3/2017 www.cruisebusiness.com C R U IS E B U SIN ES S R EV IE W 3/ 20 17 N E W S H IP S M SC SE A SID E n W O RL D D RE A M CRUISE BUSINESS REVIEW ?????? ? ? ? ? ? ? McAlpin hints at Virgin Voyages’ plans MedCruise defines Mediterranean’s strategy Silja Line marks six innovative decades MSC Seaside makes its Miami debut 425x297%20kansi .indd 1 2.1.2018 14.50
No limits Cruise decks Our innovative mindset makes us freerunners in heart and soul; when appropriate or necessary, we push the envelope of our competencies. After all, what matters in the end is the result: the perfect deck that meets the highest standards in terms of functionality and durability. Bolidt decks are sound-insulating, wear-resistant, non-skid, lowmaintenance and colourful. Bolidt, no limits. www.bolidt.com/cruise-ships CruiseBusinessReview_Juli.indd 1 5-7-2017 10:44:06 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 Create 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 kannen sisäosa ja takakannen sisäosa.indd 1 2.1.2018 15.01
Ranked one of the top cruise ports in the world, Port Everglades offers the speed, service and efficiency to help your business run smoother — and your passengers smile wider. Visit porteverglades.net or call 800-421-0188. PROPEL YOUR CRUISE BUSINESS IN POWERFUL NEW WAYS • Our modern, efficiently operated terminals make transit a breeze. • We move passengers from curb to ship in just 15 minutes. • We’re fully scalable — accommodating any size ship or passenger volume. • Just two miles from FLL International Airport and minutes from world-famous beaches for easy access. • Our Harbormaster Office is a one-stop concierge open 24/7. • Year-round berthing is available. port.everglades | @porteverglades | PortEvergladesFL | port-everglades PEG837_ Cruise Business Review FP Propeller_mech.indd 1 11/28/17 12:15 PM 3-7 sisältö.indd 3 8.1.2018 8.12
6 Cruise Business Review 1/2017 53° 33´ 47? N, 9° 58´ 33? E ham burg setting a course 4 – 7 sept 2018 hamburg youtube.com/SMMfair twitter.com/SMMfair #SMMfair facebook.com/SMMfair linkedin.com/company/smmfair 3 sept Maritime Future Summit Offshore Dialogue 6 sept TradeWinds Shipowners Forum 4 sept gmec, global maritime environmental congress 5 sept Maritime Career Market 7 sept MS&D, international conference on maritime security and defence 6-7 sept smm-hamburg.com /trailer the leading international maritime trade fair 3-7 sisältö.indd 4 8.1.2018 8.12
CONTENTS MAIN FEATURES Cruise Business Review 3/2017 5 16 MCALPIN HINTS AT VIRGIN VOYAGES’ PLANS The first of Virgin Voyages’ three newbuilds will not enter service until late 2020, but the new cruise line has already staged several “ship tease” moments. Fran Golden discusses these with CEO Tom McAlpin. 30 SILJA LINE MARKS SIX INNOVATIVE DECADES Kalle Id chronicles 60 years of history for Silja Line, which has been one of the driving forces of innovation in passenger shipping, introducing many features on its ferries that would eventually be adapted for use by cruise ships. 36 MEDCRUISE GENERAL ASSEMBLY DEFINES MEDITERRANEAN’S PLACE On the occasion of the 51st MedCruise General Assembly, held in Toulon, the association redefined the Mediterranean’s place in the context of today’s global cruise tourism. Alan Lam reports. 40 CANADA/NEW ENGLAND AIMS FOR YEAR-ROUND IN 2026 While the fall is still the main season for Canada/New England, the region aims to become a year-round cruise destination by 2026. Susan Parker reports. 48 MSC SEASIDE MAKES ITS MIAMI DEBUT Cruise Business Publisher Teijo Niemelä reviews the MSC Seaside, MSC Cruises’ first-ever cruise ship christened in the U.S. CRUISE BUSINESS REVIEW 3/2017 53° 33´ 47? N, 9° 58´ 33? E ham burg setting a course 4 – 7 sept 2018 hamburg youtube.com/SMMfair twitter.com/SMMfair #SMMfair facebook.com/SMMfair linkedin.com/company/smmfair 3 sept Maritime Future Summit Offshore Dialogue 6 sept TradeWinds Shipowners Forum 4 sept gmec, global maritime environmental congress 5 sept Maritime Career Market 7 sept MS&D, international conference on maritime security and defence 6-7 sept smm-hamburg.com /trailer the leading international maritime trade fair 3-7 sisältö.indd 5 8.1.2018 8.12
TECHNICAL 44 Shortage looms for Polar Code officers MAN 45/60CR THE GAME CHANGER The new standard for a more ef? cient marine industry Lower fuel consumption, lower emissions, lower operating costs, faster installation and easier maintenance. The game-changing technology of the MAN 45/60CR engine creates new oppor tu nities for the marine industry and allows owners and operators of large ships to meet the challenges of the future today. Learn more at 4560cr.mandieselturbo.com Typ 02 SEM 9 45-60CR The Game Changer 210x297.indd 1 2017-09-13 13:29:59 3-7 sisältö.indd 7 8.1.2018 8.12
8 Cruise Business Review 3/2017 Publisher’s Letter HOW TO CONTACT ME ??? editor@cruisebusiness.com twitter.com/cruisebusiness youtube.com/cruisebusinessreview Turning expertise and innovation into marine solutions United Technologies (UTC) is the world’s leading provider of high-technology systems and services for the aerospace and building industries. We invent new and better ways to keep people safe, comfortable, productive and on the move. As our company name suggests, everything UTC does revolves around technology. By combining a passion for science with precision engineering, we create the smart, sustainable solutions the world needs. Among UTC companies are many trusted, well-established suppliers to the international maritime and offshore industries. With a coordinated approach under one marine umbrella, UTC can leverage its wide portfolio of marine solutions, services and expertise for the benefit of ship builders, ship owners and operators worldwide. 14–16 March 2017 Hall A – Level 1 – Booth 613 Fort Lauderdale, FL, USA Visit us at: 6-8 March 2018 Hall A Level 1 Booth # 613 Fort Lauderdale, FL, USA UTC1.indd 1 21.11.2017 20:59:12 O ne of the biggest stories for the cruise business during 2017 was the emergence of information technology (IT). Both cruise lines and shipbuilders have for years introduced state-of-the-art solutions and equipment both in front of the guest and behind the scenes, whether it has been advanced navigation, propulsion, entertainment or waste-treatment technology – you name it. But in 2017, cruise lines have taken perhaps the biggest leap forward yet in technology that improves not only the guest experience, but cruise line profitability as well. The cruise business is a unique sector within the hospitality industry. Where else do up to 6,000 guests vacate their rooms in the morning and another 6,000 embark in the afternoon for a new voyage, taking to international waters and thus adding complexity to the requirements of passenger information demanded by various authorities and government agencies. Therefore, it has been essential for cruise lines to develop tools that make embarkation and disembarkation run as smoothly as possible. And as ships have gotten bigger, it has become ever more important that IT be implemented throughout every part of the voyage – not just at the start or the finish. Starting in 2017, Carnival Corporation’s premium-brand Princess Cruises began progressively rolling out its Ocean Medallion technology. Guests carry or wear their own personalized medallion (a quarter-sized disc) throughout their cruise. This can be worn as a wristband, pendant, clip or keychain and is linked INFORMATION TECHNOLOGY TAKES CENTER STAGE to line’s Ocean Compass, which allows guests to remotely order beverages and informs crew of guest preferences. It may also be used for making payments, unlocking cabin doors and speeding up the embarkation process, among other features. The first vessel equipped from stem to stern with Ocean Medallion technology was the ms Regal Princess. Meanwhile, Royal Caribbean Cruises Ltd. revealed its next wave of digital innovations at a multi-day event in Brooklyn’s Navy Yard in early November. Over the next two years, the company’s 48-ship fleet will be transformed with this new technology. Guests will be able to download an app and use their smartphones for reserving shore excursions, ordering beverages or making dinner reservations, all without leaving their lounge chairs. In order to do this, the company is combining a range of technologies – from facial recognition to RFID tagging to GPS mapping to Bluetooth-enabled beacons – to streamline boarding, manage check-in automatically and improve wayfinding. The app, along with the next generation of the company’s WOW Bands, will also unlock passenger staterooms and enable guests to control cabin lighting and temperature settings. Then in December, Norwegian Cruise Line announced it, too, had jumped on the IT bandwagon by introducing the next generation of its booked-guest mobile application, the Cruise Norwegian app. Designed to be the ideal travel companion from time of booking to day of disembarkation, “the new Cruise Norwegian app features a multitude of functions that help provide a stress-free vacation experience,” Norwegian said in a statement. North American-based cruise lines are not alone in putting IT center stage. Geneva-based MSC Cruises has upped the ante on its two latest newbuildings – the ms MSC Meraviglia and ms MSC Seaside. In March, the company unveiled its answer to the digital revolution in cruise shipping, called MSC for Me. Jointly developed together with Deloitte Digital, Hewlett Packard and Samsung, MSC for Me provides guests with over 130 smart features geared toward a fully optimized holiday experience. In the words of MSC: “These include a dedicated app to help guests tailor their holidays at any point on their journey, whether they are booking their excursions prior to embarkation or a specialty restaurant whilst relaxing by the top-deck pool. This will improve the overall guest experience, while also freeing up more time to enjoy one’s holiday at sea.” While we welcome the trend of cruise lines moving quickly toward a more digitalized future, we hope they do not forget to also serve guests who want to leave their tablets and smartphones behind and who want to place their beverage orders directly with a human being or stop by the shore excursion desk to ask for recommendations. At the same time, we recognize that as ships have become like small cities, putting information technology at the forefront is a must. Teijo Niemelä December 2017 Ph ot o cr ed it: Ca ro ly n Sp en ce r Br ow n 8-9 pääkkäri.indd 2 4.1.2018 9.21
Turning expertise and innovation into marine solutions United Technologies (UTC) is the world’s leading provider of high-technology systems and services for the aerospace and building industries. We invent new and better ways to keep people safe, comfortable, productive and on the move. As our company name suggests, everything UTC does revolves around technology. By combining a passion for science with precision engineering, we create the smart, sustainable solutions the world needs. Among UTC companies are many trusted, well-established suppliers to the international maritime and offshore industries. With a coordinated approach under one marine umbrella, UTC can leverage its wide portfolio of marine solutions, services and expertise for the benefit of ship builders, ship owners and operators worldwide. 14–16 March 2017 Hall A – Level 1 – Booth 613 Fort Lauderdale, FL, USA Visit us at: 6-8 March 2018 Hall A Level 1 Booth # 613 Fort Lauderdale, FL, USA UTC1.indd 1 21.11.2017 20:59:12 8-9 pääkkäri.indd 3 4.1.2018 9.21 utc.com
12 Cruise Business Review 3/2017 HEADLINES TILLBERG DESIGN OF SWEDEN TO DESIGN THE RITZ-CARLTON YACHT COLLECTION 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 EXTERIOR AND INTERIOR DESIGN BY HÖGANÄS · WROCLAW · MIAMI Norwegian Cruise Line named Elvis Duran – nationally syndicated radio and digital personality and on-air host of iHeartMedia’s “Elvis Duran and the Morning Show” – to be the godfather of its newest ship, the Norwegian Bliss. As godfather, Elvis will have an honorary role in the official ship christening ceremony on May 30 at Pier 66 in Seattle. Currently under construction at Meyer Werft in Germany, the 167,800 gross ton Norwegian Bliss will become the largest cruise vessel ever deployed in Alaska and will then finish its inaugural season sailing from PortMiami to the Caribbean. Genting Cruise Lines celebrated the arrival of the 150,695 gross ton Genting Dream on November 16 at the Marina Bay Cruise Centre Singapore. Almost simultaneously, the company celebrated the naming of its year younger sister ship, the World Dream, in Hong Kong. Genting Dream is an up-market floating integrated resort designed specifically for the Asian market and is Singapore’s newest landmark at the Marina Bay Cruise Centre. This marks the first time Singapore has hosted a large-scale cruise ship for an extended period and the first homeport for Dream Cruises in Southeast Asia. Pictured at the official launch from left to right are Michael Goh, Senior Vice President, International Sales, Genting Cruise Lines; Kent Zhu, President, Genting Cruise Lines; Lim Ching Kiat, Managing Director, Air Hub Development, Changi Airport Group; Lionel Yeo, Chief Executive, Singapore Tourism Board; Thatcher Brown, President, Dream Cruises; Captain Carl Magnus Folke Gottberg, Genting Dream. Just a few weeks after delivery of the Crystal Bach, on September 20, MV Werften handed over the Crystal Mahler – the second of four Rhine-class ships – to Crystal River Cruises. After the ceremonial change of flags, the ship was christened at the outfitting quay of MV Werften in Wismar. Pictured from left are Colin Au, Genting Hong Kong; Gustaf Grönberg, Genting Cruise Lines; Tan Sri Lim Kok Thay, Genting Hong Kong; godmother Lauren Barfield, SSC Palmberg Schwerin; Economics Minister Harry Glawe; and Tom Wolber, newly-appointed CEO Crystal Cruises. s 10-14 headlines.indd 4 3.1.2018 11.46
TILLBERG DESIGN OF SWEDEN TO DESIGN THE RITZ-CARLTON YACHT COLLECTION 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 EXTERIOR AND INTERIOR DESIGN BY HÖGANÄS · WROCLAW · MIAMI 10-14 headlines.indd 5 3.1.2018 11.46
Marine ASSA ABLOY Hospitality www.assaabloyhospitality.com/marine Mobile Access 14 Cruise Business Review 3/2017 Carnival Corporation & plc marked the official beginning of construction for the first of seven next-generation cruise ships that will be fully-powered by liquefied natural gas (LNG) with a keel-laying ceremony on September 6. These ships, with delivery dates between 2018 and 2022, will be built by German and Finnish shipbuilders Meyer Werft and Meyer Turku. Giving the signal for the keel laying of the AIDAnova – first in the new LNG series – are Arnold Donald, President and CEO of Carnival Corporation, together with Bernard Meyer, CEO of Meyer Werft; Michael Thamm, CEO of Costa Group and Carnival Asia; and representatives of three Carnival Corp. brands that will receive the LNG ships: David Dingle, Chairman of Carnival UK; Neil Palomba, President of Costa Cruises; and Felix Eichhorn, President of AIDA Cruises. (INSET) Just few days later, Meyer Turku and Costa celebrated the cutting of steel for the LNG-powered Costa Smeralda. Shown from left are Neil Palomba and Jan Meyer, CEO of Meyer Turku. Hurricanes Irma and Maria caused devastation in various Caribbean islands. Cruise operators such as Norwegian Cruise Line Holdings Ltd., Carnival Corp. and RCCL rose to the occasion by assisting the islands in various ways. Pictured here are Royal Caribbean International President & CEO Michael Bayley and Adventure of the Seas Captain Tomas Busto greeting Hurricane Maria evacuees in Port Everglades on October 3. The cruise line worked with local governments in Puerto Rico, St. Croix and St. Thomas to facilitate the evacuation of approximately 3,400 people and to coordinate the delivery of emergency supplies. Vice Captain Damir Rikanovic and Marina Team Leader Kurt Dreyer of Crystal Cruises’ Crystal Esprit were recognized with Certificates of Commendation by the International Maritime Organization (IMO) at the 2017 IMO Award for Exceptional Bravery at Sea held in London on November 27. Nominated by Cruise Lines International Association (CLIA), Rikanovic and Dreyer were acknowledged for their bravery and selflessness in helping to save 12 French nationals from a distressed catamaran off the coast of the Seychelles during stormy weather on February 16. Pictured from left are Kitack Lim, IMO Secretary General; Crystal Esprit Vice Captain Damir Rikanovic; Fleet Captain Gustaf Grönberg, Senior Vice President Marine Operation & Newbuilding; and Dreyer (second from right). HEADLINES 10-14 headlines.indd 6 3.1.2018 11.46
16 Cruise Business Review 3/2017 ? The first of three 2,700-passenger and 110,000 gross ton Virgin Voyages ships won’t debut until 2020. But construction is underway at the Fincantieri yard in Genoa, Italy, where the much-anticipated new cruise company recently held a dramatic “Ship Tease” keel-laying ceremony. Virgin Voyages CEO Tom McAlpin, a 30-year industry veteran (Disney Cruise Line, The World), talked with Cruise Business Review’s FRAN GOLDEN about the progress that’s been made with hints of what's forthcoming. Cruise Business Review: Your cruise line flies the Virgin flag. What has been Virgin Group Founder Sir Richard Branson’s input in the product and brand? Tom McAlpin: From a big-picture perspective, Richard has been interested in getting into the cruise industry for many, many years. Now he’s come up with our concept of Virgin Voyages. But on big projects, he’s not involved in day to day. He would say he hires great people, which is the same philosophy I have: Surround yourself with great people and let them do their job. Richard is involved. We do keep him involved in big decisions. Clearly the design of the ship; he loves it. He is so excited about the business. CBR: Was he involved in the decision to make the first ship adults-only? McAlpin: We at Virgin do a very good job of listening to our customers, our future sailors. We did quite a bit of research INTERVIEW n UP-MARKET CRUISING MCALPIN HINTS AT VIRGIN VOYAGES’ PLANS both in terms of asking specific questions on lifestyle and also, in focus groups, about what they were looking for. What we heard loud and clear was that our future sailors wanted a different experience. Even back two years ago when we did our first research, what we heard in focus groups was: “Well, this is an adult experience. You're not going to have kids onboard.” And at that point, we said we would make it adult-centric. As we studied more and more, there was a real prevalence of folks who said this should be an adult experience, because moms and dads need a vacation too. They didn’t want to be worried about their kids acting up, and they didn’t want to be around other families where kids are acting up. We love kids. I love my family. Richard loves his family. But this is an experience for adults only. CBR: Was there discussion of what constitutes an adult, before choosing age 18 and up? McAlpin: We had a pretty healthy debate about what was the criterion for defining adult. Was it 16, 18, 21 or something different? We all agreed 18 is the right number. CBR: Will all the ships be adult-only? McAlpin: What we are committing to now is what our first ship will be. I think as we develop our brand and what our brand is all about, we’ll play it by ear. We can be flexible. If we decide there’s opportunity to do a different type of experience, we can do that on ships two, three or 10, depending on what our customers want. For right now, it’s an adult experience. CBR: Wait a minute. Are there options for more than three ships? McAlpin: We have three ships on order. We don’t have any options right now, but we clearly want to grow beyond three ships. I’ll leave it at that. Virgin Voyages and Fincantieri celebrated the keel laying of the first ship on October 31. From left: Alberto Maestrini, General Manager of Fincantieri; Sir Richard Branson; Stephen Pagliuca, Chairman of Bain Capital; and Tom McAlpin, CEO of Virgin Voyages www.scanship.no What size is YOURS? Our innovations in wastewater purification and waste management prevents pollution to sea, reduces use of fossil fuels by converting waste to energy and captures carbon. We are helping the industry to reduce its environmental footprint. How can we help you reduce yours? C M Y CM MY CY CMY K 216x303_20171128_press.pdf 1 28.11.2017 11:57 16-21 .indd 2 28.12.2017 8.23
www.scanship.no What size is YOURS? Our innovations in wastewater purification and waste management prevents pollution to sea, reduces use of fossil fuels by converting waste to energy and captures carbon. We are helping the industry to reduce its environmental footprint. How can we help you reduce yours? C M Y CM MY CY CMY K 216x303_20171128_press.pdf 1 28.11.2017 11:57 16-21 .indd 3 28.12.2017 8.23
