CruiseBusiness.com CruiseBusiness.com REVIEWING CRUISE BUSINESS GLOBALLY Magazine Magazine SPRING 2023 Canada comes back stronger Canada comes back stronger UK faces storm clouds with confidence SUN PRINCESS IN THE WORKS In early March, Fredrik Johansson of Tillberg Design of Sweden – along with his colleagues from Princess Cruises, Jeffrey Beers International and Richmond International – gave an exclusive tour for the media onboard the Sun Princess. With 11 months to go until its scheduled maiden voyage, the 175,500 gross ton Sun Princess represents a new class for the Love Boat brand, featuring the introduction of LNG for fuel and Azipods for propulsion. tumma kansi spring 2023.indd 1 tumma kansi spring 2023.indd 1 22.3.2023 7.40 22.3.2023 7.40
Whether the destination is to the remotest parts of the planet or to the cultural capitals of the world, SunStone provides all-in-one B2B solutions for small ship cruising on long-term or seasonal charters in cold and warm waters. Our clients and partners depend on SunStone’s commitment to environmental sustainability and pioneering initiatives to build a class of expedition vessels that delivers efficiency, safety, and comfort. Join us today on the expedition cruise of tomorrow. OCEAN ODYSSEY SYLVIA EARLE OCEAN ALBATROS OCEAN VICTORY OCEAN EXPLORER GREG MORTIMER OCEAN DIAMOND OCEAN ENDEAVOUR OCEAN ADVENTURER OCEAN ATLANTIC SEA SPIRIT OCEAN NOVA Delivery 2023 Follow The Sun Wherever Your Destination, Let SunStone Take You There www.sunstoneships.com SHAPING THE FUTURE WITH INNOVATIVE CRUISE SOLUTIONS Deliver the cruise port experience preferred by discerning travelers, from e? ortless access through FLL and modern terminals to exceptional preand post-cruise diversions in Greater Fort Lauderdale. We’ll pamper you, too, with a warm welcome through our Harbormaster O? ce, concierge-style service by our dedicated cruise team and fully scalable amenities all available 24/7. We make it easy. A World-Class Welcome PortEverglades.net 2-3.indd 2 2-3.indd 2 20.3.2023 8.05 20.3.2023 8.05
SHIP PREVIEW Whether the destination is to the remotest parts of the planet or to the cultural capitals of the world, SunStone provides all-in-one B2B solutions for small ship cruising on long-term or seasonal charters in cold and warm waters. Our clients and partners depend on SunStone’s commitment to environmental sustainability and pioneering initiatives to build a class of expedition vessels that delivers efficiency, safety, and comfort. Join us today on the expedition cruise of tomorrow. OCEAN ODYSSEY SYLVIA EARLE OCEAN ALBATROS OCEAN VICTORY OCEAN EXPLORER GREG MORTIMER OCEAN DIAMOND OCEAN ENDEAVOUR OCEAN ADVENTURER OCEAN ATLANTIC SEA SPIRIT OCEAN NOVA Delivery 2023 Follow The Sun Wherever Your Destination, Let SunStone Take You There www.sunstoneships.com SHAPING THE FUTURE WITH INNOVATIVE CRUISE SOLUTIONS Deliver the cruise port experience preferred by discerning travelers, from e? ortless access through FLL and modern terminals to exceptional preand post-cruise diversions in Greater Fort Lauderdale. We’ll pamper you, too, with a warm welcome through our Harbormaster O? ce, concierge-style service by our dedicated cruise team and fully scalable amenities all available 24/7. We make it easy. A World-Class Welcome PortEverglades.net 2-3.indd 3 2-3.indd 3 20.3.2023 8.05 20.3.2023 8.05
Ph oto cre dit : Te ijo Ni em elä ONWARDS. Now it is time to work even harder. They say when you reach the top, there is only one way to go. We say that way is onwards . Visit viking.com, call 1-800-2-VIKING or see your Travel Advisor AND #1 ON OCEANS... AGAIN, WHERE DO YOU GO NEXT? WHEN YOU ARE NAMED #1 ON RIVERS… Ship category: Mid-size ship 300–799 cabins From August 2022 Travel + Leisure® , 2022 Travel + Leisure Holdco, LLC, a subsidiary of Wyndham Destinations, Inc. Travel + Leisure is published by TI Inc. Affluent Media Group, a subsidiary of Meredith Operations Corporation. Meredith Operations Corporation is not affiliated with Wyndham Destinations, Inc. or its subsidiaries. All rights reserved. Travel + Leisure® is a registered trademark of Travel + Leisure Holdco, LLC, a subsidiary of Wyndham Destinations, Inc. and is used under limited license. Viking Cruises is not affiliated with Wyndham Destination, Inc. or its subsidiaries. CST# 2052644-40 #1 Rivers & Oceans...again 6 Editor’s Commentary 8 Hong Kong’s cruise scene surges full steam ahead 10 Upfront CONTENTS – SPRING 2023 14 Canada comes back stronger 20 UK market faces storm clouds with confidence 27 Roxtec signs, seals and delivers 28 Anglo-Eastern Leisure Management to capitalize on economies of scale 30 Fincantieri plans for a green future 33 Sun Princess in the works 36 Northern European ferry recovery gathers momentum 40 Swan Hellenic’s new fleet now complete 42 Jamaica – five ports, one island Viking Star was company’s first ocean cruise ship in 2015 4 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 4-5.indd 2 4-5.indd 2 12.5.2023 9.59 12.5.2023 9.59
ONWARDS. Now it is time to work even harder. They say when you reach the top, there is only one way to go. We say that way is onwards . Visit viking.com, call 1-800-2-VIKING or see your Travel Advisor AND #1 ON OCEANS... AGAIN, WHERE DO YOU GO NEXT? WHEN YOU ARE NAMED #1 ON RIVERS… Ship category: Mid-size ship 300–799 cabins From August 2022 Travel + Leisure® , 2022 Travel + Leisure Holdco, LLC, a subsidiary of Wyndham Destinations, Inc. Travel + Leisure is published by TI Inc. Affluent Media Group, a subsidiary of Meredith Operations Corporation. Meredith Operations Corporation is not affiliated with Wyndham Destinations, Inc. or its subsidiaries. All rights reserved. Travel + Leisure® is a registered trademark of Travel + Leisure Holdco, LLC, a subsidiary of Wyndham Destinations, Inc. and is used under limited license. Viking Cruises is not affiliated with Wyndham Destination, Inc. or its subsidiaries. CST# 2052644-40 #1 Rivers & Oceans...again 4-5.indd 3 4-5.indd 3 12.5.2023 9.59 12.5.2023 9.59
I n our Winter 2023 issue, I wrote about the second-hand cruise ship market and the fate of the 2017-built, 150,695 gross ton World Dream. While our latest issue was still in the mail, the ship was up for auction a second time and found a buyer with a satisfactory offer. The World Dream was not acquired by any current cruise owner or operator, but an entirely new entrant looking to build a cruise venture from the ground up: Cruise Saudi. Saudi Arabia has been actively working to enter the inbound tourism industry. Neighboring nations, such as the United Arab Emirates, Oman, Qatar and Egypt on the other side of the Red Sea, have all carved out their share of the global tourism market. Dubai is a prime example, having developed one of the leading destinations in the world offering world-class resorts and attractions, all served by its global carrier, Emirates Airline. In much the same way, Qatar has built its reputation with Qatar Airways and by hosting the soccer World Cup last year. The Saudi expansion is a vision of His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz, Prime Minister and Chairman of the Public Investment Fund (PIF), which is behind the Cruise Saudi investments. In a further development, on March 12 Saudi Arabia announced the formation of a new global airline, Riyadh Air, which will utilize Riyadh as a gateway between Europe, Asia and Africa. As with Cruise Saudi’s CEO Lars Clasen, a veteran cruise executive with decades of experience, Riyadh Air has tapped Tony Douglas, who brings with him 40 years of airline experience to run the new carrier. Cruise Saudi has already accomplished significant milestones. On Saudi Founding Day 2023, it set a record of welcoming 9,000 cruise visitors on the same day when the MSC Splendida and Residences At Sea’s The World visited Jeddah and the new MSC World Europa docked in DamEditor Teijo Niemelä Publisher Cruise Media LLC Chief Content Officer Carolyn Spencer Brown Copy Editor M.T. Schwartzman Sales and Production Christer Gorschelnik Art Director Julle Järvinen, Julle Oy COMPANY ADDRESS Cruise Media LLC 209 N Queen Street Chestertown, MD 21620 USA Telephone +1-609-751-2344 E-mail cruisemediallc[a]gmail.com SALES OFFICE FINLAND ChrisGo Consulting Pahtankatu 10 as 10 FIN-21200 Raisio, Finland Telephone +358-440-159 554 E-mail christer.gorschelnik[a]kolumbus.fi SALES OFFICE USA Teijo Niemelä 209 N Queen Street Chestertown, MD 21620 USA Telephone +1-609-751-2344 cruisemediallc[a]gmail.com FEATURED CONTRIBUTOR M.T. Schwartzman has covered Alaska tourism and the cruise industry since 1988. He has written hundreds of articles on the state for consumer, trade and business publications. He also is the Copy Editor of CruiseBusiness.com Magazine. PRINTED IN FINLAND – PUNAMUSTA OY, HELSINKI EDITOR’S COMMENTARY mam. Altogether, Cruise Saudi expects to host 75 cruise ship calls during the 2022-2023 season. Cruise Saudi currently markets six destinations – one in the Persian Gulf and five in the Red Sea. E lsewhere, Japan is one of the most versatile cruise destinations in the world. Before the Covid-19 pandemic, its numerous destinations were mostly explored by global cruise operators, while three small domestic brands catered exclusively to the domestic market. Since this winter, the number of Japanese cruise operators has shrunk to two: NYK Cruises and MOPAS – both owned by large cruise shipping conglomerates, NYK and MOL Group. Thankfully, both have a long-term strategy to stay in the cruise business. NYK has already commissioned a newbuild from Meyer Werft, which will be delivered in 2025, while MOL Group has announced plans to introduce three 35,000 gross ton newbuilds by 2027. However, no order has yet been made. To accelerate this growth, MOL Group announced in mid-March that it will acquire the 2009-built, 32,000 gross ton Seabourn Odyssey from the world’s largest cruise company, Carnival Corporation & plc. This gives MOL Group a bridge between its current single-ship operation to a multiship fleet, which will be marketed internationally for the first time. The Seabourn Odyssey currently serves the ultra-luxury segment and will give MOL Group a good tool to start its expansion well before its planned newbuildings come into service. It is nice to see the sun rising again in the East. Teijo Niemelä HOW TO FOLLOW US Twitter.com/cruisebusiness n facebook.com/CruiseBusinessUSA n Instagram.com/niemelateijo CruiseBusiness.com Magazine F I N C A N T I E R I . C O M THE SEA IS WAITING FOR US, BUILDER AND OWNERS, TOGETHER. This has been a tough period for the entire cruise industry. But our strength and resilience have allowed us to stay close to all Ship-Owners throughout. A new era of cruising is coming, digital and green, and we will be by your side every step of the way. K -C H A N G E C M Y CM MY CY CMY K SAUDI ARABIA IN HIGH GEAR 6 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 6-7 .indd 2 6-7 .indd 2 22.3.2023 8.00 22.3.2023 8.00
F I N C A N T I E R I . C O M THE SEA IS WAITING FOR US, BUILDER AND OWNERS, TOGETHER. This has been a tough period for the entire cruise industry. But our strength and resilience have allowed us to stay close to all Ship-Owners throughout. A new era of cruising is coming, digital and green, and we will be by your side every step of the way. K -C H A N G E C M Y CM MY CY CMY K 6-7 .indd 3 6-7 .indd 3 22.3.2023 8.00 22.3.2023 8.00
