Operators in the cruise liner industry are bracing themselves for a tough 18 months ahead, with the number of passengers this year expected to drop by as much as 30 per cent over 2012.
This amounts to a 175,000-passenger decline, although 2012 had a record 608,786 arrivals.
Sources in the cruise liner industry yesterday told Times of Malta that the prospects for improvement in 2014 are rather slim.
Expectations are so low that maintaining this year’s results would be a relative success.
Figures released yesterday by the National Statistics Office show 69,103 fewer passengers in the six months between January to June over the same period last year.
This drop was reflected in the number of cruise liners calling at Malta: 93 as compared to 125.
Falling figures are being attributed to MSC Cruises’s decision last year to drop its weekly call to Malta from its itinerary. This alone will result in a drop of around 150,000 passengers.
The CEO of the Malta Tourism Authority, Josef Formosa Gauci, said talks were underway with MSC, adding that the authority was well aware of the issue of fuel costs. He also confirmed that in the current scenario, arrivals for next year are likely to be on the same level as 2013, and the authority would keep up its efforts to make up for lost ground.
Norman Hamilton, local agent for MSC and managing director of Hamilton Travel, confirmed fuel cost was the main reason for MSC’s decision.
He said the company decided to drop Catania and Messina from its western Mediterranean tour and was calling instead at Palermo, from where it proceeded directly to Tunisia and Spain.
Unless the line receives subsidies to compensate for fuel costs, calling at Malta is not viable
The cruise liner company claims that unless it receives subsidies to compensate for the fuel costs, calling at Malta is not viable.
Discussions with local stakeholders including Valletta Cruise Port, the Malta Tourism Authority and Transport Malta have been unsuccessful, according to Mr Hamilton. Asked about next year’s prospects, he pointed out Costa Crociere will be calling at Ibiza instead of Malta during the 13-week peak season between July and September but will compensate by calling more frequently during the shoulder months.
Another cruise liner company which has drastically reduced its presence in Malta is AIDA cruises. Coupled with other declines from minor cruise liner companies, this will amount to an additional drop of 25,000 passengers.
According to former MTA chairman Sam Mifsud, who is currently the managing director at SMS Travel, Malta lacks a strategy for the cruise liner industry.
While expressing concern about yesterday’s figures, he said that next year there might be even more bad news, hinting that more companies may be considering their future in Malta.
Valletta Cruise Port CFO Stephen Xuereb said another reason behind MSC’s decision was that revenue from excursions in Malta was below their expectations due to the capital being so close to the cruise liner terminal.
He dismissed claims that berthing fees were partly to blame for MSC’s decision.