The dynamic comeback of cruise ships in Greek waters

Cruise liners are returning to the Greek seas, with the war in Ukraine in progress. However the industry aspires to make a dynamic comeback following almost two years of restrictions on movements due to coronavirus. The interest is particularly increased in relation to our country, with passengers expressing a desire to discover other points of interest, besides archaeological sites, such as wine production sites, and more. Companies are adapting their excursion programs accordingly, to satisfy even the most demanding customers. The President of the Association of Cruise Ship Owners and Maritime Agencies, Captain George Koumpenas, provides a depiction of the cruise industry in Greece.

The cruise industry will exceed pre-pandemic levels

As Mr Koumpenas remarks: “Following two years of uncertainty and the negative consequences of the pandemic, the cruise industry is gradually returning to normality, with more than 7.5 million passengers having travelled to almost 90 markets. According to data from the Cruise Lines International Association (CLIA), the number of passengers is expected to recover and exceed 2019 levels by the end of 2023, while it is estimated that it will exceed pre-pandemic levels by 12% by the end of 2026. Accordingly, during the current year, the cruise industry, especially in concern to our country, is on an upward trajectory and is expected to reach very good levels in terms of ship approaches, with a large majority based in Greek ports. Approximately 68 different cruise ships will start their journey from Piraeus alone.

What cannot be predicted at the moment is the occupancy of ships in relation to the coronavirus, as there is a trend of last-minute bookings while the ongoing crisis in Ukraine affects both people’s psychology and the prices of fuels that raise transportation costs. What is worth emphasising, and interests us as a country regarding the economic footprint in the national economy, is the significant increase in the number of ships embarking and disembarking in Greek ports. In addition, the fact that many of these ships are smaller in size and are aimed at high-income passengers is equally important as they approach smaller destinations that have not been on the cruising map so far, providing a great economic benefit to local economies. Summing up for 2022, we can say that it will be a special year for cruise operations in our country, with a large number of cruise ship approaches in all Greek ports, but an average occupancy that will not exceed 80% of the ship’s tonnage. As for the country’s revenue, given the record increase in homeporting, we believe that it will be very close to that of 2019 (556 million euros).”

Homeport in Greece

When asked about the importance for the national and local economy of a cruise ship company’s decision to make Greece a homeport destination, Mr Koumpenas said: “A company’s decision to make Greece a homeport destination is extremely important, since the financial contribution of cruise passengers to the port of departure is estimated by international statistics at 400 euros per passenger. The reason is that passengers who start the cruise from Piraeus or from Lavrio, for example, will have to fly to Athens and spend the night either before or after the cruise. This means that passengers will visit various shops, restaurants, archaeological and cultural sites, and use means of transport. Therefore, passengers will spend at least twice as much as they would if they were just passing through on the cruise ship, where they will simply participate in an excursion or spend limited time at a destination. In addition, one should calculate the revenues to the local economy from the operation of the ship such as port dues, food purchases, small-scale repairs, means of transport, etc. Surely, I have to stress the fact that, in order for our country to derive the maximum benefits from cruise-ship operations, it should attract companies that have their base and offices in Greece, so that there is a link between the ships and the country. A typical example, Celestyal Cruises, with at least 100 employees as well as offices in Piraeus, has operating costs of 37 million per year, while in 2019 the total financial footprint of the company on the Greek economy was 134 million euros. This number includes shipbuilding repairs, promotional and advertising expenses, and supplies from Greek food companies in addition to the expenses of passengers who start and finish the cruise in our country.”

Expansion of the tourism season

At times, thoughts have been expressed about extending the tourism season in our country throughout the whole year and not just from spring to autumn. What would be the benefits if such a decision were made? Is it possible for the islands to serve cruise ship passengers beyond the standard tourism season, given that occasionally problems arise during the summer months as well, especially in islands that gather a large number of ships such as Mykonos and Santorini?

“Extending the tourism season should be a strategic priority for our country, because it is important not only for the cruise industry but for other sectors of tourism as well. This will also aid in creating permanent jobs in tourism by contributing to solving the problem of seasonality and staff shortages in the tourism sector during the summer months. However, a basic prerequisite is the cooperation of islands and destinations by remaining open during the entire year and by participating in this effort, since companies alone cannot achieve that. It is necessary for all actors involved to participate in the strategic planning and coordination of this effort. Finally, I would like to point out that the issue of the simultaneous concentration of many cruise ships on popular islands, such as Santorini and Mykonos, is clearly a scheduling issue and the lack of appropriate infrastructure constitutes a secondary problem. We hope that with the cooperation of all the parties involved, and following the initiatives of the Ministry of Shipping, we will manage to avoid the simultaneous arrival of a large number of cruise passengers.”

Dynamic growth trajectory

Mr Koubenas also spoke about the future of the cruise industry in Greece. “First of all, I would like to stress that the cruise sector in our country is in a dynamic growth trajectory and plays a leading role, but mainly as a destination and approach area for cruise ships with an emphasis on the Greek islands. Especially during the last 2 years, an upward trend and a positive dynamic for our country as homeport for cruise ships are observed. However, it is regrettable that all the ships operating in our area lack the Greek element. The Greek cruise ships that were once the best ambassadors of Greek hospitality on board do not exist anymore. Some exceptions, such as Celestyal Cruises, are making sincere efforts to promote Greek hospitality, gastronomy and culture, but in this case an important element that is missing is none other than the Greek flag.”