WESTERN AUSTRALIAN Cruise shipping strategiC plan

WESTERN AUSTRALIAN

Cruise Shipping Strategic Plan 2012 – 2020 NOVEMBER 2012

MESSAGE FROM THE HON DR KIM HAMES MLA, MINISTER FOR TOURISM Western Australian Cruise Shipping Strategic Plan 2012-2020 I am pleased to present the Western Australian Cruise Shipping Strategic Plan 2012-2020. Cruise shipping is an important part of the State’s tourism industry. It not only attracts visitors to Western Australia, it also showcases our extraordinary regions and makes a significant contribution to the economy. In 2011-12, the sector generated $185.7 million in expenditure, which is a significant growth of 150 per cent compared to the previous year.

The State Government aims to double

I would like to congratulate the Cruise

the value of tourism in Western Australia

WA Committee and its Chair, Professor

from $6 billion in 2010 to $12 billion

Ross Dowling OAM, for taking the lead

by 2020. Cruise ship visits will play an

role in implementing this strategy with

important role in achieving this goal.

support from the State Government.

The Cruise WA Committee has developed

I look forward to seeing the results of the

the Western Australian Cruise Shipping

Strategic Plan in years to come.

Strategic Plan 2012-2020, to ensure the State’s cruise port destinations deliver quality experiences for passengers as well as maximise the economic benefits of cruise shipping to Western Australia. The plan also provides the State Government and industry with a clear direction on the initiatives required to make Western Australia a desirable and capable cruise destination.

Dr Kim Hames MLA DEPUTY PREMIER MINISTER FOR TOURISM

Western Australian Cruise Shipping Strategic Plan | 2012 - 2020

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Cruise Western australia committee introduction professor ross dowling oam, chair Cruise shipping is an important part of the Western Australian tourism industry which is experiencing incredible levels of growth. The WA cruise shipping industry recorded a total of 102 cruise ship visit days in 2011-12, which was a significant increase from 68 visits in the previous year. These visits generated $185.7 million in expenditure, which was a great outcome for Western Australia.

The Cruise Western Australia Committee

We look forward to working in

has developed the Western Australian

collaboration with the State Government

Cruise Shipping Strategic Plan 2012-2020

and relevant stakeholders to make Western

to ensure to maximise the economic

Australia a desirable cruise shipping

benefits of cruise shipping to WA.

destination that delivers on its promise of

The purpose of the strategic plan is to provide world-class cruise destinations,

for cruise visitors.

unique and extraordinary tourism experiences and deliver high value benefits for cruise passengers and local communities. This will be achieved by marketing the State as a world-class cruise destination, enhancing the individual cruise destinations, providing necessary infrastructure and services as well as building industry capacity.

Fremantle

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providing extraordinary holiday experiences


Professor Ross Dowling OAM CHAIR CRUISE WESTERN AUSTRALIA COMMITTEE

Table of Contents Overview OF THE CRUISE SHIPPING SECTOR

6

Global Cruise Shipping Context

6

Cruise Shipping in Australia

9

Cruise Shipping in Western Australia

11

Developing the strategic plan

12

SWOT Analysis

12

Key Business Areas

13

Cruise Destinations - Current and Future Status

14

Strategic Direction

16

Critical Success Factors

18

IMPLEMENTATION

20

Implementation Plan

20

Targets and Indicators of Success

27


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Overview of the Cruise Shipping Sector Where are we now? Global Cruise Shipping context The global cruise shipping industry is continuing to develop rapidly. Since 1980, the average annual percentage growth rate for cruise lines worldwide has been more than 7.5%. In 2008, cruising in established markets such as the USA and UK increased by 5% and 12% respectively while over the same period Australia’s growth reached 26%.1

The global cruise capacity, in terms of the number of berths, recorded a compound annual growth rate of 7.24% during 2005-2010. For the year

POTENTIAL BENEFITS FOR WESTERN AUSTRALIA: Continued passenger growth

ended December 31, 2010, the berth capacity was registered at 423,913,

Increased focus on “baby boomers”,

an increase of 8.3% against that of

family and multi- generational travel

391,304 in 2009. The cruise industry worldwide carried

The continued emergence of mega liners

around 18.80 million passengers in 2010, which increased to 20.23 million

Significant growth in the number

in 2011, an increase of 7.6%. It is

of Asian passengers

anticipated that between 2011 and 2015, the cruise industry compound annual growth rate will average 3.81% and by 2015 is expected to reach 23.49 million passengers.2 Repeat cruisers make up half of passenger worldwide manifests, and these passengers are continuously

More ships home based in Australia An increase in circumnavigation itineraries around Australia Significant investment in cruise port facilities in emerging markets such as Asia.

searching for new destinations. The saturation of traditional cruise destinations and increasing sophistication among cruise passengers will inevitably see the emergence of Asia, Australia and the South Pacific as serious cruise markets.

20.23M passengers were carried by the cruise industry worldwide in 2011.

