1/2018 www.cruisebusiness.com C R U IS E B U SIN ES S R EV IE W 1/ 20 18 H EA D LIN ES 20 17 – FO RE C A ST S 20 18 CRUISE BUSINESS REVIEW ?????? ? ? ? ? ? ? CARIBBEAN Getting back to business CARIBBEAN Getting back to business CHRISTINE DUFFY Talking Vista and beyond CHRISTINE DUFFY Talking Vista and beyond ENVIRONMENT Debating sustainable solutions ENVIRONMENT Debating sustainable solutions TUI CRUISES Looking forward to Mein Schiff 1 TUI CRUISES Looking forward to Mein Schiff 1 424x297 kansi.indd 1 19.2.2018 12.27 Untitled-2 1 19.2.2018 15.17
Follow the Sun SunStone currently has 10 vessels in its managed fleet, and has ordered four new INFINITY class vessels with options for an additional six. As the largest tonnage provider for the expedition market, SunStone offers vessels on charter to cruise companies, tour-operators and travel companies World-Wide. SunStone specializes in commercial management of passenger ships and is responsible for the buying, selling and chartering of the SunStone fleet. Embark on a never-ending exploration of the globe, with the direction and hands-on experience of SunStone Ships. Introducing INFINITY, a brand new class of expedition cruise vessels joining the SunStone fleet starting in 2019 Wherever Your Destination… SunStone Can Take You There. www.sunstoneships.com M/V OCEAN DIAMOND M/V OCEAN ENDEAVOUR M/V VICTORY II The Best Way To P redict The Fu ture Is To C reate It M/V SEA SPIRIT M/V OCEAN ATLANTIC M/V SEA ENDURANCE M/V OCEAN NOVA M/V OCEAN ADVENTURER M/V SILVER DISCOVERER M/V VICTORY I G U I D A N C E • I N N O VAT I O N • S E R V I C E 424x297 kansi.indd 2 19.2.2018 12.27 Untitled-2 1 19.2.2018 15.18
For superior service driven by the spirit of innovation, choose Blohm+Voss. Our team of experienced professionals aims to exceed expectations. We thrive on complexity, delivering timecritical services to the highest quality standards at a fair price. Blohm+Voss. Expect the exceptional. Exhibiting at Seatrade Cruise Global, 5-8 March 2018 Please visit us at our stand 229-21 T +49 40 3119-0 info@blohmvoss.com blohmvoss.com Your first port-of-call 3.indd 1 19.2.2018 9.59
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6 Cruise Business Review 1/2017 C M Y CM MY CY CMY K CRUISE_Business_Review_210x297.pdf 1 08/02/18 14:01 6-9 sisa?lto?.indd 2 19.2.2018 11.39
CONTENTS MAIN FEATURES Cruise Business Review 1/2018 7 18 INTERNATIONAL CRUISE SUMMIT Alan Lam attends the International Cruise Summit, which traces the swinging pendulum between cruise ships and ports. 24 CARNIVAL’S DUFFY TALKS VISTA AND BEYOND Fran Golden talks with Carnival Cruise Line President Christine Duffy about her first three years at the helm and preparations to introduce the brand’s 26th vessel. 38 DEVELOPMENT OF PORTMIAMI AND PORT EVERGLADES Allan E. Jordan traces the history of South Florida’s two major cruise ports as each mark their 90th anniversaries. 65 NEW SHIPS OF 2018 Kalle Id and Teijo Niemelä give a preview of the new ships being introduced in what is shaping up as a record year for newbuild deliveries. 76 HEADLINES 2017 – FORECASTS 2018 Kari Reinikainen glances back at last year and looks ahead to see what’s in store for the cruise business. CRUISE BUSINESS REVIEW 1/2018 C M Y CM MY CY CMY K CRUISE_Business_Review_210x297.pdf 1 08/02/18 14:01 6-9 sisa?lto?.indd 3 19.2.2018 11.39
TECHNICAL 50 Stakeholders debate environmental solutions 56 Arctech returns to cruise shipbuilding 86 Fuel-cell technology emerges 88 Three decades of Merima THE RITZ-CARLTON YACHT COLLECTION, SETTING SAIL IN 2019 Tillberg Design of Sweden is proud to present our most recent project, the Ritz-Carlton Yacht Collection. The five star luxury hotel brand is teaming up with Tillberg Design of Sweden, to create an over the sea hotel experience that the guest on board will never forget. The ships will be small and intimate, carrying only 289 guests in 149 large suites all in luxurious Ritz-Carlton and Tillberg Design style. The first vessel will set sail in 2019, marking the first time a hotel brand goes to sea. Read more about our creative projects at tillbergdesign.com! TILLBERGDESIGN.COM E X T E R I O R A N D I N T E R I O R D E S I G N B Y HÖGANÄS · WROCLAW · MIAMI 6-9 sisa?lto?.indd 5 19.2.2018 11.39
