2012 Industry Update - Cruise Lines International Association

Cruise Lines International Association (CLIA)2012 Industry Update

26 CLIA Member Cruise Lines

CLIA Member LinePassenger Carryings

New Ships, Global Destinations, New Itineraries And InnovativeShipboard Facilities And Activities Have Driven ConsistentGrowth In Cruise Passengers• Annual Passenger Growth– 1980-2011: CLIA lines annualaverage passenger growth = 7.5%– Average occupancies above 100%– 2010 CLIA fleet occupancy = 103.2%• Passenger Growth Over Time– Between 1980 and 2012:– CLIA fleet will have carriedestimated 225 million guests– 188 million passengers sourcedfrom North America– 37 million passengers fromother parts of the world• CLIA Passenger TrendsTotal Guests / % N. AmericanSourced– 2000: 7.214 million (91%)– 2002: 8.648 million (86%)– 2004: 10.46 million (84.4%)– 2006: 12.01 million (83.9%)– 2008: 13.01 million (77.6%– 2010: 14.82 million (72.8%)

USAUKAustraliaCanadaGermanyItalySpainNorwayIrelandSwitzerlandAustriaSwedenFranceDenmarkNetherlandsBelgiumPortugalFinlandLuxembourgOther EuropeCountryNorth America, Europe & Australia2010 Cruise Penetration by Country2010 Population(Millions)309.3062.0422.2234.3081.8060.5746.154.954.477.788.399.4265.825.5616.6510.8310.635.38.50Cruise Pax(Millions)10.0901.560.466.6911.220.889.645.065.058.091.093.061.387.026.076.047.041.016.003.171Penetration(%)3.26%2.51%2.10%2.01%1.49%1.47%1.40%1.31%1.30%1.17%1.11%.65%.59%.47%.46%.43%.39%.30%.06%Penetration(Rank)12345678910111213141516171819PAX Volume(Rank)12753461214109138171115161819NA/Europe/AUS TotalSource: CLIA, ECC, ICCA766.7616.522.15%

CLIA Fleet andCapacity Growth

CLIA Fleet Growth Since 2000 - 2011: 143 New Ships13 ships introduced in 2011 (12 new, one refurbished) 14,886 new beds– Carnival Cruise Lines’ Carnival Magic (3,690 passengers)– Celebrity Cruises’ Silhouette (2,886 passengers)– Disney Cruise Line’s Dream (2,500 passengers)– Costa Cruises’ Favalosa (3,012 passengers)– Seabourn Cruise Line’s Seabourn Quest ( 450 passengers)– Oceania Cruises’ Marina (1,250 passengers)– AMA Waterways’ AmaLotus ( 124 passengers)– AMA Waterways’ Amaverde ( 162 passengers)– AMA Waterways’ Amakaterina ( 212 passengers)– Uniworld Boutique River Cruises’ SS Antoinette ( 164 passengers)– Uniworld Boutique River Cruises’ River Victoria* ( 206 passengers)– Uniworld Boutique River Cruises’ Douro Spirit* ( 128 passengers)– Avalon Waterways’ Panorama ( 166 passengers)* Refurbished/re-introduced

14 ships to be introduced in 2012(13 new, one re-introduced)17,984 new beds– Pearl Seas Cruises’ Pearl Mist ( 210 passengers)– Disney Cruise Line’s Fantasy (2,500 passengers)– Costa Cruises’ Fascinosa (3,012 passengers)– Celebrity Cruises’ Celebrity Reflection (3,030 passengers)– MSC’s MSC Divina (3,502 passengers)– Carnival Cruise Lines’ Carnival Breeze (3,690 passengers)– Oceania Cruises’ Riviera (1,250 passengers)– American Cruise Lines’ Queen of the Mississippi ( 150 passengers)– AMA Waterways’ AmaCerto ( 231 164 passengers)– Avalon Waterways’ Vista ( 166 passengers)– Avalon Waterways’ Visionary ( 128 passengers)– Avalon Waterways’ 211 Ankor ( 32 passengers)– Uniworld Boutique River Cruises’ River Saigon ( 60 passengers)– Uniworld Boutique River Cruises’ River Countess* ( 134 passengers)– Uniworld Boutique River Cruises’ River Duchess* ( 134 passengers)– Paul Gauguin’s M/V Tere Moana* ( 90 passengers)* Refurbished/re-introduced

