FCCA Second Quarter Cruising Magazine by Florida-Caribbean Cruise Association

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Even before you set foot ashore, you realize how truly extraordinary Dominican Republic is. The arrival of the cruise ship to any of the three world-class harbors: Santo Domingo, La Romana or Samanรก, is nothing short of spectacular, with views of the impressive mountain landscape, wonderful marine life and other splendid sights as you travel through. Sail to the Dominican Republic. The adventure of your dreams is closer than you think.

GoDominicanRepublic.com

C R OW N B AY ST. TH O M AS

W ES T IN DI AN

CO M PA NY ST. TH OM AS

ED FR ED ER IKST ST. CROI X

Y DO CK GA LLOWS BA CROI X ST.

A GREAT CRUISE STARTS WITH A GREAT PORT. OR FOUR. Head toward a cruise destination both you and your passengers will appreciate. The four ports of the U.S. Virgin Islands offer well-established cruise destinations with newly renovated and fully appointed facilities. Additionally, St. Croix offers highly efficient bunkering services. Plus, our white sand beaches, turquoise waters and picturesque towns offer all the island experiences your passengers are looking for. For more information on the ports of the U.S. Virgin Islands, visit www.viport.com and www.wico-vi.com.

800.372.USVI ÂŠ2011 United States Virgin Islands Department of Tourism.

FLORIDACARIBBEAN CRUISE ASSOCIATION Executive Committee

CRUISING

THE FLORIDA-CARIBBEAN CRUISE ASSOCIATION MAGAZINE Second Quarter 2011

Cover Image

Micky Arison Chairman & CEO Carnival Corporation

17 Where’s the Wow? Cruise lines seek shore excursions that will leave lasting impressions on guests.

Daniel J. Hanrahan President & CEO Celebrity Cruises Karl L. Holz President Disney Cruise Line Richard E. Sasso President & CEO MSC Cruises (USA) Inc. Kevin Sheehan FCCA Chairman, CEO Norwegian Cruise Line Stephen A. Nielsen Vice President, Caribbean & Atlantic Shore Operations Princess Cruises

FCCA Staff

23 Spotlight on the Cayman Islands

Cayman Islands Photo credit: Cayman Islands Department of Tourism

27 State of the Industry

Departments 7

President’s Letter

10 Cruise Industry News & Platinum Highlights

Omari Breakenridge Manager of Communications & Design

47 Faces in the Industry

Terri Cannici Director, Special Events

48 Meetings and Greetings With the FCCA

Adam Ceserano Senior Vice President

Spotlight

36 Are We There Yet? Cruise lines are carving out new travel markets around the world.

Features

James Kazakoff Senior Director, Event Operations

FCCA’s 17th Annual Gala Brings Together Key Cruise Industry Decision Makers

George Orellana Research & Membership Coordinator

Alaska Cuts Controversial Tax to Regain Lost Cruise Tourism

Justin Paige Communications & Marketing Administrator

Practice An Ounce Of Prevention: The Importance of Timely Claims Reporting

Jessica Lalama Executive Assistant

To Aon’s FCCA Global Tour Operator Liability Insurance Program

Michele M. Paige President Florida-Caribbean Cruise Association (FCCA) 11200 Pines Blvd., Suite 201, Pembroke Pines, FL 33026 Phone: (954) 441-8881 • Fax: (954) 441-3171 Website: www.f-cca.com • E-mail: info@f-cca.com Cruising Magazine © 2011 ~ All Rights Reserved. Reproduction in whole or in part, in any form, electronic or otherwise, without written permission of the FCCA is prohibited. To subscribe or change your address, please send requests to info@f-cca.com

FCCA Member Lines AIDA Cruises • Azamara Club Cruises • Carnival Cruise Lines • Celebrity Cruises • Costa Cruise Lines • Cunard Line Disney Cruise Line • Holland America Line • MSC Cruises (USA) Inc. • Norwegian Cruise Line P&O Cruises • Princess Cruises • Royal Caribbean International • Seabourn The information in this publication is provided "as is." FCCA and its Member Lines disclaim all representations and warranties, expressed or implied, with respect to any information, services, products and materials contained herein. FCCA and its Member Lines will in no event be liable for any damage or losses as a result of your use of this publication.

Second Quarter 2011 • Cruising Magazine 5

President’s Letter “We tend to forget that happiness doesn’t come as a result of getting something we don’t have, but rather of recognizing and appreciating what we do have.” -Frederick Keonig In times of economic strain, it becomes important to truly appreciate what we have and to hold onto it. We must constantly foster the business that we do have, and it certainly is fortunate that we are in the cruise industry, which has proven its hardiness through numerous hardships, most recently by actually thriving and improving during the recession. Michele with Álvaro Uribe, former President of Colombia at the FCCA’s Central American Cruise Conference in Honduras.

The cruise industry increased business for destinations, ports, tour operators and many others throughout a time when everyone else struggled, and we must be grateful for what we have, but also prepared to expand and actively attract more business. Perhaps most importantly, we can see a prime example of how important perseverance is and learn how to exhibit it. Another good lesson to learn from the cruise industry is that adaptation and flexibility are essential to any good business plan. And this is just as important in life as it is in business. A few articles in this edition of Cruising will focus on this curriculum and show how the cruise industry has benefited from movability into new markets, away from trouble and into the future, while maintaining the business plan’s foundation of value for passengers. It will tell how Governor Parnell and Alaska have worked with the cruise industry to regrow cruise tourism; provide a glimpse into the profile of the current cruise passenger demographic; and give insight into cruising’s emerging markets. But we must remember that the cruise industry has persisted through myriad catastrophes, and we know that it will continue to prosper despite the struggles. We will certainly benefit from its success, and it will give us plenty to appreciate. In addition to giving us business, it will provide an example of how to do business and make it easier to expand our companies and lives. Those lessons are available in this edition of Cruising, so please read through and find something to inspire, assist or interest you. May your year move swiftly and come down lightly. Respectfully yours,

Michele M. Paige President, FCCA

Second Quarter 2011 • Cruising Magazine 7

Cruise Industry News & Platinum Highlights Aruba Ports Authority Creating New Opportunities for Cruise Industry Development, Constructing New Infrastructure and Expanding Website

Falmouth in Trelawny, one of the oldest and most significant towns and historic sites in the Western hemisphere. Chukka’s investment in the growth of Falmouth, including employment of about 120 citizens, has been of large benefit to the town.

Aruba is proud to announce that the Aruba Ports Authority is ready to begin the process of investing an estimated US $35 million to move the current container port in Oranjestad to their new MultiCargo Sea Terminal at Barcadera. The relocation of the container port opens up new possibilities and opportunities to further develop the island’s cruise industry. The project is estimated to be fully operational in about one and a half years from the contract’s start. Another of the latest government initiatives that are currently underway is the Caribbean’s Longest Linear Park, which is being constructed along the island’s south-side and will include: pedestrian areas and bike paths, restaurant terraces and outdoor dining, walkways to connect museums/cultural attractions and outdoor areas to showcase local Aruban art.

unparalleled land and water excursions. Known as Mother Nature’s Best Kept Secret, travelers are sure to be spoiled by Belize’s welcoming spirit and stunning natural wonders, such as lush jungles, the second largest barrier reef in the world, ancient Mayan ruins, pristine beaches, picturesque cays and the most extensive cave system in Central America. Nestled between Guatemala and Mexico, this English-speaking country offers unforgettable underwater explorations (including snorkeling, diving, and deep sea fishing) and daring mainland excursions (such as zip-lining, cave tubing, and jaguar-spotting trips). So regardless of your preference, Belize boasts countless options for day trips that will make you crave a weeklong Belizean escape. For a full listing of Belize’s sites, tours, and vacation offerings, visit www.travelbelize.org.

As the Caribbean gateway to Central America, Belize is a tropical paradise that features a range of thrilling adventures, authentic cultural experiences, and 10 Cruising Magazine • Second Quarter 2011

To learn more about Chukka Caribbean Adventures and the various tours offered, visit www.chukkacaribbean.com.

