“Cruise Experience in Malta” Jason Bongailas Malta Maritime Authority Passenger Traffic Trends In The EU – Especially Cruise Within the “Baltic Range”

““Cruise Experience in Cruise Experience in Malta”Malta”

Jason BongailasJason Bongailas

Malta Maritime AuthorityMalta Maritime Authority

Passenger Traffic Trends In The EU – Passenger Traffic Trends In The EU – Especially Cruise Within the “Baltic Especially Cruise Within the “Baltic

Range”Range”

Port-Net WorkshopPort-Net Workshop

22 – 25 May 200722 – 25 May 2007

KlaipedaKlaipeda

Passenger Transport Passenger Transport by Seaby Sea

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Passenger transport on Passenger transport on waterwater

• One of the earliest ways of transport of One of the earliest ways of transport of passengers between origin and passengers between origin and destinationdestination

• The vehicle varied from the pre-The vehicle varied from the pre-historical rafts to canoes to boats to historical rafts to canoes to boats to large liners and ferrieslarge liners and ferries

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Reasons for traveling by seaReasons for traveling by sea• To travel between origin and To travel between origin and

destination – boats, barges and ferries.destination – boats, barges and ferries.

• Entertainment - local river or harbour Entertainment - local river or harbour excursions and dinner cruises.excursions and dinner cruises.

• Leisure Leisure – where the ship is a – where the ship is a destination in itself – cruise liners – an destination in itself – cruise liners – an exception to the rule of transportationexception to the rule of transportationPassenger Traffic Trends in the EU: Klaipeda 22-25 May 2007

Cruise Industry Issues Cruise Industry Issues and Outlookand Outlook

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

KEY PLAYERS IN THE KEY PLAYERS IN THE CRUISE LINING INDUSTRYCRUISE LINING INDUSTRY

Cruise Liner OperatorsCruise Liner Operators

• own & charter vesselsown & charter vessels

Tour OperatorsTour Operators

• own or charter vesselsown or charter vessels

• wholly own or have subsidiary wholly own or have subsidiary

shareholdings in airlines or hotels in the shareholdings in airlines or hotels in the ‘home ports’ ‘home ports’

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Main Cruise DestinationsMain Cruise Destinations• CaribbeanCaribbean

• MediterraneanMediterranean

• Asia/South PacificAsia/South Pacific

• AlaskaAlaska

• North/Western EuropeNorth/Western EuropePassenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

THE MEDITERRANEAN’S THE MEDITERRANEAN’S POTENTIALPOTENTIAL

In recent years the Mediterranean cruise In recent years the Mediterranean cruise market has seen a rapid expansion of market has seen a rapid expansion of capacity which looks set to continue with capacity which looks set to continue with the continuous growth of:the continuous growth of:

tour operators such as Airtours, tour operators such as Airtours, Thomson, and Pullman Tours; andThomson, and Pullman Tours; and

cruise operators as Costa Crociere, MSC cruise operators as Costa Crociere, MSC Cruises and Aida CruisesCruises and Aida Cruises

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Itinerary PlanningItinerary Planning

• A cruise region with marketable ports A cruise region with marketable ports close to each otherclose to each other

• Socio-political stabilitySocio-political stability

• A mix of ports offering a blend of A mix of ports offering a blend of cultural, historical and leisure cultural, historical and leisure experienceexperience

• Possibility of time and seaPossibility of time and sea

• Good climateGood climatePassenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Ship Support ServicesShip Support Services

• Decent, clean and safe berthing facilitiesDecent, clean and safe berthing facilities• A wide turning basinA wide turning basin• Professional Pilotage and towage serviceProfessional Pilotage and towage service• Fast Customs and immigration clearanceFast Customs and immigration clearance• Fuelling and water capacityFuelling and water capacity• Repair servicesRepair services• Ship chandlingShip chandling• Waste handling servicesWaste handling services• SecuritySecurity• Low costsLow costs

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Passenger Handling Passenger Handling ServicesServices

• Quick Customs and Immigration clearanceQuick Customs and Immigration clearance• Smooth baggage handlingSmooth baggage handling• SecuritySecurity• Berth close to city and attractive environsBerth close to city and attractive environs• Tourist appeal destinationsTourist appeal destinations• Professional guidesProfessional guides• Local hospitability and facilities – Local hospitability and facilities –

telephones etc.telephones etc.• Adequate parking facilitiesAdequate parking facilities• Comfortable local passenger transportComfortable local passenger transport• High standard hotel industryHigh standard hotel industry• Good air connectionsGood air connections• Low costsLow costsPassenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Malta’s Strategic Position

NUMBER OF CRUISE NUMBER OF CRUISE LINER CALLS AT MALTALINER CALLS AT MALTA

1991 1993 1995 1997 1999 2001 2003 2005

83

359

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

NUMBER OF NUMBER OF PASSENGERS CALLING PASSENGERS CALLING

AT MALTAAT MALTA

1991 1993 1995 1997 1999 2001 2003 2005

40,269

408,264

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Cruise Passengers in Malta - Cruise Passengers in Malta - by Nationality - 2006by Nationality - 2006

USA

U.K.