1

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“A Summary of Consultation with Western Australia’s Cruise Shipping Sector” Tourism WA, July 2011 2 “Global Cruise Market Report: 2012 Edition - June 2012” Koncept Analytics 2011-12


Exmouth


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Map - AUSTRALIA & SOUTH EAST ASIA Malaysia

Penang

Kuala Lumpur Port Klang

Singapore

Singapore

Jakarta

Papua New Guinea

Indonesia

Port Moresby

Bali (Benoa)

Christmas Island

Darwin

Northern Teritory

Broome

Indian Ocean

Port Hedland Exmouth

N

Western Australia

Australia

Brisbane

Geraldton

South Australia

Fremantle/Perth Bunbury Augusta

Queensland

New South Wales

Esperance Albany

Adelaide

Sydney Canberra

Victoria

Melbourne

Tasmania

DISTANCES BETWEEN PORTS

Hobart

Esperance to Albany

Geraldton to Exmouth

224 nautical miles 11 hours

520 nautical miles 1 day 2 hours

Albany to Bunbury

Exmouth to Port Hedland



Bunbury to Fremantle

Port Hedland to Broome



Fremantle to Geraldton

Broome to Christmas Island


1063 nautical miles 2 days 5 hours

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Cruise Shipping in Australia The Australian cruise market has shown a significant increase in the number of cruise passengers over recent years. Even during the global recession, the Australian market experienced significant growth. In fact, the Australian cruise market is one of the fastest growing cruise markets worldwide.3

The key factors contributing to the growth of the Australian cruise industry include:

holiday option

29.6%

Increased product diversification of

ship visits in Australia.

Increasing consumer awareness of cruise holidays as a value for money

Increase in the number of cruise

cruise holiday offerings appealing to a broader range of audience An increasing choice of cruise

The Australian cruise shipping industry

itineraries provided by various

recorded significant growth of 29.6%

cruise companies to popular

in the number of cruise ships visits in

tourism regions

2011-12, with strong growth in both international transit ships and ships that

An increase in the number of cruise

based themselves in Australia for part of

ships operating from Australia.

the year. The strong growth is primarily attributed to the growth in port visits recorded by Sydney (34.9%), Brisbane (36.5%), Melbourne (55.6%), Fremantle (37.9%) and Geraldton (325%); jointly accounting for nearly two thirds of the total increase in the total number of port visits during 2011-12.4 “Global Cruise Market Report: 2012 Edition - June 2012” Koncept Analytics 2011-12 “Economic Impact Assessment of the Cruise Shipping Industry in Australia, 2011-12” CDU August, 2012

3 4

PORT HEDLAND


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Cruise Shipping in Australia CONTINUED The Australian cruise industry is projected to reach one million cruise passengers by the year 2020, registering an average growth rate of over 5% during the coming years.5

the projected global industry growth

The majority of Australian cruise

rate for the period. This estimate is

itineraries currently comprise smaller

based on ongoing domestic influences

vessels, with ships based in Australia

of robust household incomes, tourism

An increase in total passenger days

and New Zealand operating itineraries to

preferences and scope for further

at port

destinations in relatively close proximity

cruise market penetration (based on

such as to regional Australia and New

international comparisons).

The Australian cruise industry is projected to touch the mark of one million cruise passengers by the year 2020, thereby registering a growth rate of over 5% during the coming

Australian economic impact was

years , which is significantly more than

$2.43 billion

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seasonal deployment such as Voyager of the Seas to Asia and Australia is an indicator of the future growth in the Australian cruise sector. It is anticipated that an increasing number of mega liners will incorporate

736 cruise ship visits to Australia (from 573 in 2009 –10)

An increase in passenger spend from $302.9 million to $443.1 million

Zealand and neighbouring islands. The relocation of larger mega liners on

Cruise Down Under research7 on the impact of cruising in australia 2011-12:

102 Cruise ship visit days in 2011-12.

Australia into their world cruise

An increase in crew expenditure from $43.5 million to 60.3 million Total crew days at port up from 237,386 to 324,660 Total port-related expenditure increased year on year from $440.6 million to $733.2 million

itineraries with strong demand predicted for South East Asian cruise circuits that incorporate Northern Australia.

“Global Cruise Market Report: 2012 Edition - June 2012” Koncept Analytics 2011-12 “Global Cruise Market Report: 2012 Edition - June 2012” Koncept Analytics 2011-12 7 “Economic Impact Assessment of the Cruise Shipping Industry in Australia, 2011-12, Final Report” CDU August, 2011 5 6

GERALDTON

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Cruise Shipping in Western Australia Western Australia has experienced significant industry growth with expenditure increasing from $22 million in 2004-5 to $185.7 million in 2011-12, with average growth over the period of 35% annually.9 In 2011-12, the industry in Western Australia recorded a significant increase in the number of base port visits, the majority of which were based out of Fremantle. The industry generated approximately $185.7 million of expenditure, which resulted in an additional $87.8 million in Value Added , 10

representing an increase exceeding 150% when compared with 2010-11. A major

The most significant region within

Bunbury recorded $0.6 million in

Western Australia in terms of cruise

total expenditure from the industry

shipping impacts was Perth serviced

in 2011-12, providing the stimulus

by the Port of Fremantle. In 2011-

for $0.2 million in wages income,

12, the cruise shipping industry

3 FTEs and Value Added of $0.3

generated approximately $160.6

million to the regional economy.