Costa Maya–Home Port of the Mayans

Chukka’s Historic Falmouth Location Is a Huge Success Do not miss the mysticism of 2012! Come to Costa Maya and enjoy its natural beauty, its people, numerous activities and great Mexican food while learning more about the fascinating and enigmatic Mayan culture.

Additionally, Aruba’s website, www.aruba.com, has been expanded to include updates for cruise visitors, including destination wedding opportunities, resort day passes, special discounts for crew members and a welcome back program.

Belize—Mother Nature’s Best Kept Secret—Has Something for Everyone

The world-class tours have been very well received by cruise passengers, with thousands of Chukka tours sold between Good Hope, Falmouth, Ocho Rios and Rosehall Montego Bay.

After all, Costa Maya is the closest port to visit several Mayan ruins and actually resembles an ancient Mayan city. Green Globe Certified Chukka Caribbean Adventures opened its newest location at Good Hope Estate near the historical Port of Falmouth earlier this year.

In December 2012, the Mayan calendar ends, and it begins a new cycle of renewal. Renew your spirit at Costa Maya!

Chukka at Good Hope serves Royal Caribbean and all other cruise lines arriving in Jamaica at the new Port of

Cruise Industry News & Platinum Highlights Dolphin Cove Offers an Experience of a Lifetime

Dolphin Cove, Jamaica’s # 1 attraction, offers the experience of a lifetime— swimming with beautiful bottlenose dolphins in a natural lagoon in the Caribbean Sea. Guests can choose from two amazing activities: the Dolphin Encounter, where guests can become friends with these gentle creatures in knee high water, or our ultimate Dolphin Swim, where guests interact with one dolphin in deep water; have the opportunity to feel the thrill of a belly-to-belly ride; and maybe even get a kiss or two. Dolphin Cove has three main properties located in Ocho Rios, Jamaica; Negril, Jamaica; and West Bay, Grand Cayman. Each park is surrounded by lush tropical jungle and has natural lagoons located in the warm Caribbean Sea and a friendly, relaxed environment that will make any visit unforgettable.

H.H.V. Whitchurch Grounds Its Family Roots In Dominica’s Cruise Industry Acting as port agents and tour operators for the numerous cruise lines calling to Dominica, H.H.V. Whitchurch has pioneered cruise business in Dominica, being founded in 1910 by Herbert Harry Vivian Whitchurch, who went into business as a commission, insurance, automobile and ships agent and owned dealerships in dry goods, groceries and fuel. After Whitchurch’s death in 1946, the

company was passed on to one of his daughters, who had married into the Aird family, which still owns and manages the private limited liability company today. Though the portfolio has expanded greatly since this transition, the company’s roots still remain the same and help the company continue its excellent customer service, understanding of Dominica and desire to help the country and its people. Today, their multi-faceted portfolio ranges from cruise ship agents, shore excursions, shipping, duty-free shopping, insurance, travel agency, money transfers, etc., while operating alongside sister companies Ground Handlers Limited and Millennium Ventures Incorporated.

Dominican Republic Renews Its Efforts in Cruise Development

ments, Salazar thanked the cruise line executives for their high regard of Dominican ports and the country’s rich tourism assets that are delighting cruise ship passengers.

Guadeloupe to Receive Calls from Royal Caribbean After holding a successful homeport operation for Costa Cruises for 18 years, the Guadeloupe Islands has received more business with an inter-porting agreement with Royal Caribbean International. During the winter of 2012/2013, the Brilliance of the Seas will add the Guadeloupe Islands as a new port for 23 calls. Pointe-à-Pitre will also be used for partial turns for guests from France. According to Josette Borel-Lincertin, President of The Guadeloupe Islands Tourist Board, “It’s a very important issue for our Islands to host a ship from Royal Caribbean International for partial turns, and we believe it’s the beginning of a successful story.”

As part of the strategies established by the Minister of Tourism, Francisco Javier Garcia, Cruise Director Orfila Salazar recently visited the city of Miami. While in Miami, Salazar met with executives from various cruise lines and the FCCA in order to provide them with updates and news about the state of the cruise industry in the Dominican Republic. Participants who met with Salazar offered recommendations for improvement and expressed their satisfaction with the creation of the Cruise Department of the Ministry of Tourism and the success of the cruise arrival operations in such a short time, especially at the Samaná Port. In addition to sharing Dominican Republic cruise develop-

It follows a strong marketing effort by the Port Authority of Guadeloupe and the Guadeloupe Islands Tourism Board, with assistance by Florida-based adviser MAC Maritime. This led to a visit last year by a FloridaCaribbean Cruise Association delegation hosted by the Guadeloupe Port Authority and the Guadeloupe Islands Tourist Board.

Honduras Honing Cruise Tourism Growth For the past several years, the Island of Roatan has been one of the fastest growing cruise destinations in the Caribbean. With two cruise ports—Port of Roatan & Mahogany Bay—Roatan will surpass 1 million passengers in 2011. Second Quarter 2011 • Cruising Magazine 11

Cruise Industry News & Platinum Highlights In a joint effort with the island’s local government authorities and its private sector, the Honduras Tourism Board is in the process of implementing projects focused on the improvement of local community livelihoods through economic development, conservation and enhancement of natural resources in a way that adds value to the destination, accommodating and supporting the rapid growth it is experiencing while passing some of the growth’s benefits to the citizens. The destination is also working towards employment programs headed by the FCCA and the Free Stay Caribbean program for those who would like to return to the island for an extended vacation. For more information, contact Mario Aguirre: 305-461-0611 or hondurastourism@aol.com Margaritaville—Much More than a Restaurant On the beautiful Island of Cozumel, on and over the turquoise crystal-clear Caribbean waters of Mexico, you will find one of Jimmy’s best locations yet! Get onboard for a stunning view, the best food, amazing cocktails and great snorkeling and swimming right from the deck. And not just that! Margaritaville Cozumel now has the only free water park on the island! There are three cruise terminals. If you dock at Punta Langosta, it is 300 yards to the led of the pier (south); if you dock at the Mexico International Terminal or Puerta Maya pier, it is 2 miles north. If you own a boat or rent one, you can step into your Margarita paradise straight from the sea! Margaritaville Cozumel Restaurant is the place to be. 12 Cruising Magazine • Second Quarter 2011

Martinique: An Incredible Diversity

In addition to its ubiquitous French flair, Martinique stuns its visitors with its incredible diversity, which is reflected in every aspect of its heritage. Regarding its physical features, the island is endowed with an extraordinary biodiversity of over 3000 species of plants, herbs and trees. It is indeed the paradise of nature lovers, bird watchers, and hikers due to its amazing contrasts ranging from mountains, hills, rain forests and breathtaking waterfalls to plains, mangroves, valleys, etc. In less than three miles as the crow flies, the rainfall can drop from more than 320 inches to less than 50 inches. Martinique’s coastline offers a real festival of colors, from pitchblack to white sand beaches. In terms of intangible heritage, dozens of rhythms and dances are found here, which can be explained by a magic syncretism brought about by African, Carib, French and European influences. That diversity is also wonderfully expressed in our cuisine. No wonder Martinique was named “Top Caribbean Destination for Delectable Dining of the Year 2009” by Caribbean Travel + Life Magazine and “Top Caribbean Destination” by About.com in 2010.

Saint Lucia Unveils Our Planet Centre Saint Lucia recently unveiled a new stateof-the-art and first-of-its-kind visitor attraction, Our Planet Centre, designed to tap into visitors’ environmental conserva-

tion interest in a fun, educational and interactive way. Opened June 2011, the multimillion dollar Our Planet Centre exhibits on-island conservation programs, as well as technologically advanced exhibits, such as the largest mirror-sphere in the world, producing a giant kaleidoscopic display for video screening; a hologram recorded specifically for Saint Lucia by Prince Charles; multiple touch screen displays; a simulation hurricane room; as well as a “NASA Room” designed specifically by the NASA team to stream weather information, including tracking earthquakes and hurricanes. Our Planet Centre is based on Castries Dock in the top two floors of La Place, easily accessible to cruise ship visitors, and all proceeds from Our Planet will go to on-island environmental projects.

