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ECONOMIC IMPACT OF THE CRUISE SHIP INDUSTRY IN ATLANTIC CANADA

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ECONOMIC IMPACT OF THE CRUISE SHIP INDUSTRY IN ATLANTIC CANADA Powered By Docstoc
					      ECONOMIC IMPACT OF THE CRUISE SHIP INDUSTRY IN
                   ATLANTIC CANADA



                                       February, 2003

                                        Submitted To:




                                     Attn: Richard Parsons
                                       Executive Director
                              Atlantic Canada Cruise Association
                                        P.O. Box 29133
                                        Torbay Road PO
                                         St. John’s, NL
                                            A1A 5B5


                                         Submitted By:




   St. John’s, NL                    Moncton, NB                   Halifax, NS
Tel: 709-753-5172                         Tel: 506-855-5559                       Tel:902-422-9243
Fax: 709-738-5288                         Fax: 506-855-3383                       Fax:902-422-5536

                                         Confidential
This document provides classified confidential information and is not to be released without prior
                 written approval of the Atlantic Canada Cruise Association.
Economic Impact Study
Atlantic Canada Cruise Association




                                                        TABLE OF CONTENTS


1.0       STUDY PURPOSE AND METHODOLOGY .............................................................................. 3
      Study Purpose ........................................................................................................................................ 3
      Methodology .......................................................................................................................................... 3
      This Report............................................................................................................................................. 4
2.0       EXECUTIVE SUMMARY ............................................................................................................. 5
      Crew Expenditures................................................................................................................................. 5
      Travel Motivations and Party Composition........................................................................................... 6
3.0       KEY FINDINGS.............................................................................................................................. 7
      Overall Economic Benefit of Passenger/Crew Expenditures on the Atlantic Canada Cruise Industry
      During Fall 2002 ................................................................................................................................... 7
      Overall Impact of Cruise Passenger Visitation ..................................................................................... 8
      Passenger Expenditures......................................................................................................................... 9
      Shore Excursion Expenditures and Benefits ........................................................................................ 13
      Crew Expenditures............................................................................................................................... 14
      Crew Member Expenditures ................................................................................................................ 16
      Cruise Ship Passenger Satisfaction with Port Visit ............................................................................. 17
      Travel Motivations............................................................................................................................... 20
      Profile of Cruise Ship Passengers ....................................................................................................... 21




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Economic Impact Study
Atlantic Canada Cruise Association


1.0     Study Purpose and Methodology

Study Purpose

During the fall of 2002, Market Quest Research designed and completed intercept surveys with
passengers and crew members who disembarked from various cruise ships throughout Atlantic
Canada. The purpose of this study was to obtain economic indicators as they relate to cruise ship
passengers and crew spending while visiting or touring Atlantic Canada’s ports-of-call as well as
to profile cruise ship passengers perceptions of Atlantic Canadian ports.

This report represents the results of both cruise ship passenger and crew members’ self reported
expenditures while visiting Atlantic Canada. It outlines the total economic benefit of direct
expenditures and also summarizes impacts by port size.

Methodology

The main purpose of this study was to determine the economic benefit of cruise ship passenger
and crew expenditures on Atlantic Canadian ports. To satisfy this objective, an on-site intercept
research methodology was utilized. Fully trained Market Quest interviewing staff were placed
dockside in each of the Atlantic Canadian Ports. Intercept staff randomly selected passengers and
crew as they embarked targeted cruise ships at targeted ports using an nth sampling methodology.
The survey instruments used in the study were designed by Market Quest Research, in
consultation with ACCA (See Appendix A and B for survey instruments). A sampling plan was
designed to ensure representation of different sized ports, cruise lines, and different
passenger/crew capacities. (See Appendix C for summary of ships/cruise lines/ports sampled).

Data collection was undertaken from September 1 to October 31, 2002 and a total of 269 crew
(20 small, 143 medium and 105 large) and 625 passengers (77 small, 299 medium, and 249 large)
were surveyed. This sample size will provide a margin of error of + 3.9% for passengers and +
6.0% for crew members, at the 95% confidence level.




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This Report

This report profiles the total sample population including both cruise ship passengers and crew.
Data is weighted at the total market level to ensure correct representation of small, medium and
large ports. Where relevant, data is segmented by port size (small, medium, and large).

In calculating the economic impact of cruise ship passenger and crew visitation, several
assumptions guided the analysis. These include:

    Ø 95% of cruise ship passengers disembark a cruise ship while in Port;
    Ø 50% of crew members disembark a cruise ship while in Port;
    Ø 50% of the total cost of each tour purchased on the ship or included in the cost of the
      cruise goes into the economy of the City or region;
    Ø Those tours included in the cost of cruise are priced the same as those purchased on the
      ship; and

Also, because of rounding, calculations of economic benefits that are based on individual expense
categories may not be exact.

It should also be noted that fifteen surveys from the Polar Star (small port) were mail out surveys.
For these surveys, respondents only answered questions related to total expenditure, origin, and
travel party composition.

As well, data collection for this study occurred during the period of September 1- October 31,
therefore passenger demographics and spending patterns might be slightly different than that of
the spring/summer cruise season.

Please note that the following economic benefit analysis only includes the benefits generated by
the total expenditures of passengers and crew. The direct economic impact, such as income and
jobs generated by these expenditures, are not within the scope of this report.




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2.0       Executive Summary

Overall Impact of Visitation

Ø For the 2002 cruise ship season, the economic benefit of cruise ship passenger and crew
  expenditures for Atlantic Canadian ports is $26,758,4131.