million of expenditure within

These figures were well below

Perth, up significantly from $65.3

2010-11 and what is expected in

million in 2010-11. This stimulus

2013/14.

generated additional wages income of approximately $44.5 million and 554 FTEs. The industry contributed approximately $75.8 million to Perth’s Value Added, a significant economic contribution.

contributor to growth was expenditure

Broome recorded $6.5 million in

from the Athena and Sun Princess being

total expenditure from the industry

based out of Fremantle for numerous trips.

in 2011-12, providing the stimulus

The Western Australian cruise shipping

for $1.8 million in wages income,

industry recorded a total of 102 cruise ship visit days in 2011-12, a significant increase from 68 visits in 2010-11. The majority of ports (except Bunbury and Albany) recorded an increase, with Fremantle and Geraldton recording the largest increase in 2011-12 (when compared with 2010-11). Overall, the total passengers aboard the ships visiting Western Australia increased from 67,586 in 2010-11 to 158,691 in 2011-12, or a 235% increase.

$185.7 m

30 FTEs and Value Added of $3.1 million to the regional economy. These results were well above the

Albany recorded $2.1 million in total expenditure from the industry in 2011-12, providing the stimulus for $0.6 million in wages income, 10 FTEs and Value Added of $1.0 million to the regional economy. Esperance recorded $0.6 million in total expenditure from the industry in 2011-12, providing the stimulus for $0.2 million in wages income, 3 FTEs and Value Added of $0.3 million to the regional economy.

2010-11 figures. As at 2012, Western Australia offers Port Hedland recorded $0.8 million in

eight cruise port destinations as

total expenditure from the industry in

identified above. A marina facility is due

2011-12, providing the stimulus for

to open in Augusta (gateway to the

$0.2 million in wages income, 4 FTEs

Margaret River Wine Region) in 2013

and Value Added of $0.4 million to

providing a ninth cruise destination

the regional economy.11

opportunity for the State.

Exmouth and Geraldton recorded

The Cruise Western Australia Committee

$14.4 million in total expenditure

(CWAC) has recently been established

from the industry in 2011-12, a

to guide the implementation of the WA

result significantly above the 2010-

Cruise Shipping Strategic Plan.

11 contribution.

The value of the cruise shipping sector in Western Australia for 2011-12

“Expenditure” is direct and indirect expenditure by cruise industry crew, operators and passengers “Economic Impact Assessment of the Cruise Shipping Industry in Australia, 2011-12” CDU August, 2012 10 “Value Added” is the total contribution of the industry to the economy including the total consumption, investment and government expenditure, plus exports of goods and services, minus imports of goods and services due to the industry. 11 “Economic Impact Assessment of the Cruise Shipping Industry in Australia, 2011-12” CDU August, 2012 8 9


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DEVELOPING THE STRATEGIC PLAN The State Government Strategy for Tourism in Western Australia 2020 identifies a key goal for Tourism WA, other government agencies (State and Local) and the broader tourism industry to achieve by 2020: To double the value of tourism in Western Australia – from $6 billion in 2010 to $12 billion by 2020.

Western Australian Cruise Industry SWOT analysis Strengths

Weaknesses

Diverse locations and unique

Tourism product is underdeveloped

experiences

and inadequate to support cruise

Capacity at Fremantle to

ship visitation at some regional

accommodate mega liners

destinations

Mediterranean climate in the

Insufficient regional marine

south and tropical climate in the

infrastructure to adequately service

north has the capacity to support

large cruise vessels

ships all year round Extensive range of quality land and

Cruise shipping has been identified in

water based activities and cultural

the Strategy as a key initiative that will

experiences to satisfy the needs of

contribute to this goal.

the international cruise passenger

In 2011-12 Tourism Western Australia

Viewed by cruise passengers as a

conducted extensive consultation to

safe and exotic destination

ascertain the strengths, weaknesses,

Research conducted in

opportunities and threats for the

2011 – 12 identified Broome as

industry and the key business areas

a key destination influencing

where efforts of Government and

consumers’ cruise itinerary choice

industry should be focused in order to

The Kimberley, Ningaloo and

realise the potential of cruise shipping

South West regions are profiled

for the State.

tourism destinations at the State

Seasonal weather conditions impact current cruising itineraries Increasing number of Western Australian cruise destinations competing for the same market Cruise lines lack the general awareness of Western Australia’s regional destinations in terms of facilities and capabilities.

and Federal level.

Opportunities Closest western destination to

Strong global competition to

South East Asia, the world’s fastest

attract cruise lines to destinations

growing tourism source market

impacts Western Australia’s ability

Improved co-operation and

to grow market share

co-ordination within Western

Increasing fuel costs impact

Australia’s Cruise sector

upon Western Australia’s appeal

Capitalise on Western Australia’s

as a cruise destination due to

ability to deliver quality indigenous

remoteness

experiences to cruise ship passengers

Competition from other industry

Expand and enhance destination

sectors for resources and

product for shore excursions and

investment.

pre and post touring options Leverage projected increase in home berthed ships in Australia as ships are relocated to SE Asia/ Australian waters Increasing number of “baby boomers” coming into retirement.

