ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR Harun Şişmanyazıcı ECONOMİST / LECTURER IN UNIVERSITY ...
Author: Jeffry Stone
0 downloads 0 Views 1MB Size
ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR Harun Şişmanyazıcı ECONOMİST / LECTURER IN UNIVERSITY

1 - DEFINITION OF CRUISE TOURISM: “Cruise tourism is a luxurious form of travel, involving an allinclusive holiday on a cruise ship which can rightly be called marine resort of at least 48 hours, comprising a specific itinerary, in which the cruise ship sail on deep seas and calls at several ports or cities with cultural and historical richness , and environmental beauty.” Cruise vessels should have a minimum of 100 passenger capacity and make deep sea voyage for a minimum of 2 days.

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

2 - FROM LINER VOYAGES FOR PASSANGERS TO CRUSING SERVICES FOR TOURISTS Dedicated transport oriented ocean liners operate ‘’Line Voyages’’ and typically transport passengers from one point to another rather than round trips, since passengers do not intend to turn back on same vessel. This type passenger vessel creates place and time utility.

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

A cruise ship or cruise line is a passenger ship (with wide definition) used for pleasure voyages, where the voyage itself and the ship’s amenities are part of the experience. Therefore Cruising services create’’ recreational location ,journey or tour’’ utility.

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

Customers of the cruising services are called as passengers but in my judgement they must be called as tourists since they intend to turn back where they embarked on the vessel.’’ Tourism ‘’is coming from Word of ‘’TORNUS’’ which means turning back in Latin language. Clearly cruise passengers have this intention.

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

3 - CRUISE SHIP AND CRUISE INDUSTRY ARE A RELATIVELY NEW PHENOMENON BUT MOST POPULAR PART OF TOURISM SECTOR. Cruise ship tourism is a relatively new phenomenon, although ocean passages date to as early as May 1819 when Black Ball Lines operating out of New York, became the first Shipping company to offer a scheduled passenger service from the US to England. In the second half of 20’th century cruise holidays grew in popularity, yet remained with the affluent (rich) and late middleaged demographic groups. Today, average age of cruise travelers has diminished significantly. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

The sector then saw an unprecedented growth from the 1970’s and 1980’s but leveled to an annual growth rate of %8 in the 1990’s, and %7.2 per annum from 1990 up to now. Since 1990 over 200 million passengers have cruised. %70 of these passengers have been generated in the past 10 years and nearly % 40 in the past 5 years. (Source CLIA 2015 Outlook)

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

4 - DIVERSIFICATION ON CRUISE SECTOR As mentioned above, growth in cruise ship tourism has remained, but its products have been diversified. Entertainment on board is much more larger scale and includes casino, spa, fitness center, shops, library, theatre with Broadway style, cinema, indoor and /or outdoor swimming pool with water slides, gym, basketball courts , congress, time share ownership of cabin by elder passengers etc. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

As addition to above; it could include education, religious tour and cultural offerings, interactive entertainment supported by technology (e.g. I phone applications), food themed cruises, signature restaurants and celebrity chefs and major events (e.g. Dancing with the Stars) Diversification also led to development of increase in cruise ship capacities including superliners that host up to 6300 passengers. But said big vessels have not been able to sweep away small cruise vessel from sector. Small vessel is also in popular for themed or special cruise services. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

5 - SPECIALTY CRUISE CONTINUES TO THRIVE Special segments which include sophisticated ships, luxury yachts, elegant ocean liners and newest river cruises, polar cruises continue to experience double digit passenger growth. This segment grew by 21 percent annually from 2009 to 2014 estimates. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

6 - MAIN FACTS OF CRUISE SECTOR FROM 2010 TO 2015 − 23 Million passenger are expected to sail this year with 54 percent of North American (as per CLIA), but according to Cruise Market Watch forecasts; it will be 22.2 Million passenger by %3.2 increase over 2014 − Cruise lines are enticing travelers with nearly 1000 ports of call in world including new, exotic locations especially fast growing Asian Market.

