1 STATE OF THE CRUISE INDUSTRY Cruise Shipping Asia-Pacific STATE OF THE CRUISE INDUSTRY Cruise Shipping Asia-Pacific Christine Duffy - President and CEO, Cruise Lines International Association

2 THE PROMISE OF ASIA 2

Gateway to Tomorrow’s Marketplace Asia-Pacific region is the future of the global cruise industry Millions of potential new passengers New ships, expanded ports and terminals and investment in infrastructure New Asian-Pacific routes open to visitors from around the world 3

Singapore’s Marina Bay Cruise Centre $350 million investment, opened in May 2012 Expected to double Singapore’s handling capacity Chosen as homeport for Royal Caribbean’s Voyager of the Seas Expected to welcome 1.3 million passengers in 2013 (up from 1 million in 2010) 4

China’s Investments In 2011, the number of home-port calls overtook transit calls Homeports capable of serving large, luxury liners established in: −Shanghai −Tianjin Number of ships arriving at ports on China’s mainland −Xiamen −Qingdao Number of international liners arriving in Shanghai’s specialty port for luxury ships 62 (2012) 150+ (2013) 223 (2010) 262 (2011) 5

GROWTH AND GLOBALIZATION OF CRUISING 6

Passenger and Ship Growth Since 2000, 143 new ships have been added to the CLIA fleet, nearly doubling the number of beds 13 new ships introduced by CLIA’s member lines in 2012 Since 2000, the number of CLIA passengers from outside North America has tripled North AmericaRest of World 7

New Ship Deployments Ship deployments are evolving to meet expectations of new international travelers Deployments to Australia and New Zealand increased more than 100% over the past 5 years New routes being planned to appeal to Asian passengers 8

The Future is Bright Asian market’s penetration rate is only.01% Growth to 1% penetration rate equates to 40 million passengers 4 times larger than US market Penetration rate in the United States is about 3% Translates to 10 million passengers “Mature Market” Market Opportunity 9

SEIZING THE FUTURE 10

Economic Predictions Global spending by middle class predicted to grow from $21 trillion today, to $56 trillion by 2030  More than 80% of this growth expected to come from Asia  China’s middle class spending expected to pass US by 2020 and the 27-country EU by million Chinese projected as potential cruise passengers – the equivalent of adding another North America or Western Europe to the cruise market 11

Education Needs Educating the market of potential passengers is a necessity To-Do: Redeploy cruise ships to Asian ports 12

Education Needs Educating the market of potential passengers is a necessity To-Do: Redeploy cruise ships to Asian ports Address lack of knowledge about life onboard a ship Understand different dining and entertainment preferences Anticipate and address language and cultural differences 13

Industry must also educate itself to understand the basic needs and expectations of these potential passengers Education Needs Educating the market of potential passengers is a necessity To-Do: Redeploy cruise ships to Asian ports Address lack of knowledge about life onboard a ship Understand different dining and entertainment preferences Anticipate and address language and cultural differences 14

Travel Agent Partners The crucial first connection between cruise lines and its passengers Agents are critical to growth and success of the cruise industry ‐ ICCA investing to educate, train, and equip agents ‐ Travel agent training sessions at Cruise Shipping Asia-Pacific 15

ONE INDUSTRY, ONE VOICE 16

Safety is our Highest Priority Launched Cruise Industry Operational Safety Review (OSR) Since January 2012 launch: Proactively identified and implemented best safety practices available 6 new policies announced Engage key stakeholders Mobilize industry partners Educate broader audiences Next Steps: Develop a shared communications platform to Cruise industry introduces new safety measures 17

State of the Industry Panel Robert Giorgi President, V.Ships Dr. Zinan Liu Managing Director for China and Asia, Royal Caribbean Gianni Onorato President, Costa Crociere Ann Sherry CEO, Carnival Australia Gavin Smith Managing Director, Royal Caribbean Jan Swartz EVP of Sales, Marketing and Consumer Services, Princess 18