Cruise and the Community 2015 a Shared Vision August 2010

Welcome

Agenda

1. Welcome – Captain Soppitt, President & CEO, SJPA2. Chairman’s Remarks – Stephen Campbell, Chairman, SJPA3. Cruise and the Community 2015: A Shared Vision – Andrew Dixon,

VP Marketing & Business Development, SJPA4. Entrepreneurial Perspective – Beth Kelly Hatt, President, Aquila

Tours5. Tourism Perspective – Ross Jefferson, Executive Director, Saint

John DMO6. Next Steps – Captain Soppitt, President & CEO, SJPA7. Comments – Hon. Edward Doherty, Minister of Supply & Services8. Mr. Rodney Weston, Member of Parliament for Saint John9. Closing – Stephen Campbell, Chairman, SJPA

Cruise and the Cruise and the CommunityCommunity

2015 – A Shared Vision2015 – A Shared Vision

Presented by: Presented by: Andrew DixonAndrew Dixon

V.P. Marketing & Business DevelopmentV.P. Marketing & Business Development

August 10, 2010August 10, 2010

AgendaAgenda

1.1. Saint John Cruise HistorySaint John Cruise History2.2. Overview of 2010 Cruise SeasonOverview of 2010 Cruise Season3.3. Cruise and the CommunityCruise and the Community4.4. Saint John Port Authority Cruise Infrastructure Saint John Port Authority Cruise Infrastructure

InvestmentsInvestments5.5. The Evolution of Cruise Ship SizeThe Evolution of Cruise Ship Size6.6. Future of Cruise in Saint JohnFuture of Cruise in Saint John7.7. Current Situation / Proposed SolutionsCurrent Situation / Proposed Solutions

1) Saint John Cruise History

Saint John Cruise HistorySaint John Cruise History

September 10, 1989 the Cunard Princess entered our harbour in order to avoid Hurricane Gabrielle which was heading to Bermuda.

Saint John Cruise HistorySaint John Cruise History

2) Overview of 2010 Cruise Season

Overview of 2010 Cruise SeasonOverview of 2010 Cruise Season

• 78 vessel calls

• 210,368 passengers

• 88,355 crew members

When are they calling?When are they calling?

How do we currently stack up?How do we currently stack up?

Saint John – A Port of Choice for Large Cruise ShipsSaint John – A Port of Choice for Large Cruise Ships

3) Cruise and the Community

Cruise Saint John

The purpose for Cruise Saint John is two fold:The purpose for Cruise Saint John is two fold:

1. To support the on dock activities of the Meet and Greet Committee.

2. To educate and inform stakeholders involved in the Cruise Industry.

Cruise Saint John is open to those businesses and organizations

that are directly impacted by cruise or have expressed an interest

in the vision of Cruise Saint John.

Cost of membership is $500/year

2010 Cruise Saint John Members

• Saint John Port Authority• Aquila Tours • 3 Mile Entertainment• Ambassatours Gray Line• Java Moose• Go Fundy Events• Cave View Family Restaurant• Frank’s Furs• O’Leary’s Pub• Saint John A La Carte• HMS Transportation• Cherry Brook Zoo• Saint John Destination Marketing Inc.• Opera Bistro• Starbucks• Grannan Hospitality Group

• Rockwood Park Golf Course• Parks Canada• Parks Canada (FNP)• Saint John Transit Commission• Town of Sussex• Hayward & Warwick• Moosehead Country Store• Waterstreet Dinner Theatre• New Brunswick Museum• Freedom Tours• Hardman Group• Reversing Falls Jet Boat• Fortis Properties• Hilton Saint John

Marketing Alliance:Saint John Port Authority

City of Saint JohnTourism New Brunswick

Ask yourselves...

Who benefits from Cruise?

Cruise Benefits the Business Community

• Saint John Port Authority

• Ships’ Agents

• Harbour Pilots

• Port Stevedores

• Tugs

• Local Businesses

• Surrounding Municipalities

• Museums

• Restaurants

• Retailers

• Taxis and City Transit

• Motor Coach Companies

• Tour Operators

• Suppliers to Tour Operators

• Car Rental Agencies

$30 Million in total direct expenditures

What is the value of cruise in 2010?

Cruise Benefits the Overall Community

2009 Cruise Saint John Web Survey Results

Question: On a scale of 1 (poor) to 5 (excellent) please rate your visit to Saint

John?

Note: 91% rated Saint John 4 or 5

2009 Cruise Saint John Web Survey Results

Question: Would you visit Saint John or New Brunswick again?

Note: 96% said they would like to return

Meet & Greet Committee…Professional, Dedicated, & Award Winning

• Established in 1989 and consists of 75 volunteers.

• Provides tourism information to passengers

• Hands roses to women, pins to men and flags to children.

