Cruise lines’ Dubrovnik deal seen as a way to combat overcrowding

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Last year, Dubrovnik received 742,000 passengers on 538 ships.
FORT LAUDERDALE — Carnival Corp. CEO Arnold Donald said a new agreement in Dubrovnik, Croatia, illustrates how fears about crowding in favourite tourist areas can be managed by the cruise industry.

Speaking as part of a CEO panel at the Seatrade Cruise Global convention here, Donald took the occasion to disclose that major cruise lines have agreed to coordinate their schedules this summer in Dubrovnik.

That could mean some ships arrive later or depart earlier to keep their time in port from coinciding, or it could mean moving some ships to arrive during the week rather than on weekends.

The walled Old City of Dubrovnik was named a Unesco World Heritage site in 1979, but Donald said its mayor requested a meeting with cruise officials because it had been threatened with delisting by Unesco.

Donald and other cruise officials met several times with mayor Mato Frankovic, most recently in January when an agreement was apparently reached.

“In the end, our guests don’t want to go to a place that’s overcrowded,” Donald said. “If the sites that everybody wants to see are being abused, our guests won’t go. It’s in our self-interest, but it’s also in the interest of the places we go.”

Last year, Dubrovnik received 742,000 passengers on 538 ships. The city recorded about 3.4 million overnight stays, with many visitors drawn by Dubrovnik’s status as a filming location for the HBO series “Game of Thrones.”

Donald said cruise lines need to “listen with empathy for the issue of what some would call over tourism, not necessarily driven by cruise companies but by the fact that we’re a very visible symbol for it; our ships are large, and so forth. We have to listen with empathy to the ports that are out there and make sure we work with them to get the proper infrastructure.”

Dubrovnik’s over tourism concerns are shared by several other destinations in the Mediterranean, including Barcelona, Venice and the Greek island of Santorini.

Travel journalist Peter Greenberg, who moderated the CEO panel, said the World Travel and Tourism Council in a recent study listed “destination degradation” as one of three critical issues facing the travel industry.

Others on the panel took issue with the label “over tourism.”

“I think it’s a misnomer,” said Royal Caribbean Cruises Ltd. chairman Richard Fain. “What we’re really talking about is sustainable tourism.”

Fain cited Royal Caribbean’s development of Falmouth in Jamaica to offer an alternative to Montego Bay and Ocho Rios, as another successful response to crowding concerns.

After Falmouth opened in 2011, the number of cruise visitors actually rose, but they were more spread out.

“There were more people but less density,” Fain said.

“The opportunity, really, is to work together in these communities,” Fain said. “We work with them, and we find solutions that are to both of our benefits. And those we work with are very happy. You see that over and over again. Those who just want to make headlines, that’s a different story.”

The Celebtity Reflection in Dubrovnik.
The Celebrity Reflection in Dubrovnik.

Greenberg said that two cities where over tourism has been a hot-potato issue — Venice and Barcelona — are in the backyard of MSC Cruises, which has its headquarters in Geneva and its operations in Naples, Italy.

MSC executive chairman Pierfrancesco Vago said some perspective was in order.

“When you’re talking about Venice’s 30 million visitors a year, the cruise industry is 1 million of that,” Vago said.

He added that unlike the general tourism population, which ebbs and flows individually, cruise tourists come in groups that can be managed.

“We can actually coordinate,” Vago said. “We can actually ensure that there will never be an overflow, and we can control embarkation and disembarkation.”

A 2015 Unesco report recommended that the number of cruise passengers at Dubrovnik should not exceed 8,000 a day, arguing that when more than 8,000 visitors are inside the walls of the old city “tourist blight” becomes inevitable.

Research from the Port of Dubrovnik found that in 2016, arrivals exceeded 8,000 on 18 out of 243 total cruise days and that arrivals exceeded 10,000 on four days that year.

MSC has been looking for new destinations in the Adriatic to supplement hot spots like Dubrovnik. Last year, for example, MSC began calling at the port of Sarande, in southern Albania.

“Nobody knew that in Sarande, there were 10 different Unesco sites,” MSC CEO Gianni Onorato said in a recent interview. “This is the opportunity the cruise industry can give because there are options. That’s the only way to solve this problem.”

PortMiami Set to Continue Record-Shattering Growth Pace

Discussions are underway for another terminal for Norwegian Cruise Line.
Norwegian Getaway turning in Miami port.

