1. 1ST HEMISPHERIC CONVENTION ON CRUISE TOURISM AND CORPORATE SOCIAL RESPONSIBILITY Bud Darr SVP, Technical and Regulatory Affairs, CLIA Global Cruise Ship Terminal, Port of Mar del Plata, Argentina April 8th, 2015

2. Overview -About Cruise Lines International Association (CLIA) -Economic Impact -Social Responsibility -Cooperation -Conclusions

3. About CLIA

5. 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

7. Australia + New Zealand China Singapore Italy Belgium + Luxembourg Netherlands Germany Spain UK + Ireland CLIA Office Locations 7 Alaska Hawaii Canada US + Global Brazil France

8. Technical and Regulatory Affairs Team -Advocates industry legal, legislative and technical positions -Actively monitors and participates in the development of shipping policies and regulations -Actively involved in the safety of passengers and crew, as well as protecting the marine environment

9. State of the Industry

10. CLIA Global Ocean Cruise Passengers (in Millions) 10 17.8 2009 20.5 2011 20.9 2012 21.3 2013 19.1 2010 22.1 2014 23.0* 2015 * projected

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

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

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

14. 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)

15. Economic Impact Total Global Economic Contribution of the Cruise Sector (2013) No. of Passenger and Crew Onshore Visits (in millions) 114.87 Total Direct Expenditures (in billions of U.S. dollars) $52.31 Total Output Contribution (in billions of U.S. dollars) $117.15 Total Income Contribution (in in billions of U.S. dollars) $38.47 Total Employment Contribution891,009 Source: BREA (2014)

19. Cruise Ship Deployment Source: Whatsinport.com

22. Social Responsibility

23. Stakeholders -Guests -Employees -Home and destination port communities -Travel professionals -Suppliers -Media -Non-governmental organizations -Government agencies and policy makers -Investors -Business organizations and industry associations

24. Social Responsibility -Continuous engagement amongst stakeholders -Safety -Evacuation drill for passengers conducted prior to departure from embarkation port -Security -Minimize security risks without much inconveniencing passengers -Health -Strive to reduce transmission of illness between passengers

25. Environmental Stewardship -Waste stream management -Recycling -Exhaust gas purification -Wastewater purification -Destination conservation efforts -Energy efficiency improvements -Source amenities in a sustainable manner

27. Maritime Labour Convention, 2006 -By declaring compliance, cruise lines are ensuring that their seafarers have the rights to: -A safe and secure work place -Fair terms of employment -Decent working and living conditions -Health protection, medical care, welfare measures and other forms of social protection

28. Cooperation

29. Source: M. Nestour (Carnival Corporation)

30. Ports and Their Increased Demand -6 new oceangoing ships introduced this year -Average gross tonnage – 102,733 -Average number of lower berths – 2,554 -421 total ships already in operation -Total capacity of about 482,000 lower berths -Does your country or region have a tourism, port or transport infrastructure strategy or policy that discusses cruise?

31. Ports and Their Increased Demand -Need for sufficient berths to support an ever growing industry -Each port needs a berthing policy that is transparent and published -Ports need to be able to accommodate waste discharges (garbage, sewage (as applicable)) -Bigger issue as the industry introduces larger ships -Major ports are already congested on peak days -This includes supporting infrastructure

32. Ports and Their Increased Demand -Examples of issues: -Case #1: Port invests $100M (USD) in new terminals, but only one public bus every hour, and no service on weekends. -Not sufficient for passenger and crew transportation -Case #2: A turnaround port with a new $45M terminal only has 4 taxis available for a ship disembarking 4,000 passengers. -Not sufficient for passenger transportation -Are local stakeholders looking to meet tourist needs? -How can we work with each other to improve guest experience?

33. Shore-side Incident Response -Many parties involved -Company incident management teams -Federal agencies (U.S. examples - USCG/FBI/CBP) -Local community -Police -Fire department -Hospitals -Port and harbor authorities -Ship agents -Tour companies -Volunteers

34. Local Community Assistance -Create and manage a landing site for passengers -Medical care and transport -Security -Create and manage shelters

35. CLIA Involvement in Incident Response -Help support coordination efforts amongst the CLIA Member lines -Public communication support -Liaison with authorities

36. Conclusions

37. -Consistent growth -Partnerships -Sustainable practices -Ongoing commitments