Europe back on growth path in 2015
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- Written by Teijo Niemelä Teijo Niemelä
- Category: Top Headlines Top Headlines
- Published: 16 March 2016 16 March 2016
Alan Lam reporting from Fort Lauderdale
At the SCG 2016 State of the Industry Europe panel, on behalf of CLIA Europe, Kerry Anastasiadis, CEO of Celestyal Cruises, presented the latest passenger figures for the continent. A record 6.57 million Europeans went on cruises in 2015, representing a 3.1% increase as compared to 2014.
Germany topped the table by contributing just over 1.81 million passengers; but the biggest growths came from Scandinavia, with a massive 14.9%, followed by UK & Ireland, with 8.8%, after a temporary decline in 2014. The increases were driven mainly by capacity additions.
The European picture was, however, a mixed one. Disappointingly there were a few areas of significant falls, with such market a Belgium falling by as much as 10.4%, Austria by 7.1%, and Italy by 3.9%.
Commenting on the results, Kerry Anastasiadis stated that after years of stagnation it was comforting to see Europe back on the growth path again. He also pointed out that a longer term perspective must be adopted on this. All throughout the financial crisis, between 2008 and 2015, Europe’s cruise business grew by 49%, representing an annual average of 6%. “Imagine what we would be able to achieve in a more favourable economic climate,” he said.
The potential for Europe is enormous, but there are challenges to overcome. “The key challenge for us is to ensure the next seven years to be as impressive as last seven,” he said, highlighting the need to overcome immediate challenges such as relaxing the EU visa regime and transparency environmental protection regulations as paramount concerns.
“These factors if not addressed will limit the growth of cruise business in Europe,” he added.
UK cruise market grew 8.8%, fastest in seven years, to record 1.79 million passengers 2015
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 16 March 2016 16 March 2016
The British cruise market grew by 8.8% to a record of 1.79 million passengers last year, the strongest growth in seven years and a sharp reversal of the 4.8% decline in 2014, CLIA UK & Ireland said in a statement, adding that the average age of passengers fell by most in a decade.
The number of bed nights booked rose by 5.4% to a record of 18.9 million, reversing three years of decline and setting a new record.
Last year saw a huge rise in the popularity of Atlantic Islands cruises but the Mediterranean remains the number one choice for cruises from UK.
Cruising from a UK port increased sharply in 2015 and although fly-cruise also grew, ex-UK cruises are back on course to account for 50% of passengers within a few years. Nearly two-thirds of cruise consumers took more than one cruise in 2015 – the most multiple cruisers for a decade About a third of cruises were taken by first-timers. The average age of passengers dropped by three years – the largest annual drop for more than a decade - which was perhaps the most remarkable development of the year..
Last-minute bookings at lowest level for five year, while river cruising’s growth reflects that of ocean cruising as passengers top 150,000, CLIA UK & Ireland said.
Exclusive SCG 2016 report – President of Costa Cruises discusses the challenging South American market with Cruise Business Review
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- Written by Teijo Niemelä Teijo Niemelä
- Category: Top Headlines Top Headlines
- Published: 16 March 2016 16 March 2016
Alan Lam reporting from Fort Lauderdale
As the South America cruise business softens, Costa Cruises has been forced to reduce capacity in the region. CBR spoke exclusively with Neil Palomba, President of Costa Crociere S.p.A., about prospects and challenges of this once promising market.
It would appear that the economic crisis of the region is only one half of the story, what is equally disconcerting is the prevailing hostile operating environment. “Right now we believe we have the right capacity for this market,” said Neil Palomba. “We have one ship out of Brazil and one ship out of Argentina. We are anxiously waiting for the decision from the Brazilian government about the renewal of an agreement that would allow us to continue developing the market. There is a lot of potential in South America, but in order for us to invest in this market, we need a sustainable environment.”
By that he meant permanently overcoming specific legislative constrains. “There are certain laws that have been introduced,” he went on, “especially the requirement of recruiting Brazilian crews on our ship, which are limiting our development prospects.”
After devaluating its currency, Argentina, according to Neil Palomba, was now back on track. He saw massive opportunities in both Argentina and Brazil that were not being taken advantage of. “We would like to deploy more ships there,” he said, “but the high costs in Brazil and Argentina are limiting our development. Buenos Aires is the most expensive port in the world to operate out of. This is something has to change otherwise they will lose valuable business. It is difficult for us to invest in a market that has such a high cost. We are constantly in talks with the authorities there over these issues. So far no sustainable agreement has been reached.”
But Neil Palomba is hopeful. “I am confident that the Brazilian government will see the value of cruise business to the country’s economy,” he concluded, “especially through job creation. Because of the smaller number of ships deployed now, there are fewer jobs available than it used to be.”
Costa was a forerunner in the South American cruise market. Its tenacious spirit was forged in those early pioneering days. It has never lost that steadfastness in confronting challenges. We believe it is the very same spirit that has prompted the company to invest in two LNG-powered mega ships (the first of which will be introduced in 2019 and operate out of Savona).
It absolutely must be recognised that Costa has that rare quality of indefatigability that will serve its ambition well. It will never let go of pursuing the South American market.
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