• Volunteers are genuinely enthusiastic about Saint John!

4) Saint John Port Authority 4) Saint John Port Authority

Cruise Infrastructure InvestmentsCruise Infrastructure Investments

2003 – Pugsley A/B Before Cruise Development2003 – Pugsley A/B Before Cruise Development

2004 – Pugsley A/B Cruise Development Begins2004 – Pugsley A/B Cruise Development Begins

$6 M facility investment in 2004 – SJPA Funded

2007 – Improvements / Additions – City Infrastructure 2007 – Improvements / Additions – City Infrastructure

$10M funded by City of Saint John and the Community

2009 –– Pugsley A/B evolves into the Marco Polo Cruise Terminal

$18 Million Investment (cumulative)

2008 – Long Wharf Cruise Development 2008 – Long Wharf Cruise Development

Additional $1M - SJPA Funded

Total SJPA investment in Cruise Infrastructure to date:

$19 million

5) The Evolution of Cruise Ship Size5) The Evolution of Cruise Ship Size

Cruise ships have steadily increased in length over the past

20 years…

and the trend continues.

What are the cruise lines building today?

RCCL Oasis of the Seas: 360 meters

Carnival Dream: 306 meters

Norwegian Epic: 329 meters

Ship

s on O

rder

Books Ships in

excess of 300m long

6) Future of Cruise in Saint John

What the future looks like

• Estimating over 300,000 passengers annually by 2015= $43 Million in total direct expenditures

• Larger vessels with increased passenger capacity and ever

increasing length overall (LOA)

Cruise Business Growth Projected

2008: 183,462

2009: 186,538

2010: 210,368

2015: 300,000

Note: Visiting crew account for an additional 35% over the total passenger count reported above

7) Current Situation / Proposed Solution7) Current Situation / Proposed Solution

Current Situation

With our present cruise berth capacity, on any given day:

• Due to ever increasing vessel sizes, we are rapidly becoming a

“two-ship cruise port”.

• In fact, we can only accommodate one vessel in excess of 300m overall length.

• Cruise line clients no longer have any interest in berthing at “Cargo” facilities:

1.Potential conflict with cargo operations

2.Distance from City Centre (cost and time)

The Solution!

1) Marco Polo Cruise Terminal Facility Complete

2) Pugsley C Terminal Development Proposed

3) Long Wharf Development Proposed

Current Pugsley & Lower Cove Berth Capacity

Pugsley A/B – 388 m

Pugsley C – 235 m

Lower Cove – 224 mEffectively Obsolete

Proposed Pugsley C Terminal Development

Current: 290m

Proposed: 340m

1 – MODIFY PUGSLEY C SHED2 – EXTEND BERTHING CAPACITY3 – INSTALL GANGWAY SYSTEM4 – INSTALL OVERHEAD WALKWAY5 – BOLLARDS, PAVING ETC.

Current Long Wharf Berth Capacity

Long Wharf – 285 m

DOLPHIN/WALKWAY

Proposed Long Wharf Berth Capacity

Current: 300m

Proposed: 320m

1 – DOLPHINS/WALKWAYS2 – SITE DEVELOPMENT

DOLPHIN/WALKWAY

Total Project Cost = $18.4M

SJPA Commitment = $9.2MRequired Provincial Commitment =

$4.6MRequired Federal Commitment=

$4.6M

Conclusion

• The Cruise business at the Port of Saint John is strong and growing. (#4 in all of Canada)

• The Saint John Port Authority has supported this growth by funding necessary

infrastructure. • "Cruise" is now a serious economic driver for New Brunswick businesses and

communities.

• Cruise Lines are no longer willing to go to "cargo facilities" and be bussed to uptown.

• More infrastructure improvements are necessary to support the continued growth.

• The SJPA is willing to fund half of the cost of further infrastructure improvements.

• Without expanding our Pier capacity, the cruise business will stall and deteriorate over time.

“We will need your help to keep this important economic ball rolling.”

Thank-you for your support

Aquila - founder Beth Kelly Hatt - Saint John 1982Partners: Danielle Timmons and Melanie Colpitts

Working with cruise lines to provide tours of the Bay of Fundy region for over 20 years.

Cruise is Our Business

SHORE EXCURSIONS Took over 85,000 guests on

tours in 2009.

Providing shore excursion programs to cruise lines in Saint John accounts for 82% of our business

Cruise is integral to our business and to our service providers, our guides, drivers and pier-side teams!

Cruise is Our Business

CENTER FOR CRUISE EXCELLENCE

The cruise lines have encouraged Aquila to offer training programs to destinations and tour operators around the world.

“Aquila is one of the best tour operators that we work with anywhere in the world, and they are excellent models to which other tour operators can aspire,”

Mico Cascais, Carnival Cruise Line’s Vice President of Tour Operations

This places the Saint John region as a leader globally.