25 Ships Will Join CLIA’s Fleet In The Periodof 2012 -2015• Investment of more than 10 billion• 6 new ships, with 8,109 beds, will join the CLIA fleet in 2013• 4 new ships, with 15,369 beds, will be introduced in 2014• 2 new ships, with 4,240 beds, will join the fleet in 2015• Total beds and ships in the CLIA in fleet year end:– 2011: 325,400 beds – net 211 ships– 2012: 342,012 beds – net 222 ships– 2013: 349,349 beds – net 225 ships– 2014: 360,618 beds – net 230 ships– 2015: 361,302 beds – net 232 ships211231(As of 2/23/2012, the Seatrade Order Book for was 19 ships with55,251berths, for an investment of $12.6 billion – Based on CLIA andnon-CLIA member cruise companies not inclusive of River Boat vessels)

Industry Trends for 2012

Consumer Trends (according to January 2012 CLIA Travel Agent Survey)• Roughly 3% of Americans took a cruise vacation in 2011• Approximately 24% of Americans have ever cruised• Observations and expectations of travel agents, who sell nearly three-quartersof all cruises, will be key in helping to attract new cruisers• Cruising is #1 in consumer interest; perceived value is a strong selling point“TOP” DESTINATIONS FOR 2012AlaskaCaribbeanMediterranean/Greek IslandsEuropean riversPanama CanalEuropeSouth AmericaHawaiiSouth PacificBaltics/ScandinaviaEXPECTED PASSENGER GROWTHSeniorsFriends/multiple familiesExtended/multigenerational familyFamiliesYoung travelersSinglesSocial/corporate groups

Deployment Trends• 5 Year Change In Geographic Deployment (2006-2011) Bed DayPercent Change /Share Shift– Caribbean + 13.5 percent / -5.5 points– Mediterranean +109.38 percent / +7.5 points– Europe/Scandinavia +24.61 percent / -.5 points– Alaska +4.66 percent / -1.62 points– Bahamas +7.2 percent / -1.4 points– Mexico (West): -32.6 percent / -3.1 points– Transatlantic: +111.2% / +1.08 points– Australia/New Zealand/S. Pacific: 101.2 percent / +.93 points– Trans Canal: -3.91 percent/ -.94 points– South America: +81.7 percent / +.67 points– Hawaii: -23.9% percent / -1.5 points

Trends in River Cruising• Strong Growth and Innovation (based on CLIA member lines)– 10 percent annual passenger growth over last five years, with some linesenjoying even greater increases– Rapid growth in new ships in last five years, with most lines doubling size of fleetor more– Expansion in destinations/itineraries:– American Cruise Lines: from nine to more than 30– Avalon Waterways: from 25 to 45 (Europe, Asia, SE Asia, Egypt,Galapagos)– Uniworld Boutique River Cruises: 32 itineraries in Europe; one in Russia;three in Egypt; six in China; Southeast Asia in January 2012, and Italy in2013– Shipboard innovations: private balconies, in-room balcony breakfasts,chef’s tables, choice of dining venues, local dining options, sustainablecuisine, all-suite ships, new programs for active travelers, wine and foodlovers

Trends in River CruisingSampling Of What’s New For 2012:• American Cruise Lines: Alaska Inside Passage, introduction of Queen of theMississippi sternwheeler• AMA Waterways: Africa safaris and wildlife cruise on MS Zambezi Queen; CulinaryDelights, Bites and Sights shore excursions• Avalon Waterways: Introduction of two more "Suite Ships" in Europe - AvalonVisionary, Avalon Vista - plus the first Vietnam & Cambodia river cruise itinerary tosail all the way from Ho Chi Minh City to the Siem Reap via the company's new 32-passenger Avalon Angkor• Uniworld Boutique River Cruises: Introduction of Vietnam and Cambodia. Newprograms in Europe allowing guests to customize their hosted excursions by localexperts: “Choice is Yours,” “Go Active,” and “Gentle Walking.” Introduction of moreUniworld “exclusive included excursions”; upgrades to all land-portion hotels, suchas the Four Seasons Cairo and The Ritz-Carlton Beijing Sumer multigenerationalcruises in France. The complete remodel of two boutique ships

New Experiences: Shipboard Dining• Increased choice, creative culinary partnerships, health and sustainability,one-of-a-kind experiences:– Carnival Cruise Lines: Investing $500 million in first phase of a “Fun Ship2.0” program offering new dining and entertainment choices on 14 ships,including several new branded restaurants and Food Network star GuyFieri’s “Guy’s Burger Joint,” plus the first-ever EA SPORTS Bar at sea– Celebrity Cruises: Celebrity's stylish, specialty restaurants are positionedfor guests who enjoy culinary experiences and trendsetting travel. By theend of 2012, they will have 45 in total, ranging from the glamorous AdamTihany-designed main dining rooms to the chic, Mediterranean-themed"Blu" restaurant, to the elegant "Murano" and playful, eclectic "Qsine”– Crystal Cruises: Extravagant dinners, ranging from seven-course withMichelin chefs to omakase with Nobu himself, juxtapose with new casualoptions: Chinese comfort food and daytime Bistro expansion into nighttimesmall bites– Cunard Line: Cunard’s Golden Lion Pub aboard Queen Mary 2 has beenrenovated and refreshed with expanded booth seating and more flatscreen TV’s

