THE CRUISE INDUSTRY IN HAWAI‘I

PRESENTATION TO 2015 HAWAI‘I TOURISM CONFERENCEAUG 27, 2015

GREG WIRTZCLIA NORTH WEST AND CANADA

CLIA NORTH WEST & CANDA MEMBER LINES

GLOBAL CRUISE MARKETS

CRUISE INDUSTRY POLICIES AND PRACTICES

CRUISE VACATIONS AMONG SAFESTMODES OF LEISURE TRANSPORTATION

CRUISE PASSENGERS WORLDWIDE

Where they come from:

CLIA MEMBER SHIP NEW BUILD SCHEDULE 2015-2020

ROYAL CARIBBEAN – OASIS OF THE SEAS

• 360 meters in length (1,181 ft)

• breadth of 47 meters (154 ft)

• 225,300 gross tons, and

• max crew-passenger capacity of almost 8,500 (2,170+6,300)

THE FUTURE IS BRIGHT

Asian market’s penetration rate is

only .01%

Growth to 1%penetration rate

equates to 40 million passengers

4 times larger than US market

Penetration rate in the United

States is about 3%

Translates to 10 million

passengers

“Mature Market”

Market Opportunity

STATE OF THE HAWAI‘I CRUISE INDUSTRY

HAWAI‘I CRUISE VISITORS

• More than 75% from US and Canada

• More than 40% first timevisitors to Hawai‘i

• $391 million in visitor spendingin 2014

• Tours and activities on Neighbor Islands

• Pre and post cruise stays,Honolulu and beyond

Source: Hawai‘i Tourism Authority - Annual Visitor Research

HAWAI‘I DOMESTIC CRUISES

HAWAI‘I INTERNATIONAL CRUISES

7 DAY 11 DAY 15 DAY

50 DAY!32 DAY17 DAY

HAWAI‘I CRUISE ECONOMIC IMPACT

• $415 million in direct spending

• 6,400 jobs generated

• $227 million employment income

HAWAI‘I CHALLENGES

• Time and distance to markets~5 sea days to or from continent

• Fuel / operating costs

• Tender ports – access and guest experience issues

HAWAI‘I ADVANTAGES

• Global cruise industry growth and successful business model

• World class tourism destination

• Friendly welcoming environment

• Strong industry and government partners

• State investments in infrastructure and tourism

• Port capacity in Hawai‘i available to accommodate cruise ship growth year-round

• Long term vision

MAHALO!

GREG WIRTZCLIA NORTH WEST AND CANADA