St. Vincent & the Grenadines Launches New Tourism Logo

A new St. Vincent & the Grenadines (SVG) tourism logo was recently launched at the Arnos Vale Sporting Complex, St. Vincent. The new logo encompasses the national colors, and the iconic shape of a seagull’s wings forms the “V” in St. Vincent. The new logo symbolizes SVG as a multidimensional experience for visitors. They are free as an all-pervasive bird, with 32

Cruise Industry News & Platinum Highlights islands & cays to explore, each with its own character. The seagull is in flight, connoting the freedom to experience and explore all the destination has to offer. “Our 32 islands not only offer guests an incredible variety of experiences, but they do so with their own unique flavor and beauty – from the black sand beaches of St. Vincent to the multi-hued blues of the waters surrounding the Tobago Cays,” said Hon. Saboto Caesar, Minister of Tourism for SVG. “For eco-tourists, those interested in aquatic pastimes, weddings and even those who just want to getaway and relax, SVG offers both quantity and quality. Our new brand identity is one of the many ways in which we will convey just how unique our country really has emerged.”

Bermello Ajamil & Partners, Inc. Selected As Architectural Consultant for Terminals 2, 19, 21 And 26 at Port Everglades Bermello Ajamil & Partners, Inc. has been selected by Port Everglades to revitalize Cruise Terminals 2, 19, 21, and 26 to accommodate the current needs of the Port, Carnival Corporation and Customs and Border Protection (CBP). Once completed, these terminals will provide improved security screening for passengers and baggage, new check-in and passenger waiting areas, concourse improvements, and an improved ground transportation area, as well as new exterior canopies that are designed to provide shelter for passengers loading and unloading at curbside. Bermello Ajamil & Partners, Inc. is providing architectural design, planning and construction administration services. Bermello Ajamil & Partners, Inc. has worked extensively with Carnival Corporation and its brand personnel on this project, as well as the successful delivery of several other cruise terminals.

Carnival's Port Canaveral embarkation team earns top honors for the sixth time in 13 years

Port of Houston Cruise Terminal Ready to Serve

Port Canaveral has once again earned top honors in the company's annual guest comment card survey, which ranks embarkation personnel from the lines' 12 year-round homeports in a variety of service- and process-related categories.

Passenger comfort and travel-friendly amenities abound at the Port of Houston Authority’s gleaming Bayport Cruise Terminal. Featuring the most modern facilities, the terminal on Galveston Bay’s western shores is near fine restaurants and hotels and has easy access to Houston’s major airports.

This marks the sixth time that Carnival's Port Canaveral team has earned the award in the past 13 years. Under the direction of Guest Logistics Manager Maritza Ferry, the 135-member team was recognized for their outstanding professionalism, enthusiasm, and friendliness while assisting guests embarking on the two Carnival ships that sail from Port Canaveral year-round. Carnival is the largest cruise operator from Port Canaveral, with the 2,052-passenger Carnival Sensation offering threeand four-day Bahamas cruises and the 3,646-passenger Carnival Dream sailing seven-day Caribbean departures. “For Port Canaveral to be named Carnival's 'Embarkation Port of the Year' six times in 13 years is a testament to the commitment to superior service of this hard-working group and the spirit of cooperation that exists between our guest logistics team and the port's operations personnel,” said Milly Martin, senior director of guest logistics for Carnival Cruise Lines. “Congratulations to Maritza and the entire Port Canaveral team for this well-deserved honor.”

Arriving passengers find parking immediately adjacent the terminal. Covered walkways connect to bus and private passenger drop-offs and taxi stands. Once inside the roomy 96,000-square-foot building, passengers get a first-rate experience. The design allows cheery natural light in, and ample security stations reduce wait times while overhead plasma screens display important passenger information. The state-of-the-art cruise terminal has been tested, too. The facility was pressed into service after Hurricane Ike, when it was tapped as the temporary home for two Carnival Cruise Lines ships for almost two months. The terminal easily proved up to the task. Port of Progreso, Gateway to the Mayan World

Second Quarter 2011 • Cruising Magazine 13

Cruise Industry News & Platinum Highlights The Port is strategically located in the Yucatan Peninsula, which offers plenty of fun and services to make your stay a unique experience. It is your starting point to the Mayan World, a major attraction for visitors in search of nature, folklore and a culinary experience. Progreso’s cruise terminal specializes in cruise ships and ferries, covers 13.6 acres, has two docks and the capacity to serve two fourth-generation mega cruise ships simultaneously. The north and south piers are 984 feet long, with a 30-foot draft, and also have a 590-foot long, 23-foot draft dock to receive ferries. The passenger terminal has immigration offices, stores, bars, pool, playing area, duty-free shop, public telephone service, drinking water supply for the ships, ecological treatment for organic-inorganic-dangerous waste, anti-fire system, bunker, car rental, mooring, and continuous free transportation for passengers and crew, terminal-city-terminal.

JAXPORT Cruise Terminal: Home Port for the Carnival Fascination Carnival Cruise Lines offers passenger cruise service from Jacksonville, Florida to the Bahamas aboard the 2,052-passenger Carnival Fascination. The ship offers four-day cruises to Freeport and Nassau and five-day cruises to Half Moon Cay/Key West and Nassau. All cruises sail from the temporary JAXPORT Cruise Terminal, located in North Jacksonville, and passengers are served by an award-winning embarkation team. More than 173,000 passengers sailed on cruises departing from JAXPORT in 2010, and Carnival and its customers consistently give JAXPORT high marks for quality assurance and customer service. Each voyage averaged 112 percent occupancy. JAXPORT’s passengers are also 14 Cruising Magazine • Second Quarter 2011

able to take advantage of the terminal’s proximity to world-class golf, beaches and historic sites. JAXPORT recently welcomed the terminal’s one-millionth cruise passenger, and 2011 is shaping up as another successful year.

Puerto de Guaymas Ready to Receive Passengers

include glass-enclosed gangways and a remodel of the cruise terminal that includes new audio/video systems, seating and a reconfiguration of the parking lot for easier access and departure. Additionally, the Port has installed a onemegawatt solar panel installation atop the World Cruise Center and recently became the first port in the world to provide shoreside electric power (Alternative Maritime Power) to three separate cruise lines.

Carnival Breeze to Sail from Miami Beginning in 2012

Puerto de Guaymas, the destination of the Sea of Cortez, is ready to welcome tourists from all over the world with a new state-of-the-art cruise international center featuring a Santa Fe style. The international cruise center of Puerto de Guaymas has magnificent facilities, including 16 commercial shops, and it offers regional arts, like Sonora Tribe´s Artisans and the famous Cortez Pearls. This marvelous place on earth, at the depths of the sea, offers the most beautiful marine fauna, exotic flora and beautiful sunsets in the world.

Port of Los Angeles’s Upgrades, Renovations and Innovations

The Port of Miami is looking forward to welcoming Carnival Cruise Lines’ newest ship, the Carnival Breeze, in the fall of 2012, with itineraries featuring year-round, six- and eight-day cruises to Caribbean destinations. The 3,690-passenger Carnival Breeze will be the sixth Carnival ship homeported in Miami. Collectively, these vessels are expected to carry roughly one million guests annually – the most of any Carnival homeport. “We are thrilled that Carnival’s newest ship is joining our fleet,” said Bill Johnson, Director of the Port of Miami. “The Carnival Breeze adds to an already distinguished fleet that includes some of the most modern and exciting ships on the seas today.”

Over the last year, the Port of Los Angeles has spent millions of dollars upgrading the World Cruise Center. Improvements

Carnival, which invented modern day cruising 40 years ago in Miami, is headquartered there and is the largest line operating from the port.

PHOTO : Denis VINSON-CORBIS - © Comité du Tourisme des îles de Guadeloupe

Basse-Terre, Grande-Terre, La Désirade, Les Saintes, Marie-Galante

the 5 sides of paradise Guadeloupe Islands Tourist Board (European Office) 23/25, rue du Champ de l’Alouette - 75013 Paris Tél. : +33 (0)1 40 62 99 07 - Fax : +33 (0)1 40 62 99 08 E-mail : infoeurope@lesilesdeguadeloupe.com www.lesilesdeguadeloupe.com

Where’s

the Wow?