New Experiences: Shipboard Dining• Disney Cruise Line: New Disney Fantasy features Remy, a premier dining optionwith a collaborative menu from Michelin two-star chef Arnaud Lallement and chefScott Hunnel, a AAA Five Diamond award recipient• Holland America Line: New dishes from celebrity chefs on the line’s CulinaryCouncil - Master Chef Rudi Sodamin, Charlie Trotter, Jacques Torres, MarcusSamuelsson, David Burke and Jonnie Boer• Hurtigruten: Puts the emphasis on local with menus compiled according to portsof call where ingredients, such as dried salt cod, originate• MSC Cruises: Mediterranean menus with Italian specialties; gluten-free dining isalways available on Fantasia-Class vessels and guests can also enjoy 24/7vegetarian options• Norwegian Cruise Line: Norwegian Epic offers more 20 dining options and theship’s popular 24/7 pizza delivery service is being introduced fleetwide• Oceania Cruises: New local market tours in various ports as part of the BonAppétit Culinary Center on the new Riviera which launches in April ’12• Princess Cruises: The renowned Alfredo’s Pizzeria now showcasing a new sitdownvenue with freshly prepared individual pies

New Experiences: Shipboard Dining• Paul Gauguin: Joined forces with Jean-Pierre Vigato, and Art Smith, Oprah’spersonal chef• Regent Seven Seas: Partners with Chef Tommaso Barletta for a spotlight onfood cruise October 7, 2012• Royal Caribbean International: Oasis of the Seas, Allure of the Seas: Eachship offers 25 dining options. For its 150 Central Park restaurant, MichaelSchwartz creates sustainable, seasonal menus in partnership with small farmsin Florida• Silversea Cruises: Has teamed up with “Relais & Chateaux L’Ecoles desChefs” interactive cooking school• Uniworld Boutique River Cruises: Global Master Chef, Bernard Zorn,continues to innovate Uniworld’s dining program by continuously creatingdishes using the finest and freshest ingredients from the local markets from theports of call, and pairing dinner with the finest selection of complimentary wines• Windstar Cruises: Focuses on regional cuisines with several special “culinaryadventure” shore excursions in the Caribbean

Sampling of New Itineraries• American Cruise Lines: In 2012, the line will debut two new itineraries – Alaska InsidePassage and the Mississippi River. In August, American Cruise Lines will also be returningovernight cruising to the Mississippi River aboard its brand new 150-passenger Queen of theMississippi• Avalon Waterways: Introduces two new “Suite Ships” in Europe – plus the first Vietnam &Cambodia river cruise itinerary to sail all the way from Ho Chi Minh City to the Siem Reap viathe company’s new 32-passenger Avalon Angkor• Carnival Cruise Lines: New 130,000-ton Carnival Breeze will enter service in June with asummer schedule of 12-day Mediterranean voyages. Carnival Miracle will launch the line’s firstyear-round cruise program from New York in April• Celebrity Cruises: Sends the 2,850-guest Celebrity Solstice to Australia and New Zealand forthe winter of 2012-13, following this year’s deployment of the 1,814-guest Celebrity Century inthe region. The Celebrity Millennium is inaugurating the line’s first-ever Asia season• Crystal Cruises: 2012 itineraries count 20 maiden calls and many rarely-visited ports, includingPalermo, Ponce, Newcastle, Palamós, Klaipeda, Agadir, and Sochi. Crystal Serenity and CrystalSymphony itineraries, 86% of which include port overnights (almost double from 2011)• Cunard Line: Cunard’s newest ship, Queen Elizabeth, begins her maiden Mediterraneanprogram this Autumn with 12-day voyages that begin and end in Athens, Venice or Rome,including voyages to the Holy Land

