Cruise Tourism and

Eastern Indonesia
A maritime economic development
opportunity

Presented by: R.J. Lino

Date: July 2016
1. The economic impact of the cruise sector
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Australia Cruise Industry

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2. Who are the decision makers?
Overview of Global Cruise Market
Four companies account for Pax Capacity Market Share 2011 2015

over 86% of worldwide cruise Carnival 47% 47%

passenger capacity Royal Caribbean 25% 25%
NCL / Star 8% 9%
World cruise market focused MSC 6% 6%

on 2 main regions:
• The Caribbean
• The Mediterranean

Australasia has been the main

growth market for the last 5
years. This will continue, if
new cruise products are
developed

Asia is a bit part player, but

Carnival Cruise Lines
Carnival is by far the largest
cruise shipping company in
the world.

Carnival owns a portfolio of

the world’s most widely
recognized cruise brands.

It serves nearly every

segment of the cruise
industry.

The cruise lines include the

most-recognized brands in:
• North America,
 Carnival Cruise Lines – in
Australasia
The Carnival dominates the
Australasian cruise market. The
market is the fastest growing in
the world.
Carnival operates 2 local brands

P&O Australia a fleet of 3 ships:

• Pacific Dawn, 1950 guests
• Pacific Jewel, 1900 guests
• Pacific Pearl, 1800 guests
Princess Cruises with two ships
• Dawn Princess, 1998 guests
• Sun Princess, 1995 guests
Carnival Cruise Lines – current plans
2016/7 2015
Indonesia New
Guinea
For 2017/8 Carnival is studying home
porting a ship in Fiji with calls in ports
Australia in Vanuatu, Samoa, Tonga and the Cook
Islands as well as several calls in Fiji

For the first time in 2015 Carnival had Nauru

Indonesia New
a home port ship in Cairns, northern Guinea Solomon
Samoa
Cook
Islands
Islands
Australia. This ship made successful VanuatuFiji Tonga Tahiti
calls in New Guinea. Carnival has New
Australia Caledonia
expressed interest in routing this ship
to make calls in Indonesia. However Sydney – Fiji
>3,000km
calls in Bali have proved difficult.
New
Zealand
3. Understanding how Carnival take decisions
Market Segmentation
Home port ships
• Regular itineraries running from a single home port
• Can have significant impact on port and economy over time

World cruises
• Cunard, P&O Cruises, Regent Seven Seas, Costa, Celebrity
etc.
• High profile preferred for image and memories

Expedition cruises
• Multiple calls with some stable routings
• Interest, adventure, memories focus on small, remote ports

Super luxury ships

• Multiple calls non standard itineraries
Market Analysis

The ‘luxury cruise’ market segment

was the real spender per passenger
and per call in 2010, but these
accounted for just 3% of all calls
The Impact of a Home Port
Home ports
• Ship deployed and marketed
• 52 or more calls a year (plus subsidiary port calls)
• 50,000+ passengers a year
• Supporting services
• Provisions
• Bunkering
• Chandlery, Repairs & Maintenance
• Crew (?)

Call ports
• Each call has to be identified
• In South East Asia 50 calls is an ambitious target (100+
common near home port)
• 100 to 2,000 passengers per call
What do cruise lines want?
Home ports
• 30 to 45 minutes from an airport?
• What population is 4, 8 or 12 hours flying time?
Does it cruise?
• Is there a range of hotels in a 30 to 45 minute
radius?
• Is the terminal effective in terms of CIQ facilities
and performance?
• Does the port have “charisma”

Call ports
• Does the region have plenty of call options within
4. The Eastern Indonesia Opportunity
The obvious opportunity
Bali is the obvious
cruise home port in
Indonesia with an
international airport
and a high profile
brand name

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Bali has failed to

deliver a viable home
port terminal and has
had numerous failed
Carnival ship calls
Why would a cruise line call?
Shore Excursions and Land Based Services
• Variety of Creative Shore Excursions
• Safety, Security and Duty of Care
• Professional and Fully Insured Tour Operations
• Quality Shopping
• Guides with High Standards
• Economic Integration/Product Development at Community
Level

