Regional Ports Australia Conference
Geelong
20th November 2013
Ms Chris White
Chair
Cruise Down Under
November 2013
Agenda
• Australian industry overview
• Factors influencing choice of regional ports
• Successful regional destinations
• Emerging regional destinations
• Emerging national trends
Australian Industry Overview
• Cruise continues to be the fastest growing
segment of the tourism industry • There are currently 21 million people taking a
cruise worldwide • Australia has experienced the greatest growth in
the past 2 years of any other region in the world
• CLIA Results for 2012 reveal 694,062 Australians took a cruise
• 11% Growth of over 2011 • 17% increase in Australians cruising in Australia
• CDU’s 2013 Economic Impact Study results
– $2.88 billion in total expenditure in Australia (international and domestic)
– $2.05 billion in total international expenditure
Australian Industry Overview cont…
Australian Industry Overview cont.. • Deployment of global brands in Aust. on a
full year or seasonal basis has grown significantly
• Australia now represents 7% of worldwide deployment
• Big brands are deploying bigger and newer ships in Australia
• Cruise lines seeking new destinations and compelling experiences
About 7% of industry capacity deployed in Australia
Industry Continues to Grow and Shift
• Source: Deployment Database
Caribbean 58%
North American
14%
Europe 22%
Exotic 4%
Other 2%
Caribbean 46%
North American
10%
Europe 31%
Exotic 10% Other 3%
2000 Industry Capacity Allocation 2012 Industry Capacity Allocation
Penetration Rate at 2013
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
North America Australia United Kingdom Germany
Penetration Rate as % Population
Penetration Rate
Unprecedented Capacity Growth
Market size has almost doubled in 4 years
8 Source: 2011 ICCA Annual Cruise Market Report & internal estimates
0
1
2
3
4
5
6
7
8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
ALB
D (
Mill
ion
s)
Australia & New Zealand Home Port Deployed Capacity ALB
P&O Cruises Princess Carnival Holland America Costa
Cunard Royal Caribbean Celebrity Other
YoY (%) Growth
21 6 15 77 28 4 17 23 22 2
Factors Influencing Choice of
Regional Ports • Push for shorter cruises due to limited
holiday time
• Cost of fuel for long distance travel
• Berth availability at key hub ports
• With 23 new ships on order by 2016 an additional 6,000 port calls will be made SOMEWHERE in the world
Key elements in decision making
• Operational
– Infrastructure
– Fuel costs
– Port fees
• Marketing
– Appeal/Marketability/Experiences
– Source markets
– Profitability
Emerging Trends in
Regional Deployment
• 2-5 night cruises
• Influences on special events
• Food and wine
• Willingness to work with safe anchorages vs alongside
The benefits
• Economic contributions - $52.5 million of direct expenditure was injected into destinations around Australia in 2012-13
• Supports land transport
• Supports retail
• Supports attractions
Successful Regional Port Examples
• Whitsundays – over $13 million direct expenditure into region
• Proximity between Sydney and Cairns
• Access to Great Barrier Reef
Cairns
• Contributes $11.6 million to local economy
• Strong history with cruising since emergence in Australia
• Access to Willis Island creating international voyages
• Access to Port Douglas,
Daintree and
Great Barrier Reef
Newcastle
• Contributes $10.5 million to local economy
• Proximity between Sydney and Brisbane
• Provides an overflow option to Sydney
• Sound port infrastructure
• Creates diversity in an industrial port
Geraldton
• Contributes $3 million to local economy
• Proximity between Broome and Fremantle
• Strong WW11 and maritime history
Emerging Regional Ports
• Geelong – 5 visits in 13/14 and seeking investment
• Eden – infrastructure investment to increase the anchorage opportunities for larger ships
• Port Arthur – new jetty infrastructure
• Broome – potential growth in expedition cruising
• Townsville – new terminal facility
Threats
• Anchorages options available in all weather conditions
• Efficient time frames for landing passengers to maximise time ashore
• Landside infrastructure and ensuring the experience is quality
Emerging National Cruise Trends
• Increase in shorter cruises in Australia – 38% increase in 1-4 day cruises
• Circumnavigation cruises remaining popular
• Increased focus on family and multi-generational travel
• Passengers seeking unique experiences in destinations