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Threats


KEY BUSINESS AREAS The following four key business areas have been identified in consultation with stakeholders: A. D estination awareness & marketing

B. Port infrastructure & policy

$12b

Forge relationships within the cruise

Identify the priority gaps (particularly

industry and initiate marketing

in relation to marine and terrestrial

activities to increase cruise

port infrastructure and amenities)

ship visitation, length of stay and

and implement necessary activities

Goal to double the value of

to improve capacity to facilitate

tourism in Western Australia -

growth within the cruise sector.

from $6 billion in 2010 to

expenditure.

$12 billion by 2020

D. L andside destination development

C. S trengthen industry capacity & ownership

Facilitate a cooperative

Visitor servicing infrastructure and

Statewide approach to realise the

development of new shore excursion

State’s cruise industry growth

options (including indigenous

through identification of lead

experiences content) and pre and

agencies and tourism organisations

post cruise touring activities to

to provide leadership and build

generate additional visitor nights/

capacity (such as TCWA, FACET,

spend. These four business areas

RDCs, RTOs, and Port Authorities).

form the basis of the Western

Australia cruise shipping industry

priorities and are reflected in the

Strategic Goals incorporated into the Strategic Plan.

ALBANY


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CRUISE Destinations - Current and Future Status During stakeholder consultation and through cruise passenger research several key Western Australian cruise destinations have been identified as having the greatest influence on the future of cruise shipping in the State.

The Strategic Plan must guide decision

The tiering of ports is based on the

making and choices regarding these

following key criteria:

destinations, and do so in a way that effectively considers: Global and local passenger and cruise line preferences State tourism priorities Infrastructure and capability development requirements and

Destination awareness and marketing Port infrastructure and policy Industry capacity and ownership Landside destination experiences and amenities

funding. Cruise destinations have been

The forward vision is that by 2020

categorised into tiers to reflect their

Western Australia will offer two

current status and projected future

turnaround ports (Fremantle and

status based on their ability to impact

Broome) and seven well established

strategically on the growth of the sector.

transit ports.

Tier 1 CRUISE DESTINATIONS are turn-around ports that score highly in the four criteria above. That is, they have a high level of port infrastructure to support visitation from large cruise ships, a high level of destination awareness among the cruise industry, a high degree of industry capacity and port infrastructure to support turn around visits, a high level of tourism destination infrastructure to support cruise ship visitation such as attractions, accommodation, activities, access and amenities, and the destination is an international air gateway.

Tier 2 CRUISE DESTINATIONS score on average a medium rating across the four criteria. Therefore they may have a high degree of port infrastructure to support visitation from cruise ships but lack the tourism destination infrastructure , industry capacity or destination awareness among the cruise industry. Alternatively, the destinations may have a high level of destination awareness and industry capacity but lack the port infrastructure to rate highly across all four criteria.

Tier 3 CRUISE DESTINATIONS score on average a low rating across the four criteria. For example, while the port offers a medium level of infrastructure, the destination marketing and awareness is low, industry capacity is low and the tourism destination infrastructure cannot service the market adequately.

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CRUISE Destinations - Current and Future Status CONTINUED In the following table each port is assessed as high (H), medium (M) or low (L) against the four strategic business areas. CURRENT STATUS OF KEY CRUISE DESTINATIONS Destination awareness and marketing

Port infrastructure and policy

Industry capacity and ownership

Landside Destination Development

Tier Ranking

Fremantle

H

H

H

H

1

Broome

H

M

M

M

2

Bunbury

M

M

H

M

2

Albany

M

M

M

M

2

Esperance

M

L

M

L

2

Geraldton

M

L

M

L

2

Exmouth

M

L

L

L

3

Port Hedland

L

M

L

L

3

Augusta*

L

L

L**

M

3

Port

* Due to open tender facility by October 2013 ** Non-operational as at 2012 therefore no experience in servicing cruise ship arrivals

The following table shows each cruise destinations assessed 2012 Tier Status, and its planned Tier Status during the Strategy timeframe at 2016 and 2020. Year

2012

Tier 1

Fremantle

Tier 2

Tier 3

Albany

Augusta

Broome

Exmouth

Bunbury

Port Hedland

Esperance Geraldton 2016

Fremantle

Albany

Augusta

Broome

Exmouth

Bunbury

Port Hedland

Esperance Geraldton 2020

Broome

Albany

Fremantle

Augusta Bunbury Esperance Exmouth Geraldton Port Hedland

Cruise Shipping Strategic Plan | 2012 - 2020 Western Australian Cruise Shipping Strategic Plan | 2012 - 2020

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STRATEGIC DIRECTION The purpose of this Strategic Plan is to bring together Western Australia’s cruise shipping industry stakeholders and influencers around a common understanding and direction for the development of a sustainable, co-ordinated and achievable future for the sector.