8 Cruisebusiness.Com magazine spring 2023 H ong Kong’s cruise scene is surging full steam ahead, buoyed by the visit of the elegant Silver Spirit of luxury line Silversea Cruises in mid-January, which marked an auspicious start to the year. March 9 was an exciting day for the Hong Kong cruise scene – four ships berthed in Hong Kong on the same day! Among them was a vessel from Resorts World Cruises that offers homeport sailings from Hong Kong, starting with hugely popular 2-night and 3-night itineraries. Many more international cruise lines will stream back to Hong Kong throughout the year, bringing cruise fans from around the globe to Hong Kong’s shores. A portal to a world of opportunities Hong Kong’s appeal as one of the world’s most exciting harbor cities and a desirable destination for those who love to sail the oceans continues to shine. The turbulence caused by the pandemic may become a blip on the radar. As a highly efficient global aviation hub strategically located in the heart of Asia, with the convenience of direct connections from cities around the world, Hong Kong has unrivalled connectivity for cruise operators looking to attract international passengers with innovative fly-cruise products and extended regional journeys. Hong Kong, as part of the dynamic Greater Bay Area (GBA), also offers cruise companies excellent opportunities to develop cruise products connecting southern mainland cities, travelling via the iconic Hong KongZhuhai-Macao Bridge or High Speed Rail. This not only delivers enriched regional experiences for international cruise passengers, but also taps into the enormous potential market for international and regional cruises within the GBA, which boasts a population of 86 million people. In terms of itineraries from Hong Kong, cruise passengers can sail in indulgence north to the bustling coastal cities of mainland China, Taiwan, Japan and South Korea, or south and east to the exotic cultures of Vietnam, Thailand, Singapore, Malaysia, the Philippines and Indonesia. This places Hong Kong as an ideal port for cruise operators to center their international and regional itineraries with onward journeys to some of Asia’s most vibrant destinations. Breathtaking harbor is just the start of an unforgettable stay It is hard to imagine a more spectacular arrival than sailing into Hong Kong harbor, with its dramatic skyline, bright neon lights and mountain peaks beyond. Day or night, it gives visitors so many unforgettable moments. And it’s only the start! Compact, cosmopolitan and bursting with energy, this city is tailor-made for cruise passengers looking for an action-packed shore experience. Renowned for its unique East-meets-West culture, Hong Kong offers mouth-watering culinary delights and authentic street food, a thriving arts and entertainment scene and shopping everywhere from lively local markets to sprawling high-end mega malls. Two fabulous new attractions in the harborfront West Kowloon Cultural District are the latest mustsees. The Hong Kong Palace Museum displays an exclusive collection of over 900 priceless treasures from the Palace Museum in Beijing, giving a unique insight into centuries-old Chinese culture, while M+ is Asia’s first truly global museum of contemporary visual culture, delivering a distinctive and innovative voice about Asia’s place in the modern world anchored on Hong Kong’s historical balance of local and international influences. Long-beloved attractions have added a new sheen too! One of the city’s most enduring attractions, the Peak Tram, has been given a stunning makeover, providing an even more enthralling journey to panoramic views atop Victoria Peak. Hong Kong Disneyland Resort has unveiled plenty of compelling new attractions, including the Castle of Magical Dreams and a brilliant night-time spectacular, “Momentous,” ahead of the much-anticipated launch of the world’s first themed area fashioned after the hit movie Frozen. Over at Ocean Park, the new all-weather indoor and outdoor Water World promises visitors hours of water-based thrills and spills. With so much happening in Hong Kong, and its growing stature as the commercial and cultural epicenter of the region, along with support from the Hong Kong Tourism Board, the local cruise scene is set to make a strong comeback once again in the international cruise market. Discoverhongkong.com ADVERTORIAL Hong Kong’s cruise scene surges full steam ahead Hong Kong’s cruise scene surges full steam ahead
From top to bottom: M+ and Hong Kong Palace Museum (Credit: Hong Kong Palace Museum) are new attractions in Hong Kong; The Peak Tram; and Symphony of Lights Cruisebusiness.Com magazine spring 2023 9
10 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 Carnival Cruise Line reached a major milestone on March 16 as the first cruise line to carry over 100 million passengers since it began sailing more than 50 years ago. The milestone was commemorated as 100millionth passengers Debi and David Clifford – vacationing from Ohio and representing Carnival guests everywhere – boarded the Carnival Sunrise at PortMiami with their family. They were recognized with fanfare from Carnival Cruise Line President Christine Duffy and the ship’s team members, led by Captain Luca Cherchi. P&O Cruises’ newest vessel, the 182,204 gross ton Arvia, was named on March 16 during a beachside party in Barbados. The LNG-powered vessel has spent this winter season dual-homeporting in Antigua and Barbados, so it was more than appropriate that Barbados Prime Minister Mia Mottley and Grenada Prime Minister Dickson Mitchell joined P&O Cruises President Paul Ludlow for the ceremony. Meyer Turku shipyard in Finland and Royal Caribbean Group celebrated the official cutting of steel to start production for the second, still unnamed Icon-class newbuilding. The LNG-powered Icon class will be the largest cruise ships ever built, registering 250,800 gross tons and carrying 5,610 passengers (double occupancy). The Icon of the Seas will set sail in January 2024, while the second Icon ship will follow a year later. UPFRONT #WeLoveCruising CRUISE CAPITAL OF THE WORLD YOUR ADVENTURE BEGINS IN MIAMI PortMiami.biz 10-13 .indd 2 10-13 .indd 2 22.3.2023 7.24 22.3.2023 7.24
#WeLoveCruising CRUISE CAPITAL OF THE WORLD YOUR ADVENTURE BEGINS IN MIAMI PortMiami.biz 10-13 .indd 3 10-13 .indd 3 22.3.2023 7.24 22.3.2023 7.24
SAILING UNDER A NEW BANNER THE CRUISE SHIP MANAGEMENT & CRUISE HOSPITALITY EXPERTS It's a legacy we’re proud of and inspired to build upon, through new markets, new partners, and new possibilities. And nothing could be more exciting than leveraging our global scale and expertise for growth in the cruise industry with two of the most trusted experts in the business that share our same commitment to quality, safety, and the environment. Anglo-Eastern Cruise Management and Anglo-Eastern Leisure Management (formerly Cruise Management International and CMI Leisure Management) are now proud members of the Anglo-Eastern family, which has been managing ships of all types and sizes for high-pro?le clients around the world since 1974. Yet with 50 years of global ship management experience and the expertise of two of the cruise sector’s most respected niche players, we're far from new to the industry and are keen to make a splash under a new banner, with more power in our sails to take you further. There’s a new kid in town 12 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 Oceania Cruises has named celebrated ItalianAmerican chef, author, restaurateur and Emmy Award-winning food personality Giada De Laurentiis as godmother of its newest ship, the Vista, debuting in May 2023. Multiple Grammy and Emmy Award-winning singer, pianist and actor Harry Connick Jr. will appear alongside De Laurentiis at the star-studded christening and naming ceremony on May 8 in Valletta, Malta. De Laurentis is pictured here with Oceania Cruises’ new President Frank A. Del Rio. The coin ceremony for the Explora II, the second of up to six ships planned by the Cruise Division of MSC Group for its luxury brand Explora Journeys, took place on February 8 at Fincantieri’s Sestri Ponente shipyard near Genoa, Italy. The time-honored maritime ceremony saw commemorative coins placed inside the ship as a sign of blessing during construction and good fortune in the future. The event was attended by key executives including Pierfrancesco Vago, Executive Chairman, Cruise Division, MSC Group; Michael Ungerer, CEO, Explora Journeys; and Pierroberto Folgiero, CEO, Fincantieri. Resorts World One commenced its maiden voyage on March 9 from Hong Kong’s Kai Tak Cruise Terminal on a weekend high-seas cruise. The 75,338 gross ton Resorts World One is the first cruise ship to restart cruises in Hong Kong with a year-round homeport deployment offering three sailings a week. Michael Goh, President, Resorts World Cruises (left), presents a ship model as a memento to Kenneth Wong, General Manager – MICE & Cruise, Hong Kong Tourism Board (right), at the Hong Kong launch for Resorts World One. UPFRONT 10-13 .indd 4 10-13 .indd 4 22.3.2023 7.24 22.3.2023 7.24
SAILING UNDER A NEW BANNER THE CRUISE SHIP MANAGEMENT & CRUISE HOSPITALITY EXPERTS It's a legacy we’re proud of and inspired to build upon, through new markets, new partners, and new possibilities. And nothing could be more exciting than leveraging our global scale and expertise for growth in the cruise industry with two of the most trusted experts in the business that share our same commitment to quality, safety, and the environment. Anglo-Eastern Cruise Management and Anglo-Eastern Leisure Management (formerly Cruise Management International and CMI Leisure Management) are now proud members of the Anglo-Eastern family, which has been managing ships of all types and sizes for high-pro?le clients around the world since 1974. Yet with 50 years of global ship management experience and the expertise of two of the cruise sector’s most respected niche players, we're far from new to the industry and are keen to make a splash under a new banner, with more power in our sails to take you further. There’s a new kid in town 10-13 .indd 5 10-13 .indd 5 22.3.2023 7.24 22.3.2023 7.24
R e n e w w i t h t h e e x p e r i e n c e cruisesaintlawrence.com P E O P L E . P L A C E S . P A S S I O N S . t h e e x p e r i e n c e Renew with an experience like no other. With its colossal gulf, magnificent landscapes and incredible wildlife, the world’s third-largest river is a true wonder of nature. Renew with the nine splendid ports of call along the 2,000 kilometres-long river. Each of them has something unique to offer. Charming villages, rolling farmlands, bustling cities, a fjord, and smooth beaches are dotted along the way. Arts and culture lovers, festival goers and nature enthusiasts alike are bound to have an unforgettable experience. Let your guests discover the history, the heritage and the people of Québec and renew with our “Best Bienvenue”. The trip of a lifetime awaits. Renew with the Saint Lawrence. Again and again. Ph ot o : M at hi eu Du pu is Untitled-1 2 Untitled-1 2 23.3.2023 9.06 23.3.2023 9.06
R e n e w w i t h t h e e x p e r i e n c e cruisesaintlawrence.com P E O P L E . P L A C E S . P A S S I O N S . t h e e x p e r i e n c e Renew with an experience like no other. With its colossal gulf, magnificent landscapes and incredible wildlife, the world’s third-largest river is a true wonder of nature. Renew with the nine splendid ports of call along the 2,000 kilometres-long river. Each of them has something unique to offer. Charming villages, rolling farmlands, bustling cities, a fjord, and smooth beaches are dotted along the way. Arts and culture lovers, festival goers and nature enthusiasts alike are bound to have an unforgettable experience. Let your guests discover the history, the heritage and the people of Québec and renew with our “Best Bienvenue”. The trip of a lifetime awaits. Renew with the Saint Lawrence. Again and again. Ph ot o : M at hi eu Du pu is Untitled-1 3 Untitled-1 3 23.3.2023 9.06 23.3.2023 9.06