By Jeffrey Laign

Cruise lines seek shore excursions that will leave lasting impressions on guests.

wist down a mountain on a bobsled. Soar through the canopy on a zip line. Plunge into the turquoise ocean and run across the white sand beaches on horseback. Swim with stingrays or dolphins while taking in the scenery.

The task can be daunting in a seemingly homogenous region such as the palmstudded Caribbean, but homing in on popular excursions is well worth the effort for lines that develop creative, unusual land programs with an indisputable “wow” factor.

“Those are some shore excursions that have the ‘wow’ factor,” says Amilcar Cascais, vice president of tour operations for Carnival Cruise Lines and chairman of FCCA’s Shore Excursion Committee. “They are unique in the Caribbean. They let you experience destinations in exciting and new ways. If you want to do them again, you have to go back to the destination.”

But what is “wow,” and where do you find it? The best place for cruise lines to look is the most obvious—among the people with whom they work.

The “wow” factor is what cruise planners are looking for as they pinpoint attractions and develop shore excursions that hold appeal for large numbers of diverse cruise passengers.

“Ask the crew,” advises Larry Stauffer, manager of port adventures for Disney Cruise Line. “Then get out there and see what’s happening in your operation.” For Cascais, “Our onboard managers are my eyes. They speak to the tour operators, test new excursions, and provide feedback to us.” “If you really want to wow visitors, give them something interesting and

unique that your destination has to offer,” tells Joanne Salzedo, director of land operations, Norwegian Cruise Line. She advises to appeal to features that are truly different and destinationspecific instead of creating cookie-cutter tours that are meant to appeal to the masses and take the destination’s role/allure out of the tour. Rather, she believes that small, intimate tours provide much more of this “wow” factor for the family and friends who partake in them and then continue to talk about and relive their adventures onboard and back at home. This lasting experience not only serves as a positive for a specific tour; it acts as publicity for the destination. “Wow” tours tend to be tailor made, not “one size fits all,” so it’s essential to know your audience. As cruise demographics change, so do the sorts of tours that lines market to passengers. Second Quarter 2011 • Cruising Magazine 17

The geriatric snoozer in a deck chair no longer typifies the average cruiser. He’s been replaced by active seniors, younger couples with kids and multigenerational families. The task for cruise lines is to come up with excursions that appeal to a variety of interests, tastes and activity levels. The “wow” factor, in other words.

the WOW factor is something that happens when they walk off the gangway. If they are greeted by screaming taxi drivers hustling them for a fare, their first impression will taint their trip; if they are greeted by tourist representatives that are smiling and offering them assistance, they will have a better experience.”

Patrick Schneider, director of shore explorations, Royal Caribbean Cruises Ltd., stresses appealing to this wide range of demographics: “The tour offerings that leave the most lasting impact are the ones that resonate the best, which is completely dependent on the type of guest you are talking about. It could be a simple sightseeing tour if the guest is interested in history; a hiking tour for naturalists; or a cooking tour for foodies; some are looking for animal encounters; others seek adventure; and some just want to take pictures from scenic viewpoints. The one constant is that the tour has to know its market and whom they have on their tour. Above all, a guest must be fully engaged and entertained.”

And he echoes the importance of providing this wowing experience for bringing guests back and providing publicity: “The tours that show off a beautiful, safe destination, and one where they find people friendly, will determine if they want to come back. The wow factor does not just have guests coming back as stay-overs; it provides an exponential equation. You have the guests that think it is a great place and might return for vacation, but more importantly and profitably, they tell their friends that aren’t cruisers about it. As the destination continually receives good feedback from the guests, the travel agents notice. Then they start booking more vacations there, and then they also start booking more cruises that go there, which starts to draw more calls to the destination.”

Schneider also addresses the destination’s role in providing the “wow” factor and giving the best experience in the destination and the best chance to return passengers as stay-over guests: “From a cruise ship guest perspective,

18 Cruising Magazine • Second Quarter 2011

Memorable shore excursions come in a variety of packages, but they should all endeavor to make a lasting impression, planners say. Excursions should offer

cruisers an opportunity to pursue a favorite interest or activity in a different setting, try something new, satisfy a lifelong curiosity, encounter nature, reach a higher level of intellectual or spiritual growth and even indulge in fantasies. Adventure Tours One of the best-selling excursions in the Caribbean allows guests to experience first-hand what the America’s Cup 12 Metre Regatta is like while sailing onboard a multi-million dollar sail boat. Along with providing an action-filled tour and a chance to see a professional crew in action and even grind a winch or trim a sail yourself, it supplies a memory that will never fade. At the new Mahogany Bay Cruise Center on the Honduran island of Roatan, just getting from the ship to the beach is an adventure. Passengers are strapped into the Magical Flying Beach Chair for a six-minute ride across nearly 1,200 feet of suspended cables, enjoying lush views until they reach the shore. Nature Encounters As consumers go “green,” many look for activities that get them closer to nature. Jungle treks, glacier walks and dolphin encounters make for popular excursions.

On Grand Turk, Carnival Cruise Lines’ “Dolphin Swim, Stingray Interaction and Turtle Farm” excursion introduces participants to a trio of fascinating creatures. “Families especially gravitate to that sort of tour,” Cascais says. “They create lifetime family memories. People come back to the ships saying, ‘Wow, that was fantastic!’” Cultural Attractions With its new Falmouth Cruise Terminal, Royal Caribbean is looking to market the Jamaican port as the “Colonial Williamsburg of the Caribbean,” replete with golden beaches, Georgian architecture, lush gardens, historic tours, and a “village” of unique boutiques and cozy restaurants. Unique Experiences You’ve always wanted to spend an afternoon zipping over hill and dale on an all-terrain vehicle or slicing up a bay on a wave runner. But let’s face it; you’re never going to shell out the cash to buy a toy like that back home. Cruise passengers can try out a sporty vehicle on a shore excursion. If they’re not into horsepower, they can check out the

horses. Several lines offer unforgettable horseback excursions along picturesque beaches. Best of all, you don’t have to take the horse home with you. Sporting Chances Those who choose the right cruise itinerary can golf at some of the most famous courses in the world. Or they can get their game on beneath the waves with a scuba, snuba or snorkeling excursion. Tasty Treks Shore excursions provide an appetizing opportunity to discover local cuisines and culinary traditions. Food, folklore and fun comprise Celebrity Cruises’ “Caribbean Cooks” tour in San Juan. Hungry participants can also enjoy the “Culinary Delights of Curacao Workshop.” Exclusive Excursions As cruise travelers become more sophisticated, many are looking for a shore excursion component they can tag as “exclusive.” Holland America Line offers the Signature Collection for independent touring in private vehicles and the Medallion Collection for elite

activities. Other lines create custom, private tours for guests looking for a unique experience. “Sometimes the destinations themselves are as marketable as the excursions offered in a port,” Cascais says. “The Panama Canal, for example, is a ‘wow’ experience.” So is the Yucatan’s ancient Mayan city of Chichen Itza. “It’s one of the wonders of the world, and no cruiser to the Mexican Riviera should miss it,” shares Cascais. But many destinations may be sitting on a gold mine and not know it. Planners’ advice to tourist boards and tour operators is to take stock of what you have and make the most of it. “You don’t have to have a Chichen Itza to have a ‘wow’ shore excursion,” Cascais says. “You just have to be a good story teller—and every destination has a good story to tell. Determine what is indigenous and unique to your destination. Then tell your story to cruise passengers. Make them say, ‘What an experience! Wow!’”

Second Quarter 2011 • Cruising Magazine 19

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Spotlight on the Cayman Islands

oted the top travel destination in the Caribbean by TripAdvisor’s travelers, the Cayman Islands promises an escape like no other. World renowned for its beautiful beaches, stunning underwater scenery, amazing attractions, and distinctive charm, the Cayman Islands offers all the ingredients for the perfect day.