Cruise is Our Business

Shore Excursions make a difference

Shore Excursions are one of the top 3 revenue generators for cruise lines.

Shore Excursions influence the decision of a cruise line to call on a port.

In one cruise day, Aquila:– Directly employs over 50 tour guides, pier-side staff and

trolley drivers– Indirectly employs well over 100 people

Named past 4 years as Best Guides in world by Dreamworld Cruise Destinations.

In 2009, the only tour operator in Canada recognized for outstanding service to passengers, crew and ships.

Shore Excursions make a difference

Who Directly Benefits from Aquila’s Shore Excursions?

The following businesses are located throughout the Province of New Brunswick in Saint John County, Charlotte County, Kings County, York County and Alberta County.

ACCOMMODATIONS• The Fairmont Algonquin (St. Andrews, NB)• Bamara Inn (Hampton, NB)• Broadleaf Guest Ranch (Hopewell Hill, NB)• Evelyn’s Bed & Breakfast (Bloomfield, NB)ATTRACTIONS• The Fairmont Algonquin Golf Course (St. Andrews, NB)• NB Museum (Saint John, NB)• Barn In Bloomfield ÉconoMusée (Bloomfield, NB)• Enan Lane Gardens (Darlings Island, NB)• Saint John Jewish Heritage Museum (Saint John, NB)• Ganong Chocolate Museum ( St. Stephen, NB)• Reversing Falls Shuttle Tours (Saint John, NB)• Saint John Marina – Voyageur II (Saint John, NB)NATIONAL PARKS & NATIONAL HISTORIC SITES• Carleton Martello Tower (Saint John, NB)• Saint John City Market (Saint John, NB)• Fundy National Park (Alma, NB)PROVINCIAL PARKS & SITES • Hopewell Rocks (Hopewell Cape, NB)• The Fundy Trail Parkway (St. Martins, NB)RETAILERS• Saint John City Market Vendors (Saint John, NB)• Port of Saint John Dock-Side Vendors (Saint John, NB)• St. Martins Harbour Vendors (St. Martins, NB)• St. Andrews Water Street Shops (St. Andrews, NB)• Hopewell Rocks Gift Shop (Hopewell Cape, NB)

RESTAURANTS & BARS• O’Leary’s Pub (Saint John, NB)• Opera Bistro (Saint John, NB)• Cave View Family Restaurant (St. Martins, NB)• Lord’s Lobster (Saint John, NB)• Slocum & Ferris (Saint John, NB)• The Falls Garden Restaurant (Saint John, NB)TRANSPORTATION• Canadian Helicopters Ltd. (Fredericton, NB)• Saint John City Transit (Saint John, NB)• CTL Charters (Saint John, NB)• Trius Fredericton (Fredericton, NB)• Handi-Bus (Saint John, NB)• HMS Transportation (St. Andrews & Saint John, NB)• CanAm Charters (Saint John, NB)• Optimum Ride Charter Service (Sussex, NB)TOUR OPERATORS• Aquila Tours (Saint John, NB)• Fundy Hiking & Nature Tours (St. Martins, NB)• Go Fundy Events (Saint John, NB)• Eastwind Cycle Bicycle Tours (Sussex, NB)• Reversing Falls Jet Boat Rides (Saint John, NB)LOCAL GUIDES & ENTERTAINERS• 8 full-time year-round staff• Approximately 50 seasonal Aquila guides• Sean Roach (Entertainer)• Lance Timmons (Photographer)• Noel Chenier (Photographer)• Peter Walsh (Photographer)• Cindy Wilson (Photographer)

Allows operators to test new products

Development of new products that benefit all markets

Allows operators to extend the season, from earlier in spring to late fall

This economic influx helps sustain businesses year round

Benefits of Cruise: Tourism Operators

Benefits of Cruise: Marketing Worth Millions

Cruise has given Saint John and the Bay of Fundy region an opportunity to showcase itself to the world!

Featured on every cruise line’s website

Featured in every cruise line’s catalogue and other print materials

Featured in ad campaigns, travel agent promotions, and much more!

210,000 passengers (many travel agents) on a fam in 2010!

Return to New Brunswick

Actively encouraging passengers to return to New Brunswick

Developed program to make it enticing for them

More than cruise passengers – they are the leisure passengers coming here by car in years ahead

Return VISITS BY LAND

Keys to growth of cruise for saint john

Invest

Innovate

Adapt

Cruise… Beyond the Numbers

Ross JeffersonSaint John Destination Marketing Inc.

Iconic Differentiator

Pride & Testament

People are Part of the Product

Cruise… Beyond the Numbers

Next Steps

Honourable Edward DohertyMinister of Supply & ServicesProvince of New Brunswick

Rodney WestonMember of Parliament for Saint

JohnGovernment of Canada

Closing