Cruise Tourism A Regional Perspective ~ Observations from the 2013 ACA White Paper

1. Boon or Bane of the Tourism Sector Cruise Tourism A Regional Perspective ~ Observations from the 2013 ACA White Paper

2. Cruise Line Deployment in Asia 2013 • 21 Cruise lines deploying 56 ships in Asian waters • Most are there except in (northern) summer months • Only the “Top Three” (Star, Royal Caribbean, Costa) cruise Asia year-round • In 2013 there are 762 cruises plus 58 voyages • Creating capacity for : • 1.47 million passengers • 6.77 million cruise days • Passage revenue of about USD2 billion

3. Cruise Lines In Asia

4. Deployment by cruise length Short cruises dominate • Cruises of less than 7 nights • 629 in all • 77% of the number of cruises • 49% of total cruise nights. • Cruises between 1 and 2 weeks • 15% of the number offered • 32% of cruise nights. • Longer cruises, over 15 nights • only 2% of the total • 7% of cruise nights.

5. Deployment by cruise length

6. Capacity in Asian destinations 2013 Capacity in Asian destinations 2013 • Many countries have significant numbers of cruise calls • China ports and Singapore’s 2 terminals dominate as turnaround hubs

8. Source Markets in Asia

9. Source Markets in Asia

10. Outlook for 2014 • Only first quarter fully published • Capacity shifts can occur through many initiatives • Larger ship • Longer season • Additional ship • More short cruises • Significant increase in number of Q1 cruises and voyages: • 14% more total passenger days in Asia (20% on cruises) • average cruise length remains at 6.6 nights • deployment dominated by South East Asian cruises (67% of total, vs. 63% in 2013)

11. Operating Conditions • Cruise Geography Issues • Attitudinal issues • Infrastructure Challenges • Other Operating Challenges

12. 1. Cruise geography Issues • The main ports in Asia are too far apart for short cruises • SE Asia in a better position • There are too few transit ports-of-call

13. 2. Attitudinal Issues Authorities around Asia have become enthusiastic • But economic benefits of cruising yet to be appreciated • Cruise ships not given appropriate priority • Lack of clear berthing policies • Immigration and customs procedures unnecessarily onerous • Immigration authorities inflexible in hours of duty • Travel distributors not setting client expectations • Must work together for mutual benefit

14. 3. Infrastructure Challenges Winter months unattractive north of Shanghai -> redeployment to SE Asia from North Asia • Much to be done to create new ports of call in Southeast Asia • Emphasis should be on needs rather than architecture • Berth capacity may soon become constrained • Infrastructure not likely to keep pace with industry needs • Airlift capacity • Shortage of tour guides and buses in ports of call

15. 4. Other Operating Challenges Fees and charges in port operations are high by world Standards: • Visa and immigration requirements are particularly challenging • Without support of authorities, regulations and procedures likely to remain unsympathetic and lack relevance • Political unrest disrupts cruise operations

16. Thank You Kevin Leong General Manager Asia Cruise Association