18 Cruise Business Review 3/2017 CBR: Virgin Group is a big deal. What has Virgin Voyages learned from the other Virgin brands? McAlpin: It’s about listening to the customer, creating something a little bit different. If you ask Richard what was his success, it’s all about how do you provide a business-class experience and only charge premium economy? For us, it’s how do we provide a better experience on our ship when the rest of the cruise industry does a good job. How do we make it even better? The way we do it is by differentiating ourselves in everything we do. It starts with the look of the ship; it’s the dining, the entertainment experience, the programming that you have onboard. We will do it differently than anyone else does. CBR: Can we expect the ships to be priced and offer the accouterments of a premium product? McAlpin: We’ll definitely be a premium-plus product. CBR: Why the decision not to have a signature red ship, when Virgin has red airplanes? McAlpin: When you look about what our brand is all about, it’s not just all red. When you do too much red it can take away. We do enough red to make it sexy and seductive and give it that Virgin edge, without overdoing it. You never know, there might be some red rooms on the ship. CBR: Like red cabins? McAlpin: I don't know. CBR: Virgin makes much of being environmentally sensitive. What are the major environmental innovations on the ship? McAlpin: The culture we have starts with the Virgin brand and the motto “Changing business for good.” And certainly, environmentality and sustainability is a big part of that. For us, we are about having the greenest fleet at sea – the cleanest fleet, if you will. Our ultimate goal is to be a zero-discharge ship, and the way that we have attacked that is by doing some things that are cutting edge. CBR: For instance? McAlpin: A first step was to enter into a deal with Climeon of Sweden to provide a new technology which better utilizes the heat waste and converts that to clean energy. That was a pretty significant investment – a couple of million dollars per ship – but we think it's the right thing to do. We want to be as efficient as we can and as environmentally friendly as we can. The second was a partnership with Scanship, the world leader in providing waste-management systems. Together, we are trying to develop a technology that will use microwaves to take waste and put it into a format that we can use to burn and create energy. It’s not a proven technology yet. We’re investing in this with them, and hopefully it will be successful. It would be the first in the industry, and that would mean ships of the future would be much more sustainable and environmentally friendly. CBR: With additional ship orders, could you see moving into ships fueled by LNG (liquefied natural gas)? McAlpin: That is something we considered when we looked at our ship. It didn’t make sense when you’re a startup business. It’s okay when you have 100 ships to have a couple of ships LNG. But when you start up to have your entire fleet LNG didn’t make sense. In the future, it depends on if we do a new prototype or build a sister ship. If we build a new prototype, it’s likely we would look at LNG. If we build sister ships, it’s likely we would stick with the existing power plant. CBR: At the keel laying when you announced adults-only, you also debuted a traditional topless mermaid as your logo Virgin ships will be constructed at the Fincantieri's Genoa facility. The ships will be 278 meters long, 38 meters wide and will register 110,000 gross tons. Passenger capacity will be more than 2,700 16-21 .indd 4 28.12.2017 8.23
? For more information: w w w . a d o n i s . n o With over 25 years serving some of the most dynamic companies in the maritime industry, we bring you best of breed, real-world solutions for Crew Management, Crew Planning and Payroll. Our customers are market leaders who appreciate the insight, expertise and “the human touch” that are our trademarks. Find out why more and more companies prefer Adonis for their global human resource activities! HUMAN RESOURCE THE GLOBAL SOLUTION and started referring to the Virgin ships as “lady ships.” What message are you trying to send here? McAlpin: I think our lady is very sophisticated, very powerful. She’s got this incredible grace about her. The 18-plus says this is an adult experience. This is not a spring break cruise by any stretch of the imagination. That’s not what our brand stands for. It will be a sophisticated, romantic, upscale experience for adults. Will it be a little edgy? Yes, it will be fun. Will it be a little naughty? Yes, but in a very sophisticated way. CBR: What would you say is your target demographic within that adult category? McAlpin: We have never really said a certain age group or demographic. Our customer wants flexibility in creating their own experience in dining, entertainment and those sorts of things. We are creating something for the young at heart. We are in industry that has done a fantastic job in guest satisfaction. For us, it’s about redefining who our consumer is. We’re a boutique brand. Other companies appeal to a wide demographic, and when you do that you have a good experience but it’s more generic. We have an experience that's going to be a different demographic: People who want a bit more fun, excitement, some great nightlife, great experiences, good itineraries that maybe are done in slightly different ways. That’s what we’re all about – a modern, fun ship. CBR: You’ve been a bit coy on price and haven’t said whether there are any inclusives, such as alcohol. What's the plan for that? McAlpin: We will be a premium product, and we are studying those packaging elements right now. We have a pretty good idea, but we’re not quite ready to share that yet. CBR: As a company based in Florida you are obviously targeting the U.S. market, but what are your plans to source “sailors” internationally? McAlpin: I think as we start off with one ship, two ships and three ships, it doesn’t make sense for us to be marketing all over the world. I think we will be marketing in areas where our awareness is the greatest, which are obviously the U.S., the U.K. – where we have 100% recognition of the Virgin brand – and Canada. CBR: Your first ship will be in the Caribbean. Do you foresee having ships in other destinations? McAlpin: I am sure in the future we will have a ship in Europe. We will have more ships in the Caribbean, probably. CBR: For destinations looking to be part of the itineraries, what’s the best way to win Virgin business? McAlpin: It’s about a different experience. What we are trying to create is something unique and different. So we may go off the beaten path a bit. CBR: So if we’re looking at the Caribbean, maybe to some islands not typically visited by cruise ships and not the main islands? McAlpin: I think you’re getting warm. CBR: Does having active experiences such as ziplines help? McAlpin: We’ll have a younger demographic than the rest of the industry, so having active ports-of-call is fun. Our sailors want to be off the beaten path. They want a do-it-yourself type of thing. They want that authenticity. So we’re looking for those types of experiences. And maybe our itineraries are different in terms of arrival and departure times. Maybe you spend a night or stay later or arrive earlier, to provide a different type of experience. CBR: Is Virgin planning to make investments in creating its own port-of-call? McAlpin: If we found the right opportunity that is certainly something we would consider, but at this point we are not actively pursuing a specific place to buy. CBR: In creating your team in Plantation, Florida, how important has it been to hire known cruise industry players? McAlpin: I can’t do this myself. It’s about building the right team and the right culture. That culture is very much about being guest-centric and creating some16-21 .indd 5 28.12.2017 8.23
20 Cruise Business Review 3/2017 thing different, doing things differently than the industry has done in the past. I came from Disney, where we created a differentiated experience, and to do that you’ve got to have the right people. You need enough cruise experience, but you also need people who know how Virgin works and can really explain the brand and bring the brand to life. And you need people outside of both industries, new fresh blood to come up with new creative ideas. CBR: So you’re doing a combination? McAlpin: The team we have is rock solid, fantastic – people like Stuart Hawkins , heading technical marine operations [and previously with Princess Cruises]. You need someone who knows how to build ships. In IT we have Andy Schwalb , who has worked at Disney and for Bank of America. He developed the Magic Band technology for Walt Disney World. Guys like Nirmal Saverimuttu , who comes from Virgin and knows what Virgin is all about and brings that way of thinking differently, as our Chief Commercial Officer. And Dee Cooper, who is our Chief Product Designer and designed the Upper Class and Clubhouse lounges for Virgin Atlantic. And Frank Weber , who is in charge of operations and comes from the industry [Norwegian Cruise Line] and balanced off by someone like Nathan Rosenberg – who comes from Virgin and is our Chief Marketing Officer and has been involved in many startups and knows Richard Branson very well, and can provide that sophistication in using social media in a way to get the most out of it and how to create a brand that will be successful. Scanship's Henrik Badin toasts with Sir Richard Branson for the first "Lady Ship" 16-21 .indd 6 28.12.2017 8.23
22 Cruise Business Review 3/2017 CONFERENCE REPORT n EUROPE OVER-TOURISM, BREXIT DOMINATE SEATRADE EUROPE While issues such as security, geopolitics and environmental regulations have underlined the challenges to Europe’s cruise business in recent years, the industry is now confronted with other impediments that have surfaced to occupy the forefront of its growing list of concerns. As leaders of the cruise world gathered in Hamburg in September for Seatrade Europe 2017, the evolving landscape of obstructions to Europe’s cruise industry was made apparent. By Alan Lam Ph oto cre dit : CH L Ph oto De sig n/C hr ist ian Li etz ma nn Kyriakos Anastassiadis 22-25 .indd 2 28.12.2017 8.28
Cruise Business Review 3/2017 23 ? T here is little doubt about Europe’s potential as both destination and source market. Kyriakos Anastassiadis , Chairman, CLIA Europe, and CEO, Celestyal Cruises, the leading advocate for Europe’s cruise industry, once again proclaimed the continent’s potential in regard to cruise tourism: “I think Europe should and must be number one in the world [of cruise destinations], because frankly, this continent is blessed with destinations. As much as the Caribbean is a wonderful place to go, it doesn’t have the depths of providing what Europe has,” he proclaimed. “We are building sustainable tourism,” Anastassiadis continued, “from the point of view that every destination we go to we add value, and everywhere we go we are responsible and try to work together with the local communities and port associations in being able to find the way that make sense for our passengers, for the local communities and for the environment and the economy and be able to grow the business.” In his keynote address, Anastassiadis sounded saddened by the lack of coordination within the industry in Europe, which exacerbated the challenges it faces. “Europe needs to get its act together,” he said. “We say that we are a united Europe, but in reality we are not. We are 27 different states and when one regulation goes out we have 27 different interpretations of it.” A lot of work needs to be done, he asserted, in order to silence the industry’s critics, who are riding a wave of antitourism sentiment currently sweeping the continent. “There is no easy solution. This is something that has to be worked at multiple levels and has to be done simultaneously. It is inconceivable for us, as cruise lines, to go out to present ourselves by ourselves. Nobody can see better the impact we have on the local communities then the ports. They are part of the community, and they know exactly what it is that we bring to the party and what it is we don’t. So, close collaboration and having the port associations working in conjunction with us and being part of the table when we talk to the communities will be important. By working together with the local communities, port associations, and with local suppliers and manufacturers, our story can go round in a more relevant manner.” Over-tourism and ‘touriphobia’ The conference took place amidst a major anti-tourist upheaval in parts of Europe, which seemed to have emerged from nowhere and taken the industry almost by storm. There had been demonstrations against what was perceived as “over-tourism” in Barcelona and the Balearics, for example, which severely affected the local residents’ quality of life and diluted the culture of the regions concern. The tourism industry has once again fallen victim to its own success, but this is nothing new. Decades ago, concerns were already being raised on issues such as Venice sinking under the strain of mass tourism. Recently, we have seen the Croatian city of Dubrovnik setting a limit on the number of daily visitors to its fortified center. Cruising represents only a tiny percentage of the influx, but the visibility of cruise ships makes the industry the biggest target of what Richard J. Voge l, President and CEO, Pullmantur Group, calls “touriphobia.” “During the high season in Mallorca, 100,000 people arrive by planes,” Vogel said, “but you don’t see them when they arrive. But you do see 22,000 passengers Five cruise ships – AIDAprima, Norwegian Jade, Europa 2, Europa and MSC Preziosa – sailed down the Elbe against the backdrop of the illuminated Blue Port Hamburg on Hamburg Cruise Days in September 22-25 .indd 3 28.12.2017 8.28
24 Cruise Business Review 3/2017 when they arrive on cruise ships. This is the issue. This is what the population of Mallorca sees. You get the feeling that you are not welcome anymore.” Opposition to mass tourism has been a constant underlying current in parts of Europe. “In general,” Vogel continued, commenting on Barcelona’s recent antitourism protests, “we were not able to learn from what happened in Germany 10 years ago when NGO started to oppose cruise ships, etcetera. Now we are surprised in Spain this has happened so suddenly and so aggressively. We can see the concerns of Spanish people towards tourists. We have to do much more and much more in advance, so that we could anticipate the issues coming up.” From the port’s perspective, the problem is similar. “The biggest issue we have,” said Captain Michael McCarthy , Chairman, Cruise Europe, and Commercial Manager, Port of Cork Company, “is that you have a lot of people who want to live in the port environment, but do not necessarily want to be disturbed by ships coming and going. This is an issue we have to deal with on a day-to-day basis.” Over-tourism is now a European-wide problem and can only intensify in future years as mass tourism continues to expand, especially with the increasing number of visitors from Asia. “We don’t just have it in Spain,” said Wybcke Meier , Chief Executive Officer, TUI Cruises GmbH. “The same problem also exists in ports and cities of other countries. This is something we need to take seriously as an industry and start the dialogue.” Poor communication As one of the most visible pollutants and sources of interruption to daily life, cruise tourism is far from universally welcomed. The industry has so far failed to initiate meaningful dialogue and communicate the true benefits of cruising to the port communities upon which it depends. Good communication helps industry development immeasurably, yet poor communication has become a hindrance to the cruise business. It is commonly acknowledged that the industry is making huge strides in areas such as environmental protection and economic impact. “If anything, we should be extremely proud of how responsible we are,” said Celestyal’s Anastassiadis. “If there is one thing we need to do even better as we go forward, it is to strongly and proudly communicate the achievement of the industry in which we are setting the pace. We are at the forefront of the custodianship in embracing technology and bringing to bear practices and self-regulation far in excess of what the IMO and other regulations require. We need to do a better job of communicating to broader audiences and communities as to what we do. We do things extremely well individually, and we have taken it for granted that we know what we do and assume the broader community also knows. Clearly they don’t, and that’s why we have some of the pronouncements made by our critics, which are not based on facts but on perceptions or inaccurate data. So we need to, before criticizing everybody else, look at ourselves. We haven’t been as bullish in going out and communicating and eloquently sharing the information on what we do. By doing that, we will be able to provide the right perception of who we are and what we do.” The role of communication in correcting wrongful perceptions of the cruise industry is of key importance, especially in terms of the economic value of cruising, added TUI’s Meier. “There is a big difference between land-based holidays and us,” she said. “Our customers spend much more than theirs do. Our customers explore the destination and spend more. We need to communicate that. This is our task for the future.” Such thoughts were echoed by Pullmantur’s Vogel, who added, “A lot of people claim [cruise] tourists are not spending money. That is true in some restaurants and some gift shops, but they are spending money. A lot of taxi drivers can make a living from them; a lot of agencies and bus companies are making money from Richard J. Vogel Ph oto cre dit : Ha mb ur g M ess e Wybcke Meier 22-25 .indd 4 28.12.2017 8.28
them. This is the information we as an industry must get through to the local communities.” He called for more lobbying groups to demonstrate the contribution made by the cruise industry to local businesses. Even within the industry, there can be a general lack of understanding of what cruising really is. This may also be one reason why the business has such low market penetration. “We need to better communicate this thing we do well,” said Karl J. Pojer , Chief Executive Officer, Hapag-Lloyd Cruises, and Chairman, CLIA Germany, “to outline the things we do best and what are the advantages to spending holidays with us. On the other hand, we have to accept that not everybody has the same view. We have to invite these people for dialogue. We are not speaking loudly enough [about] what the industry is able to do and are doing. We have not been able to explain to the market what is possible and what is not.” Pojer also specified the importance of communication within the industry. “Even we have trouble sometimes understanding what is out there,” he said. “How then, can we convince others?” To get the word out, the industry must fundamentally change the way it communicates – that was the message. “We need to sit down and listen to what others are saying,” Anastassiadis explained, “what their questions are and then provide appropriate responses. We need to make sure we are not talking at each other, but to each other. We also need to engage the media.” Better communication within the industry also is vital, particularly in day-to-day operations. “We need to communicate more and we need to collaborate more and coordinate more between cruise lines and destinations,” said Neil Palomba , President, Costa Crociere. “We don’t know exactly what is going on inside the destination. We rely on our experts – whether they are port agents or shore excursion providers – to provide us with this kind of information. We need to listen to their concerns and work together with the local people and try to address those concerns. We can do anything as long as we know exactly what we need to do.” Brexit looms One of the emerging and constantly evolving challenges discussed in depth at the conference was the subject of Brexit, which as it approaches has acquired more urgency. By and large the industry is still languishing in the dark concerning this issue. “The biggest threat of Brexit is uncertainty,” said Tim Reardon , Policy Director, Taxation, Ferry and Cruise, UK Chamber of Shipping. “Fourteen months into the process, we still don’t really know what Brexit is going to look like. Governments neither in the UK nor in Europe have said anything at all relevant to our business.” On the surface, Brexit would appear to be a major issue. However, in the bigger picture, it is not expected that Brexit will have a significant impact on the cruise business, which so far at least, has been experiencing business as usual apart from short-term currency f luctuations commonly attr ibuted to the result of the referendum. “ B u s i n e s s i s buoyant,” said Stuar t Leven, Chairman, CLIA UK & Ireland; Vice President, E M E A , a n d M a n a g i n g Director, RCL Cruises Ltd. “I don’t think we are seeing any indication that the consumer confidence is knocked in any way. Within the UK market, we are in the situation that we already have cruises and holidays on sale for the changeover [moratorium] period after Brexit. We certainly have not seen any indication of customers hesitating. The buoyancy remains as we go through the process. We are not making any itinerary changes because of Brexit.” Beyond currency fluctuations, no one at the conference could see any major impacts that Brexit would have on the cruise business. “I think where there is a slight concern, especially in regard to cruise industry, isn’t in the big questions,” Leven said. “It is where you may be getting local governments or local associations deciding to go for political gains as the result of what is going on with Brexit. That will lead to changes in our ability to operate locally. Take the example of cabotage, which may mean we are no longer allowed to use the ship’s own tender service, but have to use the port’s provision.” Given that cruising is a global business governed by global rules and regulations, Brexit’s impact will in all likelihood be limited. “I don’t think it is going to have a major effect on the cruise business,” said Javed Ali , Hill Dickinson LLP, a lawyer specializing in the travel industry. “We have shipping clients who are investing heavily in the UK and growing, even though there is a Brexit.” On a practical level, the free movement of land-based labor forces and customs procedures was briefly mentioned. “There might be some minor adjustment relating to customs control and duty free,” said Thanos Pallis , Secretary General, MedCruise, “but no major concerns about the arrival of British passengers in the short to medium term. In the longer term, things will settle down.” Brexit is therefore not regarded as a major obstacle to the cruise business outside the impact of short-term uncertainty. “There is so much mutual benefit in preserving that background ability to do business and enable people to travel,” the UK Chamber’s Reardon concluded. “It will take a brave person indeed to stand in the way of that and obstruct it. On that basis, we will assume that ships will continue to come and go and passengers will continue to come and go.” Thanos Pallis, an expert in European port policies, agreed, saying: “Since the 1980s they have been working on this openness [in the European market]. I don’t think anybody will go mad and start imposing significant barriers to this whole process. I don’t see there will be major changes.” In the final analysis, local opposition to over-tourism, communication problems and Brexit are simply the latest additions to the ever-expanding challenges confronting the cruise business. After years of growth and weathering storms, cruise tourism is now a resilient industry. “The cruise industry will always bounce back,” said Leven. “We just need to make sure that we keep our focus on what we are doing. Stay the course,” he stated. n Cruise Business Review 3/2017 25 Neil Palomba 22-25 .indd 5 28.12.2017 8.28