Cruise Destination Marketing & Promotion

• Comprehensive Cruise Destination Information
• Succinct, Professionally Produced Proposals
• Personal Relationships with Cruise Lines
• Marketing, Promotions and Public Relations
Eastern Indonesia has…
LABUAN
BAJO
SUMBA
SUMBA
 RAJA
AMPAT
 RAJA
AMPAT
WAKATO
BI
Other opportunities in the East
Labuan Bajo excites Carnival as home Tobel
port
Bitun o
Toli Anggre g
Toli k Ternat
e

Pantoloa
n Tangkian Manokwa
g Soron ri
Baban g
g Bia
Sanan k
Belang- a
Belang Fak Seru
Bul i Jayapu
Palop Namle Fak ra
o a
a Kaima
Ambo
n Amahai na
Pare-
Kolak
a
Bungkuto
ko
Based in Nabir
eLabuan
Pare
From Surabaya Bau
Bajo a ship can
Tua
Bau
reach
l anywhere in
Based in Bali a cruise Eastern
Dob
o Indonesia
ship can reach Ambon on a 7 day cruise
Re
on a 7 day cruise
o Maumer
e Saumla Merauk
Atapup ki e
End u
Waingap e
u
Tenau-
Kupang
5. How to secure Carnival for Indonesia?
 Key need: Airlift capacity
A solution needs to be identified which makes use of both scheduled
and charter air capacity to deliver and return 1,500 passengers
to/from close to the home port each Saturday say seat obtained
through charters with Garuda or Lion Air:
• 1 widebody and 1 narrowbody charter from Sydney each Saturday
• 1 narrowbody charter from Melbourne each Saturday
Fiji study example: average market fares are
• 1 widebody
typically >A$700 per charter
trip. from Brisbane each Saturday
• Block
2 booking in advance
narrowbody charter should enable from Auckland each Saturday
rotations
discounts in return for large volumes
generated
However, even with full aircraft round trip
fares need to be >$450 due to sector lengths,
taxes and required profit margins
Fiji departure tax accounts for $125
Flexibility with this may enable fares to
average in region of $450 across points of
origin
Key need: Proper navigation charts
Key need: Proper navigation charts
Hydrography is a basic infrastructure requirement for the cruise
sector. It is the only way to ensure safe navigation options. It is
safety critical for the ship.

Survey and formatting into charts and then certification are

essential. The scale of hydrographic requirement is substantial.
Given the maintenance requirements and the need to consistently
adapt and expand itineraries the development of the hydrographic
offices has to be a consistent, long term strategy for capacity
development. Project related options do not provide a solution.

An overarching strategy with a phased development approach to

“opening” new areas is essential. The basic tenor would be:
• Initial work to open up, specific areas
• Supporting marine infrastructure to enable calls
Key need: The Home Port

Passenger Handling Facilities

• It does not have to be good architectural
• A simple shed to handle 1,500-2,000 passengers
• Air conditioning useful but not essential
• Check in desks
• Baggage lay down
• Bus access to door

Ships Supplies
• Bunkers Proposed Carnival
• Food/hotel supplies home port terminal in
Lautoka, Fiji

Waste Reception
• Oily water/sludge
BARCELONA
SYDNEY
-
SYDNEY
Supporting need: Terminals
Each call port requires:
• Safe approach route and anchorage
• Tender transit <3km to jetty

• Fixed or floating jetty where 2 tenders can berth simultaneously

Supporting need: Terminals
Supporting need: Create call offers
5. The next steps…
Dealing with Carnival Cruise
• Brief all who need to be involved in supporting the dealing
with Carnival
• Invite the Carnival CEO to bring team to Jakarta/Labuan Bajo
• Show them commitment to putting in place the infrastructure
required to support them
• Introduce them to:
• Garuda for a presentation on air lift
• Lion Air for a presentation on airlift
• Das Hidros for a presentation on their capability development plans
• Pelindo 4 for a presentation on a cruise terminal plan
• Seek their participation in a join program to prepare for a
deployment
Thank you