The Western Australian Cruise Shipping Strategic Plan enables priorities to be: Agreed and implemented

The Strategy is designed to engage stakeholders by ensuring the Plan: Is achievable and addresses main local and State priorities to align

Integrated with State and local

with overarching State and National

business plans

tourism plans to 2020

Monitored and updated as

Is owned and understood by

required.

industry and other key stakeholders so it will be implemented

It is important that this Strategic Plan also integrates with other tourism and industry plans and initiatives as there are multiple industry stakeholders that influence and are influenced by this Strategy.

Identifies strategic risks and critical success factors Enables local stakeholders to be involved in choices between and within priorities.

MISSION To contribute significantly to the economic growth of tourism and the State, by providing world class cruise destinations and extraordinary tourism experiences that deliver high value benefits for the cruise industry, cruise passengers and local communities.

ALBANY

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The Strategic Goals indicate the four priorities identified to achieve the industry’s planned growth and development targets for 2020. Four of these goals are aligned to the four priority business areas identified from Tourism Western Australia’s consultations with industry in 2011-12, and integrate with State and National tourism and other related plans and strategies. The final priority aims to ensure sustainability of the cruise industry in Western Australia. The goals with their objectives are detailed to the right.

1999

Goals

Goal 1

Position and market Western Australia as a world class cruise destination

Business Area 1:

Destination Marketing and Awareness 1 Promote Western Australia as a world class cruise destination

Goal 2

Enhance Western Australia’s individual cruise destinations

Business Area 2:

Landside Destination Development 1 Enhance visitor servicing infrastructure in destinations to meet the needs of the cruise sector 2 Expand the shore excursion touring options and experiences to exceed visitor expectations 3 Develop pre and post cruise / stay options in turnaround port destinations 4 Promote the delivery of quality tourism product servicing the cruise market

Goal 3

Provide efficient and safe port facilities and services that meet the needs of the cruise sector

Business Area 3:

Port Infrastructure and Policy 1 Develop and enhance maritime facilities to meet the needs of current and future cruise ship specifications 2 Provide safe and welcoming port facilities to meet passenger requirements

Goal 4

Build and Foster Industry Partnerships

Business Area 4a: Strengthen Industry Capacity and Ownership 1 Establish and develop industry relationships to showcase Western Australia to cruise shipping industry decision-makers 2 Develop and implement stakeholder communication and engagement strategy 3 Provide and support industry education, training and development programs 4 Advocacy for the industry and the Strategy Business Area 4b: Ensure Industry Sustainability 1 Conduct market research to validate and inform implementation of the Strategic Plan 2 Secure sustainable funding, investment and support


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Critical Success Factors In developing the Strategic Plan four critical success factors have been identified. These factors influence and enable the strategic goals, and contribute to successful implementation of the Plan and achievement of its priorities.

Critical Success Factors 1 Integrating with other industry, State, National and International tourism supply and demand strategies The Strategy must complement and co-ordinate with other plans to ensure that funding and resources are best utilised across all sectors to address multiple priorities and achieve the 2020 goals 2 Actively supporting key stakeholders for the industry and the Strategic Plan (including Tourism WA, CWAC, CDU, cruise lines, Port Authorities, ITOs, LGAs and local suppliers) The Strategy covers a large geographic area in an industry with diverse local assets and needs. A co-ordinated approach to gain active local and broad support for the Plan is vital. 3 CWAC successfully leading this Strategy and representing the WA cruise shipping sector CWAC will provide the necessary leadership, co-ordination and monitoring of the Strategy. It is critical that it adequately represents and advocates for and with industry and is supported internally and externally in fulfilling this role. 4 Tourism WA sponsoring and taking an active partnership role with CWAC for this Strategy implementation through to 2020 Tourism WA has provided the impetus to formalise this industry Strategy. It is important that it commits to an active role until 2014, but maintains a core role as the industry grows and develops. Measures to achieve and monitor these critical success factors have been incorporated into the KPIs and monitoring of this Strategic Plan.

STRATEGIC RISKS Risk analysis of this Strategy identifies the critical role of the CWAC in ensuring the successful growth and development of the Western Australian cruise industry; specifically in the following areas: Leading industry and stakeholders throughout the development and implementation of the Strategy Ensuring that stakeholders work together so that cruise shipping demand and supply strategies and initiatives are co-ordinated and consistent with the Strategy, and individual port and industry priorities are balanced

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ESPERANCE


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ImplementATION Successful implementation of the Strategic Plan relies on appropriate prioritisation and integration, correct risk analysis, and stakeholder engagement and support.

The Strategic Plan aspires to grow and

The goals reflect the four business

develop the cruise shipping industry

areas identified through stakeholder

in Western Australia to incorporate

consultation and define actions that

opportunities from global and local

are prioritised as high, medium or

cruise shipping growth, to anticipate

low in terms of their priority ranking

and deal with challenges and risks, and

for implementation.

to integrate with the State and Federal Governments’ tourism strategies to achieve the goal of doubling the value of tourism by 2020.

A glossary of key terms and acronyms used in the Strategic Plan is included as Appendix One.