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

− CLIA (Cruise Lines İnternational Association) member cruise −

lines are scheduled to debut 22 new ocean/river and specialty ships ın 2015 for a total investment of more than $4 Billion. The cruise industry this year will have economic impact globally. In 2013 the global economic impact output of the cruise industry was more than $117 Billion; the industry supported nearly 900.000 jobs and contributed $38 Billion in wages.

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

6.1-

− -Caribbean continues to be QUEEN; The Caribbean remains





queen for the Cruise Industry with more than a third of deployment capacity market share in 2015. -THE MEDITERRANEAN CONTINUES TO GROW AS A DESTINATION AS WELL AS OTHER REGIONS INCLUDING ASIA AND AUSTRALIA(Far East, the Poles, the Baltic Sea Region, the Arabian Peninsula, the Red Sea and especially MEDITERRANEAN are new destinations after conventional destination of North/South America and Tropical Islands) In 2015 52 vessels will provide 1065 Asian Cruises with capacity for 2.17 Million passengers. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

− The average length of cruises is over 7 days (7.2 days) but −





young passengers prefer short periods TODAYS AVERAGE CRUISER IS 49 YEARS OLD (More than one quarter equal or more than 60 years).MARRIED.EMPLOYED FULL TIME.COLLAGE EDUCATED AND INCOME 114.000 YEARLY. 5-6 years ago average age of cruiser was more than what given above, but now rich and younger peoples are also interested with cruise USA has a dominant role and share in cruise activities as being passengers and rendering cruise services. 17 of biggest Cruise lines are owned by American corporations. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

− Cruise sector is a closed market, it is difficult to enter into this market since it necessitates $30-40 Million for a vessel with a capacity of 200-300 passengers , and $400-600 Million for a vessel with passenger capacity of around 2500-3000. Shore based facilities require 3 times less investment compared to cruise investments. But they have tax and opex cost advantages by operating vessel under flag of convenience countries. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

7 - CLIA CRUISE INDUSTRY OUTLOOK 2015

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

CLIA GLOBAL OCEAN CRUISE PASSENGERS ( Million) 2012

2013

2014 P

2015 P

20,9 M

21,3 M

22,1 M

23,0 M

(Generally %54 of this amount is North American)

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

8 - MEDITERRANEAN IS THE RISING STAR OF CRUISING SECTOR. Mediterranean has second place after Caribbean in respect to cruise capacity deployment with % 21.7 shares in 2013, but this share diminished to 19.9 in 2014 according to report of the MedCruise for 2014.This is shown on the following graph ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

Global!Deployment!Shares!2014/2008/2004!

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

9 - INFORMATION RELATED TO CRUISE ACTIVIES IN MEDITERRANEAN (Based on Medcruise 2014 Report) − The total cruise passenger visits (movements) at the 72 MedCruise Port Members* reached to 25.8 Million, this number is 7.28% lower than 2013 number which was 27.3 Million. Cruise Passenger Movements in MedCruise Port Members for 2006-2014 are given here below. 2006 16.0 M , 2007 19.4 M, 2008 22 M, 2009 22.5 M , 2011 27.6 M, 2012 26.8 M, 2013 27, 8 M, 2014 25.8 M , 2013 as the year when all records were broken *(Estimated MedCruise ports share of total cruise traffic in the Mediterranean in 2014 for pax is about %80 and %76.62 for cruise call) ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

− The total cruise calls were 13.700 in 2014 , but it was 14.979 in 2013. This represents a total 8.4 % decrease compare to 2013.

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

9-1 CONTINUE − Average PAX/CALL in Med Cruise Ports was 1878 passenger in 2014, it has been increase compare to 2013 which was 1855 passenger in 2013 .There has been 64.16 percent increase w/i last 10 years in this respect. − Distribution of cruise passenger movements in MedCruise Ports Members ; The ratio of transit passenger movements and passenger home porting(in/out) from MedCruise ports stands at 72/28(72 is transit ).This ratio has been stable w/i last 12 years. − The top 5 ports by passengers were Barcelona, Civitavecchia, Venice, Balearics, and Marseille … ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

