Challenging Europe still has cruise potential

Pierfrancesco Vago MSC CEO

 Europe continues to offer the greatest potential for growth in the cruise sector, senior executives have said.

Gathering at the European Cruise Council’s (ECC) conference in Brussels, members of the industry said the intense spotlight of the industry in the media, weak economy and previously low prices has left the industry with a platform for growth, with hope that the lowest of prices have gone.

Pierfranceso Vago, chief executive of MSC said the new limits of sulphur content in marine fuels, higher oil prices and port costs have also challenged the industry but generally the industry remains upbeat. Despite the current troubles the opportunities for growth far outstrip the potential threats, a view backed by Dominic Paul, managing director of RCL cruises. “We don’t build ships for 12 months or 24 months, we take a long term view and what we see for the longer term is encouraging,” he said.

Five of the 10 tourist markets in the world are in Europe and the cruise penetration is still less than a third of North America, all pointing to the growth opportunity in Europe. Paul conceded that the company had opted to divert three vessels to new growth markets in the Asia Pacific region; however RCL’s commitment to Europe remains strong, with just under half of its global fleet in the region next year.

Figures released suggest that 206 cruise ships, 33 with more than 2500 passengers each will operate in Europe this summer. These include 79 ships switching to Europe from other regions and seven newbuilds. Collectively these vessels will call at 528 destinations within the region.

By Ernie, 4 July 2012, Wednesday 10:33 AM