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North American cruise industry economic impact $40.4 billion in 2011

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 07 September 2012 07 September 2012

The North American cruise industry continued to expand its contribution to the US economy in 2011 according to an independent study commissioned by Cruise Lines International Association (CLIA).

Direct purchases by CLIA’s 26 member lines and their passengers and crew totalled approximately $19 billion resulting in $40.4 billion in total economic impact. The related cruise industry spending generated nearly 350,000 jobs paying $16.5 billion in wages to American workers.

After a strong rebound in 2010 from the recessionary impacts of 2009, the North American cruise industry continued to expand in 2011 at a pace that matched the growth for key operating metrics the previous year. The continuing expansion allowed the industry to reach new highs for capacity and the number of passengers sailing on CLIA member cruise lines, with the North American cruise industry outpacing the growth of overall economic activity in the USA continued to be the economic driver for the industry, providing close to two-thirds of all global passengers and 60 percent of all cruise embarkations.

Christine Duffy, CLIA’s president and CEO, said: “In this uncertain economic environment, we are pleased to demonstrate the importance of the North American cruise industry to the US economy in creating jobs and positively impacting the residents of all 50 states through direct and indirect spending.

“These findings are further evidence that the industry’s ability to provide outstanding choice and value that resonate strongly with consumers work in beneficial ways for the country’s economy as well.”

“The Contribution of the North American Cruise Industry to the US Economy in 2011” was prepared for CLIA by Business Research and Economic Advisors (BREA) of Exton, Pennsylvania. The key findings include:

Total economic impact on the US economy grew by 6.8 percent to $40.42 billion in 2011, with direct spending by the cruise industry growing by 4.8 percent to $18.9 billion; total employment grew by 5.4 percent to 347,787 and wages and salaries jumped by 8.3 percent in 2011.

The North American cruise industry benefited every state economy through direct purchases of goods and services, with approximately 80 percent of the impact concentrated in ten states – Florida, California, New York, Texas, Alaska, Washington, Georgia, Massachusetts, Illinois and Colorado.

#1 Florida cruise passenger and crew visits totalled 8.94 million in 2011, a 2.6 percent increase, with direct spending of $6.7 billion and 130,950 jobs that generated $5.76 billion in income.

#2 California cruise passenger and crew visits totalled 979,000, generating $1.86 billion in direct spending and creating 42,254 jobs that paid $2.3 billion in wages.

#3 New York, with 896,000 passenger and crew visits, accounted for 6.6 percent of the industry’s direct expenditures ($1.25 billion), generating 16,608 jobs paying $944 million in income.

#4 Texas received just over $1.12 billion in cruise industry direct spending, creating 17,316 jobs paying $917 million in income.

#5 Alaska received just over 4.8 million passenger and crew visits in 2011, a 1.4 percent increase over the previous year, which accounted for 5.4 percent of the industry’s direct spending ($1.02 billion generating 22,493 jobs paying $962 million in wage income.

Worldwide, 16.3 million people took cruise vacations on CLIA member lines in 2011, an increase of 10.1 percent over the previous year. US cruise passengers totalled 10.4 million, or 63.5 percent.

Star Cruises to introduce SuperStar Gemini after a US$50 million refurbishment

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 06 September 2012 06 September 2012

Star Cruises, the leading cruise line in Asia-Pacific, has announced the launch of SuperStar Gemini, the 50,764 gross ton vessel which will soon undergo a US$ 50 million multi-faceted major refurbishment. She will be completely overhauled with upgraded navigational systems, new hull design and onboard facilities, including cabins, restaurants, entertainment and recreational venues, retail & bodycare outlets. Designed with an all-encompassing holiday experience in mind, SuperStar Gemini will immerse guests in a resort-at-sea environment with an edge - a shopping haven that promises a broad range of upmarket duty-free wristwatches, jewellery and handbags amidst idyllic and blissful cruise voyages.

SuperStar Gemini, formerly known as Norwegian Dream, will join SuperStar Virgo, SuperStar Aquarius, SuperStar Libra and Star Pisces to offer indelible holiday experiences for guests from Asia-Pacific and beyond.

In early 2013, SuperStar Gemini will parade herself through a series of inaugural cruises from Penang (2 - 24 Jan) calling at Krabi / Phuket in 17 cruises; a 7 days / 6 nights special cruise (24 Jan 1 Feb) to Singapore / Ho Chi Minh City / Nha Trang / Hong Kong; and from Sanya (1 Feb 31 March) calling at Danang / Halong Bay / Hong Kong in 26 cruises.

