Marine Log - June 2008 - (Page 34)

CRUISESHIPPING only 9.2% in the three succeeding years. Miami, Port Canaveral and Fort Lauderdale remain the dominant departure ports, accounting for 43.5% of the total. When it came to passengers actually carried on North American Cruises, Carnival and Royal Caribbean dominated with 34% and 27% respectively. NCL replaced Princess in third position in 2006. The four are the only brands to carry more than 1 million passengers in 2007. ECONOMIC IMPACT Nowhere is the rapid European cruise growth more apparent than in 2006 economic impact figures released by the ECC in February. The study, closely following the methodology used for the annual CLIA North American study, reported 10.6 billion euros in direct spending by cruise lines and their passengers (up 28% from the previous year) and 23.9 billion euros in total outputs, a 25% increase. The industry generated 226,000 jobs throughout Europe, paying 7.5billion euros in employee compensation. The greatest impacts were felt in Italy, United Kingdom, Germany and France, which account for 71% of total direct expenditures. According to CLIA, comparable 2006 figures for North America were $17.2 billion in direct spending (up 9%), and $35.7 billion in total output, generating just under 348,000 jobs and paying a total of $14.7 billion in wages and salaries. Thus, while Europe generates only about one-third as many passengers as the North American market, it accounts for two-thirds as much in terms of total economic impact (the sum of direct, indirect and induced impacts). This is due largely to Europe’s dominant position in cruise shipbuilding, as direct expenditures for construction and maintenance increased by 32% to EURO 4.1 billion in 2006, and the orderbook swelled to 36 cruise ships by year-end. OUTLOOK Despite a number of economic uncertainties, the cruise industry remains optimistic. In addition to new cruise ship construction, the cruise lines continue to rely on the mobility of cruise assets to drive global expansion. Also, through new partnerships and joint ventures, the cruise lines are able to enter new markets or strengthen their position in existing ones, and to cascade their older ships into new markets. Among the challenges facing the industry is the high cost of fuel, to which the cruise lines have already responded with two rounds of fuel surcharges totaling up to $10 per day. Also, while the rush to Europe has reduced capacity in the Caribbean and thus stimulated demand-driven ticket price increases, of particular benefit to stay-at-home Carnival Cruise Line, the added capacity available in Europe will undoubtedly create some downward pressure on yields there. Challenges for the ports include a wide range of infrastructure development issues as the NCL F3-Class and RCI Genesis-Class vessels near delivery. Finally, to be watched carefully is the increasing activity at the IMO regarding amendments to MARPOL Annex VI regulations to reduce harmful ship emissions, a proposed ship-recycling convention, and implementation issues for the Ballast Water Management Convention. ML 34 MARINE LOG JUNE 2008 YEARBOOK www.marinelog.com http://www.shipconstructor.com http://www.shipconstructor.com http://www.marinelog.com

Table of Contents Feed for the Digital Edition of Marine Log - June 2008

Marine Log - June 2008 Contents Editorial Second Thoughts Update Inside Washington Innovation Needed to Meet Crew Shortage Optimism Abounds Despite Slowing Economy Can Shipping's Shopaholics Keep Up the Buying Binge? Can Congress Keep Navy Shipbuilding Off the Rocks? Fitting the Ultra-deepwater Pieces Together Generation Next Higher Demand, Higher Prices Demand Up For Large Combination Vessels The Dirty Truth About Emissions SSAS: Realizing Its Potential Fuel Saving Technology Newsmakers Tech News Contracts Events Buyer's Guide Website Directory ML Marketplace Tech Talk

Marine Log - June 2008

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