Activities On land Guests need look no further than the vibrant port capital of George Town, where they can wander through the Caymanian craft fair and bustling streets and experience Caymanian culture at the Cayman Islands National Museum and the National Gallery. Visitors can also head to nearby sophisticated and cosmopolitan Camana Bay for world-class shopping, live music, and delicious food. Lilly Pulitzer, Island Company, Frosted Robin Cupcakes, and Caribbean-fusion restaurant Ortanique by celebrated Miami Chef Cindy Hutson are among the boutiques and restaurants that call Camana Bay home. For visitors looking to lounge on a beach and enjoy the Caribbean sun and

sand, the white sand and turquoise waters of Seven Mile Beach are frequently recognized as the best in the Caribbean. Enjoy a relaxed lunch at Hemingway’s or an indulgent afternoon at Silver Rain, a La Prairie Spa at The Ritz-Carlton, Grand Cayman. For those inspired to explore the island, guests can swim with the stingrays, horseback ride along a sun-drenched coast, sail around the island on Cayman’s famous pirate ship, the Jolly Roger, catch a bird’s eye view of the island by helicopter, or meander through the picturesque Queen Elizabeth II Botanic Park. Traverse the island to delve into the past and discover the birthplace of democracy in the Cayman Islands, historic home Pedro St James, which offers striking ocean views for miles. Or explore 750 acres of untouched forest, along the Mastic Trail, some of the last remaining examples of the Caribbean’s dry, subtropical, semideciduous dry overgrowth. The Queen Elizabeth II Botanic Park boasts some of the Caribbean’s most beautiful grounds, with a colored floral garden, a

Information and images provided by: Cayman Islands Department of Tourism

woodland trail, an orchid path, and the Blue Iguana habitat, home to the endangered Blue Iguana. The Blue Iguana Recovery Program was founded to bring back the Blue Iguana from the brink of extinction. Today, guests can join a Blue Iguana Safari at 11AM daily to learn about these creatures and the initiatives that are being undertaken to save them. For a more active beachside visit, guests can spend the day at Rum Point, a peaceful retreat across the island, where cocktails and watersports abound. The Cayman Islands is not just a destination of beauty and history for adults; it is also a dream playground for children of all ages. Families will have amazing experiences touring the Cayman Turtle Farm, where they will see turtles in every stage of growth, swimming with tropical fish at the Boatswain’s snorkel Lagoon, admiring birds from across the Caribbean in the Caribbean Aviary, and studying the sharks and barracudas in Predator’s Reef. Seven Mile Beach, with its pristine waters, promises entertainment for Second Quarter 2011 • Cruising Magazine 23

the whole family with a variety of watersports, from snorkeling to kayaking. For the more adventurous, Stingray City, where visitors can swim, feed, and even kiss a stingray, is always a favorite. Families will also enjoy following in the footsteps of the National Geographic Hands-On Explorer Challenge, an annual children’s competition whose winners enjoy an amazing field trip to explore the world wonders of the wild. In 2011, children from across the United States delved deeply into Cayman’s natural culture, with amazing experiences that are unique to the Cayman Islands, including submarine tours through the vast coral canyons and brilliant tropical fish of Cayman’s National Marine Park at 100 feet, snorkeling trips to some of the island’s top sites, introductions to the rare Blue Iguana at the Queen Elizabeth II Botanic Park, and visits to Stingray City. These experiences are now available for your family to enjoy on your own. Watersports Deemed the birthplace of Scuba diving, the meticulously preserved natural wonders of the Cayman Islands evoke a sense of awe in leisure explorers as well as active adventurers. Strict environmental regulations have maintained 24 Cruising Magazine • Second Quarter 2011

a pristine playground for diving, snorkeling, sailing, and kayaking, while bringing guests in contact with extraordinary wildlife. As seen by all the world, Cayman’s newest diving and snorkeling site, the ex-USS Kittiwake, was sunk off the coast of Seven Mile Beach in January 2011, after seven years in planning. Kittiwake attracts divers from around the world to explore the former submarine rescue ship inside and out and discover the critters that now call the wreck home. Other dive highlights include Big Tunnels, Tarpon Alley, Big Pinnacle, and Mermaid Point. Those looking to learn how to dive can take a resort course at any number of resorts along scenic Seven Mile Beach. Guests will also enjoy snorkeling in clear Caribbean waters, kite boarding and parasailing along Grand Cayman’s breezy coast, as well as paddleboarding, kayaking and sailing. Dining Grand Cayman is widely considered the culinary capital of the Caribbean. An eclectic array of fine culinary options abound with more than 150 restaurants, allowing visitors to choose from chic, five-star dining or a more casual venue on the beach, from traditional Caymanian seafood and

Caribbean fare to Thai, Italian, and New World cuisine. Gourmets will love the farm-to-table fare at Michael’s Genuine Food & Drink by Miamibased Chef Michael Schwartz, the casual atmosphere at island favorite Calypso Grill, the delicious Italian at the Caribbean Club’s sophisticated restaurant Luca, and Miss Vivine’s home-style Caymanian dining. Internationally renowned Chef Eric Ripert offers the epicurean Blue by Eric Ripert at The Ritz-Carlton, Grand Cayman, while Pappagallo’s and Rum Point Restaurant promises a casual and family-friendly vibe. If you are looking to enjoy a tropical drink on the water edge, the Cracked Conch is the place to be. For a chic cocktail, Osetra Bay is an intimate and sophisticated scene on a quiet bay, while Tiki Beach offers a lively venue conveniently located on Seven Mile Beach. Local favorite Calico Jack’s is the perfect choice for a cool drink paired with a beautiful day on the beach. With sandy white beaches, swaying palm trees that beckon visitors to relax, and an average year-round temperature of 82°F, the Cayman Islands is an irresistible stop on your Caribbean cruise escape. To learn more and book your Cayman Islands trip, visit www.caymankind.com.

Port of Miami

he annual “State of the Industry” panel at this year’s Cruise Shipping Miami in Miami Beach did not tell all good news. The economic woes, soaring gas prices and looming ECA regulations all present problems, but the panel reminded us that the cruise industry continued to be profitable in the recent recession and can expect to perpetuate this success and turn some light on in the not so bright future.

This is possible because the cruise industry benefits from having a movable commodity; has multiple untapped and lucrative markets to penetrate (along with a growing main market); is able to easily enter the best markets because of their movability; constantly improves its products (ships, infrastructure, ports, etc.); and continues to offer unrivaled value for passengers, despite rising operational costs. “Moveable assets have helped us survive,” told Dan Hanrahan, CEO of Celebrity Cruises. This feature allows the lines to avoid civil unrest, e.g. Egypt and Libya, and natural disaster. But perhaps its greatest asset is the ability to move to the most profitable markets. The current new market that is drawing the most attention is Europe. As said by Pierfrancesco Vago, worldwide CEO of MSC Cruises, “The Old World is the New World for cruising.” European capacity will rise 23 percent this year. Europe is the fastest growing cruise market globally, as seen by its 163 percent increase of passengers in the past decade.

“Our current level of five million European cruisers was achieved in North America in 1997, so in many ways we can say that Europe is becoming the new Caribbean as a destination of choice,” said Vago, who also tells of the extra travel time that the European demographic has, with 34 vacation days, opposed to the average of 9 days in America. Other markets on the upswing include Australia and South America. Asia also presents a growth market with large potential, as do Africa and the Middle East. And Alaska is regaining ships since instituting legislation to reduce their head tax. The industry has become more global since emerging from the recession and could be better for the wear. Kevin Sheehan, CEO of Norwegian Cruise Line and FCCA chairman, surmised it well when he said, “It’s not just about what you can do, but where you can do it.” Adam Goldstein, president and CEO of Royal Caribbean International, also shed some light on the importance that globalization is having on the industry—of the cruise industry’s advantage of being able to source the international field from afar and of the necessity for the authorities of the up and coming cruise destinations to improve their infrastructure and prepare themselves for the arrival of the new fleet of ships that have recently come into the market or will soon make their way. As Vago also pointed out, the public perception is starting to improve abroad, as seen in the European market: “In Europe, Second Quarter 2011 • Cruising Magazine 27

