1. The Cruise Market and UK PerspectiveBy
William Gibbons
Director
Passenger Shipping Association
Marketing Director
European Cruise Council

2. Cruise Market Update
More Brits than ever taking to the seas – 1.2m in 2006

3. EX-UK Growth Cruises taken from UK ports up 12% - 450,000
Trend set to continue with increased ex-UK capacity on its way in 2007.
2007 – 500,000
2008 – 700,000

4. Fly-Cruise Fly-cruise market increased by 13% - to 753,000 Brits
Another trend that looks set to continue with increased capacity:
2006 – Island Cruises
2007 – Ocean Village Two, Thomson Calypso

5. Destinations – EX-UK

6. Destinations – Fly-Cruise

7. BALTIC
Each Passenger visit at a European Port Embarkation and visiting - Expenditure €100.
Average Revenue Per Passenger - £1,447.
Average Revenue Per Diem - £122.
Norway – (£156.)
Average length of Cruise from UK 12days

8. Growth of UK Ports Passengers embarking in the UK grew 15% to 576,000
- Non-UK residents accounted for 127,000, a growth of 27%
Ports of call passengers to UK ports grew 22% - to 392,000
Total value of cruise passenger expenditure in the UK – over £197m

9. Contribution of cruise tourism to the economies
of Europe

10. Major Highlights in 2005 GP Wild/ BREA – Undertook Study
Over 3.1m European residents booked cruises – 23% of cruise tourists (passengers) worldwide
Over 2.8m cruise tourist embarked in Europe – 90% were European nationals
Majority visited Mediterranean, Baltic and other European regions generating 13.1m visits in Europe

11. Major Highlights in 2005
As a result of European cruise operations and investment in new cruise ships, key economic impacts (direct, indirect, induced) throughout Europe in 2005 include:
€8.3 billion in direct spending by lines and passengers
€19.1 billion in total output
Over 187,000 jobs
€6.0 billion employee remuneration

12. Country Impacts - 2005 Country Spending €m Total Jobs Compensation €m
Italy
2,501
61,445
1,810 UK
1,686
37,319
1,457
Germany
1,073
19,969
725
Spain
683
13,940
422
Finland
621
10,205
371
France
536
7,265
310
Top six
7,100
150,143
5,095
Total
8,326
187,252
6,017

13. Cruise Tourism by Destinations 2005
Country
Cruise tourists
Market Share (%)
Italy
3,028,224
23.0
Spain
2,627,726
20.0
Greece
2,069,767
15.7
France
1,034,092
7.9
Norway
691,209
5.3
Portugal
498,431
3.8
Malta
336,400
2.6
United Kingdom
322,000
2.4
Sweden
301,826
2.3
Estonia
249,102
1.9

14. Western Europe as a Source Market 2003-06
Country
2003
Group Total
(1,000’s Pax)
2004
2005
2006
2005/06
% Change UK
964
1,029
1,071
1,214 13
Germany
537
583
639
700 10
Italy
346
400
514
559 9
Spain
307
300
379
378
France
212
222
233
265 14
Other
305
291
339 16
Total
2,671
2,835
3,126
3,455 11

15. Attitudes to Cruising
Research into people and their attitudes to cruising
Who would consider a cruise – and if not, why not?
What are the barriers to taking a cruise?

16. Attitudes to Cruising

17. Attitudes to Cruising
What matters most – destination or facilities ?

18. Attitudes to Cruising What do people like most about cruising?
Good food/ drink 35%
Interesting ports of call 27%
Luxurious cabins/ accommodation 27%
Price/ value for money/ inclusive 20%

19. Attitudes to Cruising What are the barriers to cruising?
Sea sickness/ bad weather 32%
Being cooped up/claustrophobic 31%
Not liking other passengers 25%
These barriers drop considerably once a person has actually taken a cruise

21. LUXURY CRUISING
The Exclusive Collection – an alliance of nine ships of excellence
Nearly 20,000 passengers are carried by the ultra luxury lines – 1.6% of the UK market
Luxury passenger numbers have doubled since 2002

22. SPECIALIST CRUISING
Specialist Cruise Collection – an alliance of 11 cruise lines
Unique itineraries to destinations best experienced by sea
A 27% growth in 2006

23. 2008 ONWARDS Boom in EX-UK Cruising Cunard – Victoria P&O – Ventura
Royal Caribbean Cruise Line – Liberty of the Seas
Fred Olsen – Balmoral
NCL – Jade
MSC – Armonia
(Including 5 Baltic Capital Cruises)
Carnival Cruise Line – Carnival Splendour (5 Cruises)

24. AND THE FUTURE… 1.3 million ocean cruise passengers in 2007
1.5 million ocean cruise passengers by 2008
Sheer diversity of cruising outperforming land based holidays – ranging from ships carrying up to 4,400 passengers to 49 passengers
39 brands represented by the PSA in the UK – more than any other country
There really is something for everyone!