Ø The direct economic benefit of cruise ship passenger and crew expenditures in Atlantic
  Canada for the period of September 1 to October 31 is $14,491,174. The direct impact of
  passenger expenditures is $11,725,508 and the impact of crew expenditures is $2,765,6662.

Passenger Expenditures

Ø Results of this study suggest that the economic benefit of passenger expenditures to large
  ports is significantly higher than that for medium or small ports ($10,283,174, large ports;
  $1,316,503, medium ports; and $122,358, small ports). This is mainly due to the higher
  number of passengers visiting large ports as well as a higher average expenditure per
  passenger.

Ø While in port, the three most common expenditures by passengers include souvenirs, tours
  with local companies, and food and beverage.

Ø Slightly more than half of cruise ship passengers indicated they purchased a shore excursion
  (55%). Seventy percent of this group purchased the excursion while on the ship, 13%
  indicated the excursion was included in the price of the cruise and 18% purchased their
  excursion while dockside.

Ø The overall economic benefit of shore excursions is $2,947,129 with the average passenger
  who participates in a shore excursion providing an economic benefit of $32.51.

Crew Expenditures

Ø Similar to passenger expenditures, the economic benefit of crew expenditures in large ports is
  significantly higher than that for medium or small ports ($2,400,284, large ports; $296,275,
  medium ports; and $27,212, small ports). Once again, this is due to a higher number of crew
  visiting large ports as well as a higher average expenditure per crew member.

Ø The three most common expenditures by crew members include food and beverage,
  souvenirs, and retail items such as jewelry and electronics.

Cruise Ship Passenger Satisfaction

Ø Cruise ship passengers expressed general satisfaction with all aspects of their experiences
  while visiting Atlantic Canadian ports.


1
  Expenditure data was collected during the period of September 1-October 31,2002, and total economic benefits for the total 2002
cruise ship season (May to October) are estimates only.
2
  Passengers and crew passing through more than one port during the same trip were counted more than once. Calculations based on
100% of passengers/crew.


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Ø Overall, passengers’ satisfaction levels were highest with “the friendliness of the people”
  (mean=4.7 out of 5) and “safety and security” (mean=4.6 out of 5). Satisfaction levels were
  lowest with shopping opportunities (mean=4.1 out of 5) and “things to do and see”
  (mean=4.2 out of 5).

Ø Approximately one in three cruise ship passengers indicated they were completely satisfied
  with their port visit and felt nothing could be done to improve their experience. This was
  especially true for those passengers who visited large ports (31%). An additional third of
  passengers indicated they were unsure how their experience could be improved (35%).

Travel Motivations and Party Composition

Ø Most cruise ship passengers indicated they chose to take their current cruise for an
  opportunity to visit Canada or Atlantic Canada specifically.

Ø For the most part, cruise ship passengers visiting Atlantic Canada are not Canadian citizens.
  Seventy-eight percent of passengers are from the United States with California (12%) and
  New York (11%) being the states most often represented. Passengers from countries outside
  of North America represented 19% of cruise passengers with 13% of passengers visiting from
  the United Kingdom.

Ø Most passengers who were interviewed as part of this study indicated that they were taking
  the cruise with their significant other with the incidence of children being very low.




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3.0       Key Findings

Overall Economic Benefit of Passenger/Crew Expenditures on the Atlantic Canada Cruise
Industry During Fall 2002

When the impact of passenger and crew expenditures on small, medium and large ports is
combined, the direct benefit of the Atlantic Canada Cruise industry during the fall of 2002
(September 1, 2002 to October 31, 2002) is an estimated $14,491,174.

As shown below, the direct benefit of passenger visitation is $11,725,508 and the direct economic
impact of crew visitation is $2,765,6663.




                           Economic Benefit of Atlantic Canadian Cruise
                                    Industry $14,491,174.86

                                                    Passengers          Crew




                             $2,765,666.64




                                                                                     $11,725,508.2
                                                                                           2




3
 Passengers and crew passing through more than one port during the same trip were counted more than once. Calculations based on
100% of passengers/crew.


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Overall Impact of Cruise Passenger Visitation

Based on an estimated 173,501 cruise visitors visiting Atlantic Canadian ports, during the period
studied, the economic benefit per passenger is $67.584 for a total economic benefit of
$11,725,508.20. In 2002, the total economic benefit of passenger expenditures for Atlantic
Canadian ports is $22,167,864. This economic benefit is based on 328,009 cruise ship passengers
visiting Atlantic Canadian ports during the 2002 cruise ship season.

As shown below, the economic benefit of passenger expenditures to large ports is significantly
higher than that for medium or small ports ($10,283,174, large ports; $1,316,503, medium ports;
and $122,358, small ports). This is mainly due to the higher number of passengers visiting large
ports as well as the higher average expenditure per passenger. The average expenditure for a
passenger visiting a large port was $69.17 compared to $63.15 for medium ports and $30.69 for
small ports.

Economic Benefit of Cruise Ship Passenger Expenditures by Port Size for the period of September 1-
October 31, 2002.

                                                        Small                 Medium                  Large                    Total
                                                        Ports                  Ports                   Ports
    Overall Economic Benefit                           $122,358              $1,316,503             $10,283,175            $11,725,508

    # of Visiting Passengers*                             3,987                 20,846                148,668                173,501

    Average Economic Benefit Per                         $30.69                 $63.15                 $69.17                 $67.58
    Passenger
Please note: Passengers passing through more than one port during the same trip were counted more than once. Number of visiting
passengers based on passenger estimates provided by each of the Atlantic Canadian ports. Calculations based on 100% of
passengers.