IMPLEMENTATION PLAN Business Area 1: Destination Awareness and Marketing

Goal 1: Position and market Western Australia as a world class cruise destination Objective 1: Promote Western Australia as a world class cruise destination Strategies Develop and implement a dedicated and co-ordinated strategy to position and market Western Australia as an attractive cruising destination aligned to the “Experience Extraordinary Western Australia” brand, as well as Cruise Down Under and Tourism Australia marketing programs at a National level

Actions Research and establish a dedicated marketing strategy that considers all forms of marketing activities (digital, social, traditional, trade event, PR, familiarisations) Work with neighbouring countries and jurisdictions to position Western Australia within the Asian cruise zone Implementation, monitoring and review of the marketing strategy Regular reporting of outcomes and achievements

BUNBURY Photo courtesy of Troy Mayne

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Partners Marketing strategy to identify the roles and responsibilities of all stakeholders

Priority HIGH

Business Area 2: Landside Destination Development

Goal 2: Enhance Western Australia’s individual cruise destinations Objective 1: Enhance visitor servicing infrastructure in destinations to meet the needs of the cruise sector Strategies Develop partnerships with industry stakeholders to ensure a collaborative approach to visitor servicing

Actions CWAC and LCCs to ensure that industry / stakeholder partnership opportunities are fully explored and implemented

Partners CWAC

Priority HIGH

VCs LCCs

Utilise cruise passenger research to identify enhancements and improvements at cruise destinations (Land side)

Analyse research to identify opportunities and constraints at cruise destinations relating to: Hygiene factors (shade, water, seating) Transport provision Retail – including opening hours Food and Beverage Welcome activities/services

CWAC

MEDIUM

TWA CDU ATEC LGAs VCs LCCs

Visitor information and signage Establish and implement visitor infrastructure development plans at cruise destinations (Land side)

Opportunities for cross-agency communication and partnering

Conduct infrastructure audit at destinations Establish an action plan identifying and costing infrastructure requirements Secure resources for implementation of the plan

CWAC

MEDIUM

TWA LGA VCs LCCs

Objective 2: Expand the shore excursion touring options and experiences to exceed visitor expectations Strategies Develop shore excursions that support destination positioning

Actions Conduct an audit of existing shore touring product to identify gaps Work with currently uncontracted product, or work to establish new product, including indigenous/cultural experiences Investigate current ground transport infrastructure issues at destinations (with identified challenges) and identify options to remedy these challenges

Partners CWAC

Priority HIGH

TWA RTOs VCs WAITOC ATEC LCCs

Promote the new/enhanced product offering to travel intermediaries, aiming to expand shore activity choices, encourage repeat visitation and ensure better customer experiences in destinations Work with tour operators to educate industry on standard cruise commission structures/terms


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IMPLEMENTATION PLAN CONTINUED Goal 2: Enhance Western Australia’s individual cruise destinations Objective 3: Develop pre and post cruise / stay options in turnaround port destinations Strategies Encourage increased length of stay by expanding pre/post cruise stay in Western Australia in turnaround ports (Fremantle currently)

Actions Work with travel intermediaries to encourage packaging pre/post cruise stay and travel options in Western Australia

Partners CWAC

Priority MEDIUM

TWA ATEC

Work with cruise lines and inbound tour operators to develop opportunities to promote tailored packages for crew

CDU RTOs LCC

Objective 4: Promote delivery of quality tourism product servicing the cruise market Strategies Promote tourism quality through industry accreditation programs and best practice templates for all stakeholders

Actions Develop and implement an industry guidelines and development kit for all stakeholders, especially suppliers Implement an industry-driven accreditation process

BROOME

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Partners CWAC TCWA

Priority MEDIUM

Business Area 3: Port Infrastructure and Policy

Goal 3: Provide efficient and safe port facilities and services that meet the needs of the cruise sector Objective 1: Develop and enhance maritime facilities to meet the needs of current and likely future cruise ship specifications Strategies Port - Marine Identify port facility status and marine infrastructure development requirements to service the cruise shipping market

Actions Research and report on port marine facilities – status, infrastructure development needs (immediate, medium and long term - refer to current and planned tier status on page 15)

Partners State and Federal Governments

Priority HIGH

Port Authorities

Prioritise port marine infrastructure requirements and ensure integration into State and regional infrastructure plans Secure resources to implement priority marine infrastructure needs

Port - Terrestrial Build capacity of port (terrestrial) facilities to enhance visitor experiences at embarkation and disembarkation (i.e. shade areas, walkways, etc)

Identify the gaps and enhancement requirements of port terrestrial facilities Prioritise port terrestrial facilities requirements and ensure integration into State and regional infrastructure plans Secure resources to implement priority needs

Local, State and Federal Governments

HIGH

LCCs Visitor Centres Port Authorities

Investigate alternative forms of infrastructure funding Objective 2: Provide safe and welcoming port facilities to meet passenger requirements Strategies Coordinate passengers and port operations in a safe and efficient manner