Spain

Italy

Germany

France

Canada

Malta

Others

USA

U.K.

Spain

Italy

Germany

France

Canada

Malta

Others

Germany - 18%

Italy - 23%

USA – 10%

Spain - 16%

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Class Classification of Class Classification of Vessel Calling at Malta - Vessel Calling at Malta -

by no. of passengersby no. of passengers

Standard Delux +

Delux

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

VISET plcVISET plc

• VISET Consortium was awarded the Valletta waterfront VISET Consortium was awarded the Valletta waterfront project to develop and operate the cruise terminal.project to develop and operate the cruise terminal.

• VISET was responsible also for the regeneration of a VISET was responsible also for the regeneration of a vast part of the Grand Harbour along the Valletta vast part of the Grand Harbour along the Valletta waterfront.waterfront.

• The Lm 14 million Valletta waterfront project aim also The Lm 14 million Valletta waterfront project aim also to target the home porting business by providing to target the home porting business by providing modern facility that would entice more shipping lines modern facility that would entice more shipping lines to begin and end their cruises at the Grand Harbour.to begin and end their cruises at the Grand Harbour.

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

The Malta Cruise Network The Malta Cruise Network (MCN)(MCN)

““MCN was set up in late 2004 MCN was set up in late 2004 as an independent body to as an independent body to act as the focal point for local act as the focal point for local stakeholders and as a stakeholders and as a coordinating voice in the coordinating voice in the delivery of a quality product delivery of a quality product and service to the cruise line and service to the cruise line sector. Its remit is to define, sector. Its remit is to define, develop, deliver and promote develop, deliver and promote a sustainable cruise industry a sustainable cruise industry for Malta”for Malta”

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Leading Mediterranean Ports of Call - 2005Leading Mediterranean Ports of Call - 2005RankRank PortPort SectorSector Potential Passenger Potential Passenger

Throughputs 2005Throughputs 2005

11 NaplesNaples WesternWestern 652,148652,148

22 BarcelonaBarcelona WesterWester 566,012566,012

33 CivitavecchiaCivitavecchia WesternWestern 552,023552,023

44 DubrovnikDubrovnik AdriaticAdriatic 500,000500,000

55 Tunis/La GouletteTunis/La Goulette WesternWestern 439,442439,442

66 LivornoLivorno WesternWestern 414,408414,408

77 SantoriniSantorini EasternEastern 399,784399,784

88 Palma MajorcaPalma Majorca WesternWestern 374,999374,999

99 MykonosMykonos EasternEastern 354,171354,171

1010 VallettaValletta WesternWestern 336,400336,400

1111 KatakolonKatakolon AdriaticAdriatic 334,845334,845

1212 RhodesRhodes EasternEastern 286,837286,837

1313 PiraeusPiraeus EasternEastern 282,674282,674

1414 KusadasiKusadasi EasternEastern 282,604282,604

1515 MalagaMalaga WesternWestern 250,000250,000

1616 Nice-VillefrancheNice-Villefranche WesternWestern 242,141242,141

1717 CorfuCorfu AdriaticAdriatic 241,095241,095

1818 BariBari AdriaticAdriatic 230,316230,316

1919 PalermoPalermo WesternWestern 216,768216,768

2020 MessinaMessina WesternWestern 200,000200,000

Source: G. P. Wild (International) Limited

The Economic ImpactThe Economic Impact• Direct ExpenditureDirect Expenditure

– Research by the Malta Cruise Network (MCN) and the Research by the Malta Cruise Network (MCN) and the National Statistics Office shows that cruise passengers National Statistics Office shows that cruise passengers spent an average of Lm 12.80 each whilst ashore, spent an average of Lm 12.80 each whilst ashore, excluding the cost of pre-booked excursions.excluding the cost of pre-booked excursions.

• Multiplier EffectMultiplier Effect– If multiplied by the number of passengers ashore If multiplied by the number of passengers ashore

during the same period, cruise passengers left an during the same period, cruise passengers left an estimated average of Lm290,000 per month in the estimated average of Lm290,000 per month in the Maltese economy or Lm3.4 million for the year ending Maltese economy or Lm3.4 million for the year ending 2006.2006.