From April to Oct 2013, the vessel will commence her summer homeport deployment in Shanghai offering over 30 cruises in 4D3N to 7D6N itineraries to a number of highly popular destinations including Cheju, Busan, Fukuoka, Nagasaki, Kumamoto, Naha, Ishigaki and Keelung. A number of special chartered cross-strait itineraries from Shanghai to Taiwan is in the pipeline, subject to approval by the authorities. These cruises are expected to be highly sought after cruises drawing on the up-and-coming cruise markets in China and Taiwan.

After the Shanghai deployment, SuperStar Gemini will be homeported in Sanya in the winter season from mid-Oct 2013, calling at Vietnam ports amongst others.

William Ng, Chief Operating Officer of Star Cruises, said, As the leading Asia-Pacific cruise line, Star Cruises is proud to introduce another luxury vessel in Asia, serviced by our signature heart-warming Asian hospitality the freestyle way. SuperStar Gemini is a testament to our ongoing effort to expand our footprint in the region from our well-established key markets in Hong Kong, Penang, Sanya, Singapore and Taiwan. With the strengthened fleet, we are well-positioned to further develop the Asia-Pacific cruise market by introducing world-class cruising experience as a holiday option to the growing North Asia holidaymakers.

SuperStar Gemini was so re-christened as to highlight the constellation twins protection for seafarers and their fondness to delight mankind with joyful harp music. She will house a spate of onboard facilities where guests will find culinary pleasure and recreational fun, including restaurants of Chinese, Asian and international cuisines, open deck barbecue, show lounge, karaoke, spa & health club, beauty salon, childrens playroom and swimming pool. With a passenger capacity of 1,532, the vessel will house 766 guest cabins in a variety of layouts including ergonomic oceanview staterooms, smartly-styled junior suites and deluxe executive suites.

SuperStar Gemini will boost a shopping area of over 4,000 square feet, providing a premier duty-free shopping experience like no other. A number of luxury retailers has come on board to enrich this shopping experience with high-end wristwatches, jewellery as well as a wide range of luxury items such as designer handbags, purses, perfumes, sunglasses, accessories and fashion items.

SuperStar Geminis refurbishment follows SuperStar Virgo, SuperStar Aquarius and Star Pisces, which all underwent a make-over last year totaling over US $38 million. As part of Star Cruises ongoing refurbishment exercise, SuperStar Libra will also undergo refurbishment in early 2013.

All Leisure and CMV enter partnership, Discovery to CMV from February 2013

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 30 August 2012 30 August 2012

All Leisure group and Cruise & Maritime Voyages, two UK based cruise shipping companies, have signed a a long-term partnership whereby the 20,636 gross ton Discovery will be transferred from All Leisure's Voyages of Discovery brand to CMV in February 2013.

This joint venture will allow passengers to sail on the much-loved, classic ship, Discovery, with the renowned on board experience of Cruise & Maritime Voyages, whilst offering a range of UK regional departures and a selection of Mediterranean fly cruises, All Leisure group said in a statement.

The partnership with Cruise & Maritime Voyages, who have operated the 22,080 gross ton Marco Polo and 17,593 gross ton Ocean Countess on charter since their launch in 2009 with a programme capacity of around 45,000 passengers, adds to the growing collection of diverse travel experiences from the All Leisure Holidays Ltd portfolio.

Roger Allard, Executive Chairman, All Leisure Holidays Ltd explains: “Continuing to evolve and innovate the way we do business is a key mantra for All Leisure Holidays Ltd. The opportunity to work in partnership with the established and much-respected Cruise & Maritime Voyages is a great route to increase the audiences we appeal to and deliver something new to the cruise sector. Within the All Leisure Holidays Ltd business we now have a great value cruise brand to bolster the existing discovery and luxury options already on offer. We look forward to welcoming new and existing passengers on board Discovery, which will premier its refurbishment and refresh when the first passengers join its inaugural sailing as part of the Cruise & Maritime Voyages fleet in February 2013.”

Chris Coates, Commercial Director, Cruise & Maritime Voyages commented: “We are delighted to have concluded a long term joint venture deal with highly respected All Leisure Holidays Ltd and firmly believe that the introduction of Discovery into the CMV fleet in 2013 alongside our popular flagship, Marco Polo will consolidate our position in the traditional ‘smaller ship’ British cruise market sector. We have enjoyed three highly successful summer seasons operating Ocean Countess from regional ports around the British Isles and now look forward to operating the upgraded Discovery and establishing her as a great value cruise brand. Our booked passengers will be transferred to Discovery with around 80% of our scheduled ex-UK regional cruise programme largely unaffected”

The joint venture on Discovery will offer regional departures and a small-ship traditional cruising experience to a UK-focused audience, with departures from ports of call across the country including Liverpool, Harwich, Hull, Bristol and the Port of Tyne as well as fly cruises from destinations in Spain, Italy, Greece and Turkey.