Economic Benefit of Cruise Ship Passenger Expenditures by Port Size for the 2002 Cruise Ship
Season**

                                                        Small                 Medium                  Large                    Total
                                                        Ports                  Ports                   Ports
    Overall Economic Benefit                           $228,076              $2,475,649             $19,462,914            $22,167,864

    # of Visiting Passengers*                             7,430                 39,199                281,380                328,009

    Average Economic Benefit Per                         $30.69                 $63.15                 $69.17                 $67.58
    Passenger
** Please note: Expenditure data was collected during the period of September 1-October 31,2002, and total economic benefits for
the total 2002 cruise ship season (May to October) are estimates only.
*Please note: Passengers passing through more than one port during the same trip were counted more than once. Number of visiting
passengers based on passenger estimates provided by each of the Atlantic Canadian ports. Calculations based on 100% of
passengers.




4
 Calculations based on 100% of passengers. Total economic benefit was calculated by taking the total passenger count for each port
and multiplying it by the average economic benefit for each passenger.


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Passenger Expenditures

To determine the direct benefit of passenger expenditures on the economy of Atlantic Canada,
expenditures were categorized into nine categories including:
           Ø Taxis and ground transport;
           Ø Car rental;
           Ø Tour with local company;
           Ø Food and beverage;
           Ø Souvenirs;
           Ø Local arts and crafts;
           Ø Internet access;
           Ø Toiletries
           Ø Retail items; and
           Ø Other.

When in port, the three most common expenditures by passengers include souvenirs, tours with
local companies, and food and beverage purchased in restaurants and bars. Sixty-four percent of
passengers purchased souvenirs resulting in an average expenditure per person of $36.62 and an
overall economic impact of $3,887,066.

Percentage of disembarking passengers who spent money in each expenditure category by average
expense
                                         Small             Medium               Large                                                Total
                                         Ports              Ports                Ports
                                     %        Avg.     %         Avg.        %         Avg.                                    %        Avg.
                                              Exp.                Exp                  Exp                                               Exp
 Taxis/Ground Transport              1.3       --      5.0       9.65       10.8      18.98                                   9.9       18.37

 Car Rental                                       --          --          1.0           --            1.6           --        1.5            --

 Tour with Local Company                        72.1        64.82        58.2         58.02          53.4        56.83        55.0      57.21

 Food/Beverages in                              22.1         6.68        39.1         25.41          30.5        19.06        31.4      19.47
 Restaurants/Bars

 Souvenirs                                      39.0        22.90        49.8         34.51          67.1        36.69        64.4      36.62

 Local Arts and Crafts                           5.2          --          7.4         44.98          22.5        30.46        20.3      30.39

 Internet Access                                  --          --          1.3           --            2.4           --        2.2            --

 Toiletries/Pharmacy Items                       6.5          --          3.3           --           11.6        19.87        10.5      19.75

 Retail Items (jewelry, electronics)             6.5          --         18.7         72.92          24.1        41.91        23.0      43.68

 Other                                           1.3          --          5.0         14.29           4.4         7.94        4.4        8.91
Due to the small number of respondents in certain categories, average expenditures are not presented. However, the expenditures of
these groups are included in the average expenditure of the entire group.


A significant percentage of passengers also purchased tours with local companies. Fifty-seven
percent of those who visited Atlantic Canadian ports purchased a tour with a local company with
average expenditures being $57.21. Those in small ports were more likely to take a local tour than

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were those in large and medium ports. Thirty-one percent of passengers purchased food and
beverage for a direct economic benefit of $1,007,658.

The following graph illustrates the economic benefit by passenger expense category for
2002 Fall Cruise Ship Season.



                Economic Benefit by Passenger Expense Category
                                                                                  $3,887,066
        $4,000,000


        $3,500,000
                                                                        $2,947,129
        $3,000,000


        $2,500,000
                                                                                                                                                                  $1,655,865
        $2,000,000

        $1,500,000
                                                                                               $1,016,819
                                                   $1,007,650
        $1,000,000
                      $299,743
                                                                                                                                $341,793
          $500,000                   $136,998                                                                            $44,781
                                                                                                                                                                                            $64,615

                 $0
                      Taxis/Ground


                                      Car Rental



                                                    Food/Beverages in


                                                                          Tours



                                                                                   Souvenirs



                                                                                                 Local Arts and Crafts



                                                                                                                          Internet Access



                                                                                                                                            Toiletries/Pharmacy



                                                                                                                                                                   Retail Items (jewelry,


                                                                                                                                                                                             Other
                                                     Restaurants/Bars
                       Transport




                                                                                                                                                                       electronics)
                                                                                                                                                    Items




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Economic Impact Study
Atlantic Canada Cruise Association

The following graph illustrates the economic benefit by passenger expense category for
the 2002 Cruise Ship Season.