KUŞADASI/BODRUM/ANTALYA HAD 12’TH PLACE IN THIS RANKING BY 761.912 PASSENGERS, AND PLACE OF ISTANBUL WAS 16’TH WITH 589.353 PASSENGERS. … and sorted by calls the top 5 were Civitavecchia, Barcelona, Dubrovnik/Korcula, Balearics Island, Piraeus. KUŞADASI/BODRUM/ANTALYA HAS MANAGED TO KEEP THEIR PLACE AS A 6’TH ONE IN 2014 BY 605 CALLS, AND PLACE OF ISTANBUL WAS 15’TH BY 331 CALLS. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

9-2 CONTINUE − Cruise Traffic by MedCruise Region in 2014 ; West Med; 17.971.531 pax /8.327 calls Adriatic; 4.604.764 pax/2917 calls East Med; 3.022.838 pax/2140 calls B. Sea; 162.588pax/33 calls. AS SEEN FROM ABOVE WEST MED HAS IMPORTANT PLACE/ROLE IN MEDITERRANEAN CRUISE TRAFFIC..

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

9-3 CONTINUE − Cruise Traffic in Turkish Cruise Ports; (2014) PORTS

TOTAL PAX

CALLS

ALANYA ISTANBUL KUŞADASI/BODRUM /ANT MERSİN SİNOP TRABZON TOTAL

19.092 589.353 761.912 0 16.522 17.118 1.403.997

23 331 605 0 31 31 1021

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

9-4 CONTINUE − CRUISE PASSENGER MOVEMENTS PER MEDCRUISE COUNTRY (2014) COUNTRY

ITALY SPAIN FRANCE GREECE TURKEY

2014

SHARE IN 2014

9.769.495 5.809.122 2.258.015 2.098.652 1.403.997

37.92% 22.55% 8.77% 8.15% 5.45%

TURKEY HAD 5’TH PLACE IN RESPECT OF PASSENGER MOVEMENTS BUT 6’TH PLACE FOR CRUISE CALLS IN 2014 BY 5.45% AND %7.44 SHARE RESPECTIVELY ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

10 - FACTS OF TURKISH CRUISE SECTOR; The total cruise passenger visits (movements) at the Turkish Cruise ports reached 2.240.776 passenger by 1572 Cruise calls in 2013. But this figure decreased to 1.790.125 passenger and 1385 calls in 2014 due to economic crises of the world and region especially economic crises in Greece and strikes at Piraeus Port since cruise vessel calling Turkish ports starts voyage from this port. Cruise lines by taking into account these negative factors, shifted their voyages to the West med and Turkish cruise sector was affected adversely by said decision. Following graph illustrates this situation ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

10 - FACTS OF TURKISH CRUISE SECTOR; Total Cruise Passenger visits and cruise vessel calls at Turkish Cruise Ports. There are 21 Cruise Ports in Turkey but only 17 of these ports reached more than 1000 passenger visit in 2013. AS ADDITION TO THIS ONLY 10 OF THEM ARE MUCH MORE ACTIVE AND IMPORTANT PORTS.MOST POPULAR DESTINATIONS; ISTANBUL, İZMİR, KUŞADASI, BODRUM, MARMARIS AND ANTALYA. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

10 - CONTINUE Most of the Turkish Cruise ports were privatized with in last 10 years, and new owners of these ports have rehabilitated and modernized said ports by heavy investments especially in respect of ISPS Security Code point of view and other facilities. -Turkish port generally visited by the %11 of the world total cruise passengers -%20 of the Turkish tourism revenues originated from maritime tourism also cover cruise revenues. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

-There are no Turkish Flag Cruise vessels and Turkey is not active on cruise vessel operation. But Turkey is being recognized as a desired destination and a home port of foreign cruise vessels. Turkey offers cruise passengers a wide range of riches such as history, cultural heritage, good climate, crystal waters where tourists can enjoy diving and swimming, hospitality, natural values, entertainment, religious tour, 8.333 km un-spoilt coastlines, rich cuisine and foods, shopping etc. Now cruise lines decided to start their tours from Istanbul, in this context Royal Caribbean declared that they will start Greek Island, Adriatic and Mediterranean tours from Istanbul as home port(in/out) within coming days, like Italian Costa did last year. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

10 - CONTINUE NOW LET ME SHOW YOU SOME HIGHLIGHTS OF THE NATURAL AND CULTURAL SITES OF TURKEY.

