Melbourne Cruise Ship Passenger Survey 2012-2013 cruise ship season Tourism Victoria

This factsheet summarises the key findings from the 2012-13 survey, including a demographic profile,

travel behaviour, and visitor expenditure. Also explored is visitor satisfaction with Melbourne and

services provided.

Given the increasing popularity of cruising, Tourism Victoria

and the Port of Melbourne Corporation funded a Melbourne

cruise ship passenger survey for the 2012-13 season. This

was the fourth passenger survey conducted, with the first

survey conducted in 2006-07.

The 2012-13 Victorian cruise ship season (November 2012 to

April 2013) had 55 cruise ship visit days Melbourne1, ranging

from a few hundred passengers to over 3,000 passengers.

THE GLOBAL CRU ISE SH IPP ING INDUSTRY

The global cruise industry continues to grow strongly, and

remains the fastest growing sector of the travel industry. The

Caribbean remains the top-ranked cruise region with 34.4 per

cent capacity. Over the past five years, capacity has increased

in Asia (302%) and Australasia (155%).

The Cruise Down Under Annual Report 2012-13 highlights:

continued year-on-year passenger growth, to 20.3 million

passengers on ships during 2012, with expected growth to

20.9 million people in 2013, with 17.9 million originating

from North America;

the Caribbean remains the top cruise destination, while

growth areas include the Mediterranean, Alaska, South

America, Asia and Australasia;

in the past decade 167 new ships have come into

commission and there are 20 newbuilds in the plans for

the next four years, delivering over 60,000 new berths;

and

there is likely to be more refurbishments than rebuilds in

the coming years.

1 Economic Impact Assessment of the Cruise Shipping Industry in Australia 2012-13, Excutive Summary, Cruise Down Under, September 2013

AUSTRAL IA S CRU ISE SH IPP ING INDUSTRY Within Australia, cruising continues to be the fastest growing

sector of the tourism industry. The International Cruise

Council Australasia reported that in 2012 Australian cruise

passenger numbers increased 11 per cent to reach a record

694,0622. This growth rate in 2012 was the equal highest

(with Germany) in the developed cruise source markets.

Australias share of the global cruise industry is now 3.4 per

cent and is the only source market, along with North America,

above 3 per cent.

In September 2013 the AEC Group released the Economic

Impact Assessment of the Cruise Shipping Industry in

Australia, 2012-13. It states that the estimated total output of

the Australian cruise shipping industry in 2012-13 was $2.06

billion by international passengers and crew, including direct

expenditure of $1.22 billion. When domestic passengers and

crew are included the estimated total output is $2.88 billion,

with direct expenditure of $1.71 billion.

The report highlights the growing number of passengers and

increase in expenditure by cruise ship passengers. The only

decline that occurred during 2012-13 was the number of

cruise ship visits to Australian ports, down 6 per cent to 692,

due to a reduced number of visits to Western Australia, South

Australia and regional Queensland. There was strong growth

in the number of base ship visits, however this was exceeded

by a decline in domestic and international transit visits.

Specific increases over the previous year include the:

number of visiting cruise ship visits: 42 to 43 (up 2%)

passenger days at port: 1,463,013 to 1,814,478 (up

24%)

crew days at port: 324,656 to 373,104 (up 15%)

2 Cruise Down Under Annual Report: 2012-13

Melbourne Cruise Ship Passenger Survey: 2012-2013 cruise ship season

MELBOURNE S CRU I S E SH IPP ING INDUSTRY

The direct expenditure associated with the Cruise Shipping

Industry for Melbourne in 2012-13 was $134.17 million3.

During the 2012-13 cruise ship season the number of cruise

ship visit days to Melbourne declined from the previous year,

from 56 visits to 55 visits, by 22 ships. However the number

of turnarounds4 almost doubled from 8 in 2011-12 to 15 in

2012-13.

The cruise ship capacity for passengers and crew to

Melbourne notably increased from the 2011-12 season to the

2012-13 season; increasing from 94,229 to 119,765 for total

passenger days at port (27%), and from 23,531 to 27,837 for

total crew days at port (18%).

MELBOURNE CRU ISE SH IP PASSENGER SURVEY 201 2201 3

Interviews were conducted with randomly selected

passengers and crew from 21 ships from December 2012 to

April 2013 at the cruise terminal, Station Pier, Port Melbourne.

A total of 888 interviews were completed: 838 with

passengers (627 surverys with passengers who experienced

Melbourne/Victoria as fully independent travellers and 211

with those who undertook an organised tour5) and 50 with

crew.