            Economic Benefit by Passenger Expense Category-2002 Cruise Ship
                                        Season
                                                                                    $7,348,755
        $8,000,000

        $7,000,000

        $6,000,000                                   $5,571,694


        $5,000,000

                                                                                                                                                              $3,130,546
        $4,000,000

        $3,000,000
                                                                          $1,905,042              $1,922,350
        $2,000,000
                      $566,696
                                                                                                                            $646,181
        $1,000,000                    $258,986                                                                       $84,591
                                                                                                                                                                                         $122,156

                 $0
                       Taxis/Ground


                                        Car Rental



                                                      Food/Beverages in


                                                                            Tours



                                                                                      Souvenirs



                                                                                                    Local Arts and


                                                                                                                      Internet Access



                                                                                                                                        Toiletries/Pharmacy



                                                                                                                                                                Retail Items (jewelry,


                                                                                                                                                                                           Other
                                                      Restaurants/Bars
                        Transport




                                                                                                       Crafts




                                                                                                                                                                    electronics)
                                                                                                                                                Items




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  Economic Impact Study
  Atlantic Canada Cruise Association




           Breakdown of Average Passenger Expenditure of $67.58



                Retail Items (jewelry,   Taxis/Ground Transport
                 electronics) $9.80               $1.76
                                                        Car Rental     Food/Beverages in
                                                          $.81       Restaurants/Bars $5.95
                                         Other $0.41
  Toiletries/Pharmacy
      Items $2.03
Internet Access $.27

  Local Arts and Crafts
         $6.02
                                                                                  Tours $17.44


                     Souvenirs $23.04




  Market Quest Research Group Inc.                                                               12
  February 2003
Economic Impact Study
Atlantic Canada Cruise Association

Shore Excursion Expenditures and Benefits

Slightly more than half of cruise ship passengers indicated they purchased a shore excursion
while in port (55%). Seventy percent of this group purchased the excursion while on the ship,
13% indicated the excursion was included in the price of the cruise, and 18% purchased their
excursion while dockside.

Incidence of Shore Excursions

                                                          Small*              Medium                 Large                 Total


 % of disembarking passengers purchasing                  72.1%                58.2%                 53.4%                 55.0%
 an excursion

 % purchasing on the ship                                 100.0%               60.1%                 72.9%                 70.3%

 % included in price of cruise                               --                 2.3%                 12.0%                 12.5%

 % purchasing on dockside                                    --                37.4%                 15.0%                 17.5%


The average expenditure per passenger on shore excursions is $57.21. Although the overall
expenditure per person is fairly constant across port sizes, the percentage of passengers
purchasing shore excursions varies with those in small ports being more likely to purchase
excursions than those in large and medium sized ports.

Total Expenditure During Shore Excursions

                                                 Small                    Medium                      Large                   Total

 Average Shore Excursion                         $64.82                    $58.02                    $56.83                  $57.21
 Expenditure per Passenger

 Average Expenditure for those                      --                     $32.63                    $45.89                  $42.16
 excursions purchased dockside

 Average Expenditure for those                   $64.82                    $73.36                    $58.91                  $60.64
 purchased on ship
For the purpose of this study, it is assumed that 50% of the passenger expenditure for those excursions purchased
onboard the ship will be infused into the local economy. Also, it is assumed that the expenditure/impact is the same for
those excursions purchased on the ship and those included in the price of the cruise.

Of the passengers who purchased dockside tours, 42% took a tour with a taxi, 42% took a tour
with a local company, 9% rented a car, 4% took a Double Decker bus tour and 4% rented a
limousine.

To determine the overall economic benefit of shore excursions it is important to note that
approximately half of the total cost of a shore excursion purchased on board a cruise ship is
infused into the economy of the host City or region while the remainder is part of the cruise line
revenue. In the present case, the average passenger who purchased a shore excursion on board
the cruise ship spent $60.64 of which approximately half ($30.32) goes into the local economy.


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Also, for the purpose of this study, it is assumed that the expenditure and economic benefits is the
same for those excursions purchased on the ship and those included in the price of the cruise.

The overall economic benefit of shore excursion expenditures is $2,947,129 with the average
passenger who participates in a shore excursion providing an economic benefit of $32.51.

Economic Benefit of Shore Excursions for the period of September 1- October 31, 2002.

                                                                   Small                Medium                   Large                   Total

    Average Shore Excursion Benefit per                           $32.41                 $35.15                  $32.08                 $32.51
    Passenger

    % of passengers purchasing shore excursions                    72.1%                  58.2%                  53.4%                   55.0%

    # of passengers purchasing shore excursions                    2,730                 11,525                  75,418                 90,653

    Total Shore Excursion Economic Benefit                       $88,479                $405,104              $2,419,409               $2,947,129

*Note: Shore excursion impacts for excursions included in price of cruise are based on average benefit for excursions purchased
onboard the ship.



Economic Benefit of Shore Excursions for the 2002 Cruise Ship Season**

                                                                   Small                Medium                   Large                   Total

    Average Shore Excursion Benefit per                           $32.41                 $35.15                  $32.08                 $32.51
    Passenger

    % of passengers purchasing shore excursions                    72.1%                  58.2%                  53.4%                   55.0%

    # of passengers purchasing shore excursions                    5,090                 21,673                 142,744                 171,384

    Total Shore Excursion Economic Benefit                       $164,967               $761,806              $4,579,228               $5,571,694

*Note: Shore excursion impacts for excursions included in price of cruise are based on average benefit for excursions purchased
onboard the ship.
** Please note: Expenditure data was collected during the period of September 1-October 31,2002, and total economic benefits for
the total 2002 cruise ship season (May to October) are estimates only.




Crew Expenditures

Based on an estimated 86,064 cruise ship crew members visiting Atlantic Canadian ports during
the period studied, the economic benefit for crew member expenditures is $32.135 for a total
economic benefit of $2,765,666. For the 2002 season as a whole, based on a total of 142,852


5
 Calculations based on 100% of crew members. Total economic benefit was calculated by taking the total crew count for each port
and multiplying it by the average economic benefit for each crew member.