the perception that cruising is expensive and only for old people has changed.” It is hard to think cruising does not offer immense value, which continues despite growing costs and is one of the features that has always attracted passengers. Jan Swartz, executive vice president of sales, marketing and customer service for Princess Cruises and Cunard Line and marketing committee chairwoman for CLIA, reminded us of this when she pointed out that cruising can offer up to a 40-50 percent savings over land-based vacations. Gerry Cahill, CEO of Carnival Cruise Line, also stressed the importance of value when sharing that this was the reason why the cruise industry was able to survive during the recession. “Consumers changed quickly and…went totally to value.” When focusing on this aspect, Cahill told how the lines are able to allocate operational costs to maintain passengers’ value, despite rising costs, when he said, “Customers will continue to focus on value. We have not cut back on our product, but have reallocated our marketing spending, and automation has helped us reduce our operating expenses.” And this is why in a time of turmoil, cruise lines were actually able to advance. As Swartz highlighted, “We upgraded our product at a time when people least expected it.” Luckily, much potential growth is still possible over the 15 million that cruised last year; the American market still presents plenty of room for future cruisers over the 3.1 percent of the American population that cruised during 2010. There is already a projected increase of 6.5 percent total passenger growth for this year. There is also a large market of Baby Boomers, who have a lot of wealth, are living longer and better and are likely to travel with their time and wealth. Stein Kruse, president and CEO of Holland America Line referred to this crucial demographic when he said that cruising’s “best days are ahead.” Another growing market is that of first-time cruisers (which saw an increase this year with ticket prices anywhere from 10-15 percent lower than 2010) and additional drive-to ports. Cahill revealed the upside of the downturned prices for 2011: “The lower pricing had a silver lining: we were able to introduce new people to cruising.” And Swartz focused on the importance of this market, sharing that first-time cruisers are loyal to cruising by citing a study from the global market research firm TNS, which reported that cruise passengers have the highest commitment to their chosen form of travel, compared to consumers of any other product or service. 28 Cruising Magazine • Second Quarter 2011

The appeal of cruising to various markets because of its value and numerous types of travel and options of onboard amenities helps account for the over 100 percent berth occupancy (based on double occupancy capacity figures factored in with additional berths). Though ship orders have started to slow (which should be good for the industry as cabin prices slowly increase), there has been a large influx of feature-rich ships over the years that are sailing the seas or being finished in the yard. As Richard Sasso, president and CEO of MSC Cruises USA, shared, 118 new ships have been built over the last 10 years, with an average of 7.4% annual growth in passengers. Hanrahan likened these ships to floating travel cities when discussing the new technology and incredible facilities onboard—apropos when considering the boardwalks, gardens, bowling alleys, ice skating rinks, etc. In addition to the new and future builds, many lines have revived and recreated other ships in their fleets through renovation. Besides making the onboard experience as appealing, exciting and/or relaxing as possible, cruise lines have also worked to improve passengers’ land-stay, and many new opportunities are open now that the industry is more global. Additionally, the ports are able to change with the times and accommodate growth for the cruise industry, which greatly helps the cruise industry, especially during tough times. A good example of this is Port Canaveral’s millions of dollars in expenditures to make room for the new Disney Dream and the $42 million loan signed in December to develop a new cruise terminal and cargo facilities in a time when many other companies had to scale business back. These are just a few ways how and reasons why the cruise industry will continue to thrive in even the toughest circumstances. The industry has shown its resiliency in the hardest of times—from the Iranian revolution and oil crisis of the 1980’s to 9/11 and soaring gas prices—and has proven that it is a safe bet to get through even the most trying hardships. The industry will find a way to navigate around the looming threats of rising gas prices and ECA regulations. This is mostly because of the demand that the industry creates by offering multiple destinations for a better value than land-stay vacations onboard a number of new and updated feature-rich ships, and its movability allows for escaping potential trouble and penetrating new markets, which have grown even more lucrative and popular. Even the current successful market comes with an expected 6.5 percent increase of passenger growth and presents a significant portion of people who have yet to cruise, along with many potential markets, like Baby Boomers. Indeed, Mr. Kruse was right; cruising’s best days are ahead.

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FCCA’s 17th Annual Gala Brings Together Key Cruise Industry Decision Makers

or the 17th straight year, decision makers from the Caribbean and Latin America gathered with the cruise industry’s top-level executives, presidents and CEO’s for the cruise industry’s signature social event: The Annual FCCA Gala Dinner, held on March 17 at the Miami Beach Convention Center. The event once again brought tourism and government officials, industry suppliers and private stakeholders together with cruise executives for this unique event (part social gathering, part networking session), which continued to provide guests with opportunities to dine and interact with the industry’s decision makers. This year’s Gala, co-sponsored by Port Everglades and the Port of Miami, featured a new venue, but a familiar one—the Miami Beach Convention Center, also the home of the Cruise Shipping Miami conference, which was in session during the week leading up to the event. The Gala featured all of the elements that have established the gathering as the cruise industry’s premier social event. Guests enjoyed a lively, extended cocktail reception that ran one hour and a half and allowed for the attendees to mix and mingle while talking business or pleasure with the prominent crowd. There was also a silent art auction prior to dinner, where guests could bid on 100 pieces of art donated by Park West Galleries.

The auction raised over $25,000, with the proceeds to be donated to the FCCA Foundation, a nonprofit, charitable organization founded in 1993 to fund Caribbean and Latin American humanitarian projects. Each year, the Foundation provides a mechanism through which the cruise industry supports various humanitarian causes. The Foundation has benefited hundreds of thousands of citizens, providing more than $3 million for charities and humanitarian causes throughout the two regions. In one of these philanthropic projects, the Holiday Gift Project program, the FCCA partners with Caribbean and Latin American destinations each year to provide gifts to over

7,000 children living in foster homes and institutions. The gifts are delivered aboard FCCA Member Line vessels calling at the destinations, and the children also enjoy a holiday party in their honor. As always, the event of the evening was the FCCA Gala Dinner Extravaganza. Here, attendees took their seats, which they had purchased beforehand when selecting a cruise executive, president or CEO of their choice, as these were the table hosts for the night, available for hours of conversation with attendees about their companies and industry. As usual, the Gala was synonymous with first-class cuisine. Dinner started with jumbo lump crabmeat, marinated cucumber, Campari tomato, Haricot Vert Mustard Vinaigrette and Annatto Oil. The entrée consisted of toasted, lightly breaded chicken breast stuffed with roasted peppers, spinach, and smoked mozzarella, along with roasted cream, jumbo asparagus and orange cauliflower. Dessert featured a Caribbean trio of banana-coconut crunch, rum-grilled pineapple with mint and guava cheese cake. A vegetarian fare was also available. “The annual Gala is the cruise industry’s premier social gathering, but it is really so much more than that,” said Michele Paige, president of FCCA. “The Gala is a unique forum for the exchange of ideas and information, which is crucial to our mutual growth and success in these challenging times.” Gala attendees confirmed that the event not only provided an entertaining and enjoyable evening, but it also was invaluable in terms of connecting with key stakeholders. Participants of this event had a chance to establish relationships or reacquaint themselves with some of the industry’s most prominent decision makers. The Gala is designed to let the participants and the executives, presidents and CEO’s forge or foster worthwhile business relationships, learn about the inner-workings or latest trends of the industry, collaborate with to cultivate ideas or get feet in the door, all while enjoying good food, conversation, cocktails and art. And benefitting a cause as great as the FCCA Foundation is always important enough in itself. Second Quarter 2011 • Cruising Magazine 31

2011 FCCA Foundation

32 Cruising Magazine â&#x20AC;˘ Second Quarter 2011

Gala Dinner Extravaganza

Second Quarter 2011 â&#x20AC;˘ Cruising Magazine 33

Bring It On! We Can Handle It.