16 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 DESTINATIONS Canada comes back stronger C ruise Atlantic Canada (CAC) and Cruise the Saint Lawrence (CSL) both report numbers for 2022 at 60% to 70% of those for 2019. In 2019, CAC had 559 calls and 873,629 passengers, while in 2022 there were 474 calls and 623,069 passengers. This year, however, the picture is quite different, explains Mike Cochrane, CEO of CAC and the Charlottetown Harbour Authority. “In 2023, I think we are going to see record level bookings. All the ports are seeing a rise in numbers. We are also seeing major growth in the niche ports.” In Charlottetown, for example, 91 calls are scheduled bringing 150,000 passengers (55/62,787 in 2022) and 50,000 crew to Prince Edward Island, which has a population of 165,000. While 2022 was a year of recovery following the Covid19 pandemic, this year is forecast to be a better one across Atlantic Canada, the Saint Lawrence and the Great Lakes. By Susan Parker For 2024, another record year is on the horizon: “There is room for growth in our region. The lines are starting to hear the message about the summer [not just fall]. We have ships arriving here as early as April and staying to November. Expanding the market is a testament to what we have here in Atlantic Canada,” adds Cochrane. Although there is no scientific evidence, he says there is some anecdotal evidence that Americans are choosing to stay closer to home at the moment. “I do hear sentiments from passengers this year about cruising in this part of the world. It is close enough to Europe but also a safe destination.” A similar pattern is emerging from CSL. In 2019 there were 313 calls, 99 turnarounds, 486,126 passenger days and 176,814 crew days, whereas in 2022 there were 248, 52, 266,601 and 137,166 respectively. For this year. Rene Trepanier, Executive Director of CSL, comments: “It looks like we are going to be back at 2019 numbers.” Just one of the exciting developments this year is the arrival of newcomer Explora Journeys to the region with the Explora I. The design of Viking Octantis and Viking Polaris has been optimized for the operations in the Great Lakes Mike Cochrane Rene Trepanier uusi 16-19 canada.indd 4 uusi 16-19 canada.indd 4 22.3.2023 7.31 22.3.2023 7.31
? CRUISEBUSINESS.COM MAGAZINE SPRING 2023 17 Charlottetown uusi 16-19 canada.indd 5 uusi 16-19 canada.indd 5 22.3.2023 7.31 22.3.2023 7.31
18 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 Extending the season Fall is the main attraction here, with the summer continuing to be a challenge. However, the aim is to encourage some of the big players to sail roundtrip from St Pierre & Miquelon, which “could create regular opportunities for the Saint Lawrence” beyond the fall. Noting that previously cruise lines were slowing down because of whales, now it is also because of fuel cost and sustainability. Trepanier believes that itineraries with shorter distances between ports, such as on the river, are now attracting more attention. Extending the season into winter has been on CSL’s wish list for about 10 years, and finally it appears there is one operator who could be very close to signing up, opening the door for others to follow. The Great Lakes may be smaller in terms of overall numbers, but this year the region is showing a 20% increase over 2019 with 12 ships and 37,000 berths. The fact that Viking came with one ship in 2022 and is bringing two this year is testament to the attraction of the lakes. Stephen Burnett, Executive Director of the Great Lakes Association (GLA), attributes some of this growth to what he calls “revenge tourism” following the pandemic, but also in part perhaps to the “American traveler tending to be very situation sensitive”. In addition, the work the association has put in over the past 20 years is reaping rewards: “We have done a massive amount of destination development. Most of what we do borders on topography. These are inland oceans not lakes. We are teaching [the lines] about the significant distances, time, speed calculations in order to move from port to port and lake to lake, which is exceptionally important,” he explains. The inside passage on the north shore of Lake Superior is just one example of what is on offer. Locks a determining factor The Saint Lawrence seaway locks are the determining feature when it comes to the size of ship that can visit (233.5-meter length, 23.77-meter width, 8.08-meter draught and 35.5-meter air draught for bridges), but operators such as Ponant, Hapag-Lloyd Cruises and now Viking have “put a stamp of legitimacy” on visiting, with more lines due to follow. “I know we are going to be getting two other significant wellknown names in the not-too-distant future,” says Burnett, who believes the region is ripe for growth. “We have massive upside capacity. We can upscale way beyond this. We will need to make some changes in terms of port facilities, but we can grow this to 100,000 guests in eight years with the right kind of input. The Great Lakes is highly sophisticated in terms of handling because of its freighting industry. On the tourism side, it is a substantial terrestrial destination,” he adds. GLA has also made a commitment to include the First Nations in everything it does, recognizing the significant history, culture and art that play a very large part in the region’s appeal. Both Burnett and Trepanier see the growth in the number of expedition ships coming onto the market as positive. “We think there are great itinerary opportunities for the Great Lakes and also the Saint Lawrence, which is en route. We just want some ships to slow down and build itineraries using our ports as well,” says Trepanier. The two associations have recently created a partnership, which is opening doors for joint promotion. The GLA will also be attending the Cruise Canada New England (CCNE) symposium in Quebec City in June as a strategic member. The main turnaround ports for the Great Lakes are Toronto, Thunder Bay and Montreal. The latter has suffered from Holland America Line selling some of its mid-size ships, which were a familiar sight in the city. Increased numbers going into the lakes could fill the gap. Trepanier points to at least four French companies wanting to develop stronger partnerships in this regard. Putting together a sustainable plan When it comes to the wider region of CCNE, a sales mission to Hollywood, Florida, in February attracted 13 different cruise lines and 30 executives. As well as presenting its figures, the group presented two major projects. One is the creation of a common reservation system across all the ports. “We are very close to adding some results to our research. We are doing this for ourselves but also for the cruise lines, which are very interested to know three, four and five years in advance what the availability will be. This Ocean Explorer calling in Pictou uusi 16-19 canada.indd 6 uusi 16-19 canada.indd 6 22.3.2023 7.32 22.3.2023 7.32
CRUISEBUSINESS.COM MAGAZINE SPRING 2023 19 way we can better deal with congestion, especially during the fall season,” explains Trepanier. The second is in putting together a sustainable plan for CCNE. “We have a strong sustainable strategy for the destination. Our target for the symposium is for all the ports and stakeholders to sign a pledge on sustainability in Quebec City.” The biggest project to date in this respect is with respect to shore power. While some ports such as Montreal and Halifax have it installed, others such as Quebec City and Charlottetown are looking at the possibility, but the investment is high. Trepanier believes the way forward is in partnerships. “We are in the mood of creating partnerships with cruise lines individually, and maybe even globally, to have them eventually as financial partners to invest in not only decarbonization, but biodiversity as well.” However, he recognizes that one size does not fit all, particularly when it comes to the age of the fleet. And here again partnerships are key: “There are some old ladies which don’t have the green systems, but if we have a partnership with that ship and we reinvest in, for example, the protection of the marshland, then we have a solution.” The wide-ranging topic of sustainability is clearly one that CCNE members hold dear to their hearts. Whether it is CSL encouraging local suppliers to provision ships with local cheeses via the Can-Am Foods Artisanal Cheese Program 2023 or Charlottetown powering port buildings with non-fossil fuels or a tour operator offering solar-powered boat tours, the whole region is actively involved in its mission to reduce the carbon footprint. n Amera docked in Saint-Pierre at Miquelon Halifax, Nova Scotia provides megaship-friendly port facilities uusi 16-19 canada.indd 7 uusi 16-19 canada.indd 7 22.3.2023 7.32 22.3.2023 7.32
? Cabo Verde Tourism UK market faces storm clouds with confidence MARKET REPORT As in in many other countries, the economic outlook in the UK has been clouded by inflation that has hit a 40-year high and the prospect of a recession due to higher interest rates charged by the Bank of England in its bid to cool prices. However, after living for two years in the shadow of the Covid-19 pandemic, the British people appear keen to resume traveling on their holidays, which is positive news for the UK cruise market. By Kari Reinikainen 20 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 P&O Cruises – part of Carnival Corporation & plc – is the largest cruise line in the UK market with seven vessels: Arcadia, Arvia, Aurora, Azura, Britannia, Iona and Ventura. Newest ship, the 185,204 gross ton and 5,200 guest Arvia is the largest in the fleet along its sister ship Iona uusi 20-26 uk market.indd 2 uusi 20-26 uk market.indd 2 21.3.2023 8.09 21.3.2023 8.09
Cabo Verde Tourism uusi 20-26 uk market.indd 3 uusi 20-26 uk market.indd 3 21.3.2023 8.09 21.3.2023 8.09
22 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 OPEN IT A THOUSAND TIMES AND YOU’LL SEE THE DIFFERENCE At first glance, cabin doors look pretty much the same. Over the years, clear differences emerge. Antti doors stand the test of time and keep closing and opening as designed. From a cabin manufacturer’s perspective, the most important Antti feature is that certified doors arrive exactly when and as contracted. Thanks to their flexible frame installation method, Antti doors are easy to install and perfectly fitted. See our tips for offer request: anttimarine.fi Yes, we’ll handle it! “W e had our first full season of sailings from the UK in 2018, and since then, we have gone from strength to strength. We are committed to offering the best possible experience and holiday at sea, and this, I believe, has led to the local market being one of the strongest for MSC Cruises,” said Antonio Paradiso, Managing Director – UK and Ireland of MSC Cruises. “We were the first major cruise line to restart the industry in the UK in May 2021 after a 18-month hiatus caused by the global pandemic. We deployed a newbuild ship, MSC Virtuosa [181,541 gross tons], and offered domestic sailings in recognition of how important the local market is to MSC Cruises. Subsequently, we further demonstrated our commitment to the UK market in 2022 when we decided to base MSC Virtuosa in Southampton yearround,” he said. “The British are passionate cruisers, especially now that they can enjoy the freedom of travel again post pandemic. And next year, 2023, promises to be a record year for us in the UK. We have increased the number of itineraries, and once more we will base a newbuild ship in Southampton. MSC Euribia, our second liquefied-natural-gas-powered ship that is under construction at the Chantiers de l’Atlantique yard in Saint-Nazaire, France, will from October ’23 homeport for the winter season in the UK,” Paradiso continued. “There’s a huge appetite for stress-free ‘no fly’ cruises from