26 Cruise Business Review 3/2017 DESTINATION REPORT n NORTHERN EUROPE Our tour started in Trondheim, Norway’s third-largest city and the country’s historic capital during the Viking age. In modern times, the city – located along Norway’s second-largest fjord – offers two quays for visiting cruise ships, of which one can be used for turnarounds. Although there is no dedicated cruise terminal, the nearby Clarion Hotel and Congress Center can be used for the necessary formalities. Adjacent to the hotel is Rockheim, the 2010-opened museum where visitors can explore the history of Norwegian popular music in an interactive way. We entered the city center by RIB, and then crossed the historic city bridge on foot to reach the Nidaros Cathedral – the city’s best-known attraction and the world’s northernmost medieval cathedral, where the kings of Norway are still crowned. At the cathedral, we were given a chance of testing NINE PORTS IN FJORD NORWAY Known for its impressive natural formations, in particular the fjords, Norway is an enduringly popular cruise destination. It is further made attractive to cruise lines by high guest-participation rates on shore excursions, reaching an impressive 70% in some ports. Cruise Norway arranged a familiarization tour of various ports and destinations in Western Norway this past autumn. Cruise Business Review’s KALLE ID, the sole journalist invited to join the tour, reports on nine of the country’s cruise destinations. Action Track, a mobile-phone app in the early stages of development, with independent explorers in mind. Next, we rode in a vintage carriage aboard the Gråkallbanen, the world’s northernmost tram line, which links the city center with the hiking and skiing area at Lian. The day ended at the Sverresborg open-air museum, built around the ruins of the castle of Norway’s King Sverre Sigurdsson . The Atlantic Road Next we travelled to Kristiansund, a town on four islands along the shore of the North Atlantic. In contrast with most other places we visited, Kristiansund is a modern town, having been entirely rebuilt following near-complete destruction during World War II. As a result, it hosts Norway’s first – and perhaps most impressive – modernist church. The most popular tourist excursion in the city (albeit not as popular among cruise guests) is a boat tour to the Grip Islands, some 14 kilometers northwest of the town, which host an impressive stave church. Perhaps the best-known attraction near Kristiansund is the Atlantic Road, an eight-kilometer-long section of road with eight bridges connecting various islands and skerries on the shore of the Atlantic to the mainland. The road is designated as one of Norway’s national tourist routes, and for good reason. From the Atlantic Road, we took a replica Viking ship to Håholmen, an old fishing village turned into a hotel and museum by the Norwegian adventurer and author Ragnar Thorseth . The Atlantic Road was easily accessible from our next destination, Molde, where we toured Romsdalsmuseet, another impressive open-air museum giving a fascinating glimpse of traditional life in Norway, yet located practically Geiranger Arriving at Håholmen onboard a Viking ship replica Ph oto cre dit : Te ijo Ni em elä , all oth er ph oto s by Ka lle Id 26-29 .indd 2 28.12.2017 8.32
Cruise Business Review 3/2017 27 ? in the center of the town. The following morning, we were given a chance to try riding electric bicycles to the hills at Moldemarka – an exhilarating but at times intimidating experience. Molde has an ambitious plan to redevelop the waterfront adjacent to the cruise quay into an attractive boulevard. While this project is not being done primarily with cruise guests in mind, it will naturally make the town an even more attractive destination for cruise visitors. From Molde we continued up the Romsdalsfjord to Åndalsnes, where we visited Norsk Tindesenter, a museum dedicated to mountain climbing located right next to the cruise quays. Alas, there was no time to sample the 21-meterhigh rock-climbing wall. Åndalsnes is also the terminus of the scenic Rauma Railway, but instead of taking the train we continued by bus to Trollstigen, the scenic road that zigzags up a mountain via 11 hairpin turns with an amazing view from the top. It is easy to understand why Trollstigen is a popular shore excursion. Geirangerfjord World Heritage Site Next we continued to Geiranger, which probably needs no introduction. The striking Geirangerfjord is one of Norway’s most popular tourist destinations and an UNESCO World Heritage Site. In fact, due to extreme popularity during the high season – not only among cruise guests but all tourists – the number of cruise calls in Geiranger and nearby Hellesylt will be restricted to a maximum of two ships per day during July, and cruise lines are being encouraged to explore the possibility of calling at the fjord outside the summer high season. In Geiranger, our visit included a cruise along the Geirangerfjord, a visit to the Norwegian Fjord Center and a stop at the Dalsnibba viewing platform set 1,500 meters above sea level. From Geiranger, we continued via the village of Lom to Sognefjellsvegen, another of Norway’s national tourist routes and the highest mountain-pass road in Northern Europe. This impressive road carried us to our next destination, Skjolden. Despite having a dedicated cruise terminal with facilities to accommodate the largest cruise ships in service, Skjolden has managed to retain an atmosphere of authenticity. During our brief visit, we sampled a farm tour and RIB ride (the latter quite possibly the best I’ve been on) with very enthusiastic guides. Surrounded by a pristine landscape, Skjolden’s other excursion options include cycling and hiking. The Urnes Stave Church, further down the Lustrafjord, is easily accessible by bus or boat. Our next destinations were the twin cruise ports of Olden and Loen. Here the undisputed main attraction is the Briksdal Glacier (tours to which are also done from Geiranger). From the parking area, guests can either walk up to the glacier or choose to take the biodieselpowered “troll cars” most of the way. While Olden offers a cruise quay, Loen is currently a tender-only port. The town’s most impressive attraction, the Loen Skylift, is adjacent to the tender quay. The skylift takes guests from sea level to Mount Hoven. At an altitude of over one kilometer, it offers amazing views and access to various hiking and climbing routes. A view from the top of the Trollstigen scenic road Briksdal Glacier 26-29 .indd 3 28.12.2017 8.32
28 Cruise Business Review 3/2017 Premium Exhibition Services wulffentre.com | sales@wulffentre.com +358 10 6335 500 JOINT STANDS SPACE RESERVATIONS DESIGN STANDS PROJECT MANAGEMENT Wulff Entre provides premium exhibition services for maritime professionals. A few of the 2018 exhibitions we will be participating in include: SEATRADE CRUISE GLOBAL INTERSPILL APM SEA JAPAN OTC HOUSTON NAVIGATE Please contact us! WE are ready to help with our fully comprehensive trade show and event services that t (and won’t exceed) your budget! Let us help you save your valuable time and nerves! POSIDONIA ONS SMM OSEA OIL & GAS WORKBOAT ...AND MANY MORE. Rock carvings and llama farm Next we continued via sea to Vingen, one of the largest rock-carving sites in Europe, which is accessible only with special permission. From there we sailed to Kalvåg, a village of just 350 inhabitants, which is soon to become a cruise port with the ms Saga Pearl II due to visit in 2018. The village currently has two quays of 100 and 140 meters (plus overhang), which can be used by cruise ships. A new 220-meter-long cruise quay is under construction. Shore excursions from Kalvåg will be tailored to the needs of the visiting ship by Adventure Norway. Being a small village, Kalvåg cannot absorb the number of passenger carried on a larger cruise ship. From Kalvåg we continued to Geiranger’s “twin port” of Hellesylt, visiting a llama farm at Øvre-Ljøen, with dramatic views of the point where the Geirangerfjord branches off from the Sunnylvsfjord. The owners of the farm also arrange excursions, including RIB tours, while the farm itself includes an amphitheater seating up to 100 people for performances such as concerts and sheep dog shows. The final destination of our tour was Ålesund, known for its Art Nouveau architecture. Most of city was destroyed by fire in 1904, and the rebuilding was carried out in this then-fashionable style. Thus it perhaps was not a surprise that our tour of the city included a visit in the Art Nouveau Center ( J u g e n d s t i l s e n t e r e t ) , which also offers a rather fascinating multimedia presentation about the 1904 fire and the subsequent rebuilding effort. From the city center we proceeded to the Atlanterhavsparken, an aquarium complex offering a glimpse of what happens underwater on the North Atlantic. Next we visited the Sunnmøre Museum, another of Norway’s impressive open-air museums. This one has a splendid collection of wooden boats and ships, including Viking ship replicas. The very last call on our tour was the Alnes Lighthouse, a restored lighthouse and museum on the island of Godøya outside Ålesund, accessible by road through an underwater tunnel. Ålesund offers no less than five quays for cruise ships, the longest being 300 meters in length. The quays are priced per 24 hours, making overnight stays an attractive option. n The Urnes Stave Church, believed to be the oldest of its kind, is an UNESCO World Heritage Site The quaint fishing village of Kalvåg is an aspiring new cruise port A view of Ålesund from the Aksla viewing platform Viking-age rock carvings at Vingen 26-29 .indd 4 28.12.2017 8.32
Premium Exhibition Services wulffentre.com | sales@wulffentre.com +358 10 6335 500 JOINT STANDS SPACE RESERVATIONS DESIGN STANDS PROJECT MANAGEMENT Wulff Entre provides premium exhibition services for maritime professionals. A few of the 2018 exhibitions we will be participating in include: SEATRADE CRUISE GLOBAL INTERSPILL APM SEA JAPAN OTC HOUSTON NAVIGATE Please contact us! WE are ready to help with our fully comprehensive trade show and event services that t (and won’t exceed) your budget! Let us help you save your valuable time and nerves! POSIDONIA ONS SMM OSEA OIL & GAS WORKBOAT ...AND MANY MORE. 26-29 .indd 5 28.12.2017 8.32
30 Cruise Business Review 3/2017 S iljarederiet, as the company was originally known, was established in 1957 by three companies operating a joint service on the Finland-Sweden routes – Finska Ångfartygs Aktiebolaget (FÅA), Ångfartygs Aktiebolaget Bore and Rederi AB Svea, known collectively as De Samseglande – to offer a keenly-priced service from Turku to Stockholm using a converted 1915-vintage steamer, which was renamed the ss Silja. Although aimed at the growing market of motorists wishing to travel with Silja Line marks six innovative decades For 60 years, Silja Line has been one of the driving forces of innovation in passenger shipping, introducing many features on its ferries that would eventually be adapted for use by international-market cruise ships. By Kalle Id their cars, vehicles still had to be lifted on and off the ship by crane. The conservatism of Siljarederiet’s owners ultimately cost them their dominant position on the Finland-Sweden routes, as several roro ferry operators appeared in these waters in 195859. The young Siljarederiet’s leaders had early on campaigned to have a dedicated car ferry of their own, and in 1959 a contract was placed with the Wärtsilä Helsinki shipyard for the first Silja ferry, the ms Skandia, for delivery in 1961. Groundbreaking first ferries The Skandia marked a stark contrast with older tonnage on the Finland-Sweden routes. Both her interior and exterior design were sleek and modern, and – in contrast with the older steamers – she was a one-class ship, her public rooms being accessible to all 1,200 passengers. At the time, it was thought ferry services should minimize time at sea, and thus in Sweden the Skandia sailed not from Stockholm but from Norrtälje, a coastal town some 70 kilometers north of the Swedish capital. Such was the success of the Skandia that three sister ships were subsequently delivered: the ms Nordia of 1962, the ms Botnia of 1967 and the ms Floria of 1970. In addition to the Skandia-class ships, Siljarederiet took delivery in 1966 of its undisputed flagship, the ms Fennia, from Öresundsvarvet in Sweden. In terms of gross tonnage, the new ship was almost twice the size of the Skandia-class ferries, but carried the same amount of passengers. The number of cabin berths was increased to about 300, compared to just 100 on the Skandia and Nordia. Public rooms were again extensive, and notable among these was the specification of a self-serve, taxfree supermarket instead of the kiosks that were the norm on most ferries of the era. While small by today’s standards, the supermarket undoubtedly increased sales – not just of goods in the shop itself but also elsewhere onboard, as passengers no longer had to queue for the tax-free kiosk. On entering service, the Fennia opened a new service for Siljarederiet, sailing from Turku to Stockholm’s new ferry port in Värtan. An important factor in the phenomenal growth of Siljarederiet (and indeed its competitors) was the Nordic Passport Union, which allowed for travel between Finland and Sweden without a passport, and the institution of a joint Nordic employment market in 1956. While Finland boasted almost full employment, Sweden offered higher pay and a better social security system. Therefore, many Finns immigrated to Sweden but would return to Finland for their holidays, more often than not with their brand-new Swedish-made cars, creating a steady demand for traffic. Two generations of Silja ships: the Wasa Queen (ex-Bore Star) of 1975 and the Silja Serenade together in Helsinki Ph oto cre dit , all ph oto s: Ta llin k Sil ja Oy or Ka lle Id The Skandia makes her maiden call in Turku silja .indd 2 28.12.2017 8.45
? Siljarederiet becomes Silja Line By the latter years of the 1960s, it was clear that the future of the Finland-Sweden routes belonged to car-passenger ferries. At the same time, three successful rival ferry operators established in the late 1950s and early 1960s had formed a competing joint service operating under the name Viking Line. In comparison with the newcomer’s simple brand identity, the FÅA-Bore-SveaSilja joint service’s identity was complex, with all four company names appearing in marketing materials and each ship painted in its individual owner’s colors. The De Samseglande camp’s answer to these challenges was to radically reorganize its operations in 1970. Siljarederiet became Silja Line, a joint marketing and coordination company for all of FÅA, Bore and Svea’s ships sailing between continental Finland and Sweden. Thus, the fleet marketed under the Silja name now grew with the addition of six traditionalist vessels sailing on the routes to Skeppsbron in central Stockholm from Turku and Helsinki, but at the same time, ships previously owned by Siljarederiet were gradually transferred under FÅA, Bore and Svea’s ownership. New ferries for Helsinki and Turku Already before the reorganization, Siljarederiet had contracted three new ferries – two for the Helsinki-Stockholm route and one for the Turku-Stockholm route. Up to this point, the Helsinki route had been operated by traditionalist steamers from the early Cruise Business Review 3/2017 31 The first Silja ship, ss Silja silja .indd 3 28.12.2017 8.45
32 Cruise Business Review 3/2017 ? Rauma Marine Constructions Oy Sales Newbuilding Products: Håkan Enlund Life-cycle Services: Markku Uusitalo P.O. Box 55, Suojantie 5, FI-26101 Rauma, Finland Tel: +358 30 600 5400 info@RMCfinland.fi E-mails: firstname.lastname@RMCfinland.fi www.RMCfinland.fi BUILDING SHIPS FOR SPECIALIST PURPOSES AND HARSH CONDITIONS WITH SKILLS AND ENTHUSIASM TRUSTED FOR CENTURIES RAUMA MARINE CONSTRUCTIONS rauma.indd 1 1.12.2017 12:10:05 1950s, and the service was suspended when the Baltic Sea froze over. The new ferries, delivered in 1972 as the ms Aallotar and ms Svea Regina, were designed from the outset for year-round operation, offering daily departures from both Helsinki and Stockholm (Värtan). The new sisters had a passenger capacity of just 1,000, but with cabin berths for 440. The ships offered an unusually high number of outside cabins, as cabins were placed on the sides of the car deck. Such was the success of the Aallotar and Svea Regina that in 1973 a trio of notably larger ferries was contracted as replacements. The third newbuilding contracted by Siljarederiet was delivered in 1973 as the ms Bore I for the Turku-Stockholm (Värtan) service. In terms of passenger comfort, the Bore I offered more cabins with private facilities than any other FinlandSweden ferry of the time, but her true innovation was the design of the command bridge. Inspired by the latest generation of Finnish-built icebreakers, this was placed atop the superstructure, offering nearly uninterrupted views in all directions. At the same time, the various bridge stations were rearranged in a cockpit-type arrangement where a single person could control everything from a single station – a practical arrangement that only recently has been put into wider use on cruise ships. The new trio o f s h i p s fo r t h e H e l s i n k i Stockholm route arrived in 1975 in the form of the ms Svea Corona, ms Wellamo and ms Bore Star. These were notably larger than the duo they replaced; however, passenger capacity was only increased to 1,200, while the number of cabin berths wa s a l m o s t doubled to 800. With the additional ships, a new three-ship schedule was put into use with both day and night crossings. (During the winters, the route reverted to just overnight crossings, with the Bore Star chartered out for cruises around the Canary Isles). Struggling to make a profit Despite the arrival of new tonnage, Silja Line was struggling to make a profit in the mid-1970s. Compounding the effects of the oil crisis was the company’s inefficient route structure, with 11 ships serving on four routes. Harry Österberg was appointed as Silja Line’s Managing Director in 1976, and he quickly instituted a rationalization program, reducing the number of routes to just two – Helsinki and Turku to Stockholm – with the goal that both routes would be operated with just two larger vessels offering better economies of scale. While Effoa (as FÅA had been renamed in 1976) and Svea were convinced of the need to build larger ships, Bore was not and exited the consortium in 1980. The first economy-of-scale vessels were the ms Finlandia and ms Silvia Regina, both delivered in 1980 for the Helsinki-Stockholm route. In terms of gross tonnage, they were over twice the size of the ships they replaced, and had an unprecedented percentage of cabin berths, accommodating 1,600 of the 2,000 passengers. Furthermore, the cabins were of similar size to those found aboard mass-market cruise ships of the time. However, the real innovation of the Finlandia and Silvia Regina were their public rooms. At a time when ferries and even cruise ships usually offered just two restaurants, the new Silja ships had four restaurants for passengers to choose from, housed in a twin-level complex forward, also foreshadowing the later trend of multi-level dining rooms on cruise ships. This space doubled as a show lounge and night club later in the evening. In addition, the ships offered a cafeteria, a combined discotheque-cocktail bar, two tax-free shops and a large sauna complex. Thanks to their impressive passenger facilities, the Finlandia and Silvia Regina transformed the Helsinki-Stockholm route from a transport-oriented one to a leisure service, with twonight return trips sold as short cruises. A contributing factor was onboard tax-free sales – especially on alcohol and tobacco The Fennia of 1966 served Silja Line for a total of 26 years A superior cabin onboard the Aallotar of 1972 The attempts of running internationalmarket cruises during the late-1970s were not a success silja .indd 4 28.12.2017 8.45
C ruise Business Review 3/2016 39 www.portofturku.fi Turku is Finland’s oldest city, located on the southwestern coast right behind the unique Turku archipelago. The spacious port has five berths for cruise vessels. A dedicated cruise berth for smaller vessels and yachts is on the river bank just walking distance from the city centre. Turku is compact in size making it easy for visitors to explore a lot in one day – come and discover! Rauma Marine Constructions Oy Sales Newbuilding Products: Håkan Enlund Life-cycle Services: Markku Uusitalo P.O. Box 55, Suojantie 5, FI-26101 Rauma, Finland Tel: +358 30 600 5400 info@RMCfinland.fi E-mails: firstname.lastname@RMCfinland.fi www.RMCfinland.fi BUILDING SHIPS FOR SPECIALIST PURPOSES AND HARSH CONDITIONS WITH SKILLS AND ENTHUSIASM TRUSTED FOR CENTURIES RAUMA MARINE CONSTRUCTIONS rauma.indd 1 1.12.2017 12:10:05 silja .indd 5 28.12.2017 8.45