3 Economic Impact Assessment of the Cruise Shipping Industry in Australia, 2012-13

4 Turnarounds are defined as vessels that complete and begin a new voyage in Melbourne.

5 Fully independent travellers have been defined as those who did not take part in an organised tour whilst organised tour passengers are those who participated in either an all-day or a part-day organised tour. Of note, if a respondent took part in an organised tour in addition to undertaking activities independently, the respondent has been classified as an organised tour passenger for the purposes of this survey.

Respondent Profile

Unless specified, respondents refers to both passengers and

crew. The profile of respondents is highlighted below.

Overall, the majority of survey respondents were female

(56%). Passengers were more likely to be aged 60 or older

(66%), whilst crew members were more likely to be younger

than 35 (90%). The majority of passengers were travelling as

part of an adult couple (65%).

Over one third of passengers were from Australia (40%),

followed by 29 per cent from the USA, 8 per cent from both

Canada and the UK. Crew members were predominantly from

Asia (44%) followed by 18 per cent from Eurpean countries

(excluding the UK).

Forty-seven per cent of fully independent passengers were

Australian and 22 per cent were from the USA. In

comparison, 50 per cent of group passengers were born in

the USA and 19 per cent in Australia. The proportion of

domestic vs. international passengers in 2012-13 has changed

since 2011-12, with more domestic passengers (40%, up

from 32%). This shift in nationality in 2012-13 may be

associated with the sampling as more ships surveyed during

the season were based domestically (52%), compared to

2011-12 (33%).

Amongst the passengers, 58 per cent were retired, 38 per

cent were on holidays from work and 2 per cent were not

currently working.

In 2012-13, 46 per cent of passengers had undertaken

between 1-5 cruises previously, on average passengers had

taken 7.3 cruises, declining from the 2011-12 average of 8.6

cruises.

While crew members had been on more cruises than

passengers (average of 14 previous cruises), their average

number has declined compared to 2011-12 (an average of

16).

94 Passenger

56 Female

9 15 - 34

38 Australia

64 NSW/ ACT58 Retired

6 Crew

44 Male

9 35 - 49

28 USA

17 QLD38

On holidays

20 50 - 59

8 Canada

7 VIC/TAS

2Not working

20 60 - 64

8 UK

7 SA

1 No answer

33 65 - 74

6 New Zealand

5 WA6 75 - 795 Other Europe

1 NT4 80+4 Asia3 Other

0%

20%

40%

60%

80%

100%

RespondentType

(n=888)

Gender(n=870)

Age(n=888)

Country ofResidence(n=888)

State orTerritory(n=337)

Work Status(n=838)

Melbourne Cruise Ship Passenger Survey: 2012-2013 cruise ship season

Factors prompting passengers to take a cruise

The most common reason for passengers taking a cruise was

because it included Australia as a destination, which included

always wanting to visit Australia (26%) and never visited

Australia before (17%). Other reasons included that they

enjoy Australia/wanted to explore it more (13%) or believed

Australia to be an interesting destination (12%).

Compared with all passengers, a greater proportion of

organised tour passengers mentioned wanting to visit

Australia (35%) and never visiting before (26%).

There were more respondents in 2012-13 who indicated the

itinerary of the cruise ship (total mentions) (39%), as an

influencing factor for undertaking a cruise, compared to 2011-

12 (13%).

Respondent profile of cruise passengers compared to

the overnight leisure visitors to Melbourne

The respondent profile of international and domestic cruise

ship passengers was compared to the profile of total

overnight leisure visitors6.

In terms of visitor travel parties, international cruise

passengers were more likely to be travelling as part of an

adult couple (69%) whereas total international overnight

leisure visitors7 to Melbourne were more likely to be travelling

alone (49%). When compared to the total domestic overnight

leisure visitors to Melbourne 8 , domestic cruise passengers

were more likely to travel in an adult couple (59% compared

to 34%) and less likely to travel on their own (3% compared

to 24%).

International cruise passengers were mainly from the USA

(45%), Canada (13%) and the UK (12%), while for

international overnight leisure visitors to Melbourne9 the core

international leisure markets as China (16%), NZ (14%) and

the UK (12%). The cruise ship survey had much lower

representation of visitors from other countries (12%)

compared to the IVS (44%).

