AK Small Cruise Ship Presentation 2014

Trends and Opportunities in Alaska’s Small
Cruise Vessel Market
DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT
DIVISION OF ECONOMIC DEVELOPMENT
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ALASKA’S SMALL CRUISE VESSEL MARKET
ALASKA’S SMALL CRUISE VESSEL MARKET (SCV)
• Why small cruise vessel
market?
• What does it look like?
• What happens next?
• What does it mean for
you?
• What are the trends?
PHOTO: WRANGELL CHAMBER OF COMMERCE
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ALASKA’S SMALL CRUISE VESSEL MARKET
HOW SMALL IS SMALL?
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ALASKA’S SMALL CRUISE VESSEL MARKET
DEFINITION
PHOTO: LINDBLAD EXPEDITIONS
Small Cruise Vessel (SCV) =
Small overnight commercial passenger
vessel that carries up to 250
passengers.
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ALASKA’S SMALL CRUISE VESSEL MARKET
WHY THIS MARKET?
PHOTO: UN-CRUISE ADVENTURES
• 10,000 small cruise vessel
passengers (2013)
– 1 percent of total cruise market
• Up from 6,000 small cruise
vessel passengers in 2012
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ALASKA’S SMALL CRUISE VESSEL MARKET
WHY? REVENUE POTENTIAL FOR PORT COMMUNITIES
$350,000
SCV Company and Passenger Spending Estimates
1 Company, 2 Vessels, 2 Ports, 700 Guests
$1.3 M. PER SEASON (EST.)
$300,000
Spending in Dollars
$250,000
$200,000
$150,000
Moorage = $7,000
$100,000
$50,000
$Fuel
$ Per Category
$300,000
Referals
to Local
Fishing
Charters
$175,000
Guest
Shopping
Guest
Activities
Lodging
$155,000
$140,000
$130,000
Meals
Ship
Supplies
Crew
Spending
Local
Taxes
$110,000
$95,000
$75,000
$50,000
Source: Small cruise vessel company operating two vessels, 25 passengers or less.
Ground
Housekee
Transport
ping &
and Car
Laundry
Rental
$50,000
$30,000
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ALASKA’S SMALL CRUISE VESSEL MARKET
ALASKA’S SCV FLEET, 2014 = 34 VESSELS
US Flag (26)
Type
Washington (17)
Expedition
Alaska (8)
Ice Class
Connecticut (1)
Tug Boat
Luxury Yacht
Foreign Flag (8)
PHOTO: DISCOVERY VOYAGES
Bahamas (4)
Wallis & Futuna Islands
(1)
Working Yacht
Minesweeper
British Columbia (3)
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ALASKA’S SMALL CRUISE VESSEL MARKET
ALASKA’S SCV FLEET: COMPANIES AND NUMBER OF VESSELS
PAX ≤ 25
26 – 100 PAX
101 – 250 PAX
1 vessel each =
Un-Cruise Adventures – 7
Alaska Sea Adventures, Alaska
Coastal Quest, All Aboard Yacht
Charters, Alaska Song, Discovery
Voyage, Maple Leaf Adventures
NW Navigation, Pacific Catalyst, Sea
Wolf, Sikumi Alaska Cruises, Viaggio
Alaskan Dream Cruises
–3
Silversea
Expeditions – 2
1 vessel each =
Lindblad Expeditions – 2
Hapag Lloyd
American Cruise Lines – 1
Ponant Yacht
Cruises &
Expeditions
Fantasy Cruises - 1
2 vessels each =
Noble Caledonia
The Boat Company
Bluewater Adventures
15 vessels
14 vessels
5 vessels
5% pax capacity (lower berth)
85% pax capacity
10% pax capacity
50’ – 100’
except 3 vessels (120’ – 160’)
100’ – 200’
300’ – 500’
Source: Alaska Department of Environmental Conservation, Cruise Line Agencies of Alaska, McDowell Group Vessel Database, posted
schedules for various companies.