Sampling of New Itineraries• Disney Cruise Line: Will sail from three new ports in 2012 – New York, Seattle and Galveston.Disney Magic will offer eight-night cruises from New York to the Bahamas and five-night cruisesup the New England coast to Canada plus two-night weekend voyages. The line will offer twovoyages to Hawaii from Los Angeles for the first time• Holland America Line: 14-day China and Korea voyage from Hong Kong; 20-day Portugal,Spain & Canary Islands voyage; 17-Day Spanish Rhapsody from Rotterdam; seven-dayNorwegian Fjords itineraries; 14-Day Venetian Empire sailing roundtrip from Civitavecchia; 32- to34-day Caribbean Odyssey featuring a transatlantic crossing from Southampton or Rotterdam• Hurtigruten: New itineraries include an eight-day “Autumn Adventure” from Reykjavik to Bergen,crossing the North Sea and making stops in the Faroe, Orkney and Shetland Isles, andEdinburgh; a 19-day transatlantic Crossing from Las Palmas to Buenos Aires featuring an“Equator Baptism”• MSC Cruises: The line will base MSC Lirica in Abu Dhabi for seven- and eight-day cruises of theArabian Gulf for the 2011-2012 winter season. Ports will include Dubai, Muscat, Al Fujairah, andKhasab, the beautiful and historic port city in Oman• Norwegian Cruise Line: Launches biggest European deployment in its history with four ships,including a second year-round vessel• Oceania Cruises: In 2012, for the first time, will operate four ships in Europe, including the new1,250-guest Riviera, debuting in May. The line will feature more than 72 sailings fromApr - Dec, 41 distinct itineraries encompassing 145 different ports of call, 12 of which are new

Sampling of New Itineraries• Paul Gauguin Cruises: 2012 sailing schedule, three new itineraries, a 20-night SouthPacific Discovery hotel-and-cruise journey to Australia, New Caledonia, Fiji, Tonga,Cook & Society Islands; an Australs & Society Islands cruise featuring Rurutu, the“Island of Whales,” at the height of whale-watch season; and a Fiji, Tonga, Cook &Society Islands journey• Princess Cruises: Largest Europe deployment with seven ships on 57 itineraries tothe Mediterranean, Holy Land, Northern Europe, Scandinavia/Russia• Regent Seven Seas: New, longer itineraries - Grand Voyages, complimentary landprograms and 16 new ports of call in 2012, including a 143-night sailing from Rome toBeijing, a 54-night sailing from Bali to Singapore on Seven Seas Voyager, three-nightland program in Luxor, and extended visits in St. Petersburg• Royal Caribbean International: Winter/Spring 2011-12 will mark Royal CaribbeanInternational's return to New Orleans after more than four years. Voyager of the Seaswill be the largest and most innovative cruise ship to sail from the Port of New Orleans• Seabourn: New ports in the Mediterranean including Rosas, Spain; Porto Torres andAlghero on Sardinia; Mgarr on the Maltese island of Gozo; San Antonio on Ibiza; Sólleron Mallorca; Ciutadella on Menorca; and Brindisi, Italy

Sampling of New Itineraries• SeaDream Yacht Club: New options, an extended visit to Machu Picchuduring the line’s maiden 20-day voyages between Barbados and Iquitos to theAmazon. In the Mediterranean, an 11-day Black Sea voyage from Istanbulvisiting Bulgaria, Romania, Ukraine, and Russia• Silversea Cruises: Kicks off the year with a 115-day world cruise on SilverWhisper to 45 ports in 27 countries and featuring 13 overnight visits andexclusive insider access to seldom seen global treasures. Silver Shadow, anew 19-day voyage from Auckland to Perth with calls in Napier, Wellington,Picton, Sydney, Melbourne, Adelaide, Port Lincoln and Albany. Silver Windwill offer a new series of 10-day voyages of southern Africa from Cape Town• Uniworld Boutique River Cruises: Over 500 departures sailing on morethan 13 rivers in over 20 countries throughout Europe, Russia, Egypt, China,Vietnam, and Cambodia• Windstar Cruises: Introduces eight new itineraries in 2012, includingvoyages to a unique collection of islands in the Caribbean, a voyage on CostaRica’s Pacific Coast, Panama, the Italian and French Rivieras, and three newBaltic itineraries

About CLIAThe nonprofit Cruise Lines International Association (CLIA) is the world’s largest cruiseindustry organization. CLIA represents the interests of 26 member lines andparticipates in the regulatory and policy development process while supportingmeasures that foster a safe, secure and healthy cruise ship environment. CLIA is alsoengaged in travel agent training, research, and marketing communications to pr omotethe value and desirability of cruise vacations with thousands of travel agency and travelagent members across North America. For more information about CLIA, the cruiseindustry, and CLIA-member lines and travel agencies, visit www.cruising.org. CLIA canalso be followed on the Cruise Lines International Association's Facebook and Twitterfan pages.Media Contacts:Lanie Morgenstern, Travel /Industry Marketing Issues(754) 224-2224; lmorgenstern@cruising.orgDavid Peikin, Industry Policies/Regulatory & Legislative Issues(754) 201-2131; dpeikin@cruising.org