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crew members disembarking ships in Atlantic Canadian ports, the total economic benefit of crew
expenditures is $4,590,549.

Similar to passenger expenditures, the economic benefit of crew members’ expenditures in large
ports is significantly higher than that for medium or small ports ($2,400,284, large ports;
$296,275, medium ports; and $27,212, small ports). Once again, this is due to a higher number of
crew visiting large ports as well as a higher average expenditure per crew member.

Economic Benefit of Crew Member Expenditures for the period of September 1-October 31, 2002

                                                   Small                 Medium                   Large                     Total
                                                   Ports                  Ports                   Ports
 Overall Economic Benefit                         $27,212                $296,275               $2,400,284              $2,765,666

 # of Visiting Crew*                               2,152                   11,134                  72,780                  86,064

 Average Expenditure per                           $12.64                  $26.61                  $32.98                  $32.13
 Disembarking Crew Member
Please note: Crew members passing through more than one port on the same trip were counted more than once. Number of visiting
crew members based on passenger estimates provided by each of the Atlantic Canadian ports. Calculations based on 100% of crew
members.

Economic Benefit of Crew Member Expenditures by Port Size for the 2002 Cruise Ship Season**

                                                         Small                Medium                  Large                    Total
                                                         Ports                 Ports                  Ports
 Overall Economic Benefit                               $56,903               $513,254              $3,926,731             $4,590,549

 # of Visiting Crew*                                      4,500                 19,288                119,064                142,852

 Average Expenditure per                                 $12.64                 $26.61                 $32.98                 $32.13
 Disembarking Crew Member
** Please note: Expenditure data was collected during the period of September 1-October 31,2002, and total economic benefits for
the total 2002 cruise ship season (May to October) are estimates only.
*Please note: Crew passing through more than one port during the same trip were counted more than once. Number of visiting crew
based on crew estimates provided by each of the Atlantic Canadian ports . Calculations based on 100% of crew members.




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Crew Member Expenditures

As mentioned earlier, cruise ship passengers are most likely to purchase souvenirs and local tours
while in port. Comparably, crew members also indicated they purchase souvenirs while in port
(29% with a average expenditure of $43.75), but are most likely to purchase food and beverage.
Thirty-five percent of crew members purchased food and beverage resulting in an average
expenditure per person of $30.41 and an overall economic benefit of $455,394.

A large percentage of crew members also purchased retail items while in port. Twenty-nine
percent of crew members purchased retail items such as jewelry and electronics with average
expenditures being $61.29 for a direct economic benefit of $756,943.

Percentage of crew members who spent money in each expenditure category by average expense

                                              Small                   Medium                        Large                        Total
                                              Ports                    Ports                        Ports
                                        %          Avg.            %         Avg.             %           Avg.           %           Avg.
                                                   Exp.*                     Exp                           Exp                        Exp
 Taxis/Ground Transport                 --          --             9.8      20.59            12.3         22.48         11.6         22.28

 Food/Beverages in                     45.0           --          32.2         21.94         34.9         32.30         34.8         30.41
 Restaurants/Bars

 Souvenirs                             15.0           --          14.0         34.87         32.1         42.98         29.3         43.75

 Local Arts and Crafts                  --            --           2.1           --          10.4           --           9.1         57.05

 Internet Access                       5.0            --          17.5           --           2.8           --           4.8         15.88

 Toiletries/Pharmacy Items             15.0           --          21.0         29.20          9.4           --          11.1         56.69

 Food Items/Groceries                  20.0           --          25.2         22.73         17.9         32.43         18.9         30.89

 Retail Items (jewelry,                10.0           --          28.7         81.12         29.2         57.37         28.7         61.29
 electronics)

 Other                                  --            --           0.7           --           5.7           --           4.9         21.34
Due to the small number of crew members in each category, average expenditures are not presented. However, the expenditures of
this group are included in the average expenditure of the entire group.




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Atlantic Canada Cruise Association

Cruise Ship Passenger Satisfaction with Port Visit

For the most part, cruise ship passengers were satisfied with all aspects of their experiences while
visiting Atlantic Canadian ports. Satisfaction levels were highest with “the friendliness of the
people” (mean=4.7) and “safety and security” (mean=4.6). Satisfaction levels were lowest with
shopping opportunities (mean=4.1) and “things to do and see” (mean=4.2).

Across ports, differences exist in satisfaction levels with two aspects of service, “safety and
security” and “things to do and see”. Those in medium and small ports rate their satisfaction more
highly than to those in large ports. For the attribute “dockside welcome”, respondents in medium
ports rate their satisfaction more highly than those in small and large ports.

    Performance: On a scale of 1 to 5, 1 being “very dissatisfied” and 5 being “very satisfied”, please
    rate your level of satisfaction with the following items as they relate to your visit….

                                                                   MEAN PERFORMANCE RATING
                                                     SMALL          MEDIUM       LARGE                    TOTAL
                  Characteristic                     PORTS           PORTS       PORTS
      Friendliness of People                          4.8             4.9          4.7                     4.7

      Safety and Security                              4.8                 4.8          4.5                4.6

      Overall day in port                              4.7                 4.6          4.4                4.5

      Tourist info available on dockside               4.1                 4.5          4.3                4.3

      Quality of tour or shore excursion               4.6                 4.5          4.3                4.3

      Dockside Welcome                                 4.1                 4.6          4.3                4.3

      Things to see and do                             4.6                 4.4          4.1                4.2

      Shopping                                         4.3                 4.2          4.1                4.1

   * “No answers” and “don’t knows” have been removed from the analysis.




