Abu Dhabi's cruise tourism sector is on course for exponential expansion, it was revealed at the recently concluded 2016 Seatrade Middle East Cruise Forum being held in the UAE capital.
An economic impact and forecasting report by Oxford Economics, commissioned by TCA Abu Dhabi, Abu Dhabi Ports and Etihad Airways, signals that the Abu Dhabi cruise tourism segment achieved a compound annual growth rate (CAGR) of 10.7 per cent in the last five years, and forecasts further sustained growth at a 10.5 per cent CAGR to reach a total of 450,000 cruise passengers by 2020, rising to 808,428 in 2025.
This season, Abu Dhabi is set to welcome over 250,000 passengers from 137 calls by 26 ships – an increase of 21 per cent over last year – in a season which runs until early June 2017.
The report findings predict that total direct spending from the cruise sector will increase by 71 per cent to Dh417 million ($113 million) by 2020, from a benchmark of Dh244 million ($66 million) in 2015. This is forecast to almost further double to Dh745 million ($202 million) by 2025.
Projections are that in this baseline scenario, the number of cruise ships calling at Abu Dhabi will increase to 258 by 2025, and this growth will sustain 2,117 direct and ancillary cruise sector jobs in the emirate.
Abu Dhabi’s burgeoning cruise season will witness three Abu Dhabi originating cruise departures, ten new ‘maiden’ callers and nine regional rotational callers for the forthcoming season – both the highest-ever recorded.
EYEING THE SUBCONTINENT
Cruise Arabia – a unified partnership that brings together six GCC tourism authorities with the aim of promoting the region as a preferred winter destination for cruise travel – is looking to expand its reach to the Indian Subcontinent.
Spearheaded by Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) in 2013, the Cruise Arabia membership currently includes Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi); Bahrain Tourism & Exhibitions Authority; Sharjah Commerce and Tourism Development Authority (SCTDA); Oman Ministry of Tourism (Oman Tourism) and Qatar Tourism Authority (QTA).
The proximity of the Indian Subcontinent presents a good opportunity to work on itineraries originating from the Middle East, for the 12 to 14 day duration trips in particular.
Christopher Allen, vice-president, Global Deployment & Itinerary Planning, Royal Caribbean International, Celebrity Cruises & Azamara Club Cruises, confirmed Celebrity, making its debut this winter, will be returning to homeport in the Gulf in 2017/18 and 2018/19 making it three consecutive seasons. The three Royal brands will collectively chalk up 50 Arabian calls this season, rising from five calls in 2014/15 and will make a record 29 calls in India this winter, some originating from the Gulf.
HALAL CRUISING
According to Mubarak Al Shamisi, Director of Abu Dhabi Convention Bureau: 'We have identified the ‘Halal Cruising’ segment as a new source market to support our ambitions to grow Abu Dhabi’s cruise passenger numbers to over 800,000 by 2025. We believe our culture, heritage and product base has great appeal with the Muslim traveller and the expansion of this product mix into the cruise segment is a natural progression to attract Muslim passengers from our key cruise markets, and stimulate regional and home-grown demand for Abu Dhabi cruises.'
Abu Dhabi’s international cruise tourism passengers are predominately sourced from Germany, United Kingdom and France, which have a combined Muslim population of over nine million people.
'When you factor in the $55 billion value of the Muslim travel market from the UAE and our closest GCC neighbours, the potential is clear to see. Our challenge is to work with all concerned to ensure that cruise lines develop the product, that this product is available to purchase through the right channels, and that it appeals to the particular travel needs of the Muslim traveller,' added Al Shamisi.
The value of the global Muslim tourism market is estimated to be worth US $151 billion, rising to US $243 billion by 2021, according to the Organisation of Islamic Cooperation.
Outlining four elements of a strategic approach to develop demand for the sector, Mr Al Shamisi added: 'In partnership with international cruise lines and the travel community, we intend to deliver against priority areas to ensure our cruise products are well placed to meet specific Muslim demands on a number of fronts including food and beverage, segmented family and gender-specific products and provision of prayer facilities.'
CHALLENGES AHEAD
Discussions at the Seatrade forum brought forth important considerations:
• Each destination in the Gulf must offer unique shore visit experiences. For example, not all should have a desert drive/camp
• Timely introduction of world events into the cruise itinerary is crucial as ships need to be deployed. The World Cup in Qatar is a good example of this as the ships are already here on the winter schedule and ships will provide 8,000 to 10,000 extra rooms for high-end football fans.
• It is important to make flight to cruise as seamless as possible.
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Sir Bani Yas Cruise Beach officially opens
Under the patronage of His Highness Sheikh Hamdan Bin Zayed Al Nahyan, Ruler's Representative in the Western Region, Abu Dhabi Ports officially opened Sir Bani Yas Cruise Beach last month, offering cruise ship passengers a new beach destination with unmatched tourism experiences.
The cruise beach plays a vital role in increasing cruise passenger traffic, which is estimated to grow by 9 per cent in the 2016-17 season.
Sir Bani Yas Cruise Beach is the Gulf region’s only dedicated desert island cruise stopover and was developed in keeping with the local culture and growing demand for world-class cruise infrastructure and experiences. It extends over a 1.3 km of land, with the capacity to double in size and scale to meet future demands of the market, boasting an extensive range of facilities and excursions that utilise the island’s beautiful wildlife and natural reserve, including eco-tourism wildlife tours and three luxury hotels on the island itself.
Hala Abu Dhabi, the destination management company of the Etihad Aviation Group (EAG), is the exclusive shore excursions and activities provider for Sir Bani Yas Cruise Beach during the 2016/2017 season.
The official launch of Sir Bani Yas Cruise Beach coincided with the arrival of the 18-deck vessel, MSC Fantasia, which made Abu Dhabi Cruise terminal its winter-sun home and set sail to Sir Bani Yas with almost 4,000 passengers who embarked on the beach for an unrivalled cruise beach experience. The Beach is expected to attract more than 60,000 passengers from 39 stopover cruise line calls in its first season alone.
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Projections
21pc Increase in cruise passengers this season
45,000 Cruise passengers by 2020