“We do have space. I want that to be very clear, that we have space for growth here at PortMiami,” said Juan Kuryla, port director. “We are growing and need to continue investing.”

Miami is coming off a record year, with 5.3 million cruise passengers, and a similar, slightly better year is expected in 2017-2018. After that, Kuryla is forecasting a continued pattern of record-breaking cruise traffic.

Going from 4.9 million to 5.3 million passengers in a year, the most ever recorded anywhere; Kuryla is juggling multiple projects for a 20 percent bump up in 2019, and even more growth behind that.

“We will likely be at 6.4 million passengers,” he added.

Multiple Projects

The biggest bump up in numbers last year came from Royal Caribbean, with 350,000 more passengers. That figure will grow exponentially when the company opens Terminal A for its Oasis-class ships come 2018.

Talking to Cruise Industry News on a November Monday, there were a staggering seven cruise vessels docked and Kuryla was weeks away from the grand opening of Terminal F, a new facility developed for MSC Cruises and the MSC Seaside.

That terminal is only the beginning, as MSC has bigger plans, including the deployment of the Meraviglia in the Caribbean, sailing from Miami alongside the Seaside in summer 2019.

Discussions are ongoing with Virgin and Norwegian for new terminals.

“Both would be additional to the terminals we have,” Kuryla said. “We are taking some land on the north side from the cargo operations to create a footprint for additional terminals.”

Not to be overlooked, Carnival Cruise Line has been the port’s largest customer dating back to the 1970s and accounted for more than 2 million passenger movements last year. This year the new Carnival Horizon will homeport in Miami after a brief summer in New York.

“We are also in discussions with them on how to work together to accommodate further growth,” explained Kuryla.

‘Total Commitment’

He attributed the growth to a total commitment to the cruise industry not only by the port but by the willingness of elected officials to accept the port’s and cruise line’s recommendations on investments.

New terminal projects must consider not only the space for the terminal, but land infrastructure ranging from parking to utilities, apron needs, traffic patterns and more, Kuryla said.

“The speed at which we need to grow to accommodate new ships is unprecedented,” he continued, “and we are moving quickly.”

Various studies have been conducted on LNG, and the port is moving toward a solution regarding whether bunkering would be a land or water-side operation. Kuryla said he expects Miami to receive its first LNG-powered ship in 2022.

MSC Eyes Larger Piece of North American Market Pie

Image result for MSC Seaside in Miami
MSC Seaside Homeport in Miami.

Gianni Onorato is helping drive MSC Cruises’ ambitious growth plan, covering just about the entire world in 2018 and beyond.

Miami will play an increasingly important role as the company pushes its way into the North American market, part of a strategic long-term plan, according to Onorato, CEO of the cruise brand.

Come winter 2019, the MSC Divina, Seaside and Meraviglia will offer Caribbean itineraries from PortMiami.

“It started with the MSC Divina, that was the biggest change,” Onorato told Cruise Industry News. “It was the first time we broke with the legacy of just having a winter ship (in North America) occasionally.”

With the company hitting its goal to become the largest single brand in Europe, it opened up more assets to be moved into the North American market, starting with the Divina on a year-round basis, which has now been joined by the Seaside.

“Even with the Divina, Seaside and Meraviglia compared to the size of the North American market, this is a little drop,” he said.

The MSC Seaside

“We will reach a 4 to 5 percent market share here. It is a start in the most mature market in the world. It has been a process that has been planned and now we’re in the implementation phase.”

With the Divina and Seaside based in Miami come 2020, MSC plans to rotate the Meraviglia north for a summer season sailing from Manhattan.

“We are looking at New York for summer 2020 with the Meraviglia,” Onorato said. “That is why we are adding a sort of presentation of the ship with a number of cruises in 2019. We are preparing to have the Meraviglia out of New York in 2020.”

It differs from previous attempts to sail out of New York by the company and its European competitors.

Onorato noted the hardware will help drive demand, calling the Meraviglia a newbuild that is very competitive.

“The North American trade and distribution also knows our brand better now. The timing is right because the market is looking for something new and different, which we offer.”

Come 2022, Onorato sees MSC as a key player in North American, although not at the level of the other main North American brands.

“We will have our piece of the cake,” he added.