Southampton, which I think is also partly attributable to the fantastic onboard offering that MSC Virtuosa provides our guests, together with the brilliant destinations she visits. We are also seeing an increase in our customers looking further afield and Fly&Cruise bookings make up a significant part of the UK business. Joining our ships that sail in the Mediterranean Sea is always a winner, and we’re seeing more demand for destinations such as Iceland and Morocco. Following the launch of MSC World Europa in Doha, Qatar, we saw a great increase in bookings to the Gulf Region to allow Brits to experience warmer climates and different cultures,” Paradiso concluded. Guests are looking for choice P&O Cruises, which operates seven ships now that the 185,206 gross ton Arvia has joined its fleet, says 99% of its passengers come from the UK. “Guests are increasingly looking for choice from their cruise holiday, whether that’s the destinations they travel to, the duration or the ship itself. We are also seeing interest from those guests who have never tried a cruise holiday before. For example, in August 2022 we saw the highest newcomer bookings in brand history, with exploration journeys to the fjords on Iona particularly popular with our new-to-cruise guest,” a spokesperson for the company told CruiseBusiness.com Magazine. “Those cruises, which sail directly from Southampton, are increasingly popular, with routes from the UK offering a hassle-free way to travel. Cruise holidays remain an extremely popular way to travel, with growing interest from a newcomer audience. There is no one-size-fits-all holiday, so offering a clear choice in destinations, duration and experience onboard will be key,” the spokesperson continued. While increases in the cost of living make headlines almost every day, P&O Cruises clearly sees a trend where people remain determined to have their well-deserved holiday, but it needs to offer excellent value for money. “The pandemic reminded people of the importance of spending time together with their loved ones and so, despite the cost-of-living crisis, we know that holidays remain a key spending priority. However, guests are increasingly looking for excellent value for money,” the spokesperson said. As far as destinations are concerned, the Caribbean is extremely popular with P&O Cruises’ guests, with each island offering its own different vibe and the opportunity for winter sun. The Arvia, which arrived in December, has introduced new Caribbean ports-of-call including La Romana in the Dominican Republic and more overnight and late calls for guests to maximize their time on shore. “We’ve also responded to guest feedback by introducing 7-night Caribbean fly-cruise holidays on Arvia in addition to 14-night itineraries,” the spokesperson said. Ambassador Cruise Line is the newest UK focused cruise line with two vessels, Ambience and Ambition uusi 20-26 uk market.indd 4 uusi 20-26 uk market.indd 4 21.3.2023 8.09 21.3.2023 8.09
? OPEN IT A THOUSAND TIMES AND YOU’LL SEE THE DIFFERENCE At first glance, cabin doors look pretty much the same. Over the years, clear differences emerge. Antti doors stand the test of time and keep closing and opening as designed. From a cabin manufacturer’s perspective, the most important Antti feature is that certified doors arrive exactly when and as contracted. Thanks to their flexible frame installation method, Antti doors are easy to install and perfectly fitted. See our tips for offer request: anttimarine.fi Yes, we’ll handle it! “Guests also really appreciate hassle-free travel by sailing directly from Southampton. World cruises and other itineraries of three weeks or more remain a popular choice for those guests with a little more time to experience a truly memorable holiday,” the spokesperson pointed out. Before the pandemic, P&O Cruises operated winter cruises from Dubai. Regarding the possibility of reintroducing these, the spokesperson said that the itineraries the company offers are constantly reviewed. ‘Do it now’ urgency fuels demand for upmarket cruises Mundy Travel is a long-established travel agent that specializes in the upper end of the market, and its Managing Director Edwina Lonsdale said that the outlook appears to be very good. “After a very strong year for future bookings, everything slowed at the death of the Queen and then the Truss fiasco, but for the last couple of weeks we have gathered momentum once again,” she told CBM, referring to Liz Truss, whose brief tenure as Prime Minister came to an abrupt end owing to turmoil in financial markets her proposed policies had caused. “We are seeing huge interest in once-in-a-lifetime destinations; people are infused with a sense of ‘do it now’ urgency for the Antarctic, Arctic and Galapagos. For classic cruises, close to home is everything, and as always the Mediterreanean – the destination which has everything – has been strong. Finally, we do not normally expect high levels of Caribbean business, but this is unusually strong in the first and last quarter [of each year],” Lonsdale pointed out, adding that expectations are high as always – maybe even higher than they used to be. “We are seeing evidence of trading up to better accommodation and staying away for longer periods of time.” As far as the expedition cruise market is concerned, she said that the company has been investing in this segment for many years and that investment is coming to fruition. “Good market knowledge is essential for such a high-value purchase, and there is little under £1,000 per person and per day,” she noted. Some high-end hotel operators, such as Ritz-Carlton (RC) and Four Seasons, are entering the cruise sector with upscale products, but Lonsdale said these two brands need to be approached separately. “Ritz Carlton represents excellent value for a Ritz-Carlton experience and is a good choice for sunshine holiday makers. RC imagine that their product is very different from other luxury cruise product, but it is not,” she suggested. “We expect Four Seasons to be substantially more expensive, so that clientele is not going to be classic cruise clientele. That the product was launched at a yacht show – not a conventional travel show – was clearly deliberate. We are expecting pricing more in the region of $4,000-$5,000 per person, per day. High-end cruise buyers will probably prefer the superior itineraries of more classic cruise ships,” she said. In general terms, the cruise market is product driven. “We think there is currently over-capacity in expedition, and many players will find the next few years challenging. This is not an impulse purchase, and operators do not have the option to play too extensively with price. We fear disasters from inexperienced operators. Meanwhile, luxury growth including newbuilds from RSSC and Silversea, the regeneration of Crystal, the investment in Explora Journeys – not to mention the hotel products mentioned above – will make this the most buoyant and exciting market sector,” Lonsdale concluded. Cost of living concerns highlight value of cruising A report by the market research company Mintel noted that the rising cost of living would make it more challenging to convert firsttimers’ interest into bookings and to convince them that a cruise holiday offers value for money. Meanwhile, Travel Weekly reported at the end of November on a survey in Scotland that had detected “the biggest shift in Scottish consumer confidence in living memory,” as nine out of 10 Scots were “seriously concerned” about the cost of living. But, according to the same source, cruise bookings through Travel Counsellors had increased 35% by the end of October over the same period in pre-pandemic 2019. Mainstream cruise bookCRUISEBUSINESS.COM MAGAZINE SPRING 2023 23 uusi 20-26 uk market.indd 5 uusi 20-26 uk market.indd 5 21.3.2023 8.09 21.3.2023 8.09
24 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 CREATING DREAMS Interior Design, Equipment and Technology for the Cruise & Ferry Industry 6 – 8 September 2023, Hamburg marineinteriors-expo.com Be there when the cruise industry’s most innovative protagonists present their ideas and meet the decision makers of the world’s leading cruise and ferry lines, shipyards, architecture offices and interior design studios in a first-class ecosphere for business and networking. Secure your stand at early-bird rates Co-located with CF23_AZ_210x148mm_EarlyBird_CruiseBusinessMagazine.indd 1 CF23_AZ_210x148mm_EarlyBird_CruiseBusinessMagazine.indd 1 20.02.23 09:34 20.02.23 09:34 ings had risen by 31%, premium cruise ones by 39% and luxury cruise bookings by a whopping 137%. “The home-working agency has seen almost a third [32%] of cruise bookings in the last 28 days for winter 2022 sailings and 48% for summer 2023,” the report said. There has been no shortage of good news from international lines that operate in the UK, either. Princess Cruises introduced the Enchanted Princess as its fourth ship in the UK last year and reportedly this led to a 50% increase in the number of British passengers who cruised with the line compared to 2019, the last preCovid year. Royal Caribbean International replaced the Independence of the Seas with the Anthem of the Seas in 2022 (the ship had initially had operated from Southampton after its completion in 2015). Celebrity Cruises will introduce the Celebrity Apex in Southampton in 2024, the first time an Edge-class ship is scheduled to operate from the principal UK cruise port. P&O Cruises has pointed out how a cruise holiday could save guests more than £1,600 on the cost of day-to-day holiday spending, as supported by consumer expert Alice Beer. “Based on typical holiday ‘extras’ including meals, travel and entertainment such as a headline show, cinema tickets or entrance to outdoor activities, the costs could amount to more than £1,000 based on two adults. For a family of four that figure rises to an eye-watering £1,600,” the company said in a statement. Some cruises cheaper than in 2022 Meanwhile, the online travel agent cruise.co.uk found that some cruises sold in the UK were actually cheaper in 2022 than what they had been a decade earlier. Its study found the majority of voyages next year remain cost-consistent across the board when looking back over the last decade. “In a particularly striking example, an inside cabin on a 14night P&O Caribbean cruise, sailing from Barbados, came in at £1,659 including flights in 2012. In 2019 the cost came down to £1,503 per person, while a matched 2023 sailing only set guests back £1,139,” the company said in a statement. Tony Andrews, Deputy Managing Director of cruise.co.uk, said, “2023 is shaping up to be another year where cruise holidaymakers can take advantage of the incredible value for money an escape at sea offers. With meals, top class entertainment, kids’ clubs and onboard leisure facilities all included in the price, a cruise is hard to beat for price, choice and convenience. Furthermore, it’s clear the popularity of cruise remains as strong as ever, which is reflected in the sheer number of customers who have booked with us in 2022. We’re eagerly anticipating this trend continuing into the new year. What’s more, our option to stay on before or after sailing has proved a real hit this year. With travel now opened up again, customers are taking advantage of longer holidays to really make the most of their time away,” he noted. While all this may be good for consumers, it also raises the question: At what kinds of prices does the industry sell its products? Figures from the Office of National Statistics show that the Consumer Prices Index (CPI) was 47% higher in 2022 than it was in 2013. Selling cruises at or even below the prices of a decade ago would indicate that the industry has not been able to maintain prices at the levels of inflation, which until 2021-22 remained quite low. Marella Cruises sources its guests also outside of the UK market. It will add a fifth vessel, Marella Voyager in summer 2023 Cunard Line has strong roots in the UK, but sources its guests globally. Next year it will launch its fourth vessel, the Queen Anne uusi 20-26 uk market.indd 6 uusi 20-26 uk market.indd 6 21.3.2023 8.09 21.3.2023 8.09
