIC ACTIVITIES AND EMPLOYMENT - Specific commercial offers for cruise tourists, shore alternative itineraries and a virtual reservation system for tourists. Real involvement of local economic actors to the hospitality activities. Dialogue with cruise companies to move up their strategies. Create new employment. Creation of a local network that collect all the main stakeholders with an approach of CLUSTER.

AI NURECC INITIATIVE FOR CRUISE IN THE AIM Key factors and challenges / 2 ENVIRONMENTAL RISKS - Environmental sustainability of intense cruise traffic (waste, energy consumption, emissions in the atmosphere, water contamination). SOCIAL RISKS Overcrowding in the summer. Potential reaction from residents face to restrictions during cruise days. STRONGER PROMOTION OF THE CITY AS A TOURIST DESTINATION Cruise flows as an opportunity to restore monuments, re-organise city centre life, invest on urban ornament. Investment on training at every level of the cruise cluster.

AI NURECC INITIATIVE FOR CRUISE IN THE AIM Some important remarks… Cruise Carrying Capacity is a concept that should be considered in the long process of growth of cruise ports... Limits can’t be ignored. A general model of business must consider that each port has its own characteristics in term of traffic, geography, infrastructure, attractiveness and tourist awareness. Every long term project needs a strong and consolidated network of all local stakeholders (public and private) adopting a cluster approach to manage the cruise industry. It is necessary to be aware of the own potentiality and prepare (adopt) a strategic plan that look to the medium – long term future.

AI NURECC INITIATIVE FOR CRUISE IN THE AIM Next steps In the framework of AI NURECC programme, this workgroup should produce an effective contribution to the implementation of the EUSAIR objectives and one of the action will be on Tourism and Cultural Heritage. Our aim is the definition of a “Model of business” for cruise hosting cities in order to increase economic effects on local communities generated by cruise tourists. Starting from this analysis of major challenges and from today’s debate, in the next weeks we will share with stakeholders of the 3 Fora (Chambers of Commerce, Cities and Universities) a questionnaire about current and forecasted initiatives, local networks of stakeholders, strategic plans, contacts with cruise companies and everything else could be useful to point out the way AI cruise cities could organise to increase economic effect avoiding negative effects according to the idea of CCC.

THANKS FOR YOUR ATTENTION!!! Split, 17th October 2018 ANDREA MOSCONI Chamber of Commerce of Ancona 25 25