TAIWAN KOREA THE PHILIPPINES XIAMEN HONG KONG HAINAN C M Y CM MY CY CMY K Asia Cruise Cooperation, a committed and resourceful alliance of Hainan, Hong Kong, Korea, the Philippines, Taiwan and Xiamen, share the mission of promoting maximum growth in cruise tourism for partnering destinations and for Asia. Together, we provide a one-stop platform to support your development in Asia. We appreciate the importance of collaboration among ourselves as well as with our partners. The unwavering support of partnering destinations is our promise to you. Harness the opportunity and sail with us today. Being the only tropical island in China, Hainan has a first-class natural environment and features spring like climate, good air quality, sparkling sea water, beaches and tropical rainforests as well as the Li and Miao minority cultures. All these factors make this unique island into an ideal vacation paradise. Build a modern city on an ancient civilisation, put it at an intersection of cultures, and you get a place that is truly worth exploring. Dive into a festival, hike a mountain trail, catch a show, visit a temple, or explore a walled village. Hong Kong has something to offer every visitor. Fun awaits you in Korea, a peninsula surrounded by three different seas in Northeast Asia. Create special memories in a country where you can enjoy abundant tourism, delicious cuisine, and beautiful landscape with its 5,000-year-old history. What’s more, it is the epicenter of hallyu, Korean pop-culture, which has become popular globally. The Philippines is known for its 7,107 tropical islands with mega-diverse natural environment, rich cultural heritage, contemporary lifestyle and exceptionally warm people who will always make your stay more memorable and fun. Its top cruise destinations are Manila, Palawan and Boracay Island. Taiwan is a beautiful island blessed with an abundance of natural resources and cultural diversity. We’ve no doubt that our scenic beauty, street food and culinary scene, local folk traditions, and warm and welcoming people will make your stay in Taiwan a delight worth savouring. Xiamen, as the well-known seaside city, has great deal of seaside tourism resources, as known as the “Garden on the Sea”. At the same time, Xiamen is also one of the main China cruise homeport cities. KOREA HONG KONG HAINAN THE PHILIPPINES TAIWAN XIAMEN 10-11.indd 2 12.2.2018 9.33
TAIWAN KOREA THE PHILIPPINES XIAMEN HONG KONG HAINAN C M Y CM MY CY CMY K Asia Cruise Cooperation, a committed and resourceful alliance of Hainan, Hong Kong, Korea, the Philippines, Taiwan and Xiamen, share the mission of promoting maximum growth in cruise tourism for partnering destinations and for Asia. Together, we provide a one-stop platform to support your development in Asia. We appreciate the importance of collaboration among ourselves as well as with our partners. The unwavering support of partnering destinations is our promise to you. Harness the opportunity and sail with us today. Being the only tropical island in China, Hainan has a first-class natural environment and features spring like climate, good air quality, sparkling sea water, beaches and tropical rainforests as well as the Li and Miao minority cultures. All these factors make this unique island into an ideal vacation paradise. Build a modern city on an ancient civilisation, put it at an intersection of cultures, and you get a place that is truly worth exploring. Dive into a festival, hike a mountain trail, catch a show, visit a temple, or explore a walled village. Hong Kong has something to offer every visitor. Fun awaits you in Korea, a peninsula surrounded by three different seas in Northeast Asia. Create special memories in a country where you can enjoy abundant tourism, delicious cuisine, and beautiful landscape with its 5,000-year-old history. What’s more, it is the epicenter of hallyu, Korean pop-culture, which has become popular globally. The Philippines is known for its 7,107 tropical islands with mega-diverse natural environment, rich cultural heritage, contemporary lifestyle and exceptionally warm people who will always make your stay more memorable and fun. Its top cruise destinations are Manila, Palawan and Boracay Island. Taiwan is a beautiful island blessed with an abundance of natural resources and cultural diversity. We’ve no doubt that our scenic beauty, street food and culinary scene, local folk traditions, and warm and welcoming people will make your stay in Taiwan a delight worth savouring. Xiamen, as the well-known seaside city, has great deal of seaside tourism resources, as known as the “Garden on the Sea”. At the same time, Xiamen is also one of the main China cruise homeport cities. KOREA HONG KONG HAINAN THE PHILIPPINES TAIWAN XIAMEN 10-11.indd 3 12.2.2018 9.33