34 Cruise Business Review 3/2017 products – which added an economic incentive to the already attractive cruise product. A second pair of ships – similar but not identical – was delivered for the Turku-Stockholm route in 1985-86: the ms Svea and ms Wellamo, which elevated the product on this route to a similar standard. By this time, Johnson Line had taken over Rederi AB Svea as the Swedish Silja partner. In 1987, Silja Line started serving West Germany, when the gts Finnjet, purchased the previous year by Effoa, was incorporated into the Silja fleet. Prior to entering service with Silja, the Finnjet was rebuilt with an innovative feature: Deluxe cabins were added on the former sun deck, housed in their own, segregated area and marketed as the Commodore Class with their own private Commodore Lounge and outer deck areas. Silja’s subsequent newbuilds retained the concept, and today such segregated areas are, of course, common on many cruise ships. The Silja Serenade and Silja Symphony Following an abortive plan to lengthen the Finlandia and Silvia Regina, a new pair of ships for the Helsinki-Stockholm route was delivered in 1990-91: the ms Silja Serenade and ms Silja Symphony. The pair was arguably the most revolutionary passenger vessels of all time, introducing the concept of a horizontal atrium – branded as the Promenade – as a unifying central space. Around and below the promenade were no less than eight different dining options, ten bars and nine shops, alongside saunas and pools, a spa and a suite of conference rooms. All 2,500 passengers were provided with cabin berths, and the horizontal atrium allowed for an unprecedented number of cabins with windows, either facing the sea or the bustling Promenade. At a time when mass-market cruise ships continued to be built with no cabins with balconies, the pair offered with a small number of luxury cabins with balconies (subsequently, the number of cabin berths and passengers carried was increased to 2,800). And just like the dry-land shopping malls that inspired them, t h e p u b lic spaces along the Promenade were designed from the outset to be replaced as time passed and passengers’ preferences changed. Indeed, the vast majority of public rooms have since been redone, many of them several times over, during the ships’ time in service so far. While the Silja Serenade and Silja Symphony proved highly successful ships and remain popular to this day, they proved costly to build. The original builder, Wärtsilä Marine, had seriously underestimated the cost of constructing them, offering a keen price of just 700 million Finnish markka per ship. Combined with other loss-making contracts, the builder went bankrupt in 1989, and in the following negotiations, the price per ship rose to one billion markka. Prior to delivery of the ships, Effoa and Johnson Line merged to form EffJohn. Expansion and decline In the early 1990s, the Silja route network radically expanded. In 1992 and 1993, the EffJohn-owned Sally Line and Wasa Line were merged into Silja Line. These were followed in 1993 by the takeover of the under-construction Viking Line flagship, the ms Europa, which became the Silja Europa, and the formation of a joint service with the Swedish cruise ferry operator Euroway on the Malmö-Travemünde route. Thus, by 1993, the Silja network included ten routes operated by 11 ships. Silja’s rapid development was halted by two maritime disasters in 1994. First in March, Silja’s own ms Sally Albatross grounded and partially sank outside Helsinki, fortunately without loss of life. Subsequently, the ship was raised and repaired, but chartered out to Norwegian Cruise Line as the ms Leeward. More serious was the sinking of the Estline ferry ms Estonia in September, which resulted in the loss of some 852 lives. The loss of a major ferry – which had even briefly sailed for Silja Line in 1990 as the ms Silja Star – shattered public confidence in Baltic Sea ferries. As a result, all operators were forced to slash prices. As the Swedish market was particularly badly hit, Silja Line now moved its focus more to Finland, and the product was purposefully moved downmarket to attract more passengers. Even with these measures, Silja Line was no longer profitable. This created a problem for EffJohn. Previously, the profits from core activities on the Baltic could be used to offset losses generated by cruise and ferry operations elsewhere, but now the entire company’s financial situation was perilous. As a result, the The tax-free shop onboard the Svea of 1985 The Promenade of the Silja Serenade and Silja Symphony served as a model for many subsequent cruise ships The 2008-built Baltic Princess is Silja Line’s newest ship silja .indd 6 28.12.2017 8.45
major owners began searching for ways to divest themselves of Silja Line. In the aftermath of the Estonia disaster, most FinlandSweden operators saw the emerging route between Helsinki and Tallinn as having much growth potential. Silja, in fact, had already initiated ferry service between the two ports before the sinking of the Estonia, but it operated only outside the summer season. Starting in 1996, this was turned into a year-round route. Around the same time, Silja Line’s owners – now, confusingly, also named Silja – negotiated to purchase the largest operator on the service, Tallink. Given the company’s precarious financial situation, Silja’s leaders decided not to go ahead with the deal. The Sea Containers era Towards the end of the 1990s, a buyer emerged for the Silja empire in the form of Sea Containers, the AngloAmerican conglomerate with a strong shipping arm. Sea Containers’ mercurial leader James Sherwood saw much potential in the Finland-Sweden services even after the end of tax-free sales in intra-European Union trades in 1999, as the special status of the Åland Islands (an autonomous province of Finland) allowed the continuation of tax-free sales aboard ships. Similarly, tax-free sales continued on the routes to Estonia, as the latter country was not yet a part of the European Union. Silja became a subsidiary of Sea Containers in 1999. While the other Silja Line routes could easily be adapted to the new situation, things were different on the former Wasa Line routes from Vaasa and Pietarsaari across the Gulf of Bothnia, where a call at the Åland Islands was simply not a practical solution, and these were closed down in 2000. Sea Containers’ first move as Silja’s owners was to divest itself of the oldest tonnage, while bringing the preexisting fast craft onto the Helsinki-Tallinn line. However, Sherwood’s larger vision was for Silja Line to move back upmarket and concentrate more on the Swedish and emerging Russian markets. Silja’s Finnish leaders, on the other hand, thought that profits could only be made by continuation of a more downmarket product aimed primarily at the Finnish market. The result of this internal strife was that neither approach was fully implemented. The former Sally Albatross was brought back as an upmarket ship on short cruises as the ms Silja Opera in 2002, and the Finnjet was moved to the Russian market in 2004, but neither attempt was successful. By 2005, Sea Containers was facing acute financial difficulties and decided to sell Silja Line to the highest bidder. To make the company more attractive to buyers, it focused its resources on three core routes: Turku-Stockholm, Helsinki-Stockholm and Helsinki-Tallinn. In June 2006, Tallink was revealed to have made the highest bid, taking over the Silja Serenade, Silja Symphony, Silja Festival, Silja Europa and the two ships of Silja’s cargo-carrying subsidiary SeaWind Line. Silja Line’s Helsinki-Tallinn operations were not included in the deal, as this would have resulted in a dominant market position for Tallink. The Tallink era The treatment of the Silja Line brand name was somewhat inconsistent after the takeover by Tallink Grupp. In some territories, the combined operations were marketed solely under the Tallink name, in others as Tallink Silja Line, and in Finland the two brands remained largely separate. In Sweden, the brands were first merged as Tallink Silja and then demerged. The Tallink era marked a notable improvement for the Silja Line fleet. The pre-existing mismatched TurkuStockholm pair of the Silja Festival and Silja Europa were replaced by Tallink’s recently-built sister ships, the ms Galaxy and ms Baltic Princess, in 2008 and 2013, respectively. However, in both cases the ships were given only the quickest of makeovers – with Silja Line logos replacing the Tallink ones on the hull, but the Tallink liveries otherwise retained. While the Helsinki-Stockholm route continues to be operated by the Silja Serenade and Silja Symphony, they were given extensive refits in 2014-16, with nearly all public rooms and a large percentage of the cabins rebuilt. Most notably, the size of the retail areas grew by almost 50%, primarily thanks to the construction on an even larger tax-free supermarket in a style similar to shops found in international airports. Indeed, Tallink Grupp is today the world’s 13th largest dutyfree retailer and the largest ferry duty-free retailer. In May 2017, coinciding with Silja Line’s 60th anniversary celebration, Tallink Grupp made known that the Tallink and Silja Line brands would, again, be more strongly separated in marketing, with different visual identities given to both brands. How exactly this will affect the fleets remains to be seen, as there are currently no plans to repaint the Galaxy and Baltic Princess in more Silja-esque liveries, for instance. During the past six decades, Silja Line has grown from being a cheaper alternative for motorist passengers to being an innovator in Finland-Sweden ferry services. It more or less single-handedly created the concept of a cruise ferry, eventually becoming one of the best-recognized names in the ferry business, pioneering numerous innovations that were eventually adapted by operators in the international cruise business. It will be very interesting to see what the future brings for Silja Line. n Cruise Business Review 3/2017 35 The Silja Symphony with the new style logos applied in 2014 Leading expertise to maximize safety and optimize energy M a r i n e I n d u s t r y I n s p e c t i o n & Ve r i f i c a t i o n i n s e r v i c e H e a l t h , S a f e t y & E n v i ro n m e n t C o n s t r u c t i o n C e r t i f i c a t i o n G o v e r n m e n t S e r v i c e s & I n t e r n a t i o n a l T r a d e Entrust your passenger vessels with Bureau Veritas Move Forward with Confidence Visit us at: www.veristar.com www.bureauveritas.com BV-Shippax-09-2014:BV-Shippax-09-2014 27/08/14 16:16 Page1 silja .indd 7 28.12.2017 8.45
36 Cruise Business Review 3/2017 T he Mediterranean is not just the top destination for cruise tourism in terms of attractions; it now has the best cruise infrastructure in the world. It has also become arguably the most mature cruise market. Indeed, Europe as a whole has become the leader in many respects. “There are now more ports in Europe capable of handling bigger ships than you have in the Caribbean, which is now playing catch-up,” said Giora Israel , Senior Vice President, Carnival Corporation & plc. While it has been an established fact that Europe, especially the Mediterranean, ought to be the top cruise destination of the world, Israel’s proclamation still came as a revelation to many. Moreover, unlike in the Caribbean, cruising in the Mediterranean is decidedly a year-round business activity. For years, Israel has been the leading voice calling for changing the mindset of cruising being primarily a summertime and fair-weather affair. “Seasonality is a state of mind,” he said. “There is no more season. There is no reason why we can’t have more cruising year-round in all areas of the Mediterranean.” Cruise lines are certainly aware of the Mediterranean’s place on the global cruise map. It has been a well-known fact that in the recent past, the Carnival group has been pulling capacity out of this market in favor of other regions. This was due to factors mainly relating to revenue and earnings, but such short-term concerns have not undermined the longer-term importance of DESTINATION REPORT n MEDITERRANEAN MEDCRUISE GENERAL ASSEMBLY DEFINES MEDITERRANEAN’S PLACE On the occasion of the 51st MedCruise General Assembly, held in the French port city of Toulon, the association redefined the Mediterranean’s place in the context of today’s global cruise tourism. By Alan Lam the Mediterranean. “We as cruise lines would like to stay longer,” said Israel. “It makes sense for the market; it makes sense for the ports and it make sense for us. Our objective is to stay here, and we do have some plans to expand our business in the Mediterranean. No cruise line would want to leave the area they operated from. They do not want to leave their markets. And we always struggle on what to do with ships in the winter.” Defining the Med’s place In defining the Mediterranean’s place in the global cruise jigsaw puzzle, there is little doubt about its important position in the minds of the cruise lines. Israel urged MedCruise members to have a different and more global perspective on this, especially at a time when China and Asia seem to be making all the waves. “We should look at the absolute growth of the industry and understand the complexity of global deployment,” he pleaded. “We expand our global deployment in more than a dozen homeports worldwide. It is not just China. We are expanding everywhere. China represents less than 3% of Carnival’s capacity. This is a market that will take time to evolve.” Yet, owing to various issues including geopolitical concerns and terrorism, growth of cruise tourism in the Mediterranean has been limited. “There will be growth in the Mediterranean in 2017,” said Stavros Hatzakos , MedCruise’s Honorary President. “Not as much as we’d like, but there will be growth.” There is a great desire among cruise lines particularly to return to the Eastern Mediterranean, which has been virtually abandoned due to local conflicts. “Eastern Mediterranean was by far stronger than Western Mediterranean,” said Israel. “It is not a question of if, but when. Turkey has so much to offer. There is no question that we’d like to bring it back as quickly as possible.” This problem is not unique to Europe. “China also has geopolitical issues,” continued Israel. “We go to 500 ports around the world. We have issues everywhere, which we have to deal with. One day there is a tsunami somewhere and the next day there is a hurricane. In the Mediterranean, there will be some winners and some losers. We are looking at the situation every day. Geopolitical issues come and go. You just need a little patience, and I hope you will have that.” In defining the Mediterranean’s place on the global cruise map, it can be said that the biggest strength of this vast region is its unique attractions. “It is an area like no other,” said Israel. “Nowhere else has what the Mediterranean has.” Furthermore, the shifting kaleidoscope of the Mediterranean cruise business has helped steer innovation and port expansion within the region. From Istanbul to Madeira, there are a huge number of port development plans and projects underway. These are principally focused on improving services and hosting bigger ships. Several ports, such Huelva and Tenerife, are also vying to be among the first to develop LNG bunkering facilities. Ph oto cre dit : M ed Cr uis e, all oth er ph oto s by Te ijo Ni em elä 36-37-38-39 .indd 2 28.12.2017 8.50
Cruise Business Review 3/2017 37 ? Others, such as Taranto and Castellón, are struggling to make their voices heard, while formerly popular ports like La Goulette and Istanbul are swimming against the tide. Throughout the region, development and innovation continue unabated, and they have not gone unnoticed or unappreciated by cruise lines. “In Europe there are a lot of innovations,” said Miguel Reyna, Director, Commercial Development, Royal Caribbean Cruises Ltd. “Europe will keep growing and attracting cruise business. We would like to continue being a part of that.” Evolving issues Aside from defining the region’s place within the global cruise context, MedCruise’s main focus is clearly on promoting and growing cruise tourism, and its approach to accomplishing these goals is discernibly evolving. “We face some points of interest and some challenges,” said Airam Diaz , MedCruise President-elect, “Berthing policies, LNG infrastructure, and relationship with Asia source markets, for example. We are also facilitating aid from the EU to develop destinations in North African nations.” While MedCruise sees the need for cooperation and dialogue, external social and local political factors are key to its policy evolution. “We need to take some internal actions relating to situations in East Mediterranean, Black Sea and North Africa in order to maintain and increase traffic,” said Diaz. The incoming president sees an immense task ahead of him. Because of the impending Brexit, for example, the future of Europe’s relationship with its biggest bed-night source market is in a state of flux. “This is important to us,” said Diaz. “We must work toward an acceptable solution.” Meanwhile, the assembly took place in the shadow of protests across Europe against over-tourism, with cruise tourism becoming a high-visibility target. In popular destinations from Norway to the Adriatic, limits are being imposed on the number of tourists and ships allowed per day. This is now an urgent issue, which particularly affects MedCruise. “We are very sensitive about the relationship between the city and the port,” said Diaz. “One of the main issues we are facing is the municipality. We are very interested in the relationship between the port and the city that is affecting our business.” The association is quickly grasping the problem. “We need to work on further collaboration,” continued Diaz. “We have working groups to make this happen.” He called for closer cooperation with CLIA and cruise lines in developing a viable framework to contain these challenges. Yet another obstacle that MedCruise has been working on is the visa issue for Chinese visitors. Diaz argued passionately for simplification of the arduous process. The association’s voice has not gone unheeded. “Next year, 2018, will be the EU-China year,” said Tom Fecke, Secretary General, CLIA Europe. “There will be a lot of activities taking place aiming at inviting Chinese travelers to come to Europe. We are currently working together with the EU to simplify visa regulations. We need to make sure that we represent the industry from different angles – from both cruise lines’ and guests’ perspectives.” Best practices In the light of all these evolving challenges, together with competition from other regions for deployments and cruise line resources, it is natural that MedCruise wants to be perceived as an association that encourages its members to implement best practices, especially when the cruise business in the Mediterranean is now growing both in volume and sophistication. “One of the things we have been working on has been to develop working groups,” said Diaz, “which is one of the best initiatives created by MedCruise members. We now have an LNG working group, Asia and Chinese market working group and European market working group.” Best practice is best served by dialogue and cooperation. To facilitate port development and serve common interests, Diaz called for early access to shipbuilding plans and invited cruise lines to work together with MedCruise to tackle the Chinese source market. “We strongly believe that the way to get there is to work together,” said Diaz, addressing the cruise lines. “We value your expertise and you opinions.” Tailoring needs While MedCruise has been working hard on its agenda, the cruise lines have emphasized a tailored approach to meet the needs of each individual brand and its customers. These needs are vast and diverse. It is often difficult for a port of whatever size and capacity to meet these needs. Different brands with different sizes of ships and different cateThere are now more ports in Europe capable of handling bigger ships than you have in the Caribbean, which is now playing catch-up. – Giora Israel – Dubrovnik is one of the most popular ports in the Adriatic Sea 36-37-38-39 .indd 3 28.12.2017 8.50
38 Cruise Business Review 3/2017 ships safely and to manage our budget properly. We need to have partnership with people who know exactly what we want.” The basic service requirements are the same across the board, “but when you reach the luxury-end cruise lines, it becomes like the hotels,” explained Jérôme Giraud , Executive Director, Ports of Toulon Bay. “The service for a three-star hotel is not the same as that of a five-star hotel. We have to adapt to each individual cruise line’s requirements.” With that in mind, MedCruise members were urged to provide tailored and personalized services to different cruise lines and their passengers in accordance with their needs. to the President, Port Policy & Strategy, Compagnie du Ponant, “All cruise lines have one common objective: That is to make our passengers happy, to berth our We need to take some internal actions relating to situations in East Mediterranean, Black Sea and North Africa in order to maintain and increase traffic. – Airam Diaz – gories of clientele have different needs. Mediterranean ports must mirror the diversification and differentiation occurring among cruise lines and their customers, if they are to maintain their central position on the complex global cruise map. “We are a small company,” said Sander Groothuis, Director, Marine Operations , Windstar Cruises. “We have different requirements for different ports. We have a standard list of questions we send out to ports concerning draught, air draught, and waste [disposal], etc. We have different physical requirements. We ask to be separated from other ships, so we can offer a unique experience to our guests.” Added Marc Berberian , Special Advisor Barcelona Palma de Mallorca 36-37-38-39 .indd 4 28.12.2017 8.50