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    Performance: On a scale of 1 to 5, 1 being “very dissatisfied” and 5 being “very satisfied”, please
    rate your level of satisfaction with the following items as they relate to your visit….



                                                    Small     Medium        Large

                                                                                                  4.4
       Overall day in port                                                                              4.6
                                                                                                          4.7

                                                                                                 4.3
      Dockside welcome                                                                                  4.6
                                                                                           4.1

                                                                                           4.1
                Shopping                                                                     4.2
                                                                                               4.3

                                                                                                 4.3
           Quality of tour                                                                             4.5
                                                                                                         4.6

                                                                                                 4.3
    Tourist info available                                                                             4.5
                                                                                           4.1

                                                                                                       4.5
      Safety and security                                                                                      4.8
                                                                                                               4.8

                                                                                                             4.7
   Friendliness of people                                                                                        4.9
                                                                                                               4.8

                                                                                           4.1
    Things to see and do                                                                          4.4
                                                                                                        4.6

                             0            1              2              3              4                           5




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Approximately one in three cruise ship passengers indicated they were completely satisfied with
their port visit and felt nothing could be done to improve their experience. This was especially
true for those passengers who visited large ports (31%). An additional third of passengers
indicated they were unsure how their experience could be improved (35%).

Passengers who recommended changes indicated they were dissatisfied with the weather (9%),
would have liked more time to visit and sight see (9%) and would have liked better shopping
opportunities (5%).

    Port Size: What if anything could have been done to make your visit more enjoyable?

                                               Small Ports       Medium        Large Ports   Total
                                                                  Ports
      Nothing/Everything Perfect                  8.2%            16.4%           31.3%      29.1%

      Better Weather                              1.6%            11.7%           9.2%        9.4%

      Don’t Know/Not sure                         67.2%           42.8%           33.3%      35.1%

      More time to visit/ see things              3.3%            12.4%           8.8%        9.2%

      Better tour guide/Tour                        --            7.0%            1.2%        1.9%

      Better Shopping                             1.6%            1.7%            5.6%        5.1%

      More Tourist Info Available                 1.6%            4.7%            1.6%        2.0%

      More access to downtown area                3.3%            0.3%            2.4%        2.2%

      Other Mentions                              13.2%           3.0%            6.6%        7.2%
    Note: Multiple Responses Allowed




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Travel Motivations

Most cruise ship passengers indicated they chose to participate in their present cruise for an
opportunity to visit Canada or Atlantic Canada specifically (58%). Additional reasons for
participating in the cruise included relaxation (20%) and the reputation of the cruise line (14%).

    What was your main reason for choosing to take this cruise? Any other reasons?

                                               Small Ports      Medium         Large Ports           Total
                                                                 Ports                                %

      To tour Newfoundland                        4.9%            8.0%                --             1.4%

      Good price                                  4.9%            7.0%               5.6%            5.8%

      Don’t Know                                  32.8%           3.7%               6.0%            6.2%

      Time of Year/Good Dates                     4.9%            2.7%               4.8%            4.6%

      Reputation of Cruise/Cruise line            1.6%            14.4%              14.1%       13.9%

      Friends/Relatives Going                     9.8%            3.0%               4.0%            4.0%

      To visit different provinces                18.0%           2.0%               3.6%            3.7%

      To see North America                        4.9%            2.0%               4.4%            4.1%

      To relax/get away                           8.2%            4.7%               22.5%       20.1%

      Never Visited Before                          --            1.0%               4.8%            4.3%

      Previously Visited                          1.6%            4.7%               1.6%            2.0%

      To see Canada                               16.4%           4.0%               2.8%            3.2%

      Because of the Itinerary                      --            36.8%              20.5%       22.1%

      To see the Atlantic Region                  4.9%            3.3%               11.2%       10.2%

      Recommended by Friend/Family                  --            4.0%               1.2%            1.5%

      To see fall colours                           --            10.0%              6.4%            6.7%

      Other mentions                              6.4%            14.1%              5.6%            3.5%
    Note: Multiple Responses Allowed




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Profile of Cruise Ship Passengers


Passenger Demographics-Fall Cruise Season(September-October)

Most cruise ship passengers interviewed were fifty-five years or older (63%) and had an income
of $50,001 or more (66%).

        Age, income and gender

                                                    Passengers

         AGE:
            20-34                                     4.3%
            35-44                                     7.0%
            45-54                                     15.4%
            55-64                                     29.1%
            65+                                       33.8%
            No response                               9.9%

         INCOME CATEGORY:
            $50,000 and under                         5.5%
            $50,001-$100,000                          24.1%
            More than $100,000                        41.9%
            Refused                                   28.6%

         GENDER:
            Male                                      55.0%
            Female                                    45.0%




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Travel Party Composition

As shown below, most cruise ship passengers visiting Atlantic Canada do so as a couple (58%) or
with a group of friends (29%). In the present study, the average number of people in each travel
party was 3.2.

The incidence of passengers who were traveling with children was low (3%) with an average of
one child for each travel party that included children

        Composition of travel party

                                                              Passengers
                                                                  %
         As a family with children                                2.5

         As a family without children                            2.8

         As a couple                                             58.0

         Alone                                                   6.8

         With a group of friends, adults only                    29.2

         With a group of friends including children              0.8

        Number of people in immediate travel party

         Average number of people in travel             3.2
         party

         Average number of adults in travel             3.1
         party

         Average number of children in travel           1.3
         party




Previous Travel to Atlantic Canada

Approximately 24% of cruise ship passengers had previously visited Atlantic Canada. Of those
who did, the number of previous trips to the region ranged from 1 to 50 trips with an average of
2.3 trips.