12 Cruise Business Review 1/2018 Publisher’s Letter HOW TO CONTACT ME ??? editor@cruisebusiness.com twitter.com/cruisebusiness youtube.com/cruisebusinessreview Ph ot o cr ed it: Ca ro ly n Sp en ce r Br ow n Marine ASSA ABLOY Hospitality www.assaabloyhospitality.com/marine Mobile Access 6-8 March 2018 Visit us at Booth # 3505 D uring the last 12 months, I have had the great pleasure to sail with several ultra-luxury cruise lines. The first was in January 2017 aboard Seabourn Cruise Line’s 450-passenger ms Seabourn Odyssey, which represented a new generation of ships for the line ten years ago. In the spring, I was aboard the inaugural cruise of Silversea Cruises new 596-passenger ms Silver Muse, and this past January, I sailed on Regent Seven Seas Cruises’ 750-passenger ms Seven Seas Explorer – billed by the line as “the most luxurious cruise ship ever built.” All these cruise lines trace their history back 20 years or more. Compared to the contemporary and premium segments, though, the ultra-luxury lines have grown more slowly and ships have remained with their original brands longer than in the mass-market segment. For example, take a look at Crystal Cruises’ ms Crystal Symphony, which first entered service in spring 1995. The ship underwent a massive refurbishment recently, where one of the key projects was to actually reduce capacity to 848 passengers and offer larger suites. Seabourn, meanwhile, only a couple of years ago finally sold off its original trio of yacht-size ships, built in the late 1980s and 1992, to Windstar Cruises. Silversea’s original luxury vessel, the 1994-built ms Silver Cloud, still sails for the line – having been transformed into a 260-passenger luxury expedition vessel. Also in this segment is SeaDream Yacht Club with two 1984-built luxury yachts, the 114-passenger ms SeaDream I and II. Despite the age of its ships, the company earns awards and accolades year after year. Then there are the newcomers. Perhaps the most aggressive is Viking Ocean Cruises, famous for its river cruises in Europe and Asia. It has been only three years since the company entered the ocean market with the 930passenger ms Viking Star, but already it has introduced three more ships with six more in the pipeline. Viking is not touting itself as a luxury product, but it is unwavering in the uniformity of its ship design, service levels and amenities, such as featuring only cabins with balconies, providing free shore excursions in every port-of-call, serving free wine and beer during lunch and dinner and not charging for specialty restaurants or WiFi. Viking has clearly energized the marketplace. I n addition to Viking, new entrants are emerging in the luxury segment and with more hybrid products. Just as Silversea is already offering luxury expedition voyages, Australia-based Scenic Cruises is aiming for that niche as well. The company recently ordered a second 228-passenger newbuild from Croatia’s Uljanik yard. Another newcomer soon to enter the segment is The Ritz-Carlton Yacht Collection, which will be able to leverage the name of the famous luxury hotel chain. The difference between traditional and expedition products also is diminishing among the legacy luxury operators. Seabourn has been operating in Antarctica for years, and Crystal is preparing to take delivery of its first newbuilt expedition yacht, the ms Crystal Endeavor, which is currently under construction at the MV Werften shipyard in Germany. Crystal has branched out into river cruising, too, and is in the planning stages of building new traditional cruise ships, now being referred to as the Diamond class. In the years to come, it looks like the luxury and ultra-luxury cruise markets will become not only bigger and busier, but more dynamic as well. Teijo Niemelä February 2018 ULTRA-LUXURY CRUISE MARKET DIVERSIFIES 12-13 pääkkäri.indd 2 20.2.2018 10.22