Response Total Cruise

Pax 2012/13

International

Overnight Leisure

Visitors 2012

USA 45.0% 6.6%

Canada 12.5% 2.2%

United Kingdom 12.2% 11.0%

New Zealand 10.3% 13.6%

Germany 1.6% 3.6%

China 1.1% 16.5%

Other Countries 17.2% 46.5%

Total 100.0% 100.0%

6 Leisure definition is the main purpose at stopover is Holiday or VFR 7 Source: International Visitor Survey, Tourism Research Australia, year ending December 2012 8 Source: National Visitor Survey, Tourism Research Australia, year ending December 20129 Source: International Visitor Survey, Tourism Research Australia, year ending December 2012

Visitor Expenditure

International passengers spent more per person ($109) than

Australian passengers ($75) during their visit to Melbourne.

Compared to the 2012 IVS, international overnight visitors10

spent an average of $115 per night in Melbourne, which we

note would also have included their accommodation, if

applicable, while domestic cruise ship passengers spent less

than total domestic overnight visitors (an average of $76 per

night).

Total Cruise

Pax 2012/13

International

Overnight

Leisure

Visitors 2012

Total Cruise

Pax 2012/13

National

Overnight

Leisure

Visitors 2012

Overnight visitor expenditure 2012

(Leisure visitors) $ million$1,699 $2,472

Total visitor nights in Melbourne 2012

(Leisure Visitors) (000s)20,051 14,258

Average expenditure per person

per night$115 $85 $76 $173

Response

International Visitors Domestic Visitors

The methodology for the expenditure was calculated by combining the expenditure in Victoria by holiday and VFR (referenced as Leisure visitors) and then dividing by total expenditure in Victoria to obtain a proportion of expenditure by leisure visitors. The percentage was then used to calculate the expenditure in Melbourne assuming the same proportion as the Victorian average. The same principle was used to estimate domestic and international expenditure.

Compared to 2011-12 cruise passenger expenditure, average expenditure for international visitors has declined marginally by $1 per night, while average expenditure for domestic visitors has declined by $63 per night.

Average expenditure per person

Overall, the average expenditure per person across all items

was $472 per night. The average expenditure per passenger

was $496 and $76 for crew. This was a noticeable increase

from 2011-12 due to a change in the calculation11.

If expenditure on accommodation, airfare to/from Melbourne

and packaged deal categories were removed, the average

expenditure in 2012-13 declined to $98 from $121 in 2011-

12.

Compared with 2011-2012, fully independent travellers spent

less on food and drinks ($19.73 vs. $32.16 in 2011-12) and

on entertainment and gambling ($3.86 vs. $6.32 in 2011-12).

Organised tour passengers spent notably less on organised

tours ($95.11 vs. $166.30 in 2011-12), on shopping ($11.70

vs. $30.20 in 2011-12) and on food and drinks ($9.53 vs.

$13.41 in 2011-12).

The overall decline in expenditure may be attributable to a

higher proportion of domestically-residing respondents

surveyed in 2012-13. Whilst domestic respondents spent an

average of $74.55 per person, international respondents

reported an average expenditure of $109.15 per person.

10 Holiday and VFR, as well as business, education and other 11 Accommodation, airfare to/from Melbourne and packaged deals were added into the calculation of average expenditure per person in this survey.

Melbourne Cruise Ship Passenger Survey: 2012-2013 cruise ship season

$34.69

$24.44

$13.46

$1.14

$3.14

$1.57 $6.70

$4.66

$8.40

Total RespondentsShopping

Organised tours

Takeaway and restaurant meals

Groceries for self catering

Alcohol and drinks

Taxis

Other local transport costs

Entertainment and Gambling

Other

Average Total Expenditure = $98.21

$24.10

$20.92

$1.98

$4.64$0.49

$3.01

$19.70

$0.82

Crew

Average Crew Expenditure = $75.66

$35.32

$25.90

$13.02

$1.09

$3.05

$1.64

$6.92

$3.76

$8.85

Passengers

Average PassengerExpenditure = $99.56

The following charts show the proportion of average

expenditure that was spent on each category. The greatest

proportion of expenditure was made up of shopping,

organised tours and takeaway and restaurant meals. Please

note these charts exclude packaged deal, airfare to and from

Melbourne and accommodation in Melbourne as these are

only applicable to passengers.

Other passenger expenditure information collected included

packaged deals (averaging $365.33 per person).

Previous visits to Melbourne

Respondents in 2012-13 (particularly passengers) were less

likely to have visited Melbourne before (50%) compared to

2011-12 (59%).

Three-quarters (75%) of organised tour passengers in 2012-

13 were first-time visitors to Melbourne compared with 41 per

cent of fully independent travellers. Fifty-eight per cent of

crew members had previously visited Melbourne.

Information needs prior to or upon arrival in

Melbourne

Before arriving in Melbourne, the most common types of

information that respondents sought were for

attractions/things to see and do (43%), public transport

(26%), places to go shopping (25%) and tours/day trips

(22%).

