On the initiative of Innovation Norway, Horwath Consulting has written a memo on the most important environmental aspects to be considered in the further developement of the cruise industry in Norway.
Cruise Tourism to Northern Europe and Norway has developed considerably the last few years, and further growth is expected. There are both possibilities and challenges attached to cruise tourism.
Considerable growth over short time is due to many new operators entering the market. Not only are cruises to Norway on the increase, likewise the number of Norwegians choosing a cruise for their holiday. The general increase in interest for Cruise Tourism is also noticeable in media coverage.
Increasing growth and focus on Cruise Tourism has also brought about a growing awareness of environmental issues and concerns associated with the industry:
Queues/congestion of tourists is seen as an increasing problem in some of the wellknown destinations in the Mediterranean and Caribbean. In this respect Norway has little mass tourism and is largely protected from congestion (or this can be avoided with a little planning).
Pollution is increasingly frequently coming on the agenda due to the environmental debate surrounding global warming. Cruise ships, like all other forms of sea transportation, abide to international regulations covering pollution, regulations which gradually have been tightened.
Pollution from cruise ships is high on the agenda in Norway in connection with the government’s introduction of the so-called NOx-fee from 2007, which gives cruise ship operators considerably higher expenses for travelling in Norwegian waters.
The intention of this report is to:
In many respects the cruise industry is its own specialist area on the side of the rest of the travel industry. Specialist knowledge of the cruise industry is limited in Norway. For many years the cruise industry has had a higher growth rate than the rest of the travel industry. There are about 270 cruise ships in the world, with about 250,000 beds (lower berths).
Cruise ships are increasing in size and there are currently approximately 35 ships being built or on order, (delivery due before 2010). These will take 2, 600 passengers in average. Capacity is also increasing because other cruise ships are being extended. The new building programme together with the extension of other ships mean there will be enough capacity to handle predicted growth – an annual increase of about 8% over the next few years.
A survey carried out by the European Cruise Council (ECC), February 2007, calculates cruise consumer spending in Europe to approximately Є 8.3 million (figure from 2005).
Norway comes 7th in line in Europe measured in terms of cruise consumption (ECC survey) with consumption at 2.3 million Norwegian crowns (Є 276 million). Norway had approximately 370,000 cruise passengers in 2006. These made over 1.5 million calls of port. Almost 60% of the passengers were in Bergen, whilst ca. 56% were in Oslo.
In contrast to the majority of other European countries Norway has over 30 active cruise harbours. Most countries only have one or at most a few harbours where cruise ships pay a visit. An estimated 1,500 calls of port were made in Norway in 2006. There has been a marked increase in the number of cruise ships visiting Norway. Since 1997 the number of passengers
In the above 3-year period the number of passengers in the 10 largest harbours has increased by 41%, the number of ship arrivals by approximately 12% and the average size of the ship increased by ca. 26%
The ECC survey referred to above estimates the cruise industry’s consumer spending in Norway to ca. 2.3 billion Norwegian crowns. It is thought that ships’, crews’ and passengers’ consumer spending in Norway together represents 2/3 of consumer spending in Norway – i.e. amounts to 1.5 billion Norwegian crowns. There has been further growth from 2005 to 2006.
Horwath Consulting has made two further detailed surveys about the significance of the cruise industry in collaboration with TØI; in spring 2006 a report “The significance of Cruise Tourism to the North Cape”, (figures from 2005) and in December 2006 the report “The significance of Cruise Tourism for Oslo”. The North Cape report evaluated the importance of the order of the calls of port to and from the North Cape for the 106 cruise ships involved. Amalgamated consumer spending for the cruise
The economic effect of Cruise Tourism in Oslo in 2006 was calculated to approximately 256 million Norwegian crowns.
To this one can add the effect of cruises to Bergen and the fjords (in addition to the cruises which are calculated into the North Cape cruises). No exact calculations have been made for this, but a rough approximation for this would be 640 million Norwegian crowns, bringing the total spending in Norway to approximately 1.5 billion Norwegian crowns (2005).
Both the North Cape and the Oslo analyses have estimated the financial losses due to (a harbour) lacking accessibility. This information can easily be used for calculating the effects of discontinuation as a consequence of for example increasing fees. See paragraph 4.2.3 below about NOx-fees.