CRUISEBUSINESS.COM MAGAZINE SPRING 2023 25 CREATING DREAMS Interior Design, Equipment and Technology for the Cruise & Ferry Industry 6 – 8 September 2023, Hamburg marineinteriors-expo.com Be there when the cruise industry’s most innovative protagonists present their ideas and meet the decision makers of the world’s leading cruise and ferry lines, shipyards, architecture offices and interior design studios in a first-class ecosphere for business and networking. Secure your stand at early-bird rates Co-located with CF23_AZ_210x148mm_EarlyBird_CruiseBusinessMagazine.indd 1 CF23_AZ_210x148mm_EarlyBird_CruiseBusinessMagazine.indd 1 20.02.23 09:34 20.02.23 09:34 The reality is, however, a bit more complex than that. The cruise industry in the UK does not source all its inputs in the country – crew, for example, is sourced from third countries and paid according to international agreements between the shipping industry and labor organizations. The introduction of larger vessels in the contemporary market segment, in particular, has resulted in economies of scale that probably have supported margins, perhaps even to a considerable extent. Higher up on the market ladder, Saga plc, which operates two 56,000 gross ton vessels that offer all-inclusive cruises, said in its first half interim report that bookings for the rest of 2022 had been made at an average per diem of £319 and those for 2023 at £325 – an increase of barely two percent and well below the current annual CPI inflation rate of 10.7% in November 2022. However, the company expects to meet its target to achieve an EBITDA of £40 million per vessel. Where from here? The UK cruise market was the first in Europe to take off, as investment in purpose-built ships – led by P&O Cruises’ Oriana in 1995 – and the introduction of attractively priced cruise holidays by some tour operators triggered a much wider interest in cruises than what had been the case previously. In the early 1990s, the market generated barely a quarter of a million passengers, two decades later that figure had reached 1.7 million. ? All figures in thousands of passengers Source: Statista.com uusi 20-26 uk market.indd 7 uusi 20-26 uk market.indd 7 21.3.2023 8.09 21.3.2023 8.09
Their findings included: -35% of UK consumers are interested in taking a cruise holiday in the next five years. -57% of UK consumers believe that river cruises can provide an authentic experience. -43% of UK adults are concerned about how cruises contribute to over-tourism. -49% of cruisers agree that the destination/itinerary is the most important factor when choosing a cruise. 26 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 However, even before the pandemic, the growth of the UK source market had come to a halt, and between 2017 and 2019, it generated roughly two million passengers each year. In those final years before the pandemic, commentators noted that there had been few additional ships dedicated to the UK market, which contributed to the stalled growth of passenger volumes. In the closing days of last year, the Italian shipbuilder Fincantieri published its vision for the future of the global cruise industry. It said that from 2022 to 2026, it expected passenger volumes to grow by 8% per year and between 2026 and 2030 by 5% each year. This would bring the number of cruise passengers sourced worldwide to 46 million in 2030 (the figure was in the region of 28 million in 2019) – an increase of 64%. Should the UK market grow by the same rate, it would generate 3.28 million passengers at the start of the next decade. Recent research by Mintel showed that while just over one in three UK consumers had expressed an interest in a cruise holiday in the next five years, more than 40% were concerned about the industry’s contribution to over-tourism. Another study, produced by cruise.co.uk, found that while 37% of UK cruise passengers had been under the age of 60, that figure had risen to 44% in 2022. This could at least partly reflect a change in how we live, work and play; people can work a few hours each day as ships are connected to the internet, which could allow more people who are not retired to go on a cruise holiday and to travel outside holiday periods. As the global cruise fleet continues to grow, driven by a significant orderbook of newbuildings, it is likely that operators will reshuffle tonnage so that the latest ships are placed in the bestyielding markets, with a cascading effect on other markets. Recent weakness of the British pound against the U.S. dollar, in which most large cruise operators have their accounts, has made the UK market less attractive. However, international brands only sell tickets in the pound, while onboard spending is charged in the dollar, which mitigates the effect. Assuming that the current high rate of inflation will gradually ease and general economic conditions start to brighten, the outlook for the UK cruise market should brighten as well. The positive news that has emerged in the recent past, despite current challenges, indicates that consumers will not abandon holiday travel even while dark clouds gather on the horizon. As Richard Fain, Chairman of the Royal Caribbean Group has put it: The cruise industry is “recession resistant, but not recession proof.” n Fred. Olsen Cruise Lines is a traditional player in the UK market. Currently it operates with three vessels, the Balmoral, Bolette and Borealis MSC Cruises will bring its newest vessel, the LNG-powered MSC Euribia in the UK market uusi 20-26 uk market.indd 8 uusi 20-26 uk market.indd 8 21.3.2023 8.09 21.3.2023 8.09
SHIPBUILDING Ships are viewed as solid vessels that are watertight, with holes seen as dangerous. However, this is inaccurate, as a ship’s hull, bulkheads and internal structure are perforated with thousands of holes for cables and pipes vital to its operation, purpose and especially, safety – however illogical that may seem. Seals are therefore vital. By John Pagni CRUISEBUSINESS.COM MAGAZINE SPRING 2023 27 “W e have a long record of cable and pipe penetration sealing through watertight sections and fire-rated areas aboard, as well as other exterior spaces such as pool decks,” states Jouko Karilahti, Roxtec Finland Sales Marine. For example, Meyer Turku’s delivery of the Carnival Celebration was just the latest dating back over 20 years with the yard, with which Roxtec has a frame agreement. But Roxtec is ever present in many shipyards and globally involved in all shipbuilding sectors from cruise to cargo, special to military – even leisure craft like yachts. Accordingly, Roxtec participates in the design and its job is done before construction starts, as installation is carried out by the yard. Even so, Karilahti estimates that for the Carnival Celebration there are thousands of penetrations all requiring the correct seals. To ensure enhanced transparency, quality and safety, a new company and tools have been developed. Roxtec Service AB specifically inspects penetrations and seals, documenting the process for shipowners for both its own projects and others globally during dry docking as well as newbuilding. Roxtec has launched new software to support the actors in the market to control the installation quality of transits, from newbuild throughout the lifecycle of an asset. “Using the software will also be an effective way to apply the new IACS requirements regarding control of watertight cable transits that came into force July 1, 2021,” states Karilahti. The software Roxtec Transit Build enables an effective and documented installation process, while Roxtec Transit Operate enables continuous control onboard operating ships. Should there occur a faulty seal, it is also recorded and its correction too. Thus, all stakeholders can see in real time the situation until final certification. Global presence With its global presence – Russian operations ceased last spring – and a wide product range tested and manufactured at its Karlskrona Swedish headquarters, Roxtec is positive about its future – and the industry’s as well. “I believe newlooking cruise ships like Royal Caribbean’s Icon-class and Carnival’s Excel-class will result in a strong outlook,” says Roland Sandström, Roxtec Finland Customer & Technical support. “Roxtec is involved in a variety of projects such as tankers that have special EX atmosphere needs, plus another important sector is military navies. I can say we work with many of the world’s major naval arms. Passenger ships are just one sector. And despite its copycat reputation, China is an important huge market. ”n Roxtec signs, seals and delivers TOP: Roxtec Transit Designer is a free online design tool. BOTTOM: Roxtec sealing modules consist of two halves with removable layers and a center core which is removed when it is time to route a cable or pipe uusi 27.indd 1 uusi 27.indd 1 21.3.2023 8.04 21.3.2023 8.04
Ph oto cre dit : Te ijo Ni em elä 28 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 T he use of an experienced third-party ship manager allows an expedition cruise operator to target its resources where it can employ them best – the commercial side of the business, said Dietmar Wertanzl, President and CEO of now Anglo-Eastern Leisure Management, formerly CMI Leisure Management. The company is now part of Anglo-Eastern, the Hong Kongbased ship management group that is responsible for the full technical management of more than 650 ships. The Covid-19 pandemic highlighted how complicated matters related to crewing can be. In-depth knowledge of how to work with various government agencies became invaluable under those circumstances, Wertanzl recalled. In addition to deck and engine staff from sister company AngloEastern Cruise Management, Anglo-Eastern Leisure Management provides service personnel for ships, which adds a hospitality dimension to the picture. The hospitality sector in general has found it quite hard to find staff in the aftermath of the pandemic. With Anglo-Eastern as the new parent company, Anglo-Eastern Leisure Management now has good contacts in Asia and a training facility in Mumbai that have helped it to meet the needs of its various clients. Focus on human capital “We offer customized and personalized solutions that require flexibility and agility – everyone is the number one customer,” Wertanzl said. “A ship manager may be a third-party service provider, but we listen, and we must understand the brand. We are here to deliver for the brand,” he continued. Human capital is the biggest asset of any service industry company, and Wertanzl said this means it is important to understand the changes that are taking place in society. One example is a generation gap that emerged when Millennial and Generation Z young people started to enter working life. “They want to be more, have a purpose. Motivation and leadership are very important to them,” Wertanzl said, pointing out that a happy crew translates to happy guests onboard. Anglo-Eastern’s acquisition of CMI Leisure Management affects both companies. A third-party ship manager can offer an expedition cruise operator many advantages. These include shouldering the responsibility for functions such as crewing, compliance with various rules that govern shipping and benefiting from economies of scale which these often small cruise companies would find hard to achieve otherwise. By Kari Reinikainen SHIP OPERATIONS Anglo-Eastern Leisure Management to capitalize on economies of scale Dietmar Wertanzl uusi 28-29 .indd 2 uusi 28-29 .indd 2 21.3.2023 8.16 21.3.2023 8.16
