National Marine Educators Association “How the Modern Cruise Industry is Regulated and Operates” June 30, 2015 Newport, Rhode Island Bud Darr Senior VP of Technical & Regulatory Affairs Cruise Lines International Association

- Unified voice of the global cruise community - Represents, advocates and promotes the common interests of the industry to external stakeholders - Global organization with 15 offices worldwide

Australia + New Zealand China Singapore Italy Belgium + Luxembourg Netherlands Germany Spain UK + Ireland CLIA Office Locations 5 Alaska Hawaii Canada US + Global Brazil France

State of the Industry

CLIA Global Ocean Cruise Passengers (in Millions) * 2015 * projected

Global Distribution of Cruise Passengers by Source Market (Millions of Passengers) Source: G.P. Wild (Int.) Limited from CLIA, IRN and other sources (2013)

European Distribution of Cruise Passengers by Source Market (Millions of Passengers) Source: G.P. Wild (Int.) Limited from CLIA, IRN and other sources (2013)

Distribution of Cruise Passengers by Source Market Outside of Europe and North America Source: G.P. Wild (Int.) Limited from CLIA, IRN and other sources (2013)

Economic Impact Total Global Economic Contribution of the Cruise Sector (2013) No. of Passenger and Crew Onshore Visits (in millions) Total Direct Expenditures (in billions of U.S. dollars) $52.31 Total Output Contribution (in billions of U.S. dollars) $ Total Income Contribution (in in billions of U.S. dollars) $38.47 Total Employment Contribution 891,009 Source: BREA (2014)

Cruise Ship Deployment Source: Whatsinport.com

15 How we are Regulated

International Regional National Sub-national 16

Maritime Regulatory Enforcement Flag States Classification Societies Coastal & Port States 17

Representation with UN Bodies International Maritime Organization International Labour Organization World Health Organization UN World Tourism Organization International Civil Aviation Organization 18

IMO Organization Assembly Council Committees Subcommittees Agenda Approvals Budget Direction Substantive Policy and Standard Development Detailed Technical Work Internationally, the cruise industry’s approx 250 vessels are often folded into the broader shipping industry of approx. 50,000 vessels 19

IMO Committees Maritime Safety Marine Environment Protection Legal Facilitation Technical Cooperation 20

Relevant IMO Subcommittees Ship Design and Construction Ship Systems and Equipment Human Element Training and Watch keeping Navigation, Communications, Search and Rescue Implementation of IMO Instruments Pollution Prevention and Response 21

IMO Membership 171 Member States 3 Associate Member States 63 Intergovernmental Organizations 77 Non-Governmental Organizations 22

CLIA as a Non-Governmental Organization Consultative Status - ICCL / CLIA Since 1993 Meeting Participation, Position Papers Expert “advice”, Points of View, and Advising Governments and Other Delegations 23

IMO Standards CONVENTIONS - INTERNATIONAL LAW CODES RESOLUTIONS GUIDELINES INTERPRETATIONS 24

SOLAS: Safety of Life at Sea(1974) MARPOL and SIX ANNEXES: Prevention of Pollution from Ships (73/78) STCW: Standards for Training Certification and Watch keeping (95) LLC: Load Lines Convention (66/88) FAL: Facilitation Major IMO Conventions 25

International Labour Organization Operates in tri-partite manner, Governments 50% of vote, Labor 25%, ship owners 25% Ship owners represented by ICS, Labor by ITF Consolidated Maritime Labour Convention of 2006 Invokes port state control, therefore enforceable worldwide. 26

U.S. Regulatory Framework 27

Current Policy Issues

Cruise Ship Policy Contributors Cruise Lines Seafarers Shipbuilders Classification Societies Flag States Port States Industry Trade Associations 29

Trade Association Roles Cooperation Communication Sharing of Best Practices Policy Development Issues Education International Engagement Representation 30

CLIA Complementary Efforts Promotion of Enhanced Safety Culture CLIA Globalization Develop & Enhance Industry Policies Verification of Member Policies (CEO Engagement) Guest Care & Contingency Planning Initiatives Passenger Bill of Rights 31

Some Key Safety Issues Operational Measures Reliability of Systems Innovation in Design Evacuation Analysis Contingency Planning Polar Cruises

Some Key Health Issues Norovirus/Acute Gastrointestinal Illness Influenza Like Illness Ebola (Current Outbreak) Emergency Care 33

Some Key Environmental Issues Sulfur Requirements Exhaust Gas Scrubber Washwater Standards Port Reception Facilities Wastewater Management Requirements Polar Issues 34

Maritime Labour Convention, 2006 Ensuring that seafarers have the rights to: o A safe and secure work place o Fair terms of employment o Decent working and living conditions o Health protection, medical care, welfare measures and other forms of social protection

Thank you