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UK ocean cruise passenger count grew by just 1,000 in 2012

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 04 March 2013 04 March 2013

The number of British pasengers that took an ocean cruise grew by 1,000 last year, which brought the total to 1,701,000. “The figure is indicative of the loyalty of cruise passengers, given the challenging nature of the year which opened with the Concordia tragedy and saw the UK economy dip back into recession. Cruise continues to account for one in every eight of all overseas package holidays,” figures from the Passenger Shipping Association (PSA) show.

However, 2012 was a record year for UK cruise ports. Passenger embarkations increased 10% (up to 962,000 in 2012), with 78,000 extra UK and 6,000 additional overseas passengers. The fourth double-digit increase in cruise passenger embarkations in just seven years puts British ports on course to hit the million mark in 2013.

The most substantial increase in capacity has come in the south coast ports of Southampton, Dover and most recently, Portsmouth. The growth in popularity of ex-UK cruises can largely be attributed to the ease of access to the ships for those living in the south.

There was a similar increase in passengers visiting UK ports during their cruises. The 11% increase saw 723,000 passengers visit British ports, double the 2007 figure. The number of UK ports receiving cruise calls also increased to a record 52.

As in previous years the most popular destination was the Mediterranean, which saw 698,000 British passengers visiting the region. However the noticeable trend was increased appetite for cruising to Northern Europe which experienced a  29% upsurge with 443,000 passengers, up from 342,000 the previous year. The increase was fuelled by Britons’ growing taste for Norwegian fjords which saw nearly 200,000 passengers visiting the region (44.5% of the Northern European bookings).

Continued growth was also seen in ‘ultra luxury’ cruising. 1.7% of cruises booked by Britons in 2012 were classified in this sector, which represents an increase of 2,581 passengers and recession-defying year-on-year growth of 10%. Sales of summer ‘ultra luxury’ cruises increased by an even more striking 30%.

In terms of motivation, value for money was the main reason for Britons choosing their last cruise holiday. But when it comes to the appeal of a cruise in general, it’s itinerary and destination that topped the list (cited by 70% of passengers surveyed) for the fourth consecutive year. The number of British passengers who took more than one cruise in 2012 increased by 12 percentage points to 54%. 374,220 Britons – the highest ever - booked three or more cruises within the year, reflecting regular British cruisers’ confidence in the industry’s safety record.

 Regional distribution of UK cruise passengers had altered slightly, with an increase in southern passengers. Since 2006 the number of passengers from the southeast had increased 10 percentage points from 14% to 24%. The mix of passengers from outside of England stayed stable, with Scottish passengers constant at 11%; a slight increase in Welsh cruise passengers (from 5% to 6%) and a small drop in the proportion passengers from Northern Ireland (3% to 2%).

Absolute numbers of passengers increased to around 187,000 from Scotland, 102,000 from Wales and 34,000 from Northern Ireland.

 PSA director, William Gibbons, said: "The past year was an impressive one for the UK cruise industry, especially in view of the combination of challenges the year presented. The increase in passenger figures bears testament to the value and diversity that cruising represents and the positive experiences that bring passengers back time and time again. We feel 2012’s record results for British ports are particularly remarkable and we very much look forward to seeing UK ports achieve the million mark in 2013, and the associated economic benefits that this will bring to the country."

Andy Harmer to head CLIA UK from 1 May

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 04 March 2013 04 March 2013

Cruise Lines’ International Association (CLIA), the new global cruise association, has today announced that Andy Harmer will take responsibility for its activities in Britain and Ireland. Andy, presently head of the Association of Cruise Experts, will take up the position as director of CLIA UK and Ireland on 1 May 2013.

In December it was announced that the Association of Cruise Experts (ACE) and the Passenger Shipping Association (PSA) were among 10 regional cruise associations which were coming together to serve as the global voice for the cruise industry. CLIA has been created to provide increased benefits and a unified approach for cruise lines, travel agents and business partners – all of whom contribute to an industry that creates nearly $1000 billion in economic impact and more than 753,000 jobs worldwide.

From 1 May, The UK Chamber of Shipping will represent PSA ferry line members, with many ferry companies already belonging to the organisation. Their interests will be represented on the Chamber’s ferry and cruise panel.

Andy Harmer said: “I am delighted to be taking on the role of director for CLIA UK and Ireland at such an exciting time. Our goal is to grow the cruise market in the UK and Ireland by working with our travel agent partners and highlighting, through our consumer media campaigns, the many and varied great reasons for taking a cruise holiday. We will continue to provide effective training, support, national and international events for agents with the new association offering more robust partnership programmes and networking on a broader scale.”

He continued: “Technical and regulatory issues will now be looked after by our colleagues in CLIA Europe who will oversee the activities of the national associations. We look forward to working with them on developing events and communications to create a greater interest in cruise holidays.”

After 19 years as PSA director, Bill Gibbons will be retiring on 1 May. Bill said: “I have seen huge changes since I joined in 1994 as cruise has expanded from what some considered a preserve of the wealthy to a mainstream affordable holiday. Over the same time the ferry sector has seen considerable consolidation but has transformed the quality of the service with investment in new ships and services. The passenger shipping industry should be proud of what it has achieved.” He continued: “The formation of a global cruise association makes total sense for what is now a worldwide industry. We have a strong, dedicated team who will be moving forward with CLIA and I should like to thank all our member lines and associate members for their huge support and commitment over the years.”

STX Finland to build TUI newbuildings as planned

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 26 February 2013 26 February 2013

The two cruise liners TUI Cruises, the German premium market cruise shipping group, has on order at STX Finland at its Turku yard, will be built there as planned, Finland’s Ministry of Employment and the Economy said in a statement.

The government will inject €15 million in new innovation aid to ensure the construction of the two ships, in addition to a €16 million package of which there was an earlier agreement. 

Uncertainty over construction time financing of the two ships had threatened their completion at the Finnish yard and the future of the shipyard itself.

The government also buys the site of the Turku shipyard for €23.5 million, while the shipbuilder’s owner agreed to “inject tens of millions in new capital to the yard,” the ministry said. STX Finland is part of STX Europe, an Oslo based subsidiary of STX Business Group of South Korea.

 

In addition, TUI Cruises itself agreed to unspecified measures to bring in more flexibility in the financing of the construction of the two ships. The first unit, of 97,000 gross tons, is due to enter service next year and the second ship, of 99,300 gross tons, in 2015.

 

Fincantieri 2012 profit “in excess of €15 million”

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 26 February 2013 26 February 2013

Fincantieri, the Italian state owned shipbuilder, it increased its profit to more than €15 million last year from €9 million in 2011. Operating profit (EBITDA) remained stable at €137 million or 5.7% of revenues that also remained little changed at €2.83 billion, it said in a statement.

 "Commercially, Fincantieri succeeded in making the best of the available opportunities, finalizing agreements for new orders, including options, worth a total of €6.5 billion which also include all the cruise industry’s orders for new prototype ships. This figure includes €1.4 billion in finalized contracts, while the remaining agreements are all subject to finalization of the related financial packages."

 In particular, in the merchant vessels business unit, contracts were signed for the construction of two cruise ships for Viking Ocean Cruises and an order was secured from Société des traversiers du Québec in Canada for the construction of a dual-fuel latest generation ferry featuring an innovative propulsion system.

With reference to the reorganization plan, contained in the national agreement signed at the end of 2011 with the Ministry of Labour and the majority of trade unions, the Group has aimed, on the one hand, to rebalance its workforce for the weaker order backlog (333 staff have left the parent company while an average of 1,463 employees have been temporarily laid off), and, on the other, to meet its business diversification objectives.