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Are We There Yet? Cruise lines are carving out new travel markets around the world. By Jeffrey Laign

ot that long ago, a cruise vacation for many Americans consisted of carved coconuts and piña coladas under a palm tree. Today the Caribbean remains a favorite destination for the North American market, but just as many sophisticated cruisers are choosing exotic locales once considered all but unreachable. How are cruise lines bringing the “boom” back to the Caribbean Basin? They’re carving out new markets from which to mine Caribbean cruisers. “Brazilians. Costa Ricans. Panamanians. The southern Caribbean works very well for the Latin American market,” says John Tercek, vice president of 36 Cruising Magazine • Second Quarter 2011

commercial development for Royal Caribbean Cruises Ltd. At the same time, lines are identifying emerging markets around the globe, introducing increasingly adventurous North Americans to dream destinations and novice local explorers to the pleasures of cruising. Like mass media, cruising has become a global industry, and the implications for lines are enormous. “When certain countries become more prosperous, they have certain needs to fulfill before they think about vacations,” says Giora Israel, senior vice president for port and destination

development at Carnival Corp. & plc. “The first thing the Chinese do is buy a washing machine, and then maybe a TV. Only after they have taken care of those other needs do they begin to think about travel.” A lot of folks in a lot of countries are thinking about travel now, and cruise ships are pulling into ports all over the world, more than ready to provide it. Asia/Pacific Although it comprises only a fraction of the world cruise market, the Asia/Pacific region is growing by leaps and bounds. Last year, by industry estimates, Asian cruise passenger numbers rose by 40 percent, to 1.5 million. Princess Cruises deploys ships in Asia, and Costa Cruises moved in a few years ago to tap the potentially huge Chinese consumer travel market. Costa home ports on the China mainland and offers a number of itineraries, including Japan-Korea. Now it has opened a Hong Kong to Taiwan route as well. “This new measure will reinforce Hong

Kong’s position as a regional cruise hub,” says Margaret Fong, Hong Kong commissioner for tourism. Disney Cruise Line also has indicated that it might make sense to test Asian waters. Disney, for example, could offer land-sea vacations with Hong Kong Disneyland or Shanghai Disneyland, which is in planning stages. Carnival, meanwhile, is getting in on the action next fall when it bases Carnival Spirit in Sydney to operate a schedule of eight- to 12-day Australia voyages to the Pacific Islands.

Royal Caribbean calls at Falmouth Harbour, Jamaica.

South America For Tercek, “Latin America is more of a front-burner market. There is an emerging middle-class market in many countries in South America, and we are doing a very good job of finding those customers and delivering to them.” South America also works, he says, because the continent is closer to already established cruising zones, enabling cruise ships to work more effectively. In addition, as Holland America Line and others have noted, South America is of growing interest to North American cruisers. Especially popular, says Tercek, is the coast of Argentina. And, as Israel says, Brazil is expanding exponentially. “There were always some cruises here, but as the economy has improved, cruising has expanded. This winter there are 20 cruise ships in South America, serving mostly South Americans. Ten years ago there were only five.” Africa/Middle East Dubai is another cruise-driven hot spot. “Costa was the first cruise line to home port in Dubai, beginning in 2006,” says Maurice Zarmati, Costa’s president and CEO. “We’ve increased our capacity there year after year, and we’ve seen competitors follow suit.”

Costa Deliziosa naming ceremony at the official opening of the Dubai Cruise terminal.

Tunisia also opened up in recent months, a highlight of Disney’s eastern Mediterranean itineraries. Political unrest in Tunisia, Egypt, Jordan and other regional countries has disrupted those routes for now, but the area will stabilize and continue to grow, Tercek thinks. In the meantime, he notes, cruise lines can adjust to geo-political trends by rerouting ships, something that resorts and other land-based attractions are unable to do. Europe In the so-called glory days of cruising, roughly the 1930s through the 1950s, a cruise ship was the only way to get to

Europe. These days travelers are choosing cruises as the best way to see the continent. “European cruising isn’t just doing well, it’s doing phenomenally well,” notes Rick Sasso, president of MSC Cruises USA, whose company is rapidly expanding in Europe. The Mediterranean—branded by some analysts as the “new Caribbean”—long has been of interest to cruisers, especially those with an appreciation of history and culture. “But the Baltics region has become a hot destination for many Americans in recent years,” says Israel. “It’s one of the most exciting cruise products we have. In seven days you can see things Second Quarter 2011 • Cruising Magazine 37

Cunard’s newest ocean liner, Queen Elizabeth, arriving in Sydney Harbour following her larger sister, Queen Mary 2.

you won’t see anywhere else, from Helsinki to St. Petersburg.”

exceeded expectations, with 136 cruise ship calls and 295,000 passengers.

Caribbean The islands may have lost just a bit of their glimmer for cruisers who have “been there and done that.” But the FCCA Shore Excursions Committee, chaired by Amilcar Cascais, vice president, tour operations, Carnival Cruise Lines, is working with the destinations for a number of ways to polish the brass, including developing new attractions and updating infrastructure. The cruise lines’ efforts to improve this infrastructure don’t just benefit the lines’ interests and their passengers; they increase the offerings and capabilities of the destinations, allowing them to grow as tourism destinations and providing a substantial economic increase.

On the southwest coast of Roatan, another project of Carnival Corp., in conjunction with Roatan businessman Jerry Hynds—the new Mahogany Bay Cruise Center—features a two-berth terminal and a 20-acre area providing shopping and transportation for tours. The new facility is expected to see 200 annual ship calls and more than 500,000 passengers.

The 10,000-square-foot Grand Turk Cruise Center, for example, opened in the Turks and Caicos Islands in 2006 and included a 13-acre Welcome Center with shops, restaurants, and an expansive recreation area. Carnival, which created this $50 million development, reported that the inaugural season far 38 Cruising Magazine • Second Quarter 2011

And Jamaica’s new Falmouth Cruise Terminal is setting up an array of attractive features: sun-kissed beaches, Georgian architectures, blooming gardens and a “village” of boutique shops and restaurants. This joint project of Royal Caribbean and Jamaica will bring megaship capabilities and passenger loads, most notably the 5,400 passengers aboard the Oasis of the Seas during its Western Caribbean itinerary, to Falmouth. But the infrastructure developments will not only serve the cruise passengers; the improvements are expected to attract visitors of all sorts, along with locals, and help Falmouth become a tourism hot spot. Royal Caribbean President Adam

Goldstein shares, “As far as I know, our Falmouth project has been the largest infrastructure development project in the Caribbean basin in recent years.” Eventually, the United States will lift a half-century-long ban on leisure travel to Cuba. We’ll then likely see yet another Caribbean boom. As Royal Caribbean President Adam Goldstein puts it: “We know there is great enthusiasm amongst travel agents and consumers about the prospect of visiting Cuba on a cruise.” In the meantime, cruise executives say that they’ll continue to develop markets around the globe, identifying destinations that appeal not only to savvy North Americans, but also to first-time cruisers in other lands. The world has grown smaller in recent decades, thanks, in large part, to cruising. Today you can cruise to exotic lands once considered unreachable. On the other hand, as the French would say, the more things change, the more they stay the same. After all these years, cruising still is the best way for everyone to see the world.

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Alaska Cuts Controversial Tax to Regain Lost Cruise Tourism

n 2006, Alaskan voters supported a tax bill that was imposed on cruise ships. The law included a $46 per passenger head tax, a corporate income tax a 33% tax on gambling income, an additional $4 per passenger for a state-employed Ocean Ranger to cruise onboard ships to “observe health, safety and wastewater treatment and discharge operations onboard the ships while in Alaskan waters,”

The corporate tax compelled the cruise lines to file a lawsuit against the legality of the legislation, as it singled out the cruise lines, and the lines argued that a corporate tax cannot target just one industry. As the lines began to have trouble charging a competitive fare because of the increase in costs, and the demand started to dry up in 2008 in the wake of a downturned economy, the cruise industry had no other option than

beginning to pull out ships in favor of more profitable markets. Alaska saw an overall decrease in 2010 of more than 10% of cruise capacity from 2009, with a loss of more than $25 million of revenue in Juneau alone, as lines like Carnival, Royal Caribbean, Norwegian Cruise Line, Princess and Holland America began to reposition their ships serving Alaska. A further decline came in the past 2011 season, with a loss of three more ships and about 142,000 passengers over the season. The lines cited the growing taxes and regulation when deciding to pull their ships, saying that Alaska had become a less profitable place to operate and that they could make more money elsewhere, thus reminding destinations that no place is irreplaceable and that cruise lines will go where it is the most fiscally viable.

