1. “Cruise Experience in Malta” Jason Bongailas Malta Maritime Authority Passenger Traffic Trends In The EU – Especially Cruise Within the “Baltic Range” Port-Net Workshop 22 – 25 May 2007 Klaipeda

2. Passenger Transport by Sea Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

3. Passenger transport on water One of the earliest ways of transport of passengers between origin and destination One of the earliest ways of transport of passengers between origin and destination The vehicle varied from the pre-historical rafts to canoes to boats to large liners and ferries The vehicle varied from the pre-historical rafts to canoes to boats to large liners and ferries Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

4. Reasons for traveling by sea To travel between origin and destination – boats, barges and ferries. To travel between origin and destination – boats, barges and ferries. Entertainment - local river or harbour excursions and dinner cruises. Entertainment - local river or harbour excursions and dinner cruises. Leisure – where the ship is a destination in itself – cruise liners – an exception to the rule of transportation Leisure – where the ship is a destination in itself – cruise liners – an exception to the rule of transportation Passenger Traffic Trends in the EU: Klaipeda 22-25 May 2007

5. Cruise Industry Issues and Outlook Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

6. KEY PLAYERS IN THE CRUISE LINING INDUSTRY Cruise Liner Operators own & charter vessels own & charter vessels Tour Operators own or charter vessels own or charter vessels wholly own or have subsidiary wholly own or have subsidiary shareholdings in airlines or hotels in the ‘home ports’ Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

7. Main Cruise Destinations Caribbean Caribbean Mediterranean Mediterranean Asia/South Pacific Asia/South Pacific Alaska Alaska North/Western Europe North/Western Europe Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

8. THE MEDITERRANEAN’S POTENTIAL In recent years the Mediterranean cruise market has seen a rapid expansion of capacity which looks set to continue with the continuous growth of:  tour operators such as Airtours, Thomson, and Pullman Tours; and  cruise operators as Costa Crociere, MSC Cruises and Aida Cruises Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

9. Itinerary Planning A cruise region with marketable ports close to each other A cruise region with marketable ports close to each other Socio-political stability Socio-political stability A mix of ports offering a blend of cultural, historical and leisure experience A mix of ports offering a blend of cultural, historical and leisure experience Possibility of time and sea Possibility of time and sea Good climate Good climate Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

10. Ship Support Services Decent, clean and safe berthing facilities Decent, clean and safe berthing facilities A wide turning basin A wide turning basin Professional Pilotage and towage service Professional Pilotage and towage service Fast Customs and immigration clearance Fast Customs and immigration clearance Fuelling and water capacity Fuelling and water capacity Repair services Repair services Ship chandling Ship chandling Waste handling services Waste handling services Security Security Low costs Low costs Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

11. Passenger Handling Services Quick Customs and Immigration clearance Quick Customs and Immigration clearance Smooth baggage handling Smooth baggage handling Security Security Berth close to city and attractive environs Berth close to city and attractive environs Tourist appeal destinations Tourist appeal destinations Professional guides Professional guides Local hospitability and facilities – telephones etc. Local hospitability and facilities – telephones etc. Adequate parking facilities Adequate parking facilities Comfortable local passenger transport Comfortable local passenger transport High standard hotel industry High standard hotel industry Good air connections Good air connections Low costs Low costs Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

12. Malta’s Strategic Position

13. NUMBER OF CRUISE LINER CALLS AT MALTA 83 359 Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

14. NUMBER OF PASSENGERS CALLING AT MALTA 40,269 408,264 Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

15. Cruise Passengers in Malta - by Nationality - 2006 Germany - 18% Italy - 23% USA – 10% Spain - 16% Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

16. Class Classification of Vessel Calling at Malta - by no. of passengers Standard Delux + Delux Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

17. VISET plc VISET Consortium was awarded the Valletta waterfront project to develop and operate the cruise terminal. VISET Consortium was awarded the Valletta waterfront project to develop and operate the cruise terminal. VISET was responsible also for the regeneration of a vast part of the Grand Harbour along the Valletta waterfront. VISET was responsible also for the regeneration of a vast part of the Grand Harbour along the Valletta waterfront. The Lm 14 million Valletta waterfront project aim also to target the home porting business by providing modern facility that would entice more shipping lines to begin and end their cruises at the Grand Harbour. The Lm 14 million Valletta waterfront project aim also to target the home porting business by providing modern facility that would entice more shipping lines to begin and end their cruises at the Grand Harbour. Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

18. The Malta Cruise Network (MCN) “MCN was set up in late 2004 as an independent body to act as the focal point for local stakeholders and as a coordinating voice in the delivery of a quality product and service to the cruise line sector. Its remit is to define, develop, deliver and promote a sustainable cruise industry for Malta” Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