CRUISEBUSINESS.COM MAGAZINE WINTER 2023 29 For the parent company, the deal means that hospitality management at sea is now part of its product portfolio. To Anglo-Eastern Leisure Management, it means significant increase in economies of scale, as it now has access to the resources of the new parent company, Wertanzl said. This should pave the way for Anglo-Eastern Leisure Management to double the size of its business in the next few years. Broadening horizons Carsten Ostenfeldt, Chief Operating Officer of Anglo-Eastern, said the company has a long and rich heritage spanning 50 years. “During that time, we have grown our fleet to become one of the world’s largest ship managers. More than that, however, we have advanced our knowledge and expertise across a range of interrelated fields, from ship management, technical services and environmental compliance to crew management, maritime training and education. We bring an unparalleled breadth and depth of experience to the table, as well as scale, which we can leverage to benefit new and different opportunities, including decarbonization efforts within the cruise industry,” he said. “But, of course, central to all this knowledge and expertise are our people, and that is where our true strength lies. We have an amazing talent pool, both ashore and at sea, comprising many specialist support staff and 30,000 professional seafarers who proudly sail under the Anglo-Eastern banner. Our values as a company and commitment to quality, excellence and shaping a better maritime future are what sets us apart.” Explaining why Anglo-Eastern decided to get into the cruise vessel management business, he said: “Our fleet is diverse. We have full technical management for over 650 vessels, plus another 250 under crew management, covering all types and sizes of ship. Bulk carriers, container ships, tankers, gas carriers, heavy-lift vessels, ro-ro carriers and more – but never cruise ships. It has long been our intention to enter the cruise industry, but the right opportunity never presented itself until now. When it did, we were delighted to take up the challenge, so that we can diversify our fleet and business and grow into a new area where we see a lot of potential.” As to what expertise the company can bring to managing cruise ships, Ostenfelt said that Anglo-Eastern may be new to the cruise industry, but it is far from new to ship management. “Anglo-Eastern is first and foremost a ship manager, and our experience with many different types and sizes of ships over the decades is extensive. Obviously, a cargo ship is not a luxury cruise ship, but our commitment to excellence transcends ship type, and we have every confidence that we will bring the same high standards to managing cruise ships, with the benefit of a fresh perspective from outside the industry. Sometimes having a new pair of eyes is what it takes to bring about further improvements, be it in safety, training, operational efficiencies, environmental compliance or decarbonization.” Looking into the future, Ostenfelt said that Anglo-Eastern sees itself as a niche player, with a focus on the expedition and mid-sized cruise segments, where novelty and innovation takes precedence over mass operations. “We also see ourselves as partners for larger cruise companies that wish to enter these segments, which we hope to grow over time. Ultimately, we are very excited to be here, and look forward to engaging with other players in the cruise sector in our continual quest to learn, improve and contribute positively to all sectors of the maritime industry,” he concluded. n American Queen Steamboat is one of Anglo-Eastern Leisure Management’s clients uusi 28-29 .indd 3 uusi 28-29 .indd 3 21.3.2023 8.16 21.3.2023 8.16
30 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 I taly-based Fincantieri intends to play an active role towards a more sustainable economy and society, positioning itself among the industry’s first movers and gaining an important competitive advantage. June 2022 saw the start of construction of the first of two newly designed LNG (liquefied natural gas)-powered cruise ships that Fincantieri is building for TUI Cruises, a joint venture between the TUI AG and Royal Caribbean Cruises groups. The ships will be built in Monfalcone and delivered in 2024 and 2026. Registering approximately 160,000 gross tons, these vessels will form the backbone of TUI Cruises’ future fleet. The order is based on a prototype design developed by Fincantieri that enhances the established characteristics of modernity and sustainability of TUI Cruises, a company with one of the most ecologically advanced fleets. Energy efficiency is at the heart of the project, with the dual aim of containing consumption during operation and minimizENVIRONMENT Fincantieri plans for a green future ing environmental impact, in line with all the latest regulations. As part of its sustainability goals, Fincantieri is working on a forecast to identify possible future trajectories for the implementation of green technologies. The yard’s sustainability plan for the period 2018-2022 has laid down two ambitious targets to be achieved by 2030: zero emissions in dock and halving emissions while at sea compared to 2017. Increasingly green ships, a responsible supply chain and collaboration with institutions and business partners will be key factors in achieving these goals. An integrated approach Fincantieri has adopted an integrated approach to the problem of decarbonizing shipping. This approach is backed up by numerous R&D and industrial application initiatives. On the quayside, the yard is developing a series of projects aimed at realizing a zero-emission port concept by creating the essential enabling technologies – stationary fuel-cell production systems, high-density power storage systems, cold ironing, smart grids and photovoltaics – as well as the associated infrastructure. On the vessel side, the yard is engaged in the study and selection of the most costeffective technological solutions. In cooperation with the National Research Council (CNR) and the Universities of Genoa, Naples and Palermo; the National Research and Promotion Agency for Standardisation and RINA; as well as with the contribution of the Ministry of Economic Development; and within the framework of the Low Environmental Impact Technologies project, Fincantieri has built an approximately 25meter laboratory vessel for the study of technologies to produce energy on ships. A technical inspection was carried out on March 31 at the Castellammare di Stabia shipyard. uusi 30-31.indd 2 uusi 30-31.indd 2 21.3.2023 8.06 21.3.2023 8.06
CRUISEBUSINESS.COM MAGAZINE SPRING 2023 31 Zeus – Zero Emission Ultimate Ship The vessel, called Zeus—Zero Emission Ultimate Ship, represents the first hydrogen ship prototype capable of putting to sea. It will be propelled by electric thrusters, which in turn will be powered by a fuel-cell system of about 130 kW and a battery system capable of ensuring about eight hours of sailing with zero emissions, thanks to the approximately 50 kilograms of hydrogen onboard. Fincantieri has also set up a laboratory to study the different types of fuel cells and evaluate prototypes to be installed onboard ships. The aim is to build seagoing vessels and cruise ships propelled by fuel cells. Although a mature technology, fuel cells are not yet able to deliver the power required by large passenger ships, in the order of tens of megawatts, within the space and cost constraints required by the shipping industry. To facilitate the scale up of these technologies within the framework of IPCEI Hy2Tech, Fincantieri presented a project to study flexible and hybrid configurations of power-generation systems for naval applications, which involve the use of hydrogen as an energy vector. Different configurations will be developed and studied to meet the widest range of ship types. These solutions involve both the use of fuel cells and hydrogen-fueled internal combustion systems combined with batteries for energy storage. A proposal was made to study such power generation systems, both in stand-alone mode and in their prototype integration onboard cruise ships. These vessels will therefore have a lower environmental impact. Finally, Fincantieri, MSC and SNAM have signed a Memorandum of Understanding to evaluate jointly the design and construction of the world's first hydrogen-powered cruise ship, which would enable zero-emission operations in specific shipping areas, as well as the development of related hydrogen storage infrastructure. The project will be based on the experiments already carried out with the Zeus project. Taken as a whole, these activities will increase and improve Fincantieri's design capacity and prepare for the massive deployment of fuel cells onboard ships, offering customers a range of greener and higher performing products. n Fincantieri is the largest cruise ship builder in the world and currently it has a lot of sustainability projects with its clients The 175,500 gross ton Sun Princess is not only the largest cruise ship ever built in Fincantieri, but also first which will use LNG as its fuel. It was floated out in early March and will enter service next year uusi 30-31.indd 3 uusi 30-31.indd 3 21.3.2023 8.06 21.3.2023 8.06
Design to enhance your business T I L L B E R G D E S I G N O F S W E D E N I S P A R T O F V I K E N G R O U P 32 33 34 35 36 takakansi.indd 1 32 33 34 35 36 takakansi.indd 1 23.3.2023 8.06 23.3.2023 8.06
CRUISEBUSINESS.COM MAGAZINE SPRING 2023 33 Sun Princess is currently in the outfitting stage at Fincantieri’s Monfalcone shipyard Sun Princess in the works Three-deck Piazza will be an evolution from the earlier-generation Princess ships Fredrik Johansson from Tillberg Design of Sweden presenting the three-deck Horizons Dining Room Richard Parker, Director Newbuild, Guest Experiences and Product Development for Princess, explaining the design of Wake View Terrace Sun Princess will be the first ship in the fleet offering private cabana deck In early March, CruiseBusiness.com Magazine received a tour onboard the Sun Princess. With 11 months to go until its scheduled maiden voyage, the 175,500 gross ton and 4,300-guest Sun Princess represents a new class for the “Love Boat” brand, featuring the introduction of LNG for fuel and Azipods for propulsion. 33-35indd.indd 1 33-35indd.indd 1 12.5.2023 17.15 12.5.2023 17.15
