High seas float SA funseekers’ boat
Holidaymakers seeking value for money flock to ’resorts on waves’
SMALL WORLD: The ‘largest residential ship on the planet’ moored in Cape Town THE allure of onboard romance, allyou-can-eat buffet meals, drinks by the pool deck and live entertainment is seeing more and more South Africans sign up for cruise holidays.
While domestic tourism is experiencing a downturn, local cruise operators say they are riding the crest of a tourism wave.
According to the Transnet National Ports Authority, the number of people boarding cruise ships in South Africa more than tripled from 78 587 in 2007-08 to 278 421 in 2016-17.
In contrast, a Stats SA domestic tourism survey released in March this year showed that domestic tourism declined from 2013 to 2015 — with the total number of day trips decreasing from 54.4 million in 2013 to 47.3 million in 2014 to 44 million in 2015.
The cruise boom, say industry insiders, can be attributed to a shift in travel habits for passengers who traditionally had no appetite for sea travel but who now see value for money in floating holidays.
Thaybz Khan, brand manager for US-based Cruises International, which represents nine liners in South Africa, said the potential to expand sales in the country was immense.
“We sell just over 10 000 cruises a year. Given the size of the market, there is huge room to grow. Over time more South Africans realise that a cruise is simply the best holiday option.”
Khan said the cruise industry faced challenges due to the downturn in the economy, as all businesses did, but it also faced industry-specific challenges — such as bad behaviour.
She said behaviour was closely monitored and sometimes unruly passengers had to be barred from a ship.
Ross Volk, MD of MSC Cruises South Africa, one of the biggest cruise companies operating in South Africa, said it was pleased with the growth in the local market.
“The cruise market in South Africa is growing and the number of passengers coming on board has grown exponentially in the past 10 years,” he said.
He said there was increasing interest in cruises from black holidaymakers.
Volk was speaking after the announcement of the preferred bidder for the new R215-million Durban cruise terminal facility last month.
The preferred bidder was named as KwaZulu Cruise Terminal — a joint venture between MSC Cruises South Africa (a subsidiary of the Swissbased MSC Cruises) and Africa Armada Consortium, its black empowerment partner.
MSC Cruises is the world’s fourthlargest cruise company, operating in 45 countries and more than 180 ports. It has at least 13 years’ experience operating cruise terminals in ports that include Marseille, Genoa and Naples. Africa Armada Consortium is a four-year-old investment company in the ports and logistics sector and is classified as an exempted microenterprise.
The announcement of the preferred bidder came nearly two years after the Transnet National Ports Authority issued an open tender.
Delays since then have been attributed to fluctuating interest from the market and lack of enthusiasm from the provincial government, which had doubts about the economic spin-offs.
Stakeholders say recent local market demand for three- to five-day cruises, especially to Mozambique, has generated confidence in the viability of the Durban terminal.
TNPA CEO Richard Vallihu said: “Despite the pressures of the global economic climate on disposable incomes, the global luxury cruise sector remains one of the fastest-growing segments in the tourism industry and has the potential to grow the economy and create jobs.”
He said Durban was a significant player in the cruise market, with at least 20 international cruise liners operated by 14 companies calling at South Africa’s ports every season.
“Over the past 10 years we have more than doubled the number of passengers coming onto the cruise liners. That augurs well for the economy of the city. That is an added impetus for this beautiful city,” said Vallihu.
MSC demonstrated its faith in the future when actress Sophia Loren christened its latest liner, MSC Meraviglia, in France last weekend.
The fourth-biggest cruise liner built, it can accommodate more than 5 000 passengers and takes the number of ships in the MSC Cruises fleet to 13. MSC plans to add six more ships in the next three years.
There is no word on when it might travel to South African waters.
MSC chairman Salvatore Sarno said the company employed more than 2 300 South Africans but Business Times could not establish whether they were employed on a permanent or seasonal basis.
DA spokesman for tourism James Vos said the cruise industry had economic benefits for the country.
He cited as an example the award to the V&A Waterfront two years ago of a R178-million contract to develop a cruise terminal in Cape Town port.
In terms of the agreement the V&A Waterfront will operate and maintain the terminal for 20 years before ownership is transferred to the TNPA.
The first phase of the Cape Town project, which includes the terminal building, border control facilities and parking areas, has already been completed.
Once finished, the new facility will have three hotels, a shopping complex and a museum, and is expected to make a significant contribution to the city’s coffers.
Vos said: “The cruise-ship industry has been the fastest-growing segment in the travel industry around the world, and since 1980 the average annual growth rate in the number of cruise passengers worldwide has been 8.4%.”
Stewart Venn, director of Triton Cape Sea Travel, which represents lines such as Norwegian Cruise Line and Fred Olsen, said the company had seen steady growth in cruising for most of the past 10 years.
“Our sales have maintained a steady growth in numbers and value despite the fluctuations in the rand along the way.”
Venn said cruising’s appeal had expanded to a much wider market in recent years; a large proportion of customers were first-time cruisers.
“The South African cruise market has always been very resilient,” he said.
“The highly competitive cruise industry generates . . . sometimes startling value for money, which makes it possible for South African consumers to still travel.”
Venn said challenges were similar to those faced by other outbound travel industry sectors — the volatility of the rand, ever-tighter visa requirements for South African passport holders, and affordability.
Paula Futre, operations and marketing director of Lifestyle Cruises, a local cruise operator, said the cruise market had grown significantly over the past 20 years and people are getting “to understand the value of cruising and what it has to offer”.
She added: “There is still more potential for growth. I personally have seen the growth over the past 20 years when I first got involved with cruising and it has grown significantly.”
Their biggest challenge, she said, was the volatility of the rand, as all cruise prices were quoted in foreign currency.
Cruise staff also monitored drinking to prevent it from getting out of hand, said Futre.
Given the size of the market, there is huge room to grow. A cruise is the best option The cruise-ship industry has been the fastest-growing segment in the travel industry