Overview Economic Impact of Cruise Tourism Baltic Sea Region

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1 Overview Economic Impact of Cruise Tourism Baltic Sea Region Peter Wild for and G. P. Wild (International) Limited

2 Slide 2

3 The impacts are based on surveys from 2011 to 2013 at 12 Baltic ports in 9 different countries as follows: Destination Copenhagen, Ronne and Aarhus Stockholm and Malmo Helsinki Oslo Klaipeda Tallinn Gdynia Rostock St. Petersburg Country Denmark Sweden Finland Norway Lithuania Estonia Poland Germany Russia Slide 3

4 There were 2,960 cruise calls at Baltic ports during Transit Calls: 2,551 Turnaround Calls: 409 An estimated 540,527 passengers embarked on cruises from Baltic ports The principal turnaround ports were: Copenhagen, Kiel and Rostock. These three ports accounted for about 90% of total embarkations in the region. Another 3.35 million cruise passengers arrived at ports in the Baltic. Of these, an estimated 3.23 million (96%) disembarked and visited the port and destination. The five largest transit ports (St. Petersburg, Tallinn, Helsinki, Stockholm and Copenhagen) accounted for 67% of the Baltic total. An estimated 425,700 crew disembarked during cruise calls during 2013 and visited the Baltic ports. Slide 4

5 The analysis of transit passengers and crew visiting Baltic ports during the 2013 cruise season showed the following: Transit passengers visiting Baltic ports spent an average of in each port with tours and retail shopping accounting for 80% of their expenditures. Crew visiting these ports spent an average of with food and beverages, entertainment and retail shopping accounting for 73% of their expenditures. Data on average expenditures by turnaround passengers at the Baltic turnaround ports indicate that the average passenger spends 152 per visit. The average turnaround passenger spent per passenger on lodging and food and beverages, 75% of their total expenditures. Average Expenditure per Passenger/Crew Category Turnaround Transit Crew F&B & Entertainment Tours & Ground Transportation Retail Goods Other Purchases Accommodations Total Slide 5

6 Passengers and crew spent an estimated 346 million during Turnaround passengers accounted for 24% of the total with transit passengers accounting for another 71% and crew 5%. Passengers and crew spent 151 million on tours and other ground transportation, accounting for 44% of total expenditures. Expenditures for lodging and food and beverages totaled 85.3 million. Turnaround passengers accounted for 71% of these expenditures. Purchases of retail goods totaled 71.5 million and accounted for 21% of total spending by passengers and crew. Total Expenditures ( Millions) Category Turnaround Transit Crew Total F&B & Entertainment Tours & Ground Transportation Retail Goods Other Purchases Accommodations Total Slide 6

7 Cruise lines spent an estimated million throughout the region as a result of the cruise calls at the Baltic ports. These included spending for provisions, hotel supplies, fuel and equipment used onboard the cruise ships. Spending in the manufacturing sector totaled million, 52% of the total. These expenditures were concentrated in the food processing, petroleum and the machinery industries. Another 85.6 million, 25% of the total, was spent in the transportation and utilities sector. These expenditures were comprised primarily of port fees. Industry Total Expenditures ( Millions) Manufacturing Wholesale & Retail Trade Transportation & Utilities All Others Total Slide 7

8 The million in spending by the cruise lines and their passengers and crew generated an estimated 6,155 direct jobs and million in compensation throughout the Baltic Sea Region. The transportation sector, primarily tour operators and cruise ports, had the highest direct economic impact with 1,856 jobs and 56.7 million in compensation. The hospitality sector (hotels, restaurants, bars) had the second highest direct employment impact with 1,464 jobs paying 28.2 million in compensation. The manufacturing sector had the second highest direct compensation impact with 41.9 million from 1,365 jobs. Direct Industry Expenditures Millions Manufacturing Wholesale & Retail Trade Transportation & Utilities Hospitality All Others Total Direct Employment Direct Compensation Millions 1, , , , , Slide 8

9 The million in spending by the cruise lines and their passengers and crew generated an estimated 1.4 billion in total (direct + indirect) output throughout the Baltic Sea Region. This output generated 11,987 jobs throughout the region paying million in compensation. Because the direct impacts account for about half of the total impacts, the total impacts remain concentrated (just over 50% in the trade, transportation and hospitality sectors). However, the indirect impacts do spread into other sectors, including manufacturing, business and financial services to name a few. Industry Total Output Millions Slide 9 Total Employment Total Compensation Millions Manufacturing , Wholesale & Retail Trade , Transportation & Utilities , Hospitality , Financial & Business Services , All Others , Total 1, ,

10 Other major highlights of the total economic impacts include: Every 1 million in cruise related spending generated 17.5 jobs throughout the Baltic Sea Region. On average each of these jobs paid 25,500 in employee compensation. The trade, transportation and hospitality sectors accounted for about 70% of the direct impacts. The manufacturing, financial, business and personal services sectors accounted for approximately 60% of the indirect impacts. Every 100 direct jobs generated by passenger and crew spending resulted in another 95 jobs elsewhere in the Baltic Sea Region. All Others % Financial & Business Services % Total Employment Impact Hospitality % Transportation & Utilities % Manufacturing % Wholesale & Retail Trade % Slide 10

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