Marine ASSA ABLOY Hospitality www.assaabloyhospitality.com/marine Mobile Access 6-8 March 2018 Visit us at Booth # 3505 Untitled-1 1 19.2.2018 14.58
Building towards the Future CURAÇAO PORTS A U T H O R I T Y Werf de Wilde P.O. Box: 689 Curaçao, Dutch Caribbean Tel: (+599-9) 434-5999 Telefax: (+599-9) 461-3907 Email: info@curports.com Website: www.curports.com curports Port of Curaçao The recently completed Willemstad cruise infrastructure expansion enables the port to welcome the latest generations of cruise vessels. The project introduces the second mega cruise berth in the heart of Willemstad. Port Services CPA develops and manages all ports in Curaçao ensuring quality nautical services, safety and security in the ports in an environmentally responsible manner. With modern infrastructure and the experienced port cluster, the ports of Curaçao o?er maritime and logistical service excellence. Port services include: Nautical assistance Cargo & supplies Salvage Bunkering and provisions Surveys Under water services Ship repair and maintenance Transport Fresh water delivery Waste management Win a Cruise for 2 persons Introducing the second mega Cruise Berth C M Y CM MY CY CMY K ad-fullpage-cruise-industry-bleed-prepress-2017-2.pdf 1 12/20/2017 1:48:20 PM 14-15.indd 2 15.2.2018 7.14
Cruise Business Review 1/2018 15 PICTURE OF THE YEAR 2017 MSC Cruises, the largest privately owned and world’s fourth-largest cruise company, returned to growth mode in 2017. It introduced two new prototypes, both of which were larger than anything the company had operated before: In May, it took delivery of the 171,598 gross ton MSC Meraviglia from STX France, and in November, the 153,516 gross ton MSC Seaside from Fincantieri. The line’s current orderbook extends to 2026 and numbers 12 new vessels – including the larger Seaside EVO class signed for in November and a 200,000 gross ton LNG-powered prototype called the Global class – for a total investment of €10.5 billion. An eventful year for the line culminated in December, when the MSC Seaside was officially named by godmother Sophia Loren in PortMiami. Pictured from left are Captain Pier Paolo Scala, Sophia Loren and Executive Chairman Pierfrancesco Vago. Building towards the Future CURAÇAO PORTS A U T H O R I T Y Werf de Wilde P.O. Box: 689 Curaçao, Dutch Caribbean Tel: (+599-9) 434-5999 Telefax: (+599-9) 461-3907 Email: info@curports.com Website: www.curports.com curports Port of Curaçao The recently completed Willemstad cruise infrastructure expansion enables the port to welcome the latest generations of cruise vessels. The project introduces the second mega cruise berth in the heart of Willemstad. Port Services CPA develops and manages all ports in Curaçao ensuring quality nautical services, safety and security in the ports in an environmentally responsible manner. With modern infrastructure and the experienced port cluster, the ports of Curaçao o?er maritime and logistical service excellence. Port services include: Nautical assistance Cargo & supplies Salvage Bunkering and provisions Surveys Under water services Ship repair and maintenance Transport Fresh water delivery Waste management Win a Cruise for 2 persons Introducing the second mega Cruise Berth C M Y CM MY CY CMY K ad-fullpage-cruise-industry-bleed-prepress-2017-2.pdf 1 12/20/2017 1:48:20 PM Ph oto cre dit : M SC Cr uis es 14-15.indd 3 15.2.2018 7.14
18 Cruise Business Review 1/2018 T hese were the questions central to the seventh edition of the International Cruise Summit (ICS), held in Madrid at the end of November 2017. As always, the fundamental issues relating to the global cruise industry immediately came under scrutiny. Inevitably, the major concerns over port CONFERENCE REPORT n EUROPE For years, ports in Europe have been begging cruise lines to call. With more ships and new players at sea, together with issues relating to over-tourism and congestion, has the pendulum finally swung in favor of the ports? Is it time for cruise lines to market themselves to the ports and destinations? By Alan Lam congestion and over-tourism in Europe were raised and deliberated. But against this background, a new dynamic between ports and cruise lines was also being explored. It was suggested that as the number of ships and passengers swell, there might be a case whereby the ports and destinaPh oto cre dit : Di sn ey Cr uis e Li ne MADRID CRUISE SUMMIT TRACES SWINGING PENDULUM Craig Milan 18-23.indd 2 12.2.2018 8.25