Focused on offering a small ship cruise experience at great value, mini one-night cruises will start from just £69 per person, with a five night cruise costing from £409 per person.

Longer cruises from five to 18 nights are available and a two-week cruise costs from £1,129 per person – less than £87 per night – including all meals and entertainment, and from a convenient departure point. Itineraries and destinations on offer include Natural Wonders & Wildlife (Orkney, Faroe Islands and Iceland) Baltic Symphony (Estonia, Denmark and Russia) and Cradle of Civilization (Egypt, Turkey and Israel).

Both All Leisure Holidays and Cruise & Maritime Voyages will sell this new product with both teams able to offer expert advice to all customers. Travel Agent bookings for Discovery will be made with Cruise & Maritime Voyages.

Voyages of Discovery this week also started the 100 day countdown to the launch of their new ship, Voyager, which sets sail from Portsmouth for its inaugural cruise on 4th December 2012 following an extensive refurbishment. Voyager will continue to be marketed and sold through the trade under the award winning Voyages of Discovery brand, and will maintain unique itineraries and the discovery cruising ethos that enables passengers to explore and learn about different destinations and their cultures and history.

Key additions to Voyager during the refurbishment include the introduction of an explorer theme across the whole ship, a new piano bar – Scott’s Lounge, a new speciality restaurant, a ‘look-out’ lounge and an al fresco dining terrace with all-weather awning. Voyager will offer a choice of 270 cabins, almost 90% of which are outside cabins and 30 of which have balconies.

Guests booking an outside cabin on any winter 2012/13 cruise on board Voyager before 30 September 2012 will receive £100 on board credit per cabin.

STX Europe warns of more challenging times after Cruise & Ferry EBITDA plunges to red

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 14 August 2012 14 August 2012

STX Europe, which part of the South Korean STX Business Group, has reported second quarter pre tax profit of NOK370 million, little changed from NOK407 million in the same period last year.

The company, which builds cruise liners and ferries at two fully owned yards in Finland and at one yard in France in which it has a 66% stake, said that market conditions in its Cruise & Ferry business area remained challenging through the review period and more of the same is expected from the future.

STX Europe said it is committed to remain a leading builder of cruise liners and ferries, but its Finnish yards would retain ice breaking tonnage as a key area in the future. Order intake in passenger ship business fell to NOK165 million from NOK5.15 billion a year earlier, while order backlog in the sector declined to NOK11.67billion on 30 June from NOK16.21 billion a year earlier.

The Cruise & Ferry business area generated revenues of NOK2.19 billion in the second quarter of this year, slightly more than the NOK2.10 billion a year earlier. However, EBITDA plunged to negative by NOK41 million from positive by NOK86 million a year earlier, resulting in an EBITDA margin negative by 1.9% against a figure positive by 4.1%.

STX Europe said that financing of newbuilding projects would remain a difficult task and the outlook remained challenging.

Royal Caribbean promotes Bayley as President and CEO of Celebrity, moves Lutoff-Perlo to RCI

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 31 July 2012 31 July 2012

Royal Caribbean Cruises, Ltd. today announced that Michael Bayley has been promoted to President and CEO of Celebrity Cruises, replacing Dan Hanrahan, whose departure was recently announced. Bayley will report directly to Richard D. Fain, Chairman and CEO of Royal Caribbean Cruises, Ltd. Bayley has been with Royal Caribbean for over 30 years, most recently as Executive Vice President of Operations. Prior to this role, Bayley served as Executive Vice President — International, where he oversaw the international expansion for the company.

"In his role as Executive Vice President — International, Michael successfully spearheaded our aggressive expansion efforts into emerging and high-growth markets, and most recently has overseen all Operations for Royal Caribbean International," said Fain. "Fortunately, Celebrity has a very strong management team to build on and I am delighted that Michael will bring his vision, passion and drive to bear on the continued growth of this important brand."

In a related move, Lisa Lutoff-Perlo will be promoted to Senior Vice President of Operations for Royal Caribbean International, reporting to Adam Goldstein, President and CEO of Royal Caribbean International. Lutoff-Perlo is a 27 year veteran of the company who has served in a variety of roles within both Celebrity Cruises and Royal Caribbean International. Most recently, Lutoff-Perlo served as Senior Vice President of Hotel Operations for Celebrity Cruises. In that role, she oversaw all the hotel operations of the brand, including the highly successful introduction of the Solstice-class of ships. Prior to her tour of duty with Celebrity Cruises, Lutoff-Perlo was in charge of Product Marketing and Strategic Alliances for Royal Caribbean International. In the past, she has also served both brands in a variety of increasingly senior sales roles.

"I am happy to welcome Lisa back to our team," said Goldstein. "Given her tremendous accomplishments leading Celebrity's highly successful hotel operations, I am excited to have her in this expanded role."