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Origins

For the most part, cruise ship passengers visiting Atlantic Canada are not Canadian citizens.
Seventy-eight percent of passengers are from the United States with California (12%) and New
York (11%) being the states most often represented. Passengers from countries outside of North
America represented 19% of cruise passengers with 13% of passengers visiting from the United
Kingdom.

          Country of origin

                                                   Passengers

           CANADA:                                    2.8%
           Nova Scotia                                0.3%
           Ontario                                    1.3%
           Western Provinces                          1.3%

           UNITED STATES:                            78.4%
           California                                12.0%
           New York                                  10.9%
           Florida                                   6.2%
           Maryland                                  5.3%
           New Jersey                                4.8%
           Mass.                                     3.4%
           Penn.                                     5.0%
           Virginia                                  3.7%
           Washington                                1.8%
           Alabama                                   1.9%
           Connecticut                               1.8%
           Hawaii                                    1.4%
           Illinois                                  1.4%
           Nevada                                    1.2%
           Ohio                                      1.3%
           Utah                                      1.4%
           Tennessee                                 1.1%
           Other                                     13.8%

           FOREIGN:                                  18.8%
           United Kingdom                            13.0%
           Germany                                   1.9%
           France                                    0.8%
           South Africa                              0.7%
           Other                                     2.4%




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                                           Appendix A

                                   Passenger Survey Instrument




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Hello, my name is                      from Market Quest Research, a professional
marketing research firm. Today we are conducting a short survey with cruise ship
visitors to gather feedback on visitor experiences in our port. Are you a passenger on the
[INSERT SHIP NAME]?
                YES           - GO TO Q1
                NO            -CONTINUE

Are you a crew member on the [INSERT SHIP NAME]?
              YES          - GO TO CREW SURVEY
              NO           -THANK AND TERMINATE

Would you have a minute to answer a few short questions? Your participation would be
greatly appreciated.

1. First of all, where do you live?

State/Province:___________________________
Country:____________________________

2. With whom are you traveling on this cruise?

      As a family with children (under 18)                           1
      As a couple                                                    2
      Alone                                                          3
      With a group of friends, adults only                           4
      With a group of friends, including children (under 18)         5
      Other, please specify:


3. Including yourself, how many people are in your immediate travel party?

     #_______________ adults              #_______________ children under 18


4.    Is this your first trip to the Atlantic Provinces (Specify the Atlantic Provinces
     includes Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince
     Edward Island)?

       Yes                            1      GO TO Q5
       No                             2      CONTINUE




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4b. Excluding this trip, how many separate pleasure trips have you taken to the Atlantic
     Provinces in the past? This does not include any trips taken primarily for business
     purposes.

       # Previous visits:

 5. While in port, did you take a shore excursion offered by the cruise line? This would
    include any excursion purchased on the cruise ship or an excursion included in the
    price of the cruise.

          Yes                          1          CONTINUE
          No                           2        GO TO Q6


 5b. Was the shore excursion ….[READ LIST]

          Included in the price of the cruise                  1       GO TO Q7
          Purchased on board the ship                          2        CONTINUE

 5c. What was the cost of the excursion/tour per person? $___________________

 5d.     Is this American or Canadian funds?

          American                     1
          Canadian                     2

 GO TO Q7

 6.     Did you purchase any tour or excursion in the port, after leaving the ship?

          Yes                          1        CONTINUE
          No                           2        GO TO Q7

 6b.     What type of tour or excursion did you take?

          Tour with taxi                                       1
          Tour with local tour company                         2
          Car Rental                                           3
          Other:
          _______________________________
          ________

 6c.     What was the cost of the tour or excursion per person? $________________

 6d.     Is this American or Canadian funds?

          American                     1
          Canadian                     2

 7.     In total, how much money would you estimate your immediate travel party spent in
        [INSERT PORT]? Your estimate should include any money you spent on

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      restaurants, taxis, souvenirs, local tours, shopping. Very Important: This does
      not include any money paid to the cruise line or money spent on the
      cruise ship for shore excursions or tours.
      $______________________

IF ZERO GO TO 8

7b.   Is this American or Canadian funds?

       American                      1
       Canadian                      2

7c. How many people are in included in this total expenditure? _______________
people

7d.    Of the [INSERT AMOUNT] you spent in [INSERT PORT], approximately how
       much did you spend on: [READ LIST]….. Is there anything else you spent money
       on today?

 Taxis/Ground Transport                             $
 Tour with local tour company                       $
 Car Rental                                         $
 Food and Beverages in Restaurants/Bars             $
 Souvenirs (T-shirts, Ball Caps, Mugs)              $
 Local Arts and Crafts                              $
 Internet Access/Service                            $
 Toiletries/Pharmacy Items                          $
 Retail Items (electronics, jewelry, clothing)      $
 Other:
                                                    $
                                                    $
                                                    $
                                                    $
                                                    $




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8. On a scale of 1 to 5, 1 being “very dissatisfied” and 5 being “very satisfied”, please rate your
    level of satisfaction with the following items, as they relate to your visit to [INSERT
    PORT]. Would you say you are very dissatisfied, somewhat dissatisfied, neither satisfied
    nor dissatisfied, somewhat satisfied, or very satisfied with:

                                                        Very dissatisfied……………..Very Satisfied        DK/NA
                   Things to see and do                    1       2        3          4         5     99
                   Friendliness of People                  1       2        3          4         5     99
                   Safety and Security                     1       2        3          4         5     99
                   Tourist information available
                                                           1       2        3          4         5     99
                   on the dockside
                   Quality of tour or shore
                                                           1       2        3          4         5     99
                   excursion
                   Shopping                                1       2        3          4         5     99
                   Dockside Welcome                        1       2        3          4         5     99
                   Overall Day in [INSERT
                                                           1       2        3          4         5     99
                   PORT]

9. What, if anything, could have been done to make your visit to [INSERT PORT] more
   enjoyable?




10. I would like you to think about your motivations for choosing this cruise on [INSERT
    SHIP]. What was your main reason for choosing to take this cruise on [INSERT
    SHIP]? Any other reasons?

      Main:

      Other:

               Now, just two final questions…..

11.    May I ask, in what year were you born?




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12.     Into which of the following broad income categories does your total household
       income (before taxes) fall?

       Under $20,000                                     1
       $20,001-30,000                                    2
       $30,001-50,000                                    3
       $50,001-60,000                                    4
       $60,001-80,000                                    5
       $80,001-100,000, or…                              6
       $101,000-$125,000                                 7
       More than $125,000                                8
       Refused                                           9

12b. Is this American or Canadian funds?

       American                      1
       Canadian                      2

Thank you for your time we hope you enjoy the rest of your stay in [INSERT
PORT]!


Gender:         Male     Female




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                                       Appendix B

                                   Crew Survey Instrument




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Hello, my name is                  from Market Quest Research, a professional
marketing research firm. Today we are conducting a short survey with cruise ship crew
and passengers to gather feedback on visitor experiences in our port. Are you a crew
member on the [INSERT SHIP NAME]?
              YES           - GO TO Q1
              NO            -CONTINUE

Are you a passenger on the [INSERT SHIP NAME]?
              YES            - GO TO PASSENGER SURVEY
              NO             -THANK AND TERMINATE

Would you have a minute to answer a few short questions? Your participation would be
greatly appreciated.

1.    In total, how much money would you estimate you spent in [INSERT PORT]? Your
      estimate should include any money you spent on restaurants, bars, taxis, souvenirs,
      local tours, shopping. Only include money you spent personally, do not include any
      money you spent on purchases for other crew members on the ship.
      $______________________

IF ZERO THANK AND TERMINATE

2.   Is this American or Canadian funds?

       American                      1
       Canadian                      2




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3.   Of the [INSERT AMOUNT] you spent in [INSERT PORT], approximately how much
     did you spend on: [READ LIST]…. Is there anything else you spent money on today?

 Taxis/Ground Transport                              $
 Food and Beverages in Restaurants/Bars              $
 Souvenirs (T-shirts, Ball Caps, Mugs)               $
 Local Arts and Crafts                               $
 Retail items (electronics, clothing, jewelry)       $
 Internet Access/Service                             $
 Food Items/Snack Foods taken Onboard Ship           $
 Toiletries/Pharmacy Items                           $
 Other:
                                                     $
                                                     $
                                                     $
                                                     $

Thank you for your time we hope you enjoy the rest of your stay in [INSERT
PORT]!


                             Gender:    Male Female




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                                           Appendix C

                                   Profile of Ports/Ships Sampled




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                                               Large Ports

 Port                                   Ship                  Cruise Line         Date
 Halifax
                                       Galaxy                    Celebrity        9/12/02
                                   Golden Princess           Princess Cruises     9/16/02
                                       Aurora                 P & O Cruises       9/28/02
                                      Triumph                    Carnival        10/03/02
                                       Legend                    Carnival        10/15/02
 Sydney
                                     Rotterdam               Holland America      9/17/02
                                      Triumph                    Carnival         9/25/02
                                     Rotterdam               Holland America     10/17/02
                               Brilliance of the Sea         Royal Caribbean     10/15/02
 Saint John
                                 Regal Empress                Regal Cruises       9/10/02
                               Brilliance of the Sea         Royal Caribbean      9/20/02
                                      Braemar                  Fred Olson         10/4/02
                               Brilliance of the Sea         Royal Caribbean     10/30/02
                                     Columbus                 Hapag-Lloyd        10/23/02



                                            Medium Ports

 Port                                   Ship                  Cruise Line         Date
 St. John’s
                                      Rotterdam              Holland America      9/9/02
                                    Silver Shadow               Silversea        9/12/02
                                        Legend                   Carnival        9/17/02
                                       Braemar                 Fred Olson        9/21/02
 Corner Brook
                                      Albatross              Phoenix Seereisen   9/10/02
                                      The World                 Resin Sea        9/23/02
                                   Norwegian Dream                 NCL           9/28/02
                                   Norwegian Dream                 NCL           9/28/02
 Charlottetown
                                    Silver Shadow               SilverSea         9/24/02
                                      Rotterdam              Holland America      9/26/02
                                      Rotterdam              Holland America      10/8/02
                                    Seabourn Pride              Seabourn         10/15/02




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 Port                                Ship            Cruise Line       Date
 St. Anthony                   Clipper Adventurer       Clipper         9/4/02
 Gros Mourne                    Akademik Ioffe         Peregrine       9/15/02
 Trinity                           Polar Star       Adventure Canada   9/19/02
 Terra Nova                          Astor            Transocean       9/20/02
 Lunenberg                       Seabourn Pride        Seabourn        9/30/02




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