By Teijo Niemelä P rincess Cruises is a premium brand of Carnival Corporation & plc, the largest cruise operator in the world. It currently operates a fleet of 15 cruise ships, ranging from 91,627 gross tons to 145,281 gross tons. The oldest vessel in the fleet is the 1998-built, 107,517 gross ton and 2,600-passenger Grand Princess, while its latest newbuilds are six up to 3,660-guest Royalclass ships delivered between 2013 and 2022. All ships, except the Panamax-size Coral and Island Princess, have been constructed by Italy’s Fincantieri. The Sun Princess follows in the same tradition, being built at Fincantieri’s Monfalcone shipyard. The Sun Princess and its yetto-be named sister ship will be the largest ever built in Italy, but they are slightly smaller than the Excel-class ships that Carnival Corp. has built at the Meyer Group’s yards in Finland and Germany for its AIDA Cruises, Carnival Cruise Line, Costa Cruises and P&O Cruises brands. The Excel-class newbuilds register 182,000 gross tons and carry 5,200 passengers (double occupancy). Princess Cruises is a global brand with global deployment. According to Richard Parker, Princess’ Director of Newbuild Guest Experience & Product Development, the new Sun Princess is a clean-sheet platform. “We have spent six years to design the new class of ships,” he said. Even at 175,500 gross tons and with a length of 1,133 feet (345 meters), the ship is designed to operate in all the brand’s global deployments, including transiting the Panama Canal. Its first voyages, however, will take the Sun Princess to the Mediterranean before repositioning to the Caribbean in fall 2024, sailing out of Port Everglades. Eleven months until maiden voyage When the media visited onboard the Sun Princess just after its float-out, it was 11 months prior to the ship entering service. Traditionally, ship tours for the media are organized closer to delivery, when more interior outfitting will be visible. During our ship visit, most of the public areas were just bare steel structures. However, many of the prefabricated cabins were already in place, and our time spent aboard gave us a good feeling of what to expect spacewise inside. Princess also states that it wanted to design the ship to look iconic. It bears no resemblance to any other Carnival Corp. vessel. What stands out from its exterior profile are The Dome on its top deck and the glass walls surrounding the Piazza atrium. The ship is designed to let guests connect with the sea from as many areas as possible. A highlight will be the Wake View Terrace on Deck 8 – designed by Tillberg Design of Sweden – offering a vantage point over the ship’s stern. It will also have access to Deck 9, which will feature The Promenade outdoors on both sides. Although it will not encircle the entire ship, it offers an expansive outdoor area between midships, where The Piazza is located, and the rear of the vessel. Here lies also one of the gradual changes in the layout: The World Fresh Marketplace self-serve dining area is on Deck 9 rather than next to the pool area on the upper decks. According to Parker, this provides more dining capacity and allows for larger galley areas. The Lido Pool area and The Dome with its own swimming pool are both located on Deck 17. Although the casual dining area is now on Deck 9, there will be several food service areas next to the pools – including Lido Slice, Lido Tacos, Lido Grill and Lido Greens. Using the Princess Medallion, guests can order food and beverages with their smart phones and have it delivered directly to their sun beds. Parker also said that the Sun Princess is the first Princess vessel to be designed with the Ocean Medallion in mind from the beginning of the process. Fuel, energy and waste management The Sun Princess has been optimized to improve energy efficiency and reduce carbon emissions. The company chose liquified natural gas (LNG) as the ship’s primary fuel. This will be the first ship in the Princess fleet to be powered by LNG, and its storage capacity of 4,000 cubic meters is sufficient for almost 9 days of cruising at service speed. The secondary fuel is marine gas-oil, so no heavy or intermediate fuel oil will be carried onboard. The Sun Princess will also be the first Fincantieri-built cruise ship to use LNG. The Sun Princess will have two shore-power connections, also known as “cold ironing,” on both the port and starboard sides of the vessel, enabling the ship to turn off its engines and connect to local electric power to run all onboard services during day-long calls in various ports. The Sun Princess is outfitted with custombuilt electrical connection cabinets that automatically connect the ship’s electrical network to the local electrical network ashore, reducing air emissions in ports that support shore power. In another first for Princess to supply sustainable power and better maneuverability to save fuel, the Sun Princess will be outfitted with two Azipod podded propulsors for forward and backward movements and four of the largest bow thrusters on the market for maneuvering. As far as waste is concerned, All Micro Auto Gasification System (MAGS) has been installed. MAGS is the world’s most compact, efficient and environmentally-safe technology to convert a variety of combustible materials into thermal energy – energy that can be used in other systems onboard. Food waste management is designed with distributed and centralized bio-digesters and dehydrators as a clean alternative to recycle food waste and reduce use of landfills. n 34 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 Sun Princess will feature private outdoor Cabana decks on both sides of the ship 33-35indd.indd 2 33-35indd.indd 2 12.5.2023 17.15 12.5.2023 17.15
36 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 After a very tough 2020 and a still challenging 2021, ferry companies in Northern Europe enjoyed significantly better trading conditions last year, so that passenger volumes approached – or in some cases even exceeded – levels seen before the Covid-19 pandemic. But high bunker costs and the ongoing effects of the pandemic depressed the financial performance of these companies. By Kari Reinikainen FINANCIAL REVIEW Northern European ferry recovery gathers momentum Silja Line, part of Tallink, has operated cruise ferries Silja Serenade and Silja Symphony between Helsinki and Stockholm since 1990 and 1991, respectively. Both ships are still popular for short cruises Ph oto cre dit : Te ijo Ni em elä 36-39.indd 2 36-39.indd 2 9.5.2023 10.27 9.5.2023 10.27
? CRUISEBUSINESS.COM MAGAZINE SPRING 2023 37 Ph oto cre dit : Te ijo Ni em elä REVENUE UNIT 2022 2021 2020 2019 Eckero EUR 185.8 122.9 119.8 238.6 Gotlandsbolaget SEK 2,918 2,336 2,011 2,716 DFDS DKK 1,622 463 489 1,709 1) Havila Kystruten NOK 332.1 36 Color Line NOK 2,230 2,614 2,336 5,320. 2) Irish Ferries EUR 399.9 175.5 141.4 212.4 3) Stena Line SEK 13,535 12,354 10,400 14,300 4) Tallink Grupp EUR 771.4 476.9 443.0 949.1 Viking Line EUR 494.7 258.2 215.7 496.4 1) Passenger shipping only 2) JanuaryJune 2022, others full year 3) Excludes container operations 4) The 2022 figure covers January-September, others full year Gotlandsbolaget’s revenue also covers the income stream of the four product tankers it owned during the review periods, but which were later sold. The company purchased in early 2023 the cruise ship Birka Stockholm from the Eckero group for €38 million, with an intention to operate in on short cruises in the Baltic from the spring of 2024. As might be expected from higher passenger volumes, Irish Ferries’ new Dover-Calais service boosted the company’s revenue to levels well above those of 2019, the last pre-pandemic year. Havila Kystruten (or Havila Voyages, as the company is known internationally) is ramping up its operations on the west coast of Norway, with four 15,800 gross ton Turkiye-built vessels earmarked for this service. The company has taken delivery of two of these, but operations have been hampered by Russian financing linked to them. Havila Kystruten has replaced this with funding from other sources to bring the vessels into service. It had very little revenue in 2021 and the figure jumped about tenfold in 2022 as it was gradually able to commence service. Revenues of Tallink, DFDS and Eckero remain below levels seen in 2019. As Eckero sold the Birka Stockholm, which had been laid up since the early days of the pandemic, its revenue may take some time to climb back to where it was before the pandemic. Eckero operates a service between the Swedish mainland and the autonomous Aland Islands that are Finnish sovereign territory, plus between the Finnish and Estonian capitals. In late 2022, it acquired a 17.1% stake in Viking Line, which also has its head office in the Aland Islands, and there has been speculation that the two companies might seek some kind of cooperation in the future. Both operate a service between Helsinki and Tallinn, and Viking Line also has services that link the Finnish and Swedish mainlands via the Aland Islands. However, nothing has been heard from either company regarding these matters. Tallink has chartered out several of its ships, including Silja Europa A mong the eight companies included in this survey, Gotlandsbolaget’s passenger figures from the past two years stand out, as they are much higher than in either 2020 or even 2019. This is the result of changes in its operations that comprise a ferry service between the island of Gotland and the Swedish mainland plus a service between Rostock in Germany, Visby in Gotland and Nynashamn on the Swedish mainland. However, the service to Germany will not be operated this year due to high operating expenses and insufficient volumes, the company stated. PASSENGER VOLUME 2022 2021 2020 2019 Eckero 2,625 1,357 1,500 3,500 Gotlandsbolaget 1,799 1,723 586 773 DFDS 3,772 889 1,498 5,116 Color Line 3,600 1,143 1,255 3,850 Irish Ferries 2,315 668 519 1,541 Stena Line 6,500 4,200 3,400 5,088 Tallink 5,462 2,961 3,732 9,763 Viking Line 4,945 2,315 1,927 6,300 All passenger volumes in thousands. Irish Ferries has also performed strongly, as the introduction of a service between the short-haul, high-volume Dover-Calais route between the UK and France boosted volumes. Stena Line, which is the largest of the companies in this survey with a fleet of 37 ships, also has seen its passenger volume exceed pre-pandemic levels, with new ships and routes boosting volumes together with a recovery of passenger business in general. Color Line, which has service from Norway to Denmark, Germany and Sweden, enjoyed volumes close to 2019. But Eckero, Tallink and Viking Line, which all operate in the Northern Baltic, plus DFDS, which has passenger services in the Baltic and North Sea, still have some way to go before they reach pre-pandemic passenger volumes. Generally speaking, trades between the Scandinavian countries and between the Scandinavian countries and the Continent tend to have more routes in which the ship itself is a destination, compared with the more transport-focused services in the North Sea, English Channel and Irish Sea. Revenue continues to recover Given the continued recovery of their passenger trade and freight business, the eight companies all posted higher revenue for 2022 than the previous year. It should be noted that Stena Line’s 2022 figures only cover the first nine months of the year, while those of Color Line relate only to the first six months. However, Color Line almost reached its 2021 revenue in the January-June period, whereas Stena Line exceeded its 2021 revenue in the first nine months of last year. 36-39.indd 3 36-39.indd 3 9.5.2023 10.27 9.5.2023 10.27
