THE EUROPEAN CRUISE INDUSTRY

A SOURCE OF ECONOMIC GROWTH IN UNCERTAIN TIMES

David DingleChairman, European Cruise CouncilChief Executive Officer, Carnival UK

THE EUROPEAN CRUISE INDUSTRY – A GROWING SHARE OF A GLOBAL MARKET WITH 4.4 M

PASSENGERS IN 2008

Growth2005

To2008

12%33%

44%66%

16.2mGlobal

Passengers

4.4mEuropean

Passengers

187,300cruise bedsIn Europe

26.4mcruise pax calls

In Europe

Source: G.P. Wild (International) Limited and Business Research and Economic Advisors

THE CRUISE INDUSTRY’S DIRECT ECONOMIC IMPACT IN EUROPE IN 2008 €14.2 BILLION, GROWING 71% IN 3

YEARS.

Source: G.P. Wild (International) Limited and Business Research and Economic Advisors

€8.3

€10.6

€14.2€12.9

€bn’s

ALL CRUISE SECTORS ENJOYING CONTINUING GROWTH

• 20 ships under construction in 2008 and 33 new ships currently on order

• 75% growth in cruise line expenditures

• 150,000 European employees, with 79% growth in sea staff

• 4.7m passengers spent €0.5bn in embarkation ports

• 21.7m passengers spent €1.3bn in way ports

THE TOTAL OUTPUT IMPACT OF THE CRUISE INDUSTRY IN 2008 WAS €32.2BN, GROWING 69% IN

THREE YEARSTotal Output Impacts of the European Cruise Industry, 2005-2008

• 311,512 European jobs (+66% in 3 years)• €10.0 bn European wages

Source: G.P. Wild (International) Limited and Business Research and Economic Advisors

€bn’s

A SOURCE OF ECONOMIC GROWTH IN UNCERTAIN TIMES

Even in an economic downturn, cruise capacity growth and a

full-ship business model will deliver increasing economic output in Europe

EUROPEAN CRUISING – A POSITIVE COLLABORATION BETWEEN INDUSTRY AND

REGULATORS

• Baltic waste water discharge policy– HELCOM/ECC agreement

– Baltic Sea Challenge

• Commission study on EU tourist facilities in ports

• EU Passenger Rights proposed regulation– Persons with Reduced Mobility consultation

• EUNAVFOR piracy protection

A FULL ON-GOING AGENDA

• Shore-side electricity (cold ironing)

• Package Travel Regulations 1992 revision– Harmonised terms and conditions– Harmonised bonding schemes

• Avoidance of Member State restrictive practices

GLOBAL REGULATION FOR A GLOBAL INDUSTRY

• International agreement at IMO on carbon market-based instruments

• EU sulphur regulations not to exceed sulphur revisions in MARPOL Annex VI

• Indirect taxation of supply of on-board goods and services to recognise global practices

• Employment policy must not damage international competitiveness of EU seafarers

EUROPEAN INDUSTRY AND GOVERNMENT COLLABORATION – A CRUISING SUCCESS STORY

By working together, the European cruise industry and EU Member States

can deliver economic growth by promoting best practice and global

competitiveness