Cruise Business Review 3/2017 39 By AnneMarie Mathews V eteran cruise and hospitality executive Colin Murphy has joined London-based Global Ports Holding, PLC (GPH) as its new regional coordinator, Americas. Murphy is uniquely suited for this new role, which will allow GPH – the largest independent cruise port operator in the world – to expand its footprint to ports in the Caribbean and North America. Fresh off an IPO on the London Stock Exchange, GPH currently operates 14 ports in eight countries, primarily in Europe and one in Singapore. Murphy, who is based in South Florida, feels that the position is a perfect fit for him to leverage his experience, having spent the past 19 years at Norwegian Cruise Line Holdings Ltd. in a variety of roles including shore excursions, onboard revenue, land services and, most recently, as Senior Vice President of Destination Development. In that role, he negotiated port agreements and developed Harvest Caye, the line’s private island destination in Belize. Prior to that, he spent 10 years in the travel industry and several years in hospitality, including ownership of two restaurants in London. Leveraging skill set “Helping Global Ports to expand in the Americas is an excellent use of my unique skillset,” said Murphy. “I’ve negotiated agreements with many of the areas’ large ports, and I can leverage many of my existing relationships. I’m excited to help grow our portfolio in the Americas.” Murphy explained that GPH can assist ports – particularly those in the Caribbean that are challenged – by bringing needed investment to update infrastructure necessary to accommodate today’s larger cruise vessels, along with professional management expertise and global reach to help the destinations market themselves to a larger audience. “We also pride ourselves on our social responsibility and partner closely with the destinations to be a good corporate citizen of those countries,” he said. “We can help get the ports noticed, as we market our portfolio throughout the world.” He noted that the Lisbon Cruise Port is a great exINTERVIEW n PORT DEVELOPMENT VETERAN CRUISE EXEC JOINS GLOBAL PORTS HOLDING ample of the partnership GPH creates for destinations. “We just opened the new cruise terminal in Lisbon, and it is beautiful. The Prime Minister of Portugal was in attendance for the ribboncutting, and it has been very well-received. Our goal is to help them grow into a world-class facility that will attract more port calls and increase tourism.” The largest port that GPH operates is in Barcelona. “We operate five terminals there and provide all the services that the cruise lines need. We customize our services for each port and strive to be full service in a true public-private partnership,” Murphy said. He is eager to provide the same level of service to destinations in the Caribbean and North America. “We partner with the destinations to ensure that the ports are very well-managed with good infrastructure that is efficient, aesthetically appealing and provides an improved guest experience,” he added. Focus on the Caribbean Typically, a port is run by a local government authority that may or may not have the experience or capital to grow its business. “GPH partners with them and brings in professional management and investment where needed, so that the destination can attract more of the economic benefit that cruising brings.” His immediate focus is on the Caribbean. “We have quite a bit of interest from ports in the Caribbean, and I’ll be focusing my attention there the next few months, but we are also looking to expand in North America.” Murphy also has the support of GPH’s CEO Emre Sayin who said, “As we look to collaborate with local and national governments in the region regarding possible cruise port acquisitions and development, Colin is perfectly placed to assist in negotiations on the ground.” n Going local In an increasingly globalized world, there is a “go local” trend emerging among travelers. They want authentic local experiences, to sample local cuisine and be immersed in local culture. Cruise lines are obliged to deliver that, but they cannot achieve this without the help of local ports and destinations. More than anywhere else, because of its richness in culture and heritage, the Mediterranean is the ideal place to deliver this local experience. “The most powerful word in travel is ‘local’,” Bruce Krumrine , VicePresident, Shore Excursions, Princess Cruises-Holland America Line-Seabourn, told the assembly. “As the world gets bigger, we all look for experience that is more authentic and local. When we talk about growing the Mediterranean business here, I think our ability to grow is in our ability to engage with you because you are local experts.” There is no shortage of willingness on the part of the cruise lines to deliver local experiences. “We’d like to work with you and create a team of local experts,” said Mike Bush , Senior Manager, Brand Performance, Shore Excursions, Holland America Group, “so that we can provide our guests with more immersive, more cultural and more exclusively personalized experiences. This helps our business, because we can charge premium prices for these experiences.” Echoing this sentiment was Marcus Puttich , Head of Port & Ground Operations, TUI Cruises, who said, “We also depend on the destinations – the local museums and local suppliers – to deliver authentic experiences,” he added. In practice, “going local” is not as easy as it sounds, though. For starters, it requires coordinated approaches by several stakeholders including ports, local authorities, tour operators and other services providers. “When you speak to several partners, it is not easy,” said Andrea Fiori , Itinerary Planning Analyst, Costa Crociere. “Sometimes it is difficult for ports to share information with us. This information may be flowing easily within the organization, but it does not reach us.” From the ports’ perspective, the frustration was tangible. “We need to engage local authorities to deliver local experiences,” said Laura Cimaglia , VicePresident-elect of MedCruise. “But this is not easy, especially in Italy.” Another difficulty in delivering a local experience is in the supply chain. “I like ports that deliver global solutions for our needs,” said Javier Marin Martinon , Itinerary Planning, Full Charter and Chartered Flights Director, Pullmantur. “We would like to have local suppliers, but it is not possible because we operate globally. We need to deliver very big volumes to many destinations around the world.” In short, in a global business such as cruise tourism, “going local” is far from a straightforward affair. n 36-37-38-39 .indd 5 28.12.2017 8.50
40 Cruise Business Review 3/2017 T he Cruise Canada New England alliance represents more than 100 large, medium and small ports-of-call, as well as the region’s primary homeports, located in three U.S. states, five Canadian provinces and one French colony. It is led by an executive committee that encompasses five partners: NYCruise, Flynn Cruiseport Boston, Cruise Maine USA, Atlantic Canada Cruise Association (Cruise Atlantic Canada) and Cruise the Saint Lawrence. At the annual CCNE symposium in June, the alliance presented its 2017-26 strategic plan to 22 cruise line executives, CCNE attendees and members of the press. First, it stated that years of mutual cooperation have spawned strong results for the Canada/New England cruise region. “In 2016, 21 cruise lines made a total of 1,186 ship calls to CCNE member ports, bringing approximately 593,000 crew visits and 1.5 million cruise visitors to this unique, historic and picturesque region. The result was a combined passenger and crew spending of approximately $207 million and a total economic impact of approximately $620 million. These numbers reflect steady growth in cruise tourism within the region and point to additional future opportunity.” From that point, the alliance went on to outline its vision for the future: “By 2026, the Canada/New England region will be a premier, year-round cruise destination that welcomes dozens of international cruise lines, hundreds of cruise ship calls and more than one million cruise visitors [bed nights] each year. Known for its superior hospitality, unique activities, diverse destinations and authentic local experiences, Canada/ New England will be a four-season holiday destination for both first-time and repeat cruise visitors from around the world and will consistently rank among the world’s top cruise destinations for cruise visitor satisfaction.” Winter cruising Timothy Littley , Senior Director, Deployment & Itinerary Planning, Seabourn Cruise Line, was one of those attending the symposium. He told Cruise Business Review, “The Cruise Canada New England region has seen phenomenal growth in the past decade thanks to a clear vision and a group of motivated regional cruise organizations with passionate representation. The next step in this evolution is very ambitious. DESTINATION REPORT n NORTH AMERICA CCNE AIMS FOR YEAR-ROUND IN 2026 When it comes to the Cruise Canada New England (CCNE) alliance, the phrase “mighty oaks from little acorns grow” comes to mind. While aiming to reach maturity in 2026, this relatively youthful market has made great and successful strides to attract cruise calls and is now entering its teenage years. While the fall is the major season, the region is already expanding into summer with ambitions to go year-round. By Susan Parker Seabourn Quest departing Baie Comeau Ph oto cre dit : Re né M éth ot 40-41 headlines.indd 2 29.12.2017 9.07
tion tour in February 2018 to showcase to cruise line ex e c u t i v e s and the press what passengers would be able to experience. Despite what are likely to be cold temperatures, outdoor activities will abound. For example, there will be skating at Beaver Lake; snow-shoeing at Ile Saint-Quentin Park; attending the biggest winter carnival in the world, Carnaval de Quebec; and ice-fishing in Saguenay. There will be plenty of indoor opportunities, too, including a visit to the Hotel de Glace – the only ice hotel in North America – and discovering all there is to know about maple syrup at the Sugar Shack Chez Danny in Trois-Rivieres. Operationally, Trepanier explained, “We have talked to the experts – Transport Canada, pilots, etc. – and they say there are technical challenges, but it is feasible.” Certainly in Norway, Hurtigruten markets winter voyages and, in fact, the line will be visiting CStL for the first time in 2018 (although not in the winter). On the marketing side, there is a new CCNE logo on the table, a new website based on the CstL model is underway and a new map and 20-page port portfolio has been put together. All are aimed at making it easier for cruise lines to engage with the alliance and be able to have fewer points of contact. “It is hard for the cruise lines to comment in detail about the plan itself, but every time we talk about it they say it makes sense to be a group,” said Trepanier. In mid-November, 50 partners from the CCNE alliance gathered in Montreal for follow-up discussions on the strategy. “Out of six major axes, we discussed four. Also, the things we wanted to put in place in the short-term as well as defining working groups. CCNE results [as opposed to individual association results] will be released in January for the first time.” Common issues were also discussed, such as the North Atlantic right whale moving into the Gulf of Saint Lawrence. This year Charlottetown lost 14 calls and Gaspe 12 due to the slowspeed zone imposed, which “blocks entirely the entrance to the gulf,” to protect this endangered species. A navigation channel is being requested between Gaspe and Anticosti Island where the whales have been less frequently sighted. However, Trepanier told CBR that investment will be needed in order to have real-time calculation of data to ensure the whales are protected. Affecting both cargo and cruise ships, the hope is for this channel to be in place for summer 2018. n Expanding the operating season to that of a fullyf l e d g e d year-round cruise destination will present a unique challenge. The area where I expect we might see some growth in the near term will likely be the summer season, with more capacity arriving in the region prior to the traditional late-summer time period. Extending the season to encompass the winter months is a tougher proposition, with weather playing a significant part in the deployment equation. Initially, I anticipate winter cruising to be primarily the domain of smaller, expeditionoriented cruise lines.” Meanwhile, Bruce Krumrine , Vice President, Shore Excursions, Holland America Group, commented, “I was very pleased to participate in this year’s CCNE symposium. For many years Holland America has had an extended deployment in the CCNE region that spans both the summer and fall seasons. This has proven to be very successful for us. We continue to explore opportunities with our port and tourism partners to further expand our cruise season.” Best welcome To achieve its 10-year vision, the alliance will target audiences and markets including cruise lines, travel agents, media and consumers. Its primary markets will be the U.S., Canada and Europe/UK, followed by China and Australia as secondary markets. Strategic action areas are research and asset development, brand identity, m a r k e t i n g and communication, destination d e v e l o p ment, partnerships and funding. One strand of the strategy is to provide the best bienvenue/welcome which includes the aim of consistently scoring highly in passenger satisfaction ratings. As the symposium closed, Tony Boemi , Vice President, Growth and Development, Port of Montreal, and President, Cruise the Saint Lawrence (CStL), expressed how far the alliance has come in both understanding and providing what is needed to make the business a success. “We used to welcome ships. Now we welcome guests,” he said. This was borne out by a number of cruise line executives who commented on the genuine, personal, warm and consistent welcomes received in this part of the world. The key going forward is to maintain this level of excellence while increasing capacity, which will put pressure on the region to provide quality transport, guides and infrastructure. Said Littley, “With the continued industrywide growth and large number of newbuilds entering the market in the next five years, this is an opportune moment for the CCNE region. From my perspective, it will be interesting to observe how the region will execute its vision. Focal points for me are hospitality, destination diversity, customer satisfaction, cost effectiveness, infrastructure investment, innovation of the experience and the ability of cruise destinations to cater to both the mainstream and the boutique cruise customer,” he said. “In addition, how the region manages increasing port congestion as well as new regulatory events – such as broad, mandatory speed restrictions – will also come into play, since these factors will have an impact on the long-term viability of certain ports of call as cruise destinations. As mentioned previously, the CCNE region and the individual ports are well represented with strong leadership. Having the vision to create a regional 10year plan is, in my opinion, a great first step towards continued growth and innovation,” Littley concluded. In terms of infrastructure, investment throughout the region has been considerable. In a presentation, Bermello Ajamil & Partners estimated that C$656 million has been committed to port development in recent and coming years. This figure includes the following expenditures: New York ($103.8 million), Boston ($22.9 million), Maine ($94 million), Halifax ($10 million), Saint John ($40 million), Sydney ($20 million), Charlottetown ($32 million), Saint Lawrence ($156 million), Montreal ($78 million), Quebec ($89.5 million) and Saint Pierre & Miquelon ($10 million). First winter fam trip In November, CBR caught up with Rene Trepanier , Executive Director, Cruise the Saint Lawrence, to find out how the CCNE’s strategy is progressing. “Being a four-season destination is an exciting challenge,” he commented, adding that already, the region is seeing results in terms of more ships coming during the summer months instead of simply in the fall. “AIDA will be coming in the summer next year. Princess has just booked for the middle of summer 2019 and Disney in September 2018.” While acknowledging that the latter is not exactly in the summer, he pointed out that Disney’s impact could be considerable. “Since they are family-oriented, it sends out a message that this is a family-friendly place. Disney will help to sell the summer.” In terms of year-round cruising, CStL is hosting its first winter familiarizaCruise Business Review 3/2017 41 Tony Boemi Bruce Krumrine Rene Trepanier 40-41 headlines.indd 3 29.12.2017 9.07
40 Cruise Business Review 3/2017 MKN Maschinenfabrik Kurt Neubauer GmbH & Co. KG Phone: +49 (0) 53 31 89-207 km@mkn.de | www.mkn.eu MKN Galley Solutions TOP QUALITY ON BOARD Enjoy Cooking with FlexiChef and FlexiCombi. N ick Wilkinson , General Manager, Northern Europe, Middle East & Africa; and Christian Boll , Managing Director, Europe, Middle East & Africa; had both gathered in London to discuss Norwegian Cruise Line’s new direction with representatives of the travel trade and the media. The driving force behind the move, they said, was that Norwegian was not a British, German or French brand, but an international (read: American) one. For this reason, it would have to differentiate its offering from the competition, which in the case of Britain and Germany includes strong contemporary market brands that essentially cater to these markets alone. Boll said that the time to do this had come, now that the company’s hardware was up to the job. At the time of the presentation in April, the line had 14 ships in service with three more Breakaway Plusclass vessels on order through 2019 (the China-bound ms Norwegian Joy had not yet been delivered). Further on the horiCOMPANY UPDATE n INTERNATIONAL MARKETS NORWEGIAN GOES ‘PREMIUM-CONTEMPORARY’ IN EUROPE NORWEGIAN GOES ‘PREMIUM-CONTEMPORARY’ IN EUROPE Norwegian Cruise Line, the contemporary market unit in the Norwegian Cruise Line Holdings, has completed the repositioning of the company in Europe by launching its Premium All-Inclusive pricing in the UK and Scandinavia in April, some 18 months after it was introduced in Germany and France. Behind the move are major changes in consumer behavior, which the company said it is now equipped to meet in terms of hardware. By Kari Reinikainen zon were four next-generation 140,000 gross ton vessels scheduled for delivery between 2022 and 2025, with options for two more. In addition, the $400 million Norwegian Edge program to upgrade existing vessels was in full swing. The ms Norwegian Jade – built in 2006 – had been refurbished prior to its entry into service on cruises from Southampton and Hamburg in the summer of this year. Adding value to the fare The essence of Premium All-Inclusive is to include several services and items in the cruise fare that had previously been charged extra for. These include spirits and beers, wine by the glass and alcohol-free drinks; selected coffees during meal times; one bottle of water per person, per day; all tips and service charges. Guests in the upscale Haven accommodations and in suites receive 250 minutes of free WiFi per suite, free dining in specialty restaurants onboard, plus up to $100 per suite in onboard spending money. Put together, these have a value of up to £1,200. These changes will position Norwegian in the “premium-contemporary” market segment, the officials said, adding that this approach had been well received on the Continent, which is why management decided to introduce it in the UK and Scandinavia as well. Since April, it has applied to bookings made in these countries for all Norwegian’s sailings, not just to the European-based vessels. Many other cruise lines offer packages that cover drinks and other items, but these are promotions that can be purchased at an additional charge. Norwegian’s move is a product innovation because passengers need not pay any more to receive the benefits of the all-inclusive pricing. Capturing millennials In the UK, the average age of cruise passengers was 53 in 2016. In other words, the business remains heavily focused on baby boomers – those born between 1945 and 1965. Norwegian officials pointed out that capturing the influential millennial generation as customers is a key challenge not just for the company, but the entire cruise industry. To this end, senior management of Norwegian in Europe has studied developments and trends affecting the vacation market and come to the conclusion that the company needs to respond to a rapidly changing world. Its own research has divided its customers into three groups: Ph oto cre dit : No rw eg ian Cr uis e Li ne 42-43.indd 2 3.1.2018 11.52
MKN Maschinenfabrik Kurt Neubauer GmbH & Co. KG Phone: +49 (0) 53 31 89-207 km@mkn.de | www.mkn.eu MKN Galley Solutions TOP QUALITY ON BOARD Enjoy Cooking with FlexiChef and FlexiCombi. 1) The first group is night owls, who enjoy nightlife and want to meet new people on their holidays. They want to be at the center of the activities they are engaged in. They like shipboard entertainment from music to shows and are keen to explore cities. 2) The second group is active holiday makers, who seek as much action as they can find. They love nature and trying new activities. They emphasize healthy eating, and are drawn to destinations such as Alaska and Australia. 3) The third group is relaxed types, who appreciate peace and calm. They like to participate in wellness activities onboard the ship, including treatments in the spa. They like the sun and beaches during the day, while in the evening they are fond of dining in various restaurants onboard to experience different cuisines ranging from French to Brazilian and Japanese. Norwegian’s executives said they believe the company can meet the expectations of all three groups with its rapidly growing fleet of modern purpose-built megaships. These vessels have been designed with the needs of all passengers in mind, representing every demographic and all the world’s most important source markets. n Selected Norwegian Bliss public rooms clockwise from top left: Social Blue Room; The Cellars Wine Bar; Ocean Blue Restaurant; La Cucina Waterfront. Norwegian Bliss will enter service in spring 2018 42-43.indd 3 3.1.2018 11.52
44 Cruise Business Review 3/2017 Arctic Shipping Forum 2018 in Helsinki, Finland, 17 20 April 2018 SMM 2018 in Hamburg, Germany, 4 7 September 2018 Meet us at: Cruise our training possibilities >> aboamare.fi We have Cruise Ship Training Know-how aboamare.fi IGF Code, Basic and Advanced training Polar Code, Basic and Advanced training ...and other customized training with state-of-the-art simulators T he global orderbook for newbuildings of all types hit an all-time high of some 11,000 vessels at the outbreak of the financial crisis of 2007 – 2008. Since then, orders for new tonnage have plunged, which has resulted in a deep crisis in the shipbuilding industry as a whole; however, passenger shipping in the form of cruise ships and ferries has been an exception to that rule. One of the results of the recent expansion of the global shipping industry has been a projected shortfall of officers in the years to come. BIMCO – the Copenhagen-based shipping organization best known for its work on standard contracts in shipping – and the International Chamber of Shipping (ICS) in London said in their Manpower Report for 2016 that a shortfall in officers that currently stood at 16,500 is likely to reach a staggering figure of 147,500 in 2025. On the other hand, there was a 119,000 person or 15.8% surplus in ratings last year, as the demand had only increased by 1% since 2010. SHORTAGE LOOMS FOR POLAR CODE OFFICERS The rapid expansion of the cruise industry as a whole means that there will be a strong demand for officers, while in the expedition cruise segment, the forthcoming commencement of newbuilding deliveries means that owners and managers of these ships will have to hunt for officers compliant with the International Maritime Organization’s Polar Code. By Kari Reinikainen “The global supply of officers is forecast to increase steadily, but this is predicted to be outpaced by increasing demand. Some officer categories are in especially short supply, including engineer officers at management level and officers needed for specialized ships such as chemical, LNG and LPG carriers,” the two organizations said in a joint statement made on May 17 of last year. Competition from megayachts Meanwhile, Mark Charman , CEO of Faststream in the UK, which provides crew to the cruise industry, said there is a growing need and an increasing struggle to find deck officers with expedition cruise experience. However, for engineering officers, specific expedition vessel experience is rarely required. “As demand continues to increase, it is currently looking likely that there may not be enough experienced deck officers to satisfy demand in the coming years,” he told Cruise Business Review. “The areas where we are already seeing demand is in ice navigation – where specific experience and qualifications will highlight a candidate’s desirability in the market. Candidates with ice class [experience] are, excuse the pun, hot.” Competition for such candidates continues to come from the superyacht sector, where demand for these skill sets is equally strong. “We are now seeing expedition/ice-class super yachts pulling people from cruise,” he pointed out. “Lots of the candidates with ice class come from the Nordic and former Soviet Union region and many moved from the offshore vessel sector into cruise. When the offshore sector picks up, these people will move back for shorter rotations and more pay. This will put the cruise sector under pressure for people,” he concluded. Sunstone seeks clarification Chris Dlugokecki , Vice President of Quality at Cruise Management International (CMI) in Miami, which provides third-party technical ship management services primarily to vessels owned by an investment group represented by SunStone Ships, Inc., said the Bahamas Maritime Authority (BMA) should clarify certain aspects of training requirements. (All ships owned by Sunstone Ships and operated by Cruise Management International are registered with the Bahamas Maritime Authority.) The International Convention on Standards of Training, Certification and HUMAN RESOURCES n EXPEDITION CRUISES SunStone Ships is one of the several companies currently building new tonnage for the expedition cruising. Its first new build will be chartered to Aurora Expeditions 44-46ndd.indd 2 4.1.2018 9.25