Antalya Sea Shore

FETHİYE ÖLÜ DENİZ (DEAD SEA)

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

Sumela Monastery

Pamukkale (Turkey’s most famous natural wonders-Pure White travertine)

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

TOPKAPI PALACE

Cappadocia

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

MOUNT OF NEMRUT

AYA SOFIA

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

Efes-İzmir

GÖÇEK

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

11- ISTANBUL PORT HAS 1’ST PLACE WITH IN TOTAL CRUISE PASSENGERS COMING TURKEY BY 30 PERCENT SHARE , AND FOLLOWED BY KUŞADASI(%25.7) AND İZMİR(%21.7) THIS YEAR KUŞADASI WILL BE 2’ND ONE AFTER ISTANBUL SINCE NORWEGIAN CRUISE STARTED TO CALL KUSADASI INSTEAD OF İZMİR STARTING FROM 27.April 2014, LAST YEAR 475 VESSEL CALLED TO THIS PORT BUT THIS YEAR FIXED RESERVATIONS ARE ALREADY MORE THAN 600 CALLS, AND EXPECTATION IS AROUND 700 CALLS FOR 2015 SAID 3 MAIN PORTS HAS 75 PERCENT SHARE OF TOTAL CRUISE PASSENGERS VISIT TURKEY. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

PORT

Number of pas

Share (%)

Alanya

40.843

1, 82

Antalya

163.575

7, 30

Bartın

2.071

0, 09

Bodrum

28.546

1, 27

Çanakkale

7.467

0, 33

Çeşme

62.741

2, 80

Dikili

7.655

0, 34

Fethiye

1.067

0, 05

Göçek

252

0, 01

Güllük

476

0, 02

İstanbul

689.417

30, 77

İzmir

486.493

21, 71

Kaş

1.152

0, 05

Kuşadası

577.685

25, 70

Marmaris

152.685

6, 81

Mersin

1.381

0, 06

Mudanya

414

0, 02

Samsun

1.281

0, 06

Sinop

7.460

0, 33

Trabzon

8.115

0, 36

Tuzla

0

0, 00

TOTAL

2.240.776

100, 00%

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

12- İZMİR IS THE EMERGING STAR OF THE TURKİSH CRUISE PORTS The Cruises News Media Group in Spain, a specialized publication in touristic passenger tourism, Turkey and Croatia were selected as the two best cruise destinations of 2009 in the Cruise Forum held in Spain in February 2010. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

Because of the efforts of İzmir Chamber of Commerce and İzmir Branch of Turkish Chamber of Shipping to ensure that Cruise Ships visited the İzmir Alsancak Port in İzmir, ’’The pearl of Aegean Region ‘’ and the point that has hosted many different civilization since the first age of history, 3271 passengers came to the city in 2013 with 5 trips, and this number increased to 486.493 passengers ın 2014. İzmir was awarded the “Leader Cruise Destination in Europe” award within framework of the World Travel Awards in 2011, 2012, and 2013. Beside others Turkish Cruise Platform had important role on this development after its establishment in 2012. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

13- THERE ARE 10 NEW CRUISE PORT INVESTMENT PROJECTS WITHIN THE TURKISH STRATEGIC TOURISM TARGETS OF 2023

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

14- NEGATIVE AND POSITIVE IMPACT OF CRUISE TOURISM FIRST POSITIVE IMPACT - ECONOMIC IMPACT OF CRUISE INDUSTRY. The Cruise Industry is an increasing economic force at least for some countries and some port of the World. According to CLIA 2013 Report; in 2012 the US Cruise Industry contributed more than $42 Billion to the American Economy. As per new report of the CLIA; in 2103 the global economic output of the cruise industry was more than USD 117 Billion; the industry supported nearly 900.000 jobs, and contributed USD 38 Billion in wages. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

THE CRUISE INDUSTRY THIS YEAR WILL HAVE POSITIVE ECONOMIC IMPACT GLOBALLY Cruise passengers spend on board and at shore, while they spend their money on board to serve interest of cruise lines, but when they spend at shore contribute to the national economy of the port which they visit. Average expenditures of one cruise passenger on board is around $1719, in this context economic potential of cruise tourism is around $36 Billion just in respect of expenditures on board.(This year this figure will be $40 Billion) A cruise passenger spends 3 times more in comparison to any other shore based tourist. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