Source: Malta Cruise Network Research Study

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

THE ‘HUB’ CONCEPTTHE ‘HUB’ CONCEPTPassengers from different localities Passengers from different localities travel to the ‘home port’/ ‘hub port’ to travel to the ‘home port’/ ‘hub port’ to embark the awaiting cruise liner. embark the awaiting cruise liner.

Passengers may chose to spend 1/3 Passengers may chose to spend 1/3 days in the ‘home port’ prior to days in the ‘home port’ prior to embarking the vessel. embarking the vessel.

Passengers usually disembark (after the Passengers usually disembark (after the cruise) in the same ‘home port’.... again cruise) in the same ‘home port’.... again with the possibility of spending 1/3 days with the possibility of spending 1/3 days in the ‘home port’.in the ‘home port’.

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

SOME KEY FACTS TO NOTESOME KEY FACTS TO NOTE

growing passenger markets growing passenger markets

Few ports in the Mediterranean can handle big passenger Few ports in the Mediterranean can handle big passenger ships, because of (i) draught (ii) a large number of ships, because of (i) draught (ii) a large number of passengerspassengers

larger cruise ships larger cruise ships

New strategies in the Industry - Joint ventures; alliances; New strategies in the Industry - Joint ventures; alliances; mergers & takeoversmergers & takeovers . .

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

MALTA AS A ‘HUB’ - MALTA AS A ‘HUB’ - REQUIREMENTSREQUIREMENTS

• Adequate infrastructure viz:Airport; road networks; Adequate infrastructure viz:Airport; road networks; transfer to Port (taxi service etc).transfer to Port (taxi service etc).

• Air ‘links’ with Airports.Air ‘links’ with Airports.

• An efficient passenger handling system & quick transfer An efficient passenger handling system & quick transfer of passengers from Airport to the Port. (check -in of passengers from Airport to the Port. (check -in facilities at Airport)facilities at Airport)

• The provision of the right ‘The provision of the right ‘packagepackage’ at the right price, ’ at the right price, including the above.including the above.

• An association or ‘committee’ which An association or ‘committee’ which coordinates coordinates all the all the necessary requirements.necessary requirements.

0

50

100

150

200

250

300

350

400

450

1991 1993 1995 1997 1999 2001 2003 2005

Cruise Passengers in Malta

ooo’s

Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22-25 May 2007

Barriera WharfBarriera WharfDesign aspects:Design aspects:• A solution with 2 separate berths is chosen, taking into consideration A solution with 2 separate berths is chosen, taking into consideration

safe navigating of vessels as well as limiting wave reflection into the safe navigating of vessels as well as limiting wave reflection into the Grand Harbour. Grand Harbour.

• One berth for mega-cruise vessels and one other berth for vessels up to One berth for mega-cruise vessels and one other berth for vessels up to 250m. The berths could also be constructed separately.250m. The berths could also be constructed separately.

• Land space is limited and will mainly need to be created at the quays: Land space is limited and will mainly need to be created at the quays: 7000m7000m22 at the mega-berth and 2900m at the mega-berth and 2900m22 at the other berth. at the other berth.

  The total investment costs are estimated at: 26 million euro. Annual The total investment costs are estimated at: 26 million euro. Annual maintenance costs are estimated to be 1.55% for both berths. The maintenance costs are estimated to be 1.55% for both berths. The

construction period is estimated to be 2 years.construction period is estimated to be 2 years.                    

The Islands’ Maritime HeritageThe Islands’ Maritime HeritageThe Maltese islands have first been inhabited prior toThe Maltese islands have first been inhabited prior to 6000 years ago. These settlers must have been 6000 years ago. These settlers must have been

travelers originating from North Africa and nearby travelers originating from North Africa and nearby south Italy.south Italy.

Cart ruts temple village

The Islands’ Maritime HeritageThe Islands’ Maritime Heritage The most famous early inhabitants must have The most famous early inhabitants must have

been the Temple Builders dating back to been the Temple Builders dating back to around 4000 B.C.around 4000 B.C. They have left behind the They have left behind the most ancient free-standing buildings on most ancient free-standing buildings on Earth. These are today World heritage sites.Earth. These are today World heritage sites.

• For centuries Malta’s ports were sought after by any For centuries Malta’s ports were sought after by any military empiremilitary empire

• the natural sheltered ports provided clear advantages the natural sheltered ports provided clear advantages to our colonisersto our colonisers

• such empires were not only military but also traders such empires were not only military but also traders and used Maltaand used Malta as their logistics centre.as their logistics centre.

• Stores built by the Knights of St John to store grains Stores built by the Knights of St John to store grains transhipped between the East and the West of the transhipped between the East and the West of the Med., have today become a passenger terminal and a Med., have today become a passenger terminal and a leisure centre.leisure centre.

Malta’s strategic location

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