Arctic Shipping Forum 2018 in Helsinki, Finland, 17 20 April 2018 SMM 2018 in Hamburg, Germany, 4 7 September 2018 Meet us at: Cruise our training possibilities >> aboamare.fi We have Cruise Ship Training Know-how aboamare.fi IGF Code, Basic and Advanced training Polar Code, Basic and Advanced training ...and other customized training with state-of-the-art simulators Watchkeeping for Seafarers (STCW), 1978, Section A-V/4, sets the details of what should be trained. He said, “Currently, BMA information Bulletins on the applicability of STCW training requirements for vessels operating in Polar Waters is addressed in BMA IB 115 Section 7.10 – Vessels operating in Polar Waters. This states: ‘The Company should ensure that prior to being assigned shipboard duties, the Master and Officers specified on the Safe Manning Document are duly trained and have the relevant experience relating to operation in polar waters.’ Notice no mention of STCW-required training,” Dlugokecki pointed out. “We expect BMA to take a firmer position on what exactly they will require from a training requirement standpoint in the near future. But for the time being, currently all of our senior shipboard officers are trained and have relevant experience relating to operation in polar waters, and therefore would meet the BMA requirements for training,” Dlugokecki noted. “Recently [November 2016],” he continued, “STCW was amended with a new regulation V/4 on mandatory minimum requirements for the training and qualifications of masters and deck officers on ships operating in polar waters. In general, STCW required actual training courses to meet the Polar Code requirements are still under development. The training would be available thru thirdparty maritime training centers. The details behind this are that recently, the IMO adopted resolution MSC.416(97), which amended STCW, 1978, along with resolution MSC.417(97), which amended Part A of the STCW Code,” he explained, referring to the Maritime Safety Committee of the London-based International Maritime Organization (IMO). The amendments take effect on July 1, 2018, not January 1, 2017, which was the Polar Code entry into force date for existing ships. “The idea being that the additional 18 months gives maritime training centers the time needed to recruit qualified instructors and prepare courses for approval,” Dlugokecki said. After completing an approved basic course and providing proof of meeting the standard of competence specified in section A-V/4 of STCW, a basic Polar Waters Certificate of Proficiency would be issued to deck officers. Dlugokecki called attention to the fact that “no sea service is required to obtain the Basic Certificate of Proficiency. To obtain the Advanced Polar Waters Certificate of Proficiency, the officer must have previously met the requirements for certification in basic training in polar waters, then have obtained at least two months approved seagoing service in the deck department at management level or while watchkeeping in an operational level within polar waters or approved equivalent seagoing service, and have completed approved advanced training and met the standards of competence specified in section A-V/4 of STCW. In line with STCW 1/11 requirements for other certificates of proficiency, both of these certificates will require revalidation every five years,” he added. CMI itself has produced a Polar Operations Manual for guidance and an outline for STCW requirements concerning training for operations in polar areas for crew. “Currently, we do not have any formal training courses developed internally to deliver to our crew regarding the training requirements, but we do have an extensive Polar Waters Operations and Cold Water Survival library, which we use as guidance documentation to meet most of the basic knowledge on the subjects given in our Polar Operations Manual,” Dlugokecki concluded. Years of experience needed Ben Lyons , CEO of EYOS E x p e d i t i o n s in the U.S., expects a shortage of experienced officers to emerge as the expedition cr uise industr y expands. He said ? Ben Lyons 44-46ndd.indd 3 4.1.2018 9.25
46 Cruise Business Review 3/2017 that for expedition ships in particular, the skill and experience of the captain and officers are particularly critical to the success and safety of the expedition. “Operating in areas without ice and that are poorly charted adds additional layers of risk, and captains are often essentially acting as local pilots in these areas in addition to their normal duties,” Lyons said. “Just like a typical harbor pilot needs years of experience, so too do expedition captains and officers need years of experience. As the number of ships grows in the polar regions in particular, I think there will inevitably be a gap in experienced officers. Of course, one benefit of the numerous new ships is that there will eventually be a greater pool of polar-trained officers, but in the short term as the first ships start reaching the polar regions, experience will be in short supply.” When interviewed by Cruise Business two years ago, Lyons predicted that various national bodies would likely have different interpretations of the Polar Code, and indeed they have: “I can say that I have seen different flag states interpret and enforce the Polar Code differently already, and I do believe some work will still remain to be done over the coming year or two as everyone gains more experience with the Code,” Lyons concluded. Polar Code training growth market for maritime academies There has been an increase in the number of officers who attend training to get the qualifications required by the Polar Code. As deliveries of expedition cruise vessel newbuildings is rising continuously, this trend is expected to continue in 2018 according to Manager of Marketing and Sales, LeifChristian Östergård and Polar Code Lead Instructor Ahti Hyppönen at Aboa Mare, Maritime Academy and Training Center in Finland. Located in Turku, on the south west coast of the country where the Finnish Maritime Cluster is well represented, Aboa Mare is keen to develop its offering in the Polar Code training. Maritime Training Centers are able to tailor-make the basic and advanced Polar Code courses in order to increase the value for the officers attending the courses. The Polar Code addresses ship design, construction and equipment, operational and training concerns, search and rescue and the protection of the unique environment of the polar regions (imo. org). Crew training will be mandatory under STCW as of 1st July 2018 for all captains and officers sailing in Arctic and Antarctic waters, depending on the ice conditions in the operating area. Aboa Mare has added simulator training to the Polar Code basic and advanced courses. “Our instructors have experience from operating ships in ice conditions, so they are well qualified to train participants for the areas and criteria set by the Polar Code,” Hyppönen told Cruise Business Review. Aboa Mare is e.g. providing tailor made Polar Code courses for Maersk Line’s deck officers and captains, taking into account the Baltic Feeder newbuildings delivered during 2017. Maersk Line is a major container shipping company, with headquarters in Denmark. Finland is currently the chairman of the Arctic Council. The Arctic Council is the leading intergovernmental forum promoting cooperation, coordination and interaction among the Arctic States, Arctic indigenous communities and other Arctic inhabitants on common Arctic issues, in particular on issues of sustainable development and environmental protection in the Arctic (http://www. arctic-council.org). It is important for Aboa Mare to follow the development and legislation for the region, Östergård continues. Aboa Mare is also well represented on conferences and meetings not part of the arctic council, like the Arctic Forum Helsinki conference coming up at the end of April 2018. The purpose of participating in Arctic Conferences, is to find out what topics are discussed in this field at the moment, to broaden our network and to get new reflections and ideas that can be incorporated in our Polar Code courses and training. “We listen to the discussions with an aim to get fresh ideas for how to develop the training further,” according to Hyppönen. “It’s also important for us to deliver high quality training to the customer and to contribute to a safer and greener shipping, especially in the Polar regions,” he summed up. n Just before Christmas, Ponant and Vard announced an order for an industry-first – a luxury electric hybrid icebreaker ship, which is scheduled for delivery in 2021 44-46ndd.indd 4 4.1.2018 9.25
Cruise Business Review 3/2017 47 K ey to Adventure Canada’s success has been the 137-meter ms Ocean Endeavour, which it charters from SunStone Ships, Inc. each summer in order to operate voyages through the St. Lawrence River, Newfoundland, Greenland and Canada’s high Arctic. Quark Expeditions, in turn, charters the Ocean Endeavour for the winter months to operate that company’s voyages to Antarctica. Built in 1982 as the ms Konstantin Simonov, the Ocean Endeavour is one of eight Dmitriy Shostakovich-class ropax ferries built in Poland during the 1980’s. She was converted into a cruise ship and has served for a number of operators, including defunct Kristina Cruises as the ms Kristina Katarina from 2010 to 2014. Now, in partnership with SunStone, the Ocean Endeavour has found a new home each summer with Adventure Canada. The Ocean Endeavour’s Baltic pedigree serves her well in Arctic Canada. Outfitted with a 1B Ice Class hull and 20 motorized Zodiac rafts, there are few places to which she cannot travel. Carrying 198 guests, her rugged exterior is that of a true working vessel. Inside, however, are creature comforts well suited to expedition cruising. Two spacious lounges allow for multiple lectures and presentations to be given at any one time, while a small library is stocked with books and relevant materials for guests to enjoy. All the way forward, the ship’s main restaurant features 180degree views, and nearly all passenger cabins feature picture windows. Refit in 2015 In 2015, she was refitted for 34 days at the Blohm+Voss shipyard in Hamburg, COMPANY PROFILE n EXPEDITION MARKET Ocean Endeavor ADVENTURE CANADA’S RUGGED EXPLORER Expedition cruising is tough business – particularly when you’re Adventure Canada. The Toronto, Ontario-based company celebrated 30 years in business in 2017, just in time for Canada’s 150th anniversary. By Aaron Saunders where the Ocean Endeavour was given a full technical overhaul. The multi-million-dollar refit included rudder repairs, exchange of bearings and shaft withdrawal, re-machined rudder cone, new propeller hubs and sliding shoes, and the overhaul and repair of the ship’s stabilizers, thrusters, sea valves and sonar. Adventure Canada’s expedition cruises aboard the Ocean Endeavour begin in June, when she is deployed on voyages through the St. Lawrence River. These itineraries run between Quebec City, Quebec; and St. Pierre and Miquelon – a French overseas territory located off the coast of Newfoundland. Adventure Canada also offers itineraries that circumnavigate Newfoundland and ones that explore the lesser-known Sable Island roundtrip from St. John’s. Sailings to the high Arctic The real bread and butter of Adventure Canada’s summer program, though, are the company’s sailings to the Canadian high Arctic. Traversing between Canada and Greenland, these multi-week itineraries offer the flexibility to operate Adventure Canada’s full expedition product, which includes Zodiac tours, overland hikes and visits to remote communities. Numerous landing sites are possible within this region, though Adventure Canada notes that ice conditions might (and typically will) result in deviations from the published itinerary. The line encourages its guests to be flexible and to look upon their voyage as an adventure. The highlight of the Ocean Endeavour’s 2017 season was the 17day “Out of the Northwest Passage” itinerary, sailing from remote Kugluktuk (formerly Coppermine) in the Canadian territory of Nunavut to Kangerlussuaq, Greenland. In addition to transiting the Canadian Northwest Passage, Adventure Canada arranged for its guests to experience a real “first”: In conjunction with Parks Canada, passengers were able to view the wreck of the HMS Erebus by remotely operated vehicle (ROV) or by snorkeling in a dry-suit 30 meters above the wreck. Together with the HMS Terror, the HMS Erebus was part of Sir John Franklin’s doomed 1845 expedition to find the fabled Northwest Passage. It wasn’t until September 2014 that the wreckage was discovered by Parks Canada researchers. Canada has always been a rugged country, and SunStone’s equally tough Ocean Endeavour has proved she’s more than up to any task Adventure Canada can throw at her. n 47.indd 3 4.1.2018 9.27
48 Cruise Business Review 3/2017 Ph oto cre dit : Te ijo Ni em elä W ith a massive orderbook currently comprising eight more newbuilds scheduled for delivery between 2018 and 2026, MSC Cruises’ decision to name the ms MSC Seaside in Miami marked a renewed emphasis on the company’s push into the North American market. While MSC Cruises is a leader in Europe, South America and South Africa, it is still a rather unknown brand in North America. For a few years now, MSC Cruises has been operating year-round from PortMiami with its 139,400 gross ton ms MSC Divina, but the introduction of its newest vessel with a high-profile naming ceremony just before Christmas gave the company a big boost. The 153,516 gross ton and 5,179-passenger (maximum capacity) MSC Seaside was the second new vessel to have entered service for MSC during 2017, the other being the slightly SHIP REVIEW n CARIBBEAN MSC SEASIDE MAKES MIAMI DEBUT The MSC Seaside, the last new cruise ship delivered during 2017, marked many firsts for MSC Cruises: It’s the first cruise ship ever built by Fincantieri for the Geneva-based company, whose other vessels have all been constructed in St. Nazaire, France. It’s also the largest cruise ship ever built in Italy and the first-ever MSC Cruises vessel to be named in the U.S. By Teijo Niemelä ? MSC Seaside has a very distinctive exterior profile. Sister ship MSC Seaview will join the fleet in 2018 Ph oto cre dit : M SC Cr uis es The four-deck Atrium is the social hub of the ship 48-53.indd 2 9.1.2018 13.54
Cruise Business Review 3/2017 27 48-53.indd 3 9.1.2018 13.54
50 Cruise Business Review 3/2017 ? FULL CRUISE CONTROL WITH Sika?oor® Marine SOLUTIONS High-performance systems for acoustic ?ooring, primary deck covering, visco-elastic damping and A-60 ?re rated ?oating ?oors. SIKA SERVICES AG Tue enwies 16 · CH-8048 Zurich · Switzerland Phone +41 58 436 40 40 · Fax +41 58 436 55 30 www.sika.com/marine larger 171,598 gross ton ms MSC Meraviglia, which was delivered in the spring. While the MSC Meraviglia is designed for year-round cruising in Europe, the MSC Seaside is completely different and best suited for warm-weather destinations. A main focus of the ship is a concept first designed by Fincantieri’s Maurizio Cergol to offer a greater amount of outdoor space. This is found not only on the uppermost decks, but also on the Waterfront Boardwalk that almost completely encircles the ship on Deck 8. The ship’s interiors are designed by Studio de Jorio together with Tillberg Design of Sweden. ‘Condominium’ ship At the aft end of the ship, Deck 8 is connected to Deck 7, where an adults-only pool area is located. In an industry-first, two glass-enclosed elevators facing the stern connect Decks 7 through 16. At the top, Deck 16 features a unique glassfloored catwalk called the “Bridge of Sighs” at a height of 131 feet. This aft design actually makes the ship’s profile look very distinctive, and MSC Cruises has taken to referring to the Seaside as the “condominium ship,” inspired by similar land-based structures on Miami Beach. One of MSC Cruises’ mainstays is its shiny atriums with Swarovski staircases. On the MSC Seaside, this sparkling atrium is the social hub of the vessel. Appointed with several bars, this is an area where most passengers come to enjoy predinner drinks or after-dinner espressos. Two big LED screens provide a constant change of colors when there is no other entertainment. Large windows, meanwhile, offer great views to the outside – a departure from the design found aboard previous MSC vessels, whose atriums were much more enclosed without outside views. North American market in mind Cruise Business Review was among the first revenue passengers to embark the vessel for the first leg of its inaugural cruise from Italy’s Trieste to Barcelona, although many guests opted to sail all the way across the Atlantic to PortMiami. Already on day one, the ship was working rather well, although some hiccups were experienced by other passengers. But from my own point of view, this was one of the smoothest ship launches Ph oto cre dit : Te ijo Ni em elä MSC Aurea Spa and Fitness Area is large and offer also outdoor spaces Garage Disco Glass bridge in the ship's casino 48-53.indd 4 9.1.2018 13.54
FULL CRUISE CONTROL WITH Sika? oor® Marine SOLUTIONS High-performance systems for acoustic ? ooring, primary deck covering, visco-elastic damping and A-60 ? re rated ? oating ? oors. SIKA SERVICES AG Tue enwies 16 · CH-8048 Zurich · Switzerland Phone +41 58 436 40 40 · Fax +41 58 436 55 30 www.sika.com/marine Sovereign of the Seas, Seaward, Seabourn Pride, Star Princess, Seabourn Spirit, Club Med I, Fantasy, Westerdam, Nordic Empress, Crown Princess, Horizon, Silja Serenade, Ecstasy, Regal Princess, Monarch of the Seas, Hanseatic, Silja Symphony, Majesty of the Seas, Dreamward, Zenith, Royal Viking Queen, Club Med II, Crown Jewel, Gruziya, Costa Allegra, Barfleur, Normandie, Windward, Crown Dynasty, Costa Romantica, Kazakhstan II, American Adventure, Kong Harald, Richard With, Nordlys, Oriana, Legend of the Seas, Century, Splendour of the Seas, Sun Princess, Carnival Destiny, Galaxy, Costa Victoria, Grandeur of the Seas, Nordkapp, Rhapsody of the Seas, Dawn Princess, Mercury, Enchantment of the Seas, Nordnorge, Vision of the Seas, Grand Princess, Sea Princess, R One, R Two, Voyager of the Seas, R Three, R Four, R Five, R Six, R Seven, R Eight, Norwegian Sky, Seven Seas Navigator, Explorer of the Seas, Aurora, Costa Atlantica, Millenium, Infinity, Adventurer of the Seas, Carnival Spirit, Radiance of the Seas, Norwegian Sun, Summit, Brilliance of the Seas, Constellation, Coral Princess, Navigator of the Seas, Island Princess, Crystal Serenity, Mariner of the Seas, Serenade of the Seas, Carnival Miracle, Jewel of the Seas, PontAven, Caribbean Princess, Carnival Valor, Pride of America, Norwegian Jewel, Carnival Liberty, Pride of Hawaii, Freedom of the Seas, Crown Princess, MSC Musica, Norwegian Pearl, Liberty of the Seas, Emerald Princess, MSC Orchestra, Norwegian Gem, Ventura, MSC Poesia, Independence of the Seas, Ruby Princess, MSC Fantasia, Celebrity Solstice, MSC Splendida, Oasis of the Seas, Celebrity Equinox, MSC Magnifica, Carnival Dream, Silver Spirit, Azura, Celebrity Eclipse, Le Boreal, Norwegian Epic, Queen Elizabeth, Allure of the Seas, L’Austal, Disney Dream, Carnival Magic, Celebrity Silhouette, Disney Fantasy, Carnival Breeze, MSC Divina, Celebrity Reflection, MSC Preziosa, Royal Princess, Mein Schiff 3, Regal Princess, Quantum of the Seas, Mein Schiff 4, Britannia, Anthem of the Seas, Carnival Vista, Ovation of the Seas, Harmony of the Seas, Mein Schiff 5, Silver Muse, Seabourn Encore, Majestic Princess, MSC Meraviglia, MSC Seaside, Symphony of the Seas, MSC Seaview, Seabourn Ovation, Mein Schiff 1, Aida Helios, Celebrity Edge, Mein Schiff 2, Costa Asia 48-53.indd 5 9.1.2018 13.54