The decrease in cruise tourism and fear of a further fall and possible total collapse was quite a damper on an Alaskan economy reliant on tourism, a major industry that represents $3.4 billion and 40,000 jobs. Governor Parnell was aware of the impact, and he began to enact legislation to lower the taxes after meeting with cruise line representatives at this year’s Cruise Shipping Miami. Upon submitting the first amended legislation, Parnell said, “Alaska’s tourism head tax structure must be modified to grow our Alaska businesses... Declining visitor numbers and dollars have been felt throughout the state. We must do more to make Alaska a more affordable destination for travelers and create jobs for Alaskans.” The tax cut—approved by the Alaskan Senate on April 14th, currently making its way through the House and planned to go into effect in October of this Second Quarter 2011 • Cruising Magazine 41

year—lowers the $46 per passenger head tax by 25% to $34.60, with additional offsets for ships stopping at Juneau and/or Ketchikan to recuperate their local head taxes of $8 and $7, respectively, but cruise lines hope to avoid charging passengers the additional $7, $8 or $15 in the first place. In addition to relieving some of the market’s strain and making Alaska a bit more profitable for cruise ships, the lowered tax also led the cruise lines to drop their lawsuit (though the corporate income tax deemed illegal is still in place, as are the gambling tax and the charge for state-employed Ocean Rangers). As an example of the effect of the tax cut, it can be helpful to look at the Golden Princess going round-trip to Juneau, Skagway, Ketchikan and Victoria Island, British Colombia. In

42 Cruising Magazine • Second Quarter 2011

2010, the taxes and fees came $135.57 per person, but would fall $109.19 after the new legislation enacted—an applied difference $26.38 per passenger.

to to is of

As a reward for the good faith shown by Governor Parnell and the capability to price Alaskan cruises more competitively, the lines will begin to rebuild capacity. Stein Kruse, president and CEO of Holland America Line, recognized the efforts of Governor Parnell, saying, “You are seeing our response, bringing passengers back in 2012. It shows the partnership that can exist between private industry and government can really work.” Unfortunately, Alaska’s cruise tourism will still be down 16-17 percent this year, as itineraries are booked far in advance. For example, Alaska’s 2010

deployment decisions were made in 2008. Still, Governor Parnell was correct in saying that, “Alaska is on the right course.” There is already an expected 60,000-passenger increase for 2012 between Holland America and Princess Cruises, with more to likely follow. The relationship between Alaska and the cruise lines is on path to being repaired, and it is certainly an important time to be working together with the looming ECA regulations that could put a further strain on Alaska’s cruising market. When two entities are willing to work together, solutions can always be found, and Governor Parnell has shown that he and Alaska are willing to partner with the cruise lines to find mutually beneficial resolutions.

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PRACTICE AN OUNCE OF PREVENTION The Importance of Timely Claims Reporting to Aon’s FCCA Global Tour Operator Liability Insurance Program The expression “An ounce of prevention is worth a pound of cure” has been around for centuries, and it is good advice for tour operators navigating the claim reporting process in the FCCA’s Tour Operator Insurance Program. The best way to help reduce insurance rates for the FCCA Tour Operator Program is to improve the program’s loss experience. Participating tour operators can work to this end by preventing accidents from happening in the first place. However, after an accident occurs, the simplest way to help protect your operation, and the FCCA program, is to report the incident promptly. The discussion that follows provides a generic overview of the tour operator’s responsibilities as it pertains to claim reporting. We also recommend that each operator review their Chartis policy for the specifics of what is required in the event of a claim or a circumstance that may give rise to a claim. The FCCA Tour Operator policy is a contract that creates obligations for both the insured operator and Chartis. One of the critical obligations of the operator is the duty to report claims or circumstances that may give rise to a claim in a timely manner.

Engaging Chartis early on in the process also allows for both the operator and Chartis to establish a relationship with the injured parties. This helps to assure them that their incident is being handled properly, decreasing the likelihood they seek the assistance of an attorney for help with the claim process. There are several steps a tour operator can take to ensure prompt reporting of incidents to Chartis: 1. Designate a management-level person responsible for reporting all claims. Information provided to this person should include all details requested in the FCCA Claim Reporting Guidelines kit. Details requested include: • Nature of the incident; • Who was injured; • How the injury happened; • When and where the injury happened; • Account of incident by the excursion leader (employee/ contractor) operating the tour at time of incident; • Who witnessed the incident or injury; • Witness statements taken at the time of the incident; • Whether the incident was reported to the cruise line, by whom and when; • Status of the accident investigation report (when should Chartis expect a completed accident report).

As such, it is important for participating operators to fully understand how timely claim reporting can impact coverage. Generally speaking, the FCCA Tour Operator policy language requires claims to be reported as soon as practicable, which would likely be interpreted by a court to mean: “as soon as a reasonable person would have been able to notify the insurer.”

2. Provide annual training for tour guides and all team members that come in contact with guests on topics such as: safety & accident prevention, investigation procedures, and claim reporting

Failure to report incidents promptly can impact the ability of insurers to investigate a proper defense for the operator. When an extended amount of time passes from the date of incident or injury, eyewitnesses are less likely to remember the incident, physical evidence is lost, and an investigation becomes difficult to conduct. Prompt claim reporting can result in faster and better resolution of the claim.

In summary, prompt reporting of all incidents to Chartis is one important key to efficiently managing the overall FCCA insurance costs. This translates to decreased policy premiums over time.

44 Cruising Magazine • Second Quarter 2011

3. Include insurance claim reporting as part of your new hire orientation for all employees that come in contact with guests.

For additional information on the FCCA Global Tour Operator Program or to request a copy of the FCCA Claim Reporting Guidelines, contact Aon Risk Solutions - Hellen.Mena@aon.com

Faces In The Industry Ana Lucia Archbold – Manager, Staff administration, Carnival Cruise Lines Ana Lucia Archbold hails from San Andres Island in Colombia—a coral island in the Caribbean Sea. In 1984, many of the islanders began working for Carnival Cruise Lines and would come back to the island with tales of fun at sea. Back then, Ana worked for the Columbian government’s department of immigration at the airport and was ready for a change. So in 1995, she decided to follow their lead and set sail as crew onboard Carnival Tropical with the ambition to provide a better life for herself and her son. In the 16 years since, Ana has worked on 13 Carnival ships.

Colombia

Ana loves the international feeling on board a cruise ship and how the unique experience allows her to meet so many different people from all around the world and meanwhile learn about other cultures, too.

The overall experience has made Ana an enthusiastic advocate for the cruise-crew lifestyle, claiming it helps her to be a better person because she is always striving to provide excellent service on board that exceeds her guests’ expectations. Thanks so much, Ana, and keep up the hard work!

(Left to right) Carlos Jauregui, General Director for the API Ensenada (Ensenada Port); Juan Tintos, Secretary of Tourism - Baja California; Michele M. Paige, FCCA; Jose G. Osuna Millan, Baja California State Governor; Amilcar Cascais, Vice President - Tour Operations, Carnival Cruise Lines; Michael Ronan, Vice President - Government Relations, Royal Caribbean Cruises Ltd; Silvia Hernandez, FCCA Mexico Representative; Rita Vandergaw, Director of Marketing - Port of San Diego.

FCCA Delegation meets with Mark Gsellman, Sr. Vice President and General Manager - Marine & Water Park Operation, Atlantis, Paradise Island (right) and Henry Bain, Director Sales & Marketing Marine & Water Park Operations, Atlantis, Paradise Island (3rd from right)

48 Cruising Magazine â&#x20AC;˘ Second Quarter 2011

Once upon a time perhaps, vacationers had simple wants. Good food, sun by the pool, an evening show… But today? They want excitement, they want choices, they want to do things they’ve never done before! That’s why you created the next generation of ground-breaking cruise experiences… …And why bringing ships to Port Canaveral is the next sound business decision to make. Because here, you can sell more choices that transcend the ordinary — by reaching out just beyond your ships to Central Florida/Orlando attractions for shore excursions and pre- and post-cruise packages that your guests will recognize as premier in innovation and world-class in wonder. Add that we’re the closest port to Orlando via an uncongested and stress free expressway, our first-class facilities and cruise-friendly attitude, and we have what it takes to make your guests and your CFO smile. For additional information, contact Cruise Development at 321.783.7831, extension 253.