Cruise Experience in Malta Jason Bongailas Malta Maritime

“Cruise Experience in Malta” Jason Bongailas Malta Maritime Authority Passenger Traffic Trends In The EU – Especially Cruise Within the “Baltic Range” Port-Net Workshop 22 – 25 May 2007 Klaipeda

Passenger Transport by Sea Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Passenger transport on water • One of the earliest ways of transport of passengers between origin and destination • The vehicle varied from the pre-historical rafts to canoes to boats to large liners and ferries Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Reasons for traveling by sea • To travel between origin and destination – boats, barges and ferries. • Entertainment - local river or harbour excursions and dinner cruises. • Leisure – where the ship is a destination in itself – cruise liners – an exception to the rule of transportation Passenger Traffic Trends in the EU: Klaipeda 22 -25 May 2007

Cruise Industry Issues and Outlook Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

KEY PLAYERS IN THE CRUISE LINING INDUSTRY Cruise Liner Operators • own & charter vessels Tour Operators • own or charter vessels • wholly own or have subsidiary shareholdings in airlines or hotels in the ‘home ports’ Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Main Cruise Destinations • Caribbean • Mediterranean • Asia/South Pacific • Alaska • North/Western Europe Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

THE MEDITERRANEAN’S POTENTIAL In recent years the Mediterranean cruise market has seen a rapid expansion of capacity which looks set to continue with the continuous growth of: Ø tour operators such as Airtours, Thomson, and Pullman Tours; and Ø cruise operators as Costa Crociere, MSC Cruises and Aida Cruises Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Itinerary Planning • A cruise region with marketable ports close to each other • Socio-political stability • A mix of ports offering a blend of cultural, historical and leisure experience • Possibility of time and sea • Good climate Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Ship Support Services • Decent, clean and safe berthing facilities • A wide turning basin • Professional Pilotage and towage service • Fast Customs and immigration clearance • Fuelling and water capacity • Repair services • Ship chandling • Waste handling services • Security • Low costs Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Passenger Handling Services • Quick Customs and Immigration clearance • Smooth baggage handling • Security • Berth close to city and attractive environs • Tourist appeal destinations • Professional guides • Local hospitability and facilities – telephones etc. • Adequate parking facilities • Comfortable local passenger transport • High standard hotel industry • Good air connections • Low costs Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Malta’s Strategic Position

NUMBER OF CRUISE LINER CALLS AT MALTA 359 83 Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

NUMBER OF PASSENGERS CALLING AT MALTA 408, 264 40, 269 Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Cruise Passengers in Malta - by Nationality - 2006 Germany - 18% USA – 10% Italy - 23% Spain - 16% Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Classification of Vessel Calling at Malta - by no. of passengers Standard Delux + Delux Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

VISET plc • VISET Consortium was awarded the Valletta waterfront project to develop and operate the cruise terminal. • VISET was responsible also for the regeneration of a vast part of the Grand Harbour along the Valletta waterfront. • The Lm 14 million Valletta waterfront project aim also to target the home porting business by providing modern facility that would entice more shipping lines to begin and end their cruises at the Grand Harbour. Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

The Malta Cruise Network (MCN) “MCN was set up in late 2004 as an independent body to act as the focal point for local stakeholders and as a coordinating voice in the delivery of a quality product and service to the cruise line sector. Its remit is to define, develop, deliver and promote a sustainable cruise industry for Malta” Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Leading Mediterranean Ports of Call - 2005 Rank Port Sector Potential Passenger Throughputs 2005 1 Naples Western 652, 148 2 Barcelona Wester 566, 012 3 Civitavecchia Western 552, 023 4 Dubrovnik Adriatic 500, 000 5 Tunis/La Goulette Western 439, 442 6 Livorno Western 414, 408 7 Santorini Eastern 399, 784 8 Palma Majorca Western 374, 999 9 Mykonos Eastern 354, 171 10 Valletta Western 336, 400 11 Katakolon Adriatic 334, 845 12 Rhodes Eastern 286, 837 13 Piraeus Eastern 282, 674 14 Kusadasi Eastern 282, 604 15 Malaga Western 250, 000 16 Nice-Villefranche Western 242, 141 17 Corfu Adriatic 241, 095 18 Bari Adriatic 230, 316 19 Palermo Western 216, 768 20 Messina Western 200, 000 Source: G. P. Wild (International) Limited

The Economic Impact • Direct Expenditure – Research by the Malta Cruise Network (MCN) and the National Statistics Office shows that cruise passengers spent an average of Lm 12. 80 each whilst ashore, excluding the cost of pre-booked excursions. • Multiplier Effect – If multiplied by the number of passengers ashore during the same period, cruise passengers left an estimated average of Lm 290, 000 per month in the Maltese economy or Lm 3. 4 million for the year ending 2006. Source: Malta Cruise Network Research Study Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

THE ‘HUB’ CONCEPT Passengers from different localities travel to the ‘home port’/ ‘hub port’ to embark the awaiting cruise liner. Passengers may chose to spend 1/3 days in the ‘home port’ prior to embarking the vessel. Passengers usually disembark (after the cruise) in the same ‘home port’. . again with the possibility of spending 1/3 days in the ‘home port’. Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

SOME KEY FACTS TO NOTE qgrowing passenger markets q. Few ports in the Mediterranean can handle big passenger ships, because of (i) draught (ii) a large number of passengers qlarger cruise ships q. New strategies in the Industry - Joint ventures; alliances; mergers & takeovers. Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

MALTA AS A ‘HUB’ - REQUIREMENTS • Adequate infrastructure viz: Airport; road networks; transfer to Port (taxi service etc). • Air ‘links’ with Airports. • An efficient passenger handling system & quick transfer of passengers from Airport to the Port. (check -in facilities at Airport) • The provision of the right ‘package’ at the right price, including the above. • An association or ‘committee’ which coordinates all the necessary requirements.

Cruise Passengers in Malta ooo’s Passenger Traffic Trends in the EU: Klaipeda, Lithuania 22 -25 May 2007

Barriera Wharf Design aspects: • • • A solution with 2 separate berths is chosen, taking into consideration safe navigating of vessels as well as limiting wave reflection into the Grand Harbour. One berth for mega-cruise vessels and one other berth for vessels up to 250 m. The berths could also be constructed separately. Land space is limited and will mainly need to be created at the quays: 7000 m 2 at the mega-berth and 2900 m 2 at the other berth. The total investment costs are estimated at: 26 million euro. Annual maintenance costs are estimated to be 1. 55% for both berths. The construction period is estimated to be 2 years.

The Islands’ Maritime Heritage The Maltese islands have first been inhabited prior to 6000 years ago. These settlers must have been travelers originating from North Africa and nearby south Italy. temple village Cart ruts

The Islands’ Maritime Heritage The most famous early inhabitants must have been the Temple Builders dating back to around 4000 B. C. They have left behind the most ancient free-standing buildings on Earth. These are today World heritage sites.

Malta’s strategic location • For centuries Malta’s ports were sought after by any military • • • empire the natural sheltered ports provided clear advantages to our colonisers such empires were not only military but also traders and used Malta as their logistics centre. Stores built by the Knights of St John to store grains transhipped between the East and the West of the Med. , have today become a passenger terminal and a leisure centre.

THANKYOU