52 Cruise Business Review 3/2017 that I have experienced during the last few years. As the ship is based year-round in the North American market, MSC needed to find a large number of crew members with fluent English-speaking skills. Since the introduction of the MSC Divina, the company has started to source more crew members from the Philippines, India and South Africa, which all have MSC training schools, and many of the Seaside’s crew had experience working on the Divina before. Another focus for recruiting has been Colombia and Mexico for sourcing Spanish-speaking crew members. The ship’s alternate dining outlets were also designed for the North American market. MSC Cruises partnered with Roy Yamaguchi , which created three different concepts on Deck 16: the Asian Market Kitchen, a sushi bar and teppanyaki with four hibachi grills. These eateries are found in the same deck area as two other specialty restaurants, namely Butcher’s Cut steakhouse and Ocean Cut seafood restaurant. These are all just a few steps away from the Yacht Club, the MSC Seaside’s “ship-within-a-ship” enclave. In addition, this specialty restaurant area shares the same deck with the family buffet, Biscayne Bay Buffet & Pizzeria. There is also a second buffet restaurant called Marketplace on Deck 8 that is connected to the Waterfront Boardwalk. Curiously, though, access between the two was normally closed, with entry possible only through the forward staircase. Yet another new dining venue is Bistrot La Boheme, located on Deck 8 and partly surrounding the atrium. This serves breakfast, lunch and dinner with a la carte pricing; specialties range from cheese and charcuterie to escargots and foie gras to ribeye steak and fries. Still another MSC Cruises specialty is the Venchi Cioccogelateria & Coffee Bar, where the chocolate brand of the same name creates chocolate delights. The backdrop of a chocolate waterfall is a popular place for taking selfies, and its aroma cannot be missed. Meanwhile, the ship's two main dining rooms, Seashore and Ipanema, are located on Decks 5 and 6, and provide breakfast, lunch and dinner in traditional seatings. Recreational areas One of the major differences in the ship’s layout compared to most of the ships in the MSC fleet is the relocation of the spa and fitness area on Deck 8. This resulted in the opportunity to create additional outdoor areas on the adjacent Waterfront Boardwalk with Jacuzzis and cabanas accessible only to MSC Aurea Spa customers for an extra fee. While the adults can enjoy a private pool area for guests 18 years and older at the aft of Deck 7, youngsters have their own open-air Forest Adventure Park on Deck 18. This is connected to the ship’s glass-enclosed Jungle Pool area, which also houses a bar, palm trees and recreational games such as Ping-Pong. For other amusement, the MSC Seaside features many additional exhilarating activities. These include an F1 racing simulator, full-size bowling alley and billiard table. And in a new twist for MSC Cruises, there are two ziplines aboard the ship, which are the longest in the industry. n Ph oto cre dit : Te ijo Ni em elä Ph oto cre dit : Te ijo Ni em elä Asian Market Kitchen Sun deck South Beach Pool on Deck 7 is an adults-only area 48-53.indd 6 9.1.2018 13.54
• IEC MARINE AND OFFSHORE CABLES • NEK 606 OFFSHORE CABLES • FLEXIBLE CABLES • INDUSTRIAL CABLES • OPTICAL FIBRE CABLES Helkama Bica Oy, Lakimiehenkatu 4, 20780 Kaarina tel. +358 2 410 8700, sales@helkamabica.? We provide the perfect connection for your business. Connect with us at helkamabica.com TO THE SMALLEST DETAIL TO THE SMALLEST TO THE SMALLEST PERFECTION FROM THE BIGGEST PROJECT By AnneMarie Mathews “F” s tands for fantastic at PortMiami with the opening on December 7, 2017 of the new Terminal F which will serve as the homeport for MSC Seaside, MSC Cruises’ revolutionary new flagship arriving December 21, as well as MSC Divina, currently sailing from Miami. Under construction since November 2016, Terminal F’s opening was celebrated by local officials and MSC Cruises’ executives and heralded as a true partnership. “The completion of Terminal F is the culmination of a strong, longstanding partnership with PortMiami and a testament to our commitment to the region and our positive outlook for the future,” said Rick Sasso, Chairman of MSC Cruises USA. According to PortMiami Director Juan Kuryla, the new terminal was needed to accommodate the year-round homeporting of the larger MSC Seaside which will carry more than 5,800 passengers each week. “Terminal F was originally built in April 2000 for Royal Caribbean’s Voyager class,” said Kuryla. “We invested $45 million on improvements, including a new entrance, a 40,000-square foot addition and new boarding bridges, among many other things.” Kuryla explained that the guest experience begins as soon as guests enter the Port and once they get to the terminal, they should start to get more of the feeling of the ship. “MSC is bringing a beautiful ship to PortMiami with a South Beach vibe and we want to replicate the feeling their guests will get onboard once they are in the terminal,” he said. “We also want to make the process as smooth and efficient as possible.” The new terminal includes a new two-story, nearly 40,000-square foot addition; expanded, comfortable and elegant waiting area with seating for up to 1,500 guests; a circular checkin area with 60 new ticket counter positions; an improved, large VIP waiting area; a dedicated 3,0000-square foot group lounge; a smother disembarkation process with a more flexible and efficient baggage claim area; as well as facility enhancements for embarkation, including some of the smart ship technology available on MSC Seaside. n PortMiami and MSC Cruises Collaborate on New Terminal Cruise Business Review 3/2017 53 Celebrating the new F Terminal from left: Juan Kuryla, PPM Director & CEO PortMiami; Rick Sasso, Chairman, MSC Cruises USA; Miami Mayor Carlos Gimenez; Commissioner Rebeca Sosa; Roberto Fusaro President of MSC Cruises 48-53.indd 7 9.1.2018 13.54
54 Cruise Business Review 3/2017 By Teijo Niemelä T he 51,044 gross ton ms Crystal Symphony, one of the most awarded cruise ships in the ultra-luxury segment, emerged from a month-long refurbishment at the Lloyd Werft shipyard in Bremerhaven in October 2017. Built in 1995, the ship was originally designed to carry 960 guests double-occupancy. But Crystal Cruises did something that cruise lines usually don’t do during refits: The ship’s capacity was reduced to 848 guests, thus providing more space per passenger and more spacious accommodations, while the number of crew members remained unchanged. Among the most significant changes undertaken was on Seabreeze Deck 9, where every three of the existing cabins were converted into two larger suites, which resulted in 28 Seabreeze Penthouses and 12 Seabreeze Penthouse Suites. The new accommodations boast the same square footage as the ship’s existing Penthouses and Penthouse Suites (367 square feet and 491 square feet, respectively), while the Seabreeze Penthouses are paired by shared entryways recessed from the corridor. With a new guest capacity of 848, the vessel’s guest-to-space ratio increased to 60.2 and the total suite capacity increased to 63%. The line’s 2003-built ms Crystal Serenity is scheduled for a similar makeover in October/November 2018, after which its guest-to-space ratio will reach a whopping 70.3. New open dining concept, new restaurants Along with the refurbishment, the Crystal Symphony returned to service with an open-seating dining conREFURBISHMENTS CRYSTAL SYMPHONY GETS IMPROVED SPACE RATIO, DINING CHOICES cept. The former Crystal Dining Room emerged as Waterside, reflecting the chic decor and ambiance found in restaurants of the same name aboard the vessels of Crystal River Cruises. Tables for two and four were added, while the previous format of assigned seating and times was eliminated. Two new eateries were added to the space formerly occupied by the ship’s Lido Cafe: Marketplace by day and Churrascaria by night. Both venues feature an open-kitchen concept with dishes made to order. Marketplace continues to serve casual, buffet-style breakfast and lunch options, but is converted into a Brazilian-style Churrascaria in the evening. Adjacent to the existing Trident Grill on the Lido Deck is the new Silk Kitchen & Bar, offering full-service dinners. The menu of modern Chineseinspired fare is served family style, with dishes ideal for sharing. Meanwhile, Silk Road and The Sushi Bar, the specialty dining venues by Master Chef Nobu Matsuhisa , were rebranded as Umi Uma and Sushi Bar. The completion of the dry dock also brought unlimited, complimentary WiFi to all guests. Crystal’s investment in this amenity included hardware and software enhancements to enable expanded internet connectivity and doubled satellite speed. “The enhancements made on Crystal Symphony provide guests with more choices and flexibility than ever before, whether it’s the ability to dine at their leisure, stay connected to family and friends on shore, or enjoy a variety of new entertainment options onboard,” said Crystal’s President and CEO, Tom Wolber. n Silk Kitchen & Bar (both photos) Ph oto cre dit : Pa ra go n Pi xe ls Seabreeze Penthouse 54-55ndd.indd 2 4.1.2018 9.29
Cruise Business Review 3/2017 55 W W W . L L O Y D W E R F T . C O M 1 6 Y E A R S O F C O M P E T E N C E CRYSTAL SYMPHONY GETS IMPROVED SPACE RATIO, DINING CHOICES I t was an eventful year for ultra-luxury and expedition operator Silversea Cruises: The line introduced its newest ultra-luxury vessel, the ms Silver Muse, in April; announced the stretching of its 2009-built ms Silver Spirit and signed a contract for the ms Silver Moon – a sister to the Muse. Topping it off was the re-introduction of the company’s first vessel, the 1994-built 16,927 gross ton ms Silver Cloud, which in November emerged from a two-month dry-docking and refurbishment and entered into expedition service – joining the ms Silver Explorer, ms Silver Discoverer and ms Silver Galapagos in the line’s expedition fleet. Silversea Cruises spent $40 million on a complete overhaul of the Silver Cloud that transformed it into an ice-class expedition vessel. The dry-docking and refurbishment took place at the Palumbo Shipyards in Malta. A series of technical enhancements included extensive steel reinforcement to give the ship the strength and maneuverability required in the Antarctic. The bulbous bow was replaced with a reinforced ice-class bulb to allow for navigation of polar waters; new sonars were installed for underwater detection and new windows resistant to polar temperatures were installed to ensure comfortable temperatures inside the vessel. Guest capacity adjusted As originally designed, the Silver Cloud carried 294 guests in double occupancy. As a result of the refurbishment, the ship’s passenger capacity was reduced to 254 for cruises in non-polar regions SILVER CLOUD ENTERS EXPEDITION CRUISING and only 200 in polar regions, allowing all guests to disembark at once for exploring ashore. During the refit, the Silver Cloud was equipped with 16 zodiacs in addition to 10 kayaks that were installed to allow guests to experience kayak polar exploration. The ship’s expedition voyages will be led by a team of 20 expedition experts in non-polar regions and 22 expedition experts in polar regions. Daily presentations and lectures in the state-of-the-art theatre will also be streamed live to all suites. Unique to the Silver Cloud, guests will benefit from a newly installed Photo Studio, which enables content editing onboard. The Silver Cloud’s first sailing from Ushuaia to Antarctica took place in early December. Ten-night roundtrip voyages to Antarctica are scheduled through February, when the ship will depart on a journey from the southernmost tip of South America to the southernmost point of South Africa. From there, the Silver Cloud will wind her way up the west coast of Africa to Northern Europe and Arctic Svalbard. The ship’s northern hemisphere summer season will include cruises to Iceland, Greenland and Arctic Canada. n Silver Cloud is equipped with 16 zodiacs and 10 kayaks Ph oto cre dit : Sil ve rse a Cr uis es 54-55ndd.indd 3 4.1.2018 9.29
56 Cruise Business Review 3/2017 MARKET REPORT n CHINA C hina has been a main engine in the expansion of the global cruise business in recent years. In 2016, the country, with its population of 1.3 billion, became the second-biggest source market in the world in terms of passenger numbers, overtaking Germany. However, analysts and industry officials have repeatedly urged a cautious approach, as uncertainties and structural issues mount. “We have a very clear growth rate, but the number is still small in comparison to the overall population,” said Sun Chengming ( ???), Vice President of China Merchants Group. Perhaps no one understands this better than Dr. Zinan Liu ( ???), President, China & North Asia Pacific, Global Senior Vice President, Royal Caribbean International. “In the last two years,” he said, “a few problems have occurred in CCS12 ADDRESSES ISSUES FACING CHINA Until recently, there had been nothing other than good news and healthy prospects for the cruise market in China. While the confidence and determination are still there, over the past two years the Chinese cruise industry has begun to experience developmental problems and obstacles to growth. At this year’s China Cruise Shipping Conference & International Cruise Expo (CCS12), discussion of these issues dominated the forum. By Alan Lam China’s cruise market.” Liu has referred to these problems several times in the recent past. They include monotonous short Japan/Korea itineraries, infrastructure issues, social impacts, a lack of cultural understanding, consumer satisfaction and, above all, the wholesale-based distribution system, which has resulted in relentless price pressure. “Unlike in the United States,” Liu went on, “where the market is a repeaters’ market, which is mainly [based on] direct sales and people there know the value of cruising; here in China the market is new and the distribution system is [based on] wholesale. Promotion [based on discounts] could often have an opposite effect.” Liu, however, said he believes the distribution system in China is diversifying. “I think there will be more direct sales from now on,” he added. These factors have contributed to a slowdown in growth over the last two years, which is being uncomfortably felt by the industry in China. “We are in the growth phase,” said Wang Hong ( ??), Secretary, Shanghai City Baoshan District Committee, referring specifically to the market in Shanghai. “We were growing 30% per year, which increased to 70%; now we are back down to 30%.” She spoke of taxes levied in China as being too high for the cruise industry, making it too expensive to operate there. She also referred to the ongoing ban of Chinese cruise ships from calling on South Korean ports, as well as the difficulty in finding ports in Japan and South Korea big enough to host larger ships coming from China, as among the problems the industry is facing. The ban officially ended in November, but uncertainties remain. Yet as an economist, RCI’s Zinan Liu was not too concerned about the current market situation in China. “These are ebbs and flows of any business. They will happen again and again in the future.” According to Liu, Royal Caribbean International is gradually introducing longer itineraries in China. “It is very difficult to design a longer itinerary in China,” he said. “A 7-night cruise is considered to be long in China; yet it is short in Europe and USA. Here lies a problem in attracting international clientele to cruise from China.” These differences must be bridged in order for internaCosta Cruises and Fincantieri held the coin ceremony for the Costa Venezia in early November. The ship will be first Costa new build purpose-built to China 56-60.indd 2 3.1.2018 12.05
Cruise Business Review 3/2017 57 Builder of special vessels for demanding conditions and routes. arctech.fi tional lines to realize China’s potential, said Sun Yi ( ??), Board Member, The Coast of Electric Energy Technology Co., Ltd.: “International cruise lines see the figures and find China an attractive market, but they fail to understand Chinese culture and needs. China is completely different from the West. International cruise business in China encounters many conflicts with Chinese economic development.” Problem of discounting The underlying problems in the Chinese market were widely acknowledged at CCS12. “The market in China is confusing,” said Colin Au , Group President, Genting Hong Kong. “This requires a concerted effort of us all to make it work.” The issue concerning price pressure is at the heart it all, stifling growth and eroding value. “The Chinese cruise business has entered a market adjustment stage, we are faced with a lot of challenges,” said Kent Zhu Fuming, President, Genting Cruise Line. “We are now in the cycle of supply and demand imbalance. We need to address this. We’ve lost control of the price. Due to price pressure and rising costs, cruise lines have been unable to establish new itineraries in China, thus making cruise less attractive.” The persistent discounts offered by travel agents are only part of the problem that has profoundly affected the profitability of cruise lines operating in this market. Questions were asked as to how generic. “We need to reduce costs and increase efficiency to help cruise industry development,” said Li Hua Dong ( ???), Division Director, Supervision Department, General Administration of Customs. “We need to develop cruisespecific border control and infrastructure.” All the industry leaders and regulators in attendance seemed to sing from the same hymn sheet. “Because the price is low, we will not lower our quality in response,” said RCI’s Zinan Liu. “The industry needs to work together as a whole to avoid this situation. Cruise lines need to do a better job in marketing and sales. We must exceed customer expectations. Anthem of the Seas, for example, was not built according to what customers want; [it] was built to give them what they did not expect. We must give Chinese consumers first-class and world-class cruise experiences,” Liu said. More specifically for this market, there is a need for a better understanding of the market dynamics and culture. “There will need to be more direct sales from now on,” continued Liu. “The illness [in the market] is caused by the wholesale nature of the Chinese distribution system.” The monotonous nature of Chinese cruise itineraries also came under attack. “We need to develop new itineraries to match international standard, upgrade guest experiences, upgrade Chinese cruise departures to match the standard international seven-night itinerary,” said Genting’s Ken Zhu Fuming. “We must We are now in the cycle of supply and demand imbalance. We’ve lost control of the price. – Kent Zhu Fuming – long this could continue. “We all need to be profitable,” said Anthony Kaufman , Executive Vice President International Operations, Princess Cruises, “but it does not all depend on ticket prices – it is way beyond what the travel agents are doing. This is something that cannot go on forever; we cannot lose money indefinitely. We need to address this now.” It is fair to say that cruise lines operating in China have experienced major increases in passenger volumes in recent years, but broadly speaking this has not been matched by corresponding increases in earnings. At the conference, there were many voices recommending strategies and measures to find ways of overcoming obstacles to Chinese cruise business development. However, the measures and strategies recommended at CCS12 were far from specific. “A lot of focus must be on enhancing customer experiences,” said Mario Zanetti , President Asia, Costa Crociere, “on how to exceed them and how to attract new customers. This is the only way to assure a bright future.” Most other advice heard was equally ? 56-60.indd 3 3.1.2018 12.05
58 Cruise Business Review 3/2017 never forget that what our customers want is value for money. We are in the hospitality business. We need to provide that value in order for us to survive into the future. And this is not the effort of one company; it needs concerted effort to maintain development.” Currently, 90% of cruise itineraries originating in China are to Japan and South Korea. “We must consider other itineraries,” said Shanghai’s Wang Hong, “expand our product offering.” In addition, too many cruise lines operate exclusively from northeastern ports, namely Tianjin and Shanghai. There were calls for developing southern ports in the provinces of Guangdong, Hainan and Fujian. Signs of maturity in the market Notably, in many ways the strategic recommendations for China sounded similar to those for other, more mature markets. This indicated that the Chinese market might be maturing fast – catching up with markets in Europe and North America – as it is beginning to face the same set of problems. Moreover, it might soon leapfrog markets in the West and take up a leadership position if all goes according to plans set out in the so-called Belt and Road Initiative. “Our cruise industry development must take advantage of the fair wind generated by the Belt and Road Initiative and establish more routes and destinations,” said Electric Energy Technology’s Sun Yi. China does have one distinct advantage in that its cruise industry receives attention and support from the highest level of government. President Xi Jinping ( ???) has been present at two major cooperation agreement signing ceremonies – once in London and once in Beijing. In the last two years, Premier Li Keqiang ( ???) has on several occasions asked about cruise industry development in China. “Ocean tourism brings wellbeing to our people,” said Cai Jiacheng ( ???), DDG Financial & Planning Department, National Tourism Administration. China is developing socialism with Chinese characteristics; correspondingly, in the so-called New Era, it also wants a cruise industry with Chinese characteristics. Modern China is often represented by three images: the high-speed train, the new C919 passenger aircraft, and a cruise ship (yet to be built). “Developing cruise industry and cruise economy is our dream,” said Hu Wenming ( ???), Chairman of the China Shipbuilding Industry Corporation (CSIC) and China Cruise & Yacht Industry Association (CCYIA). “We need to increase the momentum of Chinese cruise industry development in the New Era. Increase cooperation with Belt and Road countries along the Maritime Silk Road (MSR). We must popularize cruise New destinations are needed for the China market. Dream Cruises recently added Manila for its regular sailings on the brand new World Dream Ovation of the Seas will sail in Alaska instead of China during the 2019 summer season 56-60.indd 4 3.1.2018 12.05