Cruise Business Review 1/2018 19 ? to go,” said Christian Böll , Managing Director Europe, Norwegian Cruise Line, “There are so many small destinations in Europe. We don’t always have to go to big places.” Indeed, Costa Cruceros’ recent decision to homeport one of its ships in Tarragona, Spain, is a fine example in support of this argument. This strategic move has benefitted all parties. “The numbers speak for themselves,” said Raffaele D’Ambrossio , General Manager, Spain & Portugal, Costa Cruceros. “We have had a very successful season in Tarragona. This is a longterm project for us. The move was the result of a long period of planning and collaboration among the line, the port, the destination, local tourism authorities and the municipality.” It bodes well for the future of this small Catalan port, added Josep Andreu , CEO of the Port of Tarragona, who noted that in 2014 the I think the pendulum has swung when it comes to the relationship between ports and cruise lines. – Craig Milan – tions would find themselves in a stronger position in their business relations with the cruise lines. Major cruise ports such as Venice, Barcelona and Dubrovnik have always had a strong hand to play. However, smaller ports now find themselves receiving increasing attention from cruise lines, too. Until recently, there had been an almost one-way traffic of ports marketing themselves to the lines. But the tide may be turning, as cruise lines have intensified their search for new destinations and new ports-ofcall. Smaller ports and lesser known destinations are now in vogue. MADRID CRUISE SUMMIT TRACES SWINGING PENDULUM Pendulum has swung “I think the pendulum has swung when it comes to the relationship between ports and cruise lines,” said Craig Milan , Vice President Itineraries and Destinations, Virgin Voyages. “Years ago, when the industry was building and growing significantly, there was excess capacity in many ports. So the ports were asking cruise lines to come. If you look at the dynamic of the business now, the shipyards are basically full until 2022, if not beyond. The question is: Where are all these ships going to go? I think it bodes well for many of the medium-size and growing ports to engage with the industry: Get them to come and visit their ports and consider a different itinerary option from what would normally be traditional marquee port itineraries,” he suggested. “We have to be creative on how we deploy our ships, in looking to where 18-23.indd 3 12.2.2018 8.25
In the future, Mediterranean ports will be very important to us – especially new ports. – Edie Rodriguez – ? port had only three cruise calls. “In the 2017 season, we had 37 calls in total – 20 of them were from Costa. Next year we expect 55 calls – 25 of them will be from Costa.” So, after the initial season, Costa is increasing its presence here. Has the pendulum completely swung in favor of these smaller ports? Should the cruise lines start marketing themselves to ports? “We have not quite reached that point yet,” said Ramón Hurtado , Global Product & Operations Manager, Intercruises Shoreside & Port Services. But perhaps a point of equilibrium has been reached where both parties are now equal partners. “The word I use is ‘partnership’,” said Giuseppe Carino , Vice President, Guest Experience & Onboard Revenue, Costa Crociere, “Partnering and building together.” However, all indications suggest that the ports’ position is strengthening. “In the future, Mediterranean ports will be very important to us – especially new ports,” said Edie Rodriguez , Americas Brand Chairman and Corporate Special Advisor, Ponant. “You’ve got smaller ports that are not known; you should make yourselves known. You have to be creative, re-channel and make sure cruise lines are aware of [you]. Ponant already goes all over the world. We don’t want to do the ‘same old, same old.’ With four more vessels coming in, you can do the math.” Moreover, the attitude of the cruise lines toward the ports seems to be softening, acknowledging their status as partners. “We want clear berthing policy,” said Miguel A. Reyna , Director, Commercial Development, Royal Caribbean Cruise Ltd. (RCCL), addressing the ports. “We understand this is two-way traffic. You will also expect us to honor our bookings. We want to create and maintain partnership.” Business case for cruising wAs the pendulum continues to swing in the direction of the ports, challenges will mount. Increasingly, the ports’ focus on operations and facility development is replacing their marketing efforts. And while major cruise ports and destinations face congestion and over-tourism problems, the challenges for smaller ports and lesser-known destinations will be quite different. Perhaps the biggest challenge of all is the inability of smaller ports to make a business case for cruising. “In Spain,” said Fernando Muñoz , Commercial Director, Port of Cartagena, “cruise is not a business for ports. The investment is so big that it takes too long to recover. We never see it as a business, but we think this [industry] is so important that we have to do something [about it].” This concern over return on investment is not limited to ports in Spain. “From Dover’s point of view, making a business case is difficult,” said Barbara Buczek , Director Corporate Development & Operational Businesses, Port of Dover. “It is difficult especially when there is no cancellation fee. Should anything happen, cruise ships could just go elsewhere.” In fact, for most of the bigger ports in Europe, cruise is only a marginal business. On a practical level, there is the issue of ships not fitting the ports. “There are still only a small number of ports that can host big ships,” said Belén Wangüemert , Associate Vice President & Managing Director Eurozone, RCCL. Once again the inability of port development to keep pace with increasing vessel size was highlighted. The sheer volume of passengers presents another challenge to smaller ports. “Sometimes the hinterland destinations cannot absorb the number of visitors the big ships are bringing in,” said Tine Nathalie Oelmann , Director Port Operations, Shore Excursions & Ground Operations, TUI Cruises. According to Costa’s D’Ambrossio, launching a new destination is a huge challenge. “Usually when you launch a new destination the distribution channel needs time to adjust, to learn how to sell it to the customers. Travel agents are more comfortable in selling products they already know.” Conversely, the destinations need time to adjust too. Tarragona did not even have Italianspeaking guides when the ms Costa neoRiviera first called. This had huge implications, considering the fact that the town’s main attraction was its Roman heritage. That was only part of Tarragona’s learning curve, said the port’s Andreu: “Unlike big ports, two calls in one day was a major event for us. We had a strategy, but Costa’s arrival changed all that. We had to rethink our strategy.” In other words, to think in the longer term is vital for smaller ports. Moderating ship size But in an era when over-saturated destinations are putting limits on ship size and big cruise ships are being blamed for over-tourism, there is a distinct trend emerging in the contemporary segment of moderating future ship-size growth. “I strongly believe in looking at the size of ships coming in the future,” said Norwegian’s Böll. “We decided not to follow the trend and build ever-bigger ships. We think this will give us more flexibility to go to more ports. For us, it is always important to be on top of the trend.” Added RCCL’s Wangüemert, “The more ports we can expand into, the more we can contribute to the economy of the wider communities. We need to have variety in terms of itineraries, and we need to have sustainability.” While the existing players are expandThe leading cruise port in the Mediterranean C M Y CM MY CY CMY K CRUISE BUSINESS REVIEW_2018_PBCN.pdf 4 29/1/18 15:26 20 Cruise Business Review 1/2018 Christian Böll Edie Rodriguez 18-23.indd 4 12.2.2018 8.25