14.1 CONTINUE As addition to above, said passengers and crew create economic benefit for the calling port of the cruise vessel by their expenses on shore. For example; in Turkey while cruise tourist spends $120 -150 per day at port , ordinary shore based tourist spends $50 -55per day, as addition to cruise passengers , cruise crew also spends an average of $70 per day. In the light of these facts cruise passengers and crew serve the interest of Turkish economy around 400 million per annum at Turkish Cruise ports. It is expected that cruise passengers and crews will spend $19.5 Billion at calling ports/Cities in 2015 globally ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

14.2 CONTINUE ONE CRUISE PASSENGER SPEND AVERAGE $1719 ON BOARD WITHIN 7 DAYS CRUISE TOUR %75 of Cruise Expenses is Ticket Fee Expenditure Items

SPEND ($)

TICKET

1.304

Expend.During.Tour

415

TOTAL EXPENDITURE

Casino/Bar

222

Disembark Expenses (Remain amnt to Cur)

81

Spa

40

Other

61 1.719

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

23 Million Cruise Passengers x $1719 per 7 days Cruise Tour=$39.5 Billion economic value of cruise tours created on board +$19.5 Billion at Ports = $59 Billion direct economic benefit (Source;Türkiye’de Kurveziyer Turizm Potansiyeli ve Geleceği by İpek Sapmaz) The average cruise passenger brought a revenue of 1728 but with high expenses per passenger the average profit was only $185 in 2013

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

14.2 CONTINUE According to MedCruise; The Typical Cruise Ship carrying 2250 passengers and 480 crew members conservatively generates $225.596 in passenger and crew expenditures during a single port of call visit. According to CLIA Europe estimates cruise sector generates more than 15.5 Billion Euros in direct expenditures throughout Europe. These expenditures are broadly distributed across four major source segments ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

Cruise Lines Purchases Passenger and Crew Purchases Ship Building Cruise Employees Compensation

%43 %23 %25 %9

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

14.3 CONTINUE SOCIAL AND CULTURAL EFFECTS OF CRUISE SERVICES 1-Cruise Lines generate a platform on board for the meeting of different cultures and nations and establishment good friendship between passengers coming from different countries. 2-Also it helps the older people to socialize; rich elderly population in the future days will prefer to live on board of cruise vessel during certain periods. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

14.4 CONTINUE TOP 10 CRUISE PORT OF WORLD IN RESPECT OF CRUISE REVENUE Rank

City

Port

Revenue (million usd )

1

Florida

Miami

605

2

Florida

Fort Lauderdale

500

3

Florida

Port Canaveral

493

4

Barcelona

Barcelona

382

5

Rome

Civitavecchia

373

6

Bahamas

Nassau

349

7

Mexico

Cozumel

278

8

Venice

Venice

255

9

Southampton

Southampton

243

10

Texas

Galveston

194

As seen from above FLORIDA has biggest share with $1.5 Billion revenue and Miami port has first place in ranking by $605 Million revenue. In Mediterranean /Europe Barcelona has this place by $382 Million revenue.

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

14.5 LAST ONE IS NEGATIVE IMPACT Negative aspects of the cruise industry are summarized below; -THE RISK OF ILLNESS Any time large groups of people congregate in a relatively small space, there is always the possibility of disease. On cruise ships, the most common afflictions are food borne ailments like E coli Legionnaire’s disease. In 2013 norovirus (a highly contagious infection) most commonly known as a’ ’stomach bug’’ swept through at least two different cruise ships resulting in hundreds of people sick with vomiting diarrhea. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

-POLLUTION BY BUNKER Cruise Ships created an enormous amount of pollution in the past, but it’s this negative impact is minimized by the effort of the International and Regional Governmental and Nongovernmental Organization like IMO (MEPC), UNEP, FOE (Friends of the Earth) etc.

ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

Cruise ships’ engines require immense amounts of fuel to move, the famous QE II required nearly 400 liters of fuel to move a single mile and went through 433 tons of fuel a day, so this cause air pollution in respect of Sulphur dioxide, NOX, Carbon dioxide, Particulars which are cause acid rain. As well as sea pollution by discharge of bilge water. In general ,a ship treats bilge water before discharging it, but could be cases of irresponsible ocean dumping. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

But as mentioned above this pollution effect of cruise ships has been minimizing by the new regulations, like Marpol 73 and its Protocol and Annexes UNSUFFICIENTLY TREATED EXHOUST,BILGE, AND SEAWAGE TANK WATER OF THE CRUISE SHIPS CAN CREATE AIR AND WATER POLLUTION POTENTIALLY. CAUSING A HOST OF UGLY ENVIRONMENTAL AND HEALTH EFFECTS. THAT UNDERMINE THE VERY NATURAL BEAUTY THAT CRUISE SHIPS ADVERTISE TO POTENTIAL TRAVELERS. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

-POLLUTION BY SEAWAGE A cruise ship carrying 3000 passengers generates approximately 800.000 liters of raw sewage throughout the course a week. According to a recent EPA Survey of cruise boats operated in Alaska; cruise ships are generating an average of 21.000 gallon of sewage a day. Those ships also produce daily average of 170.000 gallons of gray water which contain detergents, oil, grease and food waste. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

Despite of sewage tank contents are subjected to a treatment before being dıscharged in to the sea, create some pollution due to reason ineffective treatment. For the most part, ships are able to dump their raw sewage directly in to the ocean provided they are more than about five kilometers (3 Miles) from shore. AS A RESULT CRUISE VESSEL CARRIES THOUSANDS OF PASSENGERS. EACH OF WHOM PRODUCES A PERSONAL WASTE STREAM THAT CAN END UP IN THE OCEAN. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

- BIOLOGICAL POLLUTION BY CLEAN BALAST WATER DISCHARGE. Discharging of the any clean ballast water which taken from one of the ocean into the another ocean creates aquatic bioinvasions causing major ecological impact. The spread of invasive species is now recognized as one of the greatest threats to the ecological and the economic wellbeing of the planet. In order to minimize effect of this big threat IMO produced new International Convention on this matter which is named IMO BWM Convention. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

-EMPLOYMENT OF THE CHEAP LABOR FORCE As we mentioned above Cruise lines operated their vessel under Flag Of Convenience Countries, therefore they have the ability to recruit workers with very low wages often. Employees are recruited from poor nations in Asia, Central America and Eastern Europe by one year long engagement. Some of them are making contract with very low salary per month and long working hours per weeks. Anyhow MLC Convention of ILO and ITF are combating this type of abusement of Labor Rights ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

- CASUALTIES (ACCIDENTS AT SEA) In Feb 2013 Carnıval Trıumph a massive cruise ship bound for Mexico suffered fire in its engine room, but it was extinguished without death or injury. In 2012 The Costa Concordia an Italian vessel struck a rock in the cost of Tuscany. Despite vessel carried over 4000 passengers and crew member only six tragic deaths reported from capsize of this vessel. After this accident, many people started to examine cruise ship safety, but in general, cruising is very safe way to travel, and the Industry has a good record ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

It can be seen from following list; In 2010 -Carnival Splendor; an engine room fire left the ship wıthout any power, vessel is towed to San Diego, NO ANY CASUALTIES. - Louis Majesty; Waves as high an 26 feet crashed into the ship off northeast Spain, CASUALTIES 2 -Costa Europe; the ship crashed into the pier at Sharm El Sheikh when trying to dock in bad weather CASUALTIES 3 Crew Member. ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

-Brilliance of the Seas; winds reached 70 knots in a terrible storm, tossing this ship so violently that windows broke and furniture was strewn about. NO CASUALTIES -Between 2005-2007 3 accidents and casualties were recorded . DISAPPEARANCIES , 200 incidents noted since 2000, 200 passengers are lost on board ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR

THANK YOU FOR YOUR ATTENTION AND HOPING SEE YOU IN TURKEY ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS OF CRUISE TOURISM AND FACTS OF TURKISH CRUISE SECTOR