19. Leading Mediterranean Ports of Call - 2005 RankPortSector Potential Passenger Throughputs 2005 1NaplesWestern652,148 2BarcelonaWester566,012 3CivitavecchiaWestern552,023 4DubrovnikAdriatic500,000 5 Tunis/La Goulette Western439,442 6LivornoWestern414,408 7SantoriniEastern399,784 8 Palma Majorca Western374,999 9MykonosEastern354,171 10VallettaWestern336,400 11KatakolonAdriatic334,845 12RhodesEastern286,837 13PiraeusEastern282,674 14KusadasiEastern282,604 15MalagaWestern250,000 16Nice-VillefrancheWestern242,141 17CorfuAdriatic241,095 18BariAdriatic230,316 19PalermoWestern216,768 20MessinaWestern200,000 Source: G. P. Wild (International) Limited

20. The Economic Impact Direct Expenditure Direct Expenditure –Research by the Malta Cruise Network (MCN) and the National Statistics Office shows that cruise passengers spent an average of Lm 12.80 each whilst ashore, excluding the cost of pre-booked excursions. Multiplier Effect Multiplier Effect –If multiplied by the number of passengers ashore during the same period, cruise passengers left an estimated average of Lm290,000 per month in the Maltese economy or Lm3.4 million for the year ending 2006. Source: Malta Cruise Network Research Study Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

21. THE ‘HUB’ CONCEPT Passengers from different localities travel to the ‘home port’/ ‘hub port’ to embark the awaiting cruise liner. Passengers may chose to spend 1/3 days in the ‘home port’ prior to embarking the vessel. Passengers may chose to spend 1/3 days in the ‘home port’ prior to embarking the vessel. Passengers usually disembark (after the cruise) in the same ‘home port’.... again with the possibility of spending 1/3 days in the ‘home port’. Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

22. SOME KEY FACTS TO NOTE  growing passenger markets  Few ports in the Mediterranean can handle big passenger ships, because of (i) draught (ii) a large number of passengers  larger cruise ships  New strategies in the Industry - Joint ventures; alliances; mergers & takeovers. Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

23. MALTA AS A ‘HUB’ - REQUIREMENTS Adequate infrastructure viz:Airport; road networks; transfer to Port (taxi service etc). Adequate infrastructure viz:Airport; road networks; transfer to Port (taxi service etc). Air ‘links’ with Airports. Air ‘links’ with Airports. An efficient passenger handling system & quick transfer of passengers from Airport to the Port. (check -in facilities at Airport) An efficient passenger handling system & quick transfer of passengers from Airport to the Port. (check -in facilities at Airport) The provision of the right ‘package’ at the right price, including the above. The provision of the right ‘package’ at the right price, including the above. An association or ‘committee’ which coordinates all the necessary requirements. An association or ‘committee’ which coordinates all the necessary requirements.

24. Cruise Passengers in Malta ooo’s Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

25. Barriera Wharf Design aspects: A solution with 2 separate berths is chosen, taking into consideration safe navigating of vessels as well as limiting wave reflection into the Grand Harbour. A solution with 2 separate berths is chosen, taking into consideration safe navigating of vessels as well as limiting wave reflection into the Grand Harbour. One berth for mega-cruise vessels and one other berth for vessels up to 250m. The berths could also be constructed separately. One berth for mega-cruise vessels and one other berth for vessels up to 250m. The berths could also be constructed separately. Land space is limited and will mainly need to be created at the quays: 7000m 2 at the mega-berth and 2900m 2 at the other berth. Land space is limited and will mainly need to be created at the quays: 7000m 2 at the mega-berth and 2900m 2 at the other berth. The total investment costs are estimated at: 26 million euro. Annual maintenance costs are estimated to be 1.55% for both berths. The construction period is estimated to be 2 years. The total investment costs are estimated at: 26 million euro. Annual maintenance costs are estimated to be 1.55% for both berths. The construction period is estimated to be 2 years.

26. The Islands’ Maritime Heritage The Maltese islands have first been inhabited prior to 6000 years ago. These settlers must have been travelers originating from North Africa and nearby south Italy. 6000 years ago. These settlers must have been travelers originating from North Africa and nearby south Italy. Cart ruts templevillage

27. The Islands’ Maritime Heritage The most famous early inhabitants must have been the Temple Builders dating back to around 4000 B.C. They have left behind the most ancient free-standing buildings on Earth. These are today World heritage sites. The most famous early inhabitants must have been the Temple Builders dating back to around 4000 B.C. They have left behind the most ancient free-standing buildings on Earth. These are today World heritage sites.

28. For centuries Malta’s ports were sought after by any military empire For centuries Malta’s ports were sought after by any military empire the natural sheltered ports provided clear advantages to our colonisers the natural sheltered ports provided clear advantages to our colonisers such empires were not only military but also traders and used Malta as their logistics centre. such empires were not only military but also traders and used Malta as their logistics centre. Stores built by the Knights of St John to store grains transhipped between the East and the West of the Med., have today become a passenger terminal and a leisure centre. Stores built by the Knights of St John to store grains transhipped between the East and the West of the Med., have today become a passenger terminal and a leisure centre. Malta’s strategic location

29. THANKYOU