Actions

Partners

Improve people and activity management

DOT

Enhance effective transport, processing and servicing operations

Port Authorities

Priority LOW

LGAs

Develop ship scheduling guidelines Continually improve port systems and processes that impact on ships and passenger experiences

Streamline systems, activities and processes

DOT

Improve customer service

Port Authorities

Plan passenger facilities to maintain passenger comfort and streamline processing

Consult widely on the design of cruise facilities to meet the requirements of key stakeholders

Create a secure passenger terminal and port area

Incorporate best practice security arrangements

LOW

LGAs DOT

LOW

Port Authorities LGAs DOT

LOW

Port Authorities LGAs


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IMPLEMENTATION PLAN CONTINUED Business Area 4: Strengthen Industry Capacity and Ownership

Goal 4A: Build and Foster Industry Partnerships Objective 1: Establish and develop industry relationships to showcase Western Australia to cruise shipping industry decision-makers Strategies Establish a peak cruise shipping industry body for Western Australia

Actions Establish an effective and efficient Cruise WA Committee (CWAC) Foster the development of LCCs in port destinations

CWAC to become interface with National bodies including Cruise Down Under, Tourism Australia, ATEC, RET (e.g. Access Working Group under National Long Term Tourism Strategy)

CWAC to communicate regularly with National bodies

Partners

Priority

TWA and industry stakeholders

MEDIUM

CWAC

MEDIUM

TWA

Ensure that Tourism WA maintains membership to Cruise Down Under (CDU) Integrate cruise shipping plans and strategies with other State, National and International tourism strategies Bid to host CDU Conference 2014

CWAC to become the interface for regional cruise destinations

Identify, engage and establish relationships with industry decision-makers and influencers

CWAC

MEDIUM

LCCs

Develop and implement a calendar of engagement with identified stakeholders Objective 2: Develop and implement stakeholder communication and engagement strategy Strategies

Actions

Partners

Priority

Implement key issues and communications plan

Agree and implement with CWAC on purpose, scope, context and content of communications plan

CWAC

HIGH

Identify and survey key industry stakeholders to better understand their interests, expectations, needs and concerns

Design and implement stakeholder survey

CWAC

MEDIUM

Report findings and main recommendations

TWA

Monitor and evaluate the communications and engagement plan

Survey and consult with stakeholders and incorporate feedback into plan improvements

24

ATEC


CWAC

LOW

Business Area 4: Strengthen Industry Capacity and Ownership

Goal 4A: Build and Foster Industry Partnerships Objective 3: Provide and support industry education, training and development programs Strategies Facilitate industry training and development

Actions Work with industry bodies (e.g. TCWA, ATEC) and all levels of government to build capacity and capability within the industry Deliver industry-specific training (e.g. cruise ready workshops, tour guide training)

Partners CWAC

Priority HIGH

TWA TCWA ATEC

Deliver development programs, including insights and industry intelligence

Engage with local communities to educate on the expectations of cruise consumers during shore visits

Identify and work with local stakeholders (e.g. LGA, CCI) to educate cruise destination communities, particularly retail and hospitality, as to the needs of the cruise consumer during shore visits

CWAC

HIGH

TWA LCCs VCs

Objective 4: Advocacy for the industry and the Strategy Strategies Encourage support for implementing the Western Australian Cruise Shipping Strategic Plan

Actions Engage key industry stakeholders to commit to supporting the Western Australian Cruise Shipping Strategic Plan

Partners

Priority

CWAC

HIGH

CWAC

HIGH

CWAC to be the united voice and advocate working towards raising the profile of the cruise industry in Western Australia

Develop a prioritised and staged Western Australian cruise shipping industry infrastructure development and marketing budget

Engage industry decision-makers and influencers, including all levels of government, to secure suitable and sustainable infrastructure funding

TWA DOT DLG RDL DOP


25

IMPLEMENTATION PLAN CONTINUED Business Area 4: Strengthen Industry Capacity and Ownership

Goal 4.B Ensure Industry Sustainability Objective 1: Conduct research to validate and inform a sustainable Strategy Strategies

Actions

Implement Cruising WA Health Check to monitor performance against target indicators

Develop indicators and reporting methodology

Undertake research activities to provide reliable intelligence to inform a sustainable Strategy:

Develop ongoing market research program to monitor economic contribution of the cruising industry and implement research programs (when required) to research project specific requirements (e.g. customer satisfaction)

Research the economic value of cruise shipping for Western Australia Research to inform marketing activities Research on destination satisfaction to inform infrastructure, servicing and experience requirements.