38 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 now a purely ferry and leisure industry business. The introduction of the yet-to-be-renamed Birka Stockholm cruise ship in the spring of 2024 should increase its revenue and profits as well. However, it is likely that start-up costs may affect the bottom line this year and next. Termination of the Hansa Destinations ferry service between Sweden and Germany is another development to look for as far as the company’s performance is concerned. Both Gotlandsbolaget and Tallink Grupp have found an attractive business in chartering out surplus ferry tonnage to third parties. This revenue stream is not seasonal, unlike the ferry business. Direct services between Ireland and the Continent have absorbed ferry tonnage in the wake of the UK’s departure from the European Union, and both companies have chartered tonnage to operators on these routes – Gotlandsbolaget to DFDS and Tallink Grupp to Irish Ferries. Meanwhile, Irish Ferries’ new service in the English Channel contributed to a sharp increase in its net result. Together with Stena Line, it has staged a very strong recovery from the pandemic, and both companies have also introduced new services and added tonnage to their respective fleets. Havila Kystruten was able to cut its losses significantly as revenue started to materialize once it commenced operations. The company’s situation highlights that of any start-up shipping venture: Expenses accrue in large scale before revenue starts to follow, which means that ample working capital is needed to cover the period when revenue lags expenses, DFDS also has operations in the English Channel, and it is possible that the arrival of Irish Ferries to this market will dent the performance of the Danish company on these services. It will also be interesting to see how the arrival of two 68,480 gross ton, highend ropax ferries for Finnlines’ service between Finland and Sweden later this year will affect the volumes – and therefore revenue and financial results – of both Viking Line and Tallink Grupp. While the newcomers will derive most of their income from weight, they will have good-quality overnight accommodations for 1,100 passengers each, which is high enough to make them serious actors on the passenger side of the business as well. Ph oto cre dit : Te ijo Ni em elä Color Line operates two stylish fast ferries between Norway and Denmark Five of eight companies in the black As trading conditions continued to improve, five of the eight companies in this survey reported a profit for 2022. However, although the passenger business of DFDS still remained slightly in the red, the group as a whole – which includes an extensive network of freight roro ships and land-based logistic services – has been profitable throughout the review period. To complicate matters further, Color Line and Stena Line had only released results for part of the year at the time of writing, and it – together with DFDS – had only published operating results. RESULT UNIT 2022 2021 2020 2019 Eckero EUR -2.7 -30.6 -33.8 0.8 Gotlandsbolaget SEK 227 115 333 210 DFDS DKK -69 -488 524 59 1) Havila Kystruten NOK -237.3 -570.4 Color Line NOK -106.5 -458 -903 313 2) Irish Ferries EUR 59.8 -4.9 -19.0 60.2 Stena Line SEK 5,114 4,522 2,596 4,804 1,3) Tallink Grupp EUR 13.9 -56.6 -108 49.7 Viking Line EUR 23.0 24.4 42.3 10.8 1) EBIT, others net result 2) JanuaryJune 2022, others full year 3) January-September 2022, others full year Despite all this, seven of the eight companies in this survey posted an improvement in their 2022 results compared to the previous year. The only exception was Viking Line, which showed a slight decrease due to an increase in the company’s tax bill; its pretax profit of €28.3 million was unchanged from the previous year. Gotlandsbolaget’s four product tankers had a strong 2022, which boosted its profits higher, but following the sale of these it is 36-39.indd 4 36-39.indd 4 9.5.2023 10.27 9.5.2023 10.27
CRUISEBUSINESS.COM MAGAZINE SPRING 2023 39 Outlook fairly encouraging The year 2023 should be the first since 2019 without unforeseen “Black Swan” events, as former Norwegian Cruise Line Holdings Ltd. head Frank del Rio described the pandemic and Russia’s attack on Ukraine in a conference call. Assuming the macroeconomic situation continues to improve, the present year should emerge as a decent one for ferry companies in the region. However, high inflation and subsequent high interest rates that probably had not peaked at the time of writing act as reminders that the recovery may well be fragile. On the other hand, it has been proven many times that people are not prepared to sacrifice holidays should it become necessary to rein in spending. This should help the ferry companies – and cruise lines as well – to have at least a reasonably good year in 2023. n Ph oto cre dit : Ste na Li ne Stena Line has introduced several Chinese built E-Flexer-class ferries in its services 36-39.indd 5 36-39.indd 5 9.5.2023 10.27 9.5.2023 10.27
40 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 OPEN IT A THOUSAND TIMES AND YOU’LL SEE THE DIFFERENCE At first glance, cabin doors look pretty much the same. Over the years, clear differences emerge. Antti doors stand the test of time and keep closing and opening as designed. From a cabin manufacturer’s perspective, the most important Antti feature is that certified doors arrive exactly when and as contracted. Thanks to their flexible frame installation method, Antti doors are easy to install and perfectly fitted. See our tips for offer request: anttimarine.fi Yes, we’ll handle it! S wan Hellenic was relaunched in July 2020 with new ownership, which did not last long. Russian investors had acquired the Swan Hellenic brand from Canadian G Adventures, hoping to capitalize on the line’s previous incarnation. Before ceasing operations, Swan Hellenic had strong roots in the British market. Prior to acquiring the brand, the new owners had ordered two purpose-built expedition cruise ships from Helsinki Shipyard. These sisters, the SH Minerva and SH Vega, were delivered from the yard in December 2021 and EXPEDITION MARKET Swan Hellenic recently took delivery of its third and final newbuild, the SH Diana ordered from Helsinki Shipyard. At 12,100 gross tons and with a capacity of 192 guests, it is slightly larger than the SH Minerva and SH Vega but still falls within the category of smaller expedition cruise ships on the market. By Teijo Niemelä July 2022, respectively. The third newbuild, the SH Diana, was commissioned from the yard in summer 2020, becoming the first cruise ship order to be placed after the start of the Covid-19 pandemic. Relaunching a cruise line is challenging, but in the case of Swan Hellenic it was an even more demanding task. Not only was the cruise business being impacted by the pandemic, but the war in Ukraine added an extra headache, as sanctions were imposed on the company’s Russian owners. The ships were originally commissioned by the Russian company Vodohod, which is a major river cruise operator. The ownership of the vessels, however, was intended for Russian leasing company GTLK, which was to bareboat charter the vessels to Swan Hellenic (this was originally the case with the SH Minerva). In May 2022, Swan Hellenic announced it had severed ties with any Russian ownership. As a result, Helsinki Shipyard auctioned both the SH Vega and SH Diana prior to their deliveries, and Swan Hellenic with its current investors was able to secure ownership of both vessels. Smaller side of expedition cruising The identical sister ships SH Minerva and SH Vega each carry 152 guests in 76 cabins, while the slightly larger SH Diana features 96 cabins and suites with a capacity of 192. The ships register 10,500 and 12,100 gross tons, respectively, which places them at the smaller end of the expedition cruise market. A large portion of the accommodations (80%) have private balconies. Swan Hellenic fleet complete SH Vega and SH Diana Observation Lounge Standard balcony cabin 40-41.indd 2 40-41.indd 2 12.5.2023 10.03 12.5.2023 10.03
OPEN IT A THOUSAND TIMES AND YOU’LL SEE THE DIFFERENCE At first glance, cabin doors look pretty much the same. Over the years, clear differences emerge. Antti doors stand the test of time and keep closing and opening as designed. From a cabin manufacturer’s perspective, the most important Antti feature is that certified doors arrive exactly when and as contracted. Thanks to their flexible frame installation method, Antti doors are easy to install and perfectly fitted. See our tips for offer request: anttimarine.fi Yes, we’ll handle it! Swan Hellenic fleet complete All three purpose-built expedition vessels feature stylish Scandi-decor, created by Tillberg Design of Sweden. All are classed as Polar Class PC6 and Safe Return to Port (SRtP). The ships can sail 40 days or 8,000 miles without bunkering or provisioning and are equipped with exhaust gas cleaning, advanced wastewater treatment systems and the waste storage facilities required for operating in sensitive polar areas. Moreover, preparations have been made to implement zero-emission battery technology, which would also make it possible to operate silently in port, marine reserves and other sensitive natural areas.. Ships are classified by Lloyd’s Register. While sharing most design features of its sister ships, the SH Diana also boasts some key differences, most notably a dedicated lecture theatre overlooking the lounge. Another key difference is having onboard tender boats to take guests ashore in addition to the customary expedition Zodiacs. The SH Diana also features a gym, spa, panoramic sauna, club room and swimming pool with poolside grill. All three ships offer three dining venues – the Swan Restaurant, Club Lounge and Pool Bar & Grill. Swan Hellenic CEO Andrea Zito said: “I would again like to congratulate everyone at Helsinki Shipyard for their superb achievements in creating this exceptional new ship. We are delighted with the quality of their work, creating another unique presence on the waves, and very much look forward to the new era SH Diana heralds, taking cultural expedition cruising worldwide.”n Standard balcony cabin Cabin corridor with airy feeling 40-41.indd 3 40-41.indd 3 12.5.2023 10.03 12.5.2023 10.03
42 CRUISEBUSINESS.COM MAGAZINE SPRING 2023 T he positive trend has continued in 2023. During the first four months of the year, Jamaica welcomed a total of 180 cruise ship calls with over 548,000 passengers, according to statistics compiled by the Port Authority of Jamaica. In terms of popularity, Falmouth hosts slightly more cruise passengers than Ocho Rios and Montego Bay, which are not so distant in numbers, however. Falmouth was specially designed to host the largest mega ships in the industry, such as the Oasis-class of Royal Caribbean, which registers over 225,000 gross tons. So far, there has not been calls in more boutique ports, namely Port Antonio and Port Royal this year. As far as turn-around calls are concerned, Montego Bay is popular especially with the European cruise operators. It offers terminal facilities for check-in, immigration and baggage handling, and it is in a close proximDESTINATION UPDATE Jamaica – five ports, one island Jamaica is one of the unique cruise destinations in the Western Caribbean. The island offers five ports-of-call: Falmouth, Montego Bay, Ocho Rios, Port Antonio and Port Royal – each providing distinctive shore offerings and facilities. During 2022, the destination’s cruise business started to return to pre-pandemic levels, and the Port Authority of Jamaica reported a total of 290 calls with over 828,000 passengers. Ph oto cre dit , all ph oto s: Te ijo Ni em elä , Po rt Au tho rit y of Ja ma ica ity of the Montego Bay International airport. Montego Bay hosts scheduled international services, not only to the U.S. and Canada, but also to UK and Continental Europe. During the winter season, Montego Bay is a popular among multiple European tour operators. The newest port-of-call in Jamaica is Port Royal. It is located in the sand split – in the dunes – in close proximity to the capital city of Kingston. As the other major cruise ports are located in the Northern shores of Jamaica, Port Royal provides access for the southeast of Jamaica. It is also the first port in the region to have the SeaWalk, which is a floating pier solution by its namesake company. Even though Port Royal is a “boutique” port, it has hosted Holland America’s Pinnacle-class vessel, which registers 99,836 gross tons. n Ocho Rios has two separate piers, and can accommodate most of the large cruise ships. It is in a close proximity of Dunn’s River Falls, a world-famous attraction Falmouth was designed for the largest cruise ships in the world. It features one of the most attraction terminal facilities River rafting at Chukka eco-adventure park, near Falmouth 42.indd 2 42.indd 2 17.5.2023 8.26 17.5.2023 8.26
Emblem ilman taustaa Emblem valkoisella taustalla 43-44 takakansi.indd 1 43-44 takakansi.indd 1 12.5.2023 10.10 12.5.2023 10.10