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ALASKA’S SMALL CRUISE VESSEL MARKET
ALASKA’S SCV FLEET: REGION OF OPERATION
• Southeast = 90% pax
capacity
•
•
•
•
Prince William Sound
Western AK/Aleutians
Cross Gulf to Seward
Northwest/Northeast Passage
PHOTO: ALASKAN DREAM CRUISES
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ALASKA’S SMALL CRUISE VESSEL MARKET
ALASKA’S SCV FLEET: SAMPLE OF COMMUNITIES VISITED
Operator
Alaskan Dream Cruises
Un-Cruise Adventures
Ports of Call
Juneau, Ketchikan, Kake, Kasaan, Thorne Bay,
Coffman Cove, Wrangell, Petersburg, Sitka, Haines,
Skagway, Metlakatla
Juneau, Sitka, Ketchikan, Petersburg, Wrangell, Elfin
Cove, Haines, Skagway, Klawock
Fantasy Cruises
Sitka, Juneau , Kake, Tenakee Springs
Petersburg, Hoonah
American Cruise Lines
Juneau, Hoonah, Haines, Petersburg
Wrangell and Ketchikan
Lindblad Expeditions
Juneau, Petersburg, Sitka
The Boat Company
Sitka, Juneau
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ALASKA’S SMALL CRUISE VESSEL MARKET
ALASKA TRENDS: LOWER BERTH PAX CAPACITY, 2005 - 2014
Lower Berth Capacity Alaska's Small Cruise Vessel Fleet
2005-2014
Total Small Cruise Vessel Market
Passenger Capacity
22,500
22,000
Alaskan Dream Cruises and UnCruise Adventures
Cruise West
21,500
20,000
All Other Small Cruise Vessel
Companies
Stock Market
Failure
Fall 2008
17,500
15,000
14,500
13,500
16,000
Alaskan Dream Cruises (Allen Marine)
and Un-Cruise Adventures Purchase
Cruise West Vessels
2011
12,500
9,500
10,000
Cruise West Ceases
Operations
Sept. 2010
9,600
7,500
7,000
5,000
2,500
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Alaska Department of Environmental Conservation, Cruise Line Agencies of Alaska, posted schedules for various companies.
Includes vessels carrying 20 passengers or more.
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ALASKA’S SMALL CRUISE VESSEL MARKET
WILL GROWTH CONTINUE?
• Cruise Lines International • New ship builds (2014 - 2018)
Association (CLIA)
– 15 of 36 ships = 250 PAX or less
– Survey of 55 cruise lines
and 600 travel agents
– All but three introduced during
2014
– Small ship cruising is a top
trend (2013) -
– Most built for river cruising except
vessels introduced by American
Cruise Lines, Ponant Yacht Cruises
and Expeditions and Silversea
Expeditions
PHOTO: AMERICAN CRUISE LINES
Sources: Cruise Line International Association, 2013 North America Cruise Industry Update, February 2013
The State of the Cruise Industry in 2014: Global Growth in Passenger Numbers and Product Offerings (2014), Cruise Lines International
Association.
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ALASKA’S SMALL CRUISE VESSEL MARKET
OPERATOR CONFIDENCE
Small Cruise Vessel Companies in Alaska, 2014
by estimated percent of total passenger capacity (est. 16,000 PAX)
3% 3%
3%
Un-Cruise Adventures
Alaskan Dream Cruises
5%
5%
Lindblad Expeditions
Interviews with four of eight
SCV companies
• Operator representing 50% of
current pax capacity in AK says
company plans to expand in
AK.
American Cruise Lines
15%
49%
Boat Company
Hapag-Lloyd
Noble Caledonia
17%
Silversea Expeditions
• Operators representing 30%
pax capacity say operations will
stay the same.
• Operators representing 20% of
pax capacity did not respond.
Sources: Alaska Department of Environmental Conservation, Cruise Line Agencies of Alaska, and published schedules for individual companies.
Alaska Division of Economic Development interviews with small cruise vessel operators (September to October, 2014)
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ALASKA’S SMALL CRUISE VESSEL MARKET
CHALLENGES TO GROWTH: SCV OPERATORS
• Access to Tongass
National Forest and
Wilderness Areas
• Access to Glacier Bay
• Growth in the industry and
crowding
• Moorage Space
PHOTO: UN-CRUISE ADVENTURES
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ALASKA’S SMALL CRUISE VESSEL MARKET
OPPORTUNITIES
• More sailings and port calls: expand the season,
particularly into April.
• New home ports: at least two operators say they are
considering or would consider new locations
- Competition for space
- Air lift, additional services
• New ports of call and itineraries
- Changes in Glacier Bay concessionaire contracts
- “Triangles of activity”
- Location/weather considerations
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ALASKA’S SMALL CRUISE VESSEL MARKET
RECOMMENDATIONS: DIVISION OF ECONOMIC DEVELOPMENT
Continue market research
• Interviews with operators
• Input from infrastructure managers
• Quantify growth in the industry
• Revenue opportunities
Caryl McConkie
907.465.5478
[email protected]
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ALASKA’S SMALL CRUISE VESSEL MARKET
DATA SOURCES: TRENDS AND OPPORTUNITIES IN SCV MARKET
• Trends: Cruise Lines Association International (CLIA) and
CLIA Alaska, Alaska Visitor Statistics Program IV (AVSP
IV), Cruise Line Agencies of Alaska (CLAA) databases, AK
Department of Environmental Conservation (DEC),
publicly available operator schedules.
• Alaska fleet: CLAA, DEC, McDowell Group Vessel
Database, operator schedules.
• Challenges and opportunities: Interviews and group
meetings w/small cruise vessel operators, Southeast
regional organizations, AAHPA, community leaders (city,
tribal, business, port administrators and harbormasters).
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