Speaking yesterday at the Posidonia Sea Tourism Forum in Athens, Mr Pierfrancesco Vago, Vice Chairman of the European Cruise Council and Chief Executive Officer of MSC Cruises, hailed the outstanding contribution made by the cruise industry to the Greek economy and its huge potential for future growth, but urged the Greek authorities to resists inward looking and protectionist policies which could discourage cruise lines from calling…
Speaking yesterday at the Posidonia Sea Tourism Forum in Athens, Mr Pierfrancesco Vago, Vice Chairman of the European Cruise Council and Chief Executive Officer of MSC Cruises, hailed the outstanding contribution made by the cruise industry to the Greek economy and its huge potential for future growth, but urged the Greek authorities to resists inward looking and protectionist policies which could discourage cruise lines from calling.
He revealed the just released figures that showed the industry’s direct expenditures in Greece – including passenger and cruise purchases, value of shipbuilding employees’ remuneration and cruise line purchases in 2010 – accounted for €580M and how Greece has now replaced Finland and was now in the top six EU countries in terms of cruise industry revenue.
There were almost 4 and a half million passenger visits to Greek ports in 2010 (nearly 20% of the total EU market). The port of Piraeus is ranked as the fifth European cruise port in terms of revenue passengers, with 1,210,000 passengers and a total of 700 calls. Islands such as Santorini, Mikonos and Corfu accounted for 760,000, 650,000 and 580,000 passengers respectively.
However he stated that in order for the success to continue Greece needs to be a good place to do business: “We need Greece to continue to be a good place to do business, with a stable, secure and efficient operational environment as well as an appropriate and understandable regulatory framework that does not compromise the sector’s competitiveness.”
He drew attention to some key issues that could threaten the industry’s development and have a strongly counterproductive impact on both cruise tourism in Greece and the wider Greek economy, including the proposed cabotage legislation, proposed increases in fees and levies well above inflation, the need for improved safety measures and sensible berth allocation policies.
In respect of fees and charges he said they must be reasonable otherwise cruise companies will be forced to move their ships elsewhere: “The proposed fee per passenger for 2012 (€3.95), for instance, corresponds to an increase of more than 300%. This is unreasonable and even less justifiable. Along the same lines, the Port of Piraeus recently announced a tariff increase for 2011/2012 that is not only excessive, but also communicated at such short notice that cruise companies were not able to take it into account in their plans.”
He added: “Dock dues are expected to rise by nearly 200% for 2012! A ship like MSC Fantasia, for instance, that today pays around 6,500 euro each call, in 2012 will pay more than 19,300, (with an increase of nearly 13,000 euro each time)!”
“As I previously explained, the cruise industry brings a significant economic footprint to the Greek economy with its hundreds of thousands of foreign tourists. Do not let high fees act as a deterrent, discouraging cruise lines from coming at all in the future.”
He urged a strengthening of the dialogue between the cruise sector and the Greek authorities: “We are keen to fully engage in technical round table discussions and consultations to let cruise tourism keep growing and play its part in the Greek economy’s recovery.”
He concluded by urging the Greek authorities not to waste the unique opportunities cruise tourism represents: “The recent instability of Northern African countries has forced ships to move to the charming and calmer waters of the Eastern Mediterranean. This represents a unique opportunity for the area. Do not allow it be wasted by an inward looking and protectionist approach! Instead, let’s seize the day!"
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