Partners

Priority

CWAC

HIGH

CWAC

MEDIUM

Undertake industry health checks

TWA TRA CDU

Partner CDU and TRA (where possible and appropriate) on research programs Regularly engage cruise industry to proactively identify issues and trends, and ensure that cruise line profiles are kept updated

Objective 2: Secure sustainable funding, investment and support Strategies Secure appropriate level of funding to: Implement marketing activities

Implement port/destination infrastructure needs

Support industry training and education Support governance structure

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Actions Engage industry decision-makers and influencers, including all levels of government, to secure suitable and sustainable infrastructure funding Government to consider recurrent funding for marketing of the State as a cruise destination Apply for CDU Cruise Research Funding Facilitate individual discussions with funders and investors


Partners State and Federal Governments

Priority HIGH

Targets and Indicators of Success The Cruise WA Committee will review the initiatives identified in the Western Australian Cruise Shipping Strategic Plan annually to ensure the Plan remains current, relevant and makes a significant contribution to the State Government Strategy for Tourism in Western Australia 2020 goal to double the value of tourism to the State’s economy. In line with this Statewide goal, this Strategic Plan seeks to increase the value of the cruise shipping sector from $185.7 million in 2011-12 to $274.4 million in 2020, using an average annualised growth rate of 5%, based on the national average projected industry growth to 2020.12 The table to the right outlines the 2013-14 measures and targets for each strategic business area.

1. Destination awareness and marketing

2013-14 Measures

2013-14 targets

Increase the number of cruise line

1 additional cruise company (from

companies visiting Western Australia

2011/12 base)

Increase the number of cruise ship visits

5% increase on 2011/12

to Western Australia Lead or participate in trade marketing

3 significant activities

events/road shows/activities 2. Landside Destination Development

2013-14 Measures Increase or update Western Australia

2013-14 targets 5% increase on 2011/12

shore excursion product featuring in cruise itineraries/brochures Undertake Passenger Survey research

Next passenger research survey to be

every second year

completed in 2013/14

3. Port Infrastructure and Policy

2013-14 Measures Investigate Western Australian port

2013-14 targets Broome 2013/14

infrastructure requirements to service the cruise sector 4. Strengthen industry capacity and ownership

$274.4M The WA Crusie Shipping Strategic Plan 2012-2020 seeks to increase the value of the cruise shipping sector from $185.7 million in 2011-12 to $274.4 million in 2020.

2013-14 Measures

2013-14 targets

Deliver cruise ready educational programs Delivered in all 9 ports in Western Australian cruise ports Secure State membership of Cruise Down Ongoing membership to CDU secured Under Establish a co-ordinated approach to

Local Cruise Committees established to

cruise ship arrivals

manage all visits

“Global Cruise Market Report: 2012 Edition - June 2012” Koncept Analytics 2011-12

12


27

Appendix One: Glossary of terms and acronyms ATEC

Australian Tourism Export Council

CCI

Chamber of Commerce and Industry

CDU

Cruise Down Under

CWAC

Cruise Western Australia Committee

DLG

State Department of Local Government

DOP

State Department of Planning

DOT

State Department of Transport

FACET

Forum Advocating Cultural and Eco Tourism Inc.

FIT

Free and Independent Traveller

GH

Ground Handler

HP

Home Port

ICCA

International Cruise Council Australasia

ITO

Inbound Tourism Operator

LCC

Local Cruise Committee

LGA

Local Government Authority

NLTSS

National Long Term Tourism Strategy

PA

Port Agent

RDC

Regional Development Commissions

RDL

State Department of Regional Development and Lands

RTO

Regional Tourism Organisation

STO

State Tourism Organisation

TCWA

Tourism Council Western Australia

TRA

Tourism Research Australia

TP

Transit Port

TWA

Tourism Western Australia

VC

Visitor Centres

WAITOC

Western Australian Indigenous Tourism Operators Council

28


PERTH


29

Appendix Two: Major Cruise Shipping Industry Stakeholders in Western Australia The major stakeholders of the Western Australia cruise shipping industry include: Cruise Shipping Passengers and potential passengers

Major Cruise Lines currently operating in Australia and potential new cruise lines Cruise Down Under as the Australian peak cruise industry association charged with growing and developing the Australian Pacific region as the world’s leading cruise destination providing economic, social and environmental benefits Shipping Agents that handle the operational aspects for cruise lines while cruise ships are in port Inbound Tour Operators (Ground Handlers) who develop and operate shore excursions in Australia and generate revenue for cruise lines from the sale of shore excursions Regional Development Commissions and Other State Government Agencies which can provide local support and may assist with infrastructure assessments and local co-ordination Port Authorities that provide marine infrastructure and manage the arrival and departure of cruise vessels

Port Facility and Service Providers including shops and transport or tour providers Local, Regional, State and National Tourism Authorities to assist and support industry in implementing this Strategy Local Government Authorities across the State which play a vital role in facilitating numerous on ground services and amenities to assist in providing cruise passengers with a comfortable and enjoyable visitor experience

PORT HEDLAND

30


Tourism Western Australia Level 9 2 Mill Street PERTH WA 6000 GPO Box X2261 PERTH WA 6847 Tel: 08 9262 1700

Prepared by Our Community Pty Ltd

Fax: 08 9262 1702

August 2012.

[email protected] westernaustralia.com

Dolphin Cover Image: Troy Mayne

tourism.wa.gov.au ISSN 1834-2418

For an electronic copy of this document or further information on the Western Australian Cruise Shipping Strategic Plan 2012-2020 please visit: www.tourism.wa.gov.au

WESTERN AUSTRALIAN Cruise shipping strategiC plan

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