Focus on volume: Myrmell

Focus on volume: Myrmell

CARNIVAL chief Sture Myrmell has rejected the strategies of destinations hoping to focus solely on the high-yield cruise sector, warning that volume and frequency remain key to developing the industry.

At the World’s Leading Cruise Lines Next Wave Summit on the weekend, the President of Carnival Australia & New Zealand and P&O Cruises Australia addressed misperceptions in the industry, including the belief that destinations could pursue higher yields with little impact.

“It’s easy to think that it’s possible to focus on the very high-yielding end of the market so that you can have the best of both worlds,” Myrmell said.

“Well that doesn’t actually stack up in reality.

“In Australia, 95% of the economic contribution comes from ships that carry more than 1,000 passengers, so volume and frequency is what’s laying the foundation for this industry and is what’s paying the bills for infrastructure, ports and everything else that we need to be able to operate.”

Myrmell also rejected the perception that cruise visitors spent less than other tourists.

Citing Tasmania as an example, Myrmell said research had shown cruise visitors each spent $172 while ashore in Hobart.

Other tourists were shown to spend about $120 a day on restaurants, activities and tours, excluding accommodation.

“So in this example, the cruise tourists are actually more valuable to the local community than the regular visitor,” he said.

While cruise growth had generated concerns about congestion, Myrmell said demand for personal experiences was helping drive more dispersal to small operators in regional areas.

Source: traveldaily