Cruise Industry Growth
Once upon a time…
Cruising was the exclusive right of the elite. Then came the 1970’s TV show “The Love Boat”
Enter the “Fun Ships" of Carnival, which changed the dynamics towards the masses.
The Cruise Industry is now the world’s fastest growing sector within Tourism, which ISS is well
positioned to take advantage of!
ISS Cruise Sales
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The Cruise Industry in a Nutshell
Market Share
NCL Group
10%
Others
21%
Carnival Corporation
46%
Royal Caribbean
International
23%
ISS Cruise Sales
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Direction or Travel
• China will become the second largest global cruise market after the US by 2017.
• The Asia Pacific region will continue to boom!
• India should be the next major destination to benefit from Cruise, however the country first
needs to embrace Cruise from a Tourism perspective.
• Contracting will continue to be consolidated through group power purchasing enhancements.
• Lower fuel prices in 2015 will encourage more ambitious itineraries and less pressure on cost.
• Looking ahead 2016 will see 10 new ships coming into service.
International Cruise Ships received by Chinese Ports
600
500
400
300
200
100
0
2009
ISS Cruise Sales
2010
2011
2012
2013
2014
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Benefits of Cruising
The benefits that Cruising could bring to East Africa:
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Over 85% of Cruise passengers think that Cruising is an important vehicle for sampling
destinations to which they may return.
50% of Cruisers fully expect to return to the destinations they like for a land based
vacation.
Cruisers are not exclusively Cruisers; they are frequent vacationers.
Cruisers take 3 trips each year, with 25% of their total holidays being a Cruise.
Best Cruise Industry estimates state that approximately $200,000 USD in wealth is generated
for each cruise Ship call of a vessel of around 2,000 passengers all things considered.
According to Industry expert Peter Wild, each passenger generates a positive economic
impact of $326 USD for each port call (including ships construction & repairs)
ISS Cruise Sales
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East Africa Cruising
Potentials of East Africa
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Potential Cruise calls into East Africa could be 10 World cruise calls per annum.
If one or two of the cruise Lines ‘’hub ‘’ a vessel in the Indian Ocean for 5 months a year
between November through to April then potential cruise calls per annum could be 40 calls per
annum.
Each vessel call into Mombasa likely to bring about usd 4/500 k of revenue into Kenya per call.
40 cruise calls per year could result in $20 million revenue for Kenya, in addition to other
destinations such as Mauritius and Tanzania.
ISS Cruise Sales
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Reaching the potential of East Africa
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To develop an improved security plan and also to tackle perceptions about security.
Super efficient and smooth visa process for cruise passengers.
Reduced visa fees for vessels offering passenger turnaround operations in Mombasa.
Reduced marine, tug fees to incentivize a greater volume of cruise calls.
ISS Cruise Sales
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Freight Rate Comparisons China / Far
East to Gulf V Far East to East Africa
 China /Far East to Jebel Ali transit time 22 to 24 days.
 China /Far East to Mombasa/Dar transit time 20/24 days.
 Average moves per Gantry /hour Jebel Ali 24 moves.
 Average moves per crane /hour Mombasa and Dar 9/14 moves (average)
 Waiting time Jebel Ali , Window system berthing on arrival.
 Waiting time Mombasa / Dar .5 days ?
ISS Liner Sales
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Freight Rate Comparisons China / Far
East to Gulf V Far East to East Africa
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Average freight rates China /Far East to Jebel Ali
usd 800/20 and usd 1100 /40ft
 Average freight rates China/Far East to Mombasa /Dar
usd 1,400/20 and usd 2,400/40ft
ISS Liner Sales
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Freight Rate Comparisons China / Far
East to Gulf V Far East to East Africa
An efficient port and infrastructure with no berthing delays and
high berth productivity could result in massive savings for the
Kenyan economy
Potentially usd 500 / teu x 500,000 in bound containers =
usd 250,000,000 savings for Kenyan businesses !!!
ISS Liner Sales
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Questions & Answers
ISS Cruise Sales
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