????? ????? ????????? ???? ?????????? ?????? Mooring & anchor winches Doors & platforms Rescue & life boat davits Passenger gangways Cargo lifts and loading platforms Custom designed innovations Your trusted partner in cruise equipment TTSGROUP.COM TTS_CruiseBusinessReview_CBR3_2017.indd 1 2017-11-07 10:47:53 culture. Chinese cruise development is for China, as well as for the world.” There was a realization expressed at the conference that cruise is a distinctive culture in parts of the world. “In the West, especially in the USA, cruise is now a culture,” said Zhang Zhaoben ( ???), Executive President of the CCYIA. “We in China still need to develop this culture.” Building new ships The next obstacle for China’s cruise industry to overcome is to build a fleet of large, modern cruise ships. Here lies another problem, which is in fact better described as a challenge: That is to deliver the first ship in time and meet international standards. It has become a matter of national pride to deliver a modern Chinese-built cruise vessel. In partnership with Carnival Corporation and Fincantieri, the first 133,500 gross ton cruise vessel is now scheduled for delivery in 2021. To kick off this cruise shipbuilding project in earnest, a RMB30 billion fund was set up in December 2016 by the China State Shipbuilding Corporation (CSSC) in association with the Bank of China, China Construction Nichols , Lead Specialist Marine, Lloyd’s Register. “European builders will be concerned that their monopoly on cruise ship supply, which has a full orderbook, may be in jeopardy.” He cited the failure of Mitsubishi Heavy Industries, which had previous experience in passenger shipbuilding. “If China can supply good, solid and high-quality ships to the market, it will be very good for China; if not, people will lose confidence and go back to traditional, tested European builders.” Chinese builders are aware that cruise shipbuilding is not an easy market, although the realization of the daunting task ahead and the size of the problems they face are still dawning on them. “So far, through all our efforts in the last five years, the ship has not been built yet,” said the CCYIA’s Zhang Zhaoben. “Our friends overseas are worried about our ability to deliver, as we have no history of cruise shipbuilding. While it is impossible to get there straightaway, there is no question that the ship will be built and built to international standard. To achieve this, we must import foreign technologies. Our C919 passenger jet and our high-speed trains were all built this way. We have to be realistic about our current capability.” Many shipyards in China are very interested in cruise ships, but they are also very worried about building them. – Paul Ho – Bank, Agricultural Bank of China, China Everbright Bank, Industrial Bank Co., Ltd. and a number of other financial institutions. In July 2017, China’s central government announced a RMB845 million subsidy to help kick start CSSC’s cruise shipbuilding venture. The Shanghai Waigaoqiao Shipyard has been actively engaging in financial restructuring in preparation for and aiming at a long-term commitment to cruise shipbuilding. “We want to be the global base for cruise ship construction and repairs,” said Hu Wenming of the China Shipbuilding Industry Corporation (CSIC) and China Cruise & Yacht Industry Association (CCYIA). Inevitably, however, lingering doubts have persisted about the Chinese builder’s ability to deliver. “One aspect which is prominent for the Chinese market is that the world is watching,” said Paul R. ? 56-60.indd 5 3.1.2018 12.05
Tourism Administration’s Cai Jiacheng , “instead of war ships we want to send our cruise ships around the world – ships built in China, owned by Chinese companies and carrying Chinese passengers. We will send out a message of peace instead of being perceived as an imperialist.” International investment International lines, too, continue to invest in the Chinese cruise market. “China has become an important part of our global cruise business,” said Arnold Donald , President and CEO, Carnival Corporation & plc. “We have now Costa and Princess brands in China. By 2020, two more purpose-built ships will come here; by 2021 the joint-venture ship will be ready. We are very confident about the potential here.” Indeed, after the recent addition of major newbuilds to this market, such as the ms Majestic Princess and ms Norwegian Joy, momentum continues to grow. Ahead of its major newbuilding program, MSC Cruises is increasing its presence in China by deploying a larger ship. “MSC Splendida is not the end,” said Charles (Bud) Darr , Executive Vice President, Maritime Policy and Government Affairs, MSC Group. “It is only part of our ongoing commitment to this market. MSC is here to stay, in this world’s most exciting cruise market.” So despite any headwinds, CCS12 reaffirmed that much of the future of the global cruise business still depends on China. The potential is enormous and the problems temporary. “The best is yet to come,” said Costa’s Mario Zanetti. “The market penetration is still low. The rise of Chinese middle class indicates a huge potential. Most importantly, Chinese cruise industry has the strong support from the government,” he concluded. n 60 Cruise Business Review 3/2017 The market penetration is still low. The rise of Chinese middle class indicates a huge potential. – Mario Zanetti – Supply-chain concerns China has also come to realize that a mature supply chain is critical. “A modern cruise ship is a very complicated structure,” said Wu Qiang ( ??), President of CSSC. “It is like building a small city. Safety requirement is very strict, with thousands of kilometers of cables for a start.” All the elements are in place to develop a proper supply chain. Most international suppliers are already present in China and are expanding manufacturing bases there. ABB’s Chinese-made components, for example, are now supplied to cruise shipbuilders around the world. Still, there is a measure of humility and acknowledgement of limitations. “Many aspects of what we do is still not good enough,” said the CSIC/CCYIA’s Hu Wenming. “The development of Chinese cruise shipbuilding still requires international cooperation.” One tangible manifestation of this cooperation was the recent decision by Fincantieri to send more than 400 of its staff to China for the joint-venture project, thus demonstrating the extent of the lack of expertise in China. “The market can change, and the customer will want to change the specifications accordingly,” said Fabrizio Ferri , CEO China, Fincantieri SpA. “We need to be flexible, which is very important. A stable and rock-solid supply chain is key to success. This is something that will apply to China; something that China has not developed yet and something we shall be focusing on in the future.” This lack of experience has far-reaching implications. “The Chinese do not know how to calculate detailed costs,” said Mauri Torikka , Chief Representative of Merima in China. “They have no reference vessel yet.” However, there is no lack of determination and confidence to deliver this ship. “China is now the biggest port and road infrastructure builder,” said Chen Fenjian ( ???), President of China Communications Construction Group. “We are very focused on the cruise industry development. We want to build our own ships and contribute to global industry.” As far as shipbuilding in general goes, China is actually a major force. “Major Chinese shipyards are now very experienced in shipbuilding,” said Paul Ho ( ???), Head of China Practice, Ince & Co. “Many shipyards in China are very interested in cruise ships, but they are also very worried about building them. This is normal. There is a worry for the lack of experience among Chinese shipyards, but if you look at the past, Chinese yards have always delivered. There are other considerations such as payment terms, slot availabilities and financing. This is a booming market with exciting opportunities. I believe Chinese yards can compete with European ones on equal terms.” Despite the structural problems in China’s cruise industry at present, there are perhaps more things in its favor than against it. The country has an expanding middle class with growing spending power, and as China grows in both wealth and influence, its cruise vessels and passengers will become ambassadors to the world. “As we become strong and globalized,” said the National Sapphire Princess is another ship being deployed out from China. Pictured here in Naha, Okinawa – one of the most popular ports-of-call for Chinese Ph oto cre dit : Te ijo Ni em elä 56-60.indd 6 3.1.2018 12.05
Cruise Business Review 3/2017 61 By Teijo Niemelä H ong Kong is expanding its presence as a major cruise hub in Asia. Thanks to the Kai Tak Cruise Terminal, which opened in 2013, the city can easily accommodate the largest cruise ships operating in the market. In June, the terminal celebrated its one millionth passenger, who came ashore during the inaugural call of Princess Cruises’ 3,560-passenger ms Majestic Princess, and on October 29, the terminal achieved a local record-setting throughput day of 13,327 itinerary cruise passengers when it simultaneously hosted two megaships, the 2,138-passenger ms Celebrity Millennium and 4,180-passenger ms Ovation of the Seas. “Our operations continue to mature and improve, and the team is now well capable of handling even our busiest throughput days,” said Jeff Bent, Managing Director of Worldwide Cruise Terminals. Bent attributed the terminal’s success to both the local source market and the visiting flycruise market, which together are delivering high passenger loads for Kai Tak’s cruise line tenants. Hong Kong has also received a big boost from its year-round “resident” cruise line, Dream Cruises, which recently replaced the ms Genting Dream with its sister ship, the 3,376-passenger ms World Dream. That vessel makes two turnarounds weekly. Hong Kong also attracts seasonally homeported ships, such as Royal Caribbean International’s 3,138-passenger ms Voyager of the Seas. According to Bent, Hong Kong is the DESTINATION UPDATE n ASIA HONG KONG ENJOYS SOLID GROWTH second-fastest growing source market in Asia, with approximately over 300,000 locals predicted to have cruised during 2017. Overall, it was anticipated that in 2017 Kai Tak would handle 700,000 cruise passengers in total and the Ocean Terminal another 100,000. During 2018, Kai Tak expects to welcome new cruise lines and ships, including Viking Ocean Cruises’ 930-passenger ms Viking Sun and MSC Cruises’ ms MSC Splendida. Looking ahead, newcomers for 2019 will include TUI Cruises’ 2,500-passenger ms Mein Schiff 6. Source market to expand Hong Kong is the most-visited destination for mainland Chinese travelers, having hosted 43 million out of China’s 135 million outbound trips in 2016. Hong Kong is anticipating a further increase in 2018, when the Hong Kong-Zhuhai-Macao bridge and high-speed rail connection to China’s domestic network opens. This will put a potential market of 270 million people within a 4-hour train ride. Hong Kong Airport, which opened in 1998, is one of the busiest airports in the region, handling over 70 million passengers a year and serving 220 destinations worldwide – including over 50 destinations on the Chinese mainland alone. Currently the airport is planning to increase its capacity by constructing a third runway and a new terminal, thus lifting its capacity to over 102 million passengers a year. As far as new hotels in Hong Kong are concerned, Marriott plans to open a new 5-star luxury resort – the 470-room Ocean Hotel Hong Kong Marriott – in the fourth quarter of 2018. It will be located in front of Hong Kong’s Ocean Park, which according to HospitalityNet is the world’s 13th most-visited theme park. Meanwhile, the InterContinental Hong Kong – one of the city’s mainstays for preand post-cruise packages – will be closed during 2019 for extensive renovations, but parts of its facilities are expected to re-open in late summer 2019. As far as shore excursions are concerned, the Hong Kong Tourism Board (DiscoverHongKong.com) has been promoting walking tours of “Old Town Central,” which shows visitors the heritage, food, arts and hidden treasures of the city’s streets and alleys – including one of the first roads built in the colonial era. n 61indd.indd 3 9.1.2018 14.56
62 Cruise Business Review 3/2017 DREAM CRUISES EXPANDS DEPLOYMENTS WITH SECOND SHIP Dream Cruises, part of Genting Cruise Lines, introduced its second vessel, the World Dream, in November 2017 in the Guangzhou and Hong Kong markets. This allowed the Asian brand to reposition its year-older sister ship, the Genting Dream, to the Singapore market. Among the cruise lines operating and sourcing in Asia, Dream Cruises is uniquely positioned in the up-market segment, albeit operating megaships. By Teijo Niemelä SHIP REVIEW n ASIA World Dream is the only cruise ship taking part in Hong Kong's Symphony of Lights every Friday 62.-67ndd.indd 2 9.1.2018 13.28
www.antti-teollisuus. | tel. +358 2 774 4700 The guests and crew sleep exceptionally well behind our doors, which are the quietest on the market. They are also safe, stylish and of high quality. ANTTI doors guarantee that you wake up refreshed and ready for the new day on all the oceans of the world, from deluxe cruise ships to offshore applications. T he 150,695 gross ton and 3,376-passenger ms World Dream was handed over from Germany’s Meyer Werft on October 31. The newbuild is the 44th cruise ship built by the Papenburg yard and also finishes a long history of cooperation between Genting Hong Kong (parent of Dream Cruises and Genting Cruise Lines) and Meyer Werft, which started in the 1990s with the construction of the ms SuperStar Leo and ms SuperStar Virgo. Since then, the yard has also delivered ships for Norwegian Cruise Line, which was at one time fully-owned by Genting Hong Kong. Genting faced a dilemma in finding slots for newbuildings it had planned for its other brands, namely Crystal Cruises and Star Cruises, as orderbooks at Europe’s major cruise shipbuilders started to fill up. So the company purchased yards in Northern Germany, which already have delivered the first ships for Crystal River Cruises. Next, MV Werften will construct expedition yachts for Crystal Cruises and Global-class ships for Star Cruises. ? 62.-67ndd.indd 3 9.1.2018 13.28
As a leading supplier of electrical propulsion systems for the global marine industry, ABB is helping ship owners answer mounting pressures to increase fuel economy and reduce their fleet’s environmental impact. By integrating sensors and software into a vessel’s critical equipment and control systems, we can provide crews, owners and shore-side staff with a complete view of how their ship is performing. abb.com/marine — Greater safety and efficiency at sea with electric, digital and connected solutions. 64 Cruise Business Review 3/2017 Naming ceremony in Hong Kong With the repositioning of the Genting Dream to Singapore and the deployment of the World Dream year-round in the Guangzhou and Hong Kong markets, Dream Cruises continues to be one of the top cruise operators in Hong Kong’s Kai Tak Cruise Terminal. This cooperation marked a significant milestone when the World Dream celebrated its naming ceremony in Hong Kong on November 17. Among the dignitaries present were Carrie Lam Cheng Yuet-ngor , Chief Executive of the Hong Kong Special Administrative Region; Edward Yau , Secretary for Commerce and Economic Development; Cathy Chu , Commissioner for Tourism; and Dr. Peter Lam, Chairman of the Hong Kong Tourism Board. According to Dream Cruises, the World Dream is the first new cruise vessel ever to hold its naming ceremony in Hong Kong and the largest cruise ship homeported in Hong Kong year-round. Since the introduction of the Genting Dream in the Pearl River Delta a year earlier, Dream Cruises has carried over 300,000 passengers throughout the region. And since December, the World Dream has become the first and only cruise ship to take part in the city’s revamped “A Symphony of Lights” extravaganza every Friday. This multimedia experience is recognized as one of the world’s most spectacular light shows. Equipped with a state-ofthe-art LED lighting system, the World Dream transforms its exterior into a 300-meter-long, 18-deck-tall electronic canvas to create a luminous display to further enhance the spectacle. The World Dream also showcases Asia’s first-ever laser and fireworks display at sea, serving as the grand finale to every 5-night cruise. This visual show complements an onboard fireworks display with synchronized live music, dance and 3D laser optical effects powered by the RTI Nano 30, the strongest and most potent lasers ever to be installed on a cruise ship. During the winter season, the World Dream has two weekly departures from Hong Kong. Its alternating 5-night cruises feature Manila and Boracay in the Philippines or Ho Chi Minh City and Nha Trang in Vietnam. Additionally, on weekends the World Dream operates 2-night cruises to nowhere. During the summer season, the World Dream heads north to Japan and Taiwan. As far as the Genting Dream’s deployment from Singapore is concerned, it takes guests on a range of 2-night weekend cruises and alternating 5-night Sunday cruises to destinations in the Straits of Malacca or in the Java Sea. The 5-night Straits of Malacca cruise features Port Klang-Penang-Phuket itineraries, and the 5-night cruise in the Java Sea sails to Surabaya and North Bali. Passengers can combine the Straits of Malacca and Java Sea cruises for a 12-night cruise, with the option of spending the weekend in between either onboard the ship or in a hotel in Singapore. Luxury features found only from Genting While both the World Dream and Genting Dream share many similarities and the general arrangement plan of Norwegian’s Breakaway class, the company has introduced many innovative features as well. The Dream sisters (as well as the ms Crystal Esprit) are the only cruise ships in the world carrying their own submarines that can take up to four guests down to a depth of up to 200 meters. This service, however, comes with a hefty extra charge. Another new feature onboard the World Dream is a mo? Blue Lagoon is World Dream's casual eatery Tiffany & Co. High Tea Genting Club Restaurant 62.-67ndd.indd 4 9.1.2018 13.28
As a leading supplier of electrical propulsion systems for the global marine industry, ABB is helping ship owners answer mounting pressures to increase fuel economy and reduce their fleet’s environmental impact. By integrating sensors and software into a vessel’s critical equipment and control systems, we can provide crews, owners and shore-side staff with a complete view of how their ship is performing. abb.com/marine — Greater safety and efficiency at sea with electric, digital and connected solutions. Interior textile solutions for sailors, passengers, travellers, and adventurers. www.ludvigsvensson.com NEW! B-0 JMC 4 wall panel; only 16mm thick NEW! A-60 BOX; wall & ceiling A-60 lightweight bulkhead panel 50mm and 25 kg/m2 B-15 JMC 1 wall and ceiling panels B-15 JMC 1 Inspection doors B-15 penetrations B-15 Extension Screens USPH galley panels Pullman beds; B-0/B-15 ceiling Pullman beds, Sofa beds and fixed beds for passenger and crew cabins Engineering 62.-67ndd.indd 5 9.1.2018 13.28
66 Cruise Business Review 3/2017 torboat available for private excursions. One of the main focuses of Dream Cruises’ experience has been providing the most exclusive luxury shopping outlets onboard, including Asia’s first Tiffany & Co and first-ever Dior jewelry and watch boutiques at sea. A new feature is an exclusive Tiffany & Co. High Tea Set with a set menu showcasing Tiffany treats and authentic British delights served every Monday, Thursday and Saturday afternoon in the Seafood Grill – this service also carries an extra charge. Overall, the World Dream offers 35 restaurants and bars, many of them designed with Asian cruise passengers in mind. There are various entertainment facilities, such as a large 999-seat main theater, a ropes course, a waterpark and a large range of virtual reality applications. About 75% of the ship’s cabins offer outside views and most of them come with private balconies. The World Dream’s “ship-within-a-ship” enclave overlooks the bridge on decks 17 and 18 with more than 150 suites and private VIP facilities, including an exclusive swimming pool, spa, gym and dining venues. n WORLD DREAM MAIN PARTICULARS Built Meyer Werft GmbH, Papenburg, Germany Owner Chinese Percept Ltd. (Genting Hong Kong) Operator Dream Cruises Base port Guangzhou (Nansha) and Hong Kong Maiden voyage November 2017 Country of registry Bahamas Classification society DNV GL Length, o.a. 335.2 m Breadth 39.7 m Draught 8.6 m Gross tonnage 150,695 gross tons Diesel engines 3 x MAN Diesel 12V48/60B/CR 2 x 14V48/60B/CR Propulsion pods 2 x Azipod Propulsion power 41,000 kW Maneuvering thrusters 3 x Brunvoll FU115 Speed, max 23.4 knots Passengers, double occupancy 3,376 Number of passenger cabins 1,674 Crew approx. 2,016 Dream Palace sun deck Zouk Beach Club Boutiques The ecologically sound and lightweight Bolideck Future Teak system was chosen for a large portion of the deck surfaces. Bolideck Future Teak looks and feels like teak, but does not have the disadvantages of teak. Besides Bolideck Future Teak Bolidt also supplied Bolideck Select Soft. Besides offering endless colour and design possibilities, the main advantage of Bolideck Select Soft is that it has excellent sound absorbing properties. Experience has shown that Bolideck Select Soft is the perfect deck finish for running tracks, but also for other sports and swimming pool areas and even the balconies of the cabins. Bolideck Select Soft is also applied on the running track of the World Dream. 62.-67ndd.indd 6 9.1.2018 13.28
No limits Cruise decks Our innovative mindset makes us freerunners in heart and soul; when appropriate or necessary, we push the envelope of our competencies. After all, what matters in the end is the result: the perfect deck that meets the highest standards in terms of functionality and durability. Bolidt decks are sound-insulating, wear-resistant, non-skid, lowmaintenance and colourful. Bolidt, no limits. www.bolidt.com/cruise-ships CruiseBusinessReview_Juli.indd 1 5-7-2017 10:44:06 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 Create 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 kannen sisäosa ja takakannen sisäosa.indd 1 2.1.2018 15.01
3/2017 www.cruisebusiness.com C R U IS E B U SIN ES S R EV IE W 3/ 20 17 N E W S H IP S M SC SE A SID E n W O RL D D RE A M CRUISE BUSINESS REVIEW ?????? ? ? ? ? ? ? McAlpin hints at Virgin Voyages’ plans MedCruise defines Mediterranean’s strategy Silja Line marks six innovative decades MSC Seaside makes its Miami debut 425x297%20kansi .indd 1 2.1.2018 14.50