Consistent with 2011-12, the most popular source of finding

information about Melbourne was from the cruise company on

board the ship (42%). The internet (34%) was also used,

followed by a previous visit (16%), family friends and/or

business collegues (14%) or the visitor information desk at

Station Pier (11%).

Their Melbourne experience

In 2012-13, 47 per cent of respondents passengers had made

no firm plans prior to arrival in Melbourne, higher for

independent travellers (59%) compared to tour passengers

(14%).

Crew members were more likely to have made plans for

places to eat and drink (16%) compared with passengers

(3%).

The most popular activities that respondents did in Melbourne

were organised tours (61%), shopping and markets (59%),

dining out (30%), visiting city attractions (22%), going for

walks (20%), or visiting historical landmarks (14%).

Compared to 2011-12, respondents were more likely to have

taken a city tour (24%, up from 16%), dine out (30%

compared to 16%), walk around parks or gardens (19%

compared to 13%), visit the markets (13% compared to 9%)

or visit art galleries or museums (9% compared to 6%).

In terms of specific places visited around Melbourne, just over

half of respondents had visited the CBD area (51%), followed

by 27 per cent who visited Federation Square, 18 per cent

visited parks and gardens, 17 per cent visited Bourke Street

Mall, 16 per cent visited Queen Victoria Market and 13 per

cent visited the St Kilda precinct.

Compared to 2011-12, respondents were more likely to have

visited:

a shopping precinct/market/outlet (58%, up from 49%),

Cooks Cottage (7%, up from 2%) and

Shrine of Remembrance/War Memorial (6%, up from

3%).

Melbourne Cruise Ship Passenger Survey: 2012-2013 cruise ship season

Passengers were less likely to have visited:

The immediate area around the terminal (10%, down

from 49%) and

Southbank/Southgate precincts (7%, down from 16%).

The most popular places visited outside of Melbourne on a

daytrip were the Dandenongs/Puffing Billy (31%), Serendip

Sanctuary/You Yangs (to see wildlife) 17 per cent and the

Yarra Valley/Healesville (13%).

Satisfaction with the Melbourne/Victorian experience

Satisfaction with the overall Melbourne experience by

respondents was high (96%). Detailed satisfaction results

were as follows:

96 per cent with the variety of things to see and do

95 per cent with information services in Melbourne

93 per cent with food and beverages in Melbourne

92 per cent with Melbournes attractions

92 per cent with the tours they had experienced in

Melbourne

91 per cent with shopping in Melbourne

91 per cent with the public transport, and

61 per cent were likely to return to Melbourne, with 39

per cent very likely and 23 per cent somewhat likely to

return.

Of those who were likely to return to Melbourne, 39 per cent

said they would return within the next year, while 24 per cent

said within one to two years and 36 per cent after two years.

Compared to 2011-12, more respondents in 2012-13

indicated they would return to Melbourne within one years

time (39% compared to 32% in 2011-12). This may be due to

a higher proportion of domestic passengers surveyed in 2012-

13.

Visitor information desk at Station Pier and cruise

terminals

Passengers were shown a photo and asked if they had used

the visitor information desk located at the cruise terminal.

More passengers had visited the visitor information desk

(41% compared to 31% in 2011-12). Over half (52%) of the

independent travellers had visited the visitor information

desk, while only 9 per cent of organised tour passengers had

visited the desk.

Of those who used the service (41% in 2012-13), 95 per cent

of passengers were satisfied with the customer service and 93

per cent were satisfied with the information they received.

31 per cent of passengers who visited the visitor information

desk indicated that the information desk encouraged them to

do more in Melbourne.

In 2012-13, 89 per cent of respondents said that they were

either very or somewhat satisfied with the presentation of the

Cruise Terminal (in line with 2011-12). Only 2 per cent of

passengers were dissatisfied with the presentation of the

Cruise Terminal.

Passengers were equally satisfied with the customer service

provided at the Cruise Terminal in 2012-13 (94%) compared

to 2011-12 (94%).

Sources:

Melbourne Cruise Ship Passenger Survey 2012-13; conducted by AEC Group Limited

Economic Impact Assessment of the Cruise Shipping Industry in Australia 2012-13, Excutive Summary, Cruise Down Under, September 2013

Cruise Down Under Annual Report: 2012-13 International Visitor Survey, Tourism Research Australia, year

ending December 2012 National Visitor Survey, Tourism Research Australia, year ending

December 2012 Note: Percentgaes may not add to 100% due to rounding. Factsheet prepared by the Research team at Tourism Victoria, September 2013