WELCOME SPEECH BY THE HON. CENSU GALEA MINISTER FOR TRANSPORT AND COMMUNICATIONS, AT MEDCRUISE GENERAL ASSEMBLY MALTA - 1 DECEMBER 2000

Mr. Chairman, ladies and gentlemen,

It is my pleasure to welcome you to Malta for the General Assembly of Medcruise Associations, which is being hosted by the Malta Maritime Authority.

The state of the cruise industry is healthy and growing fast. It is not only growing in the number of vessels serving the cruise industry, but there is also a positive and marked change in the quality of these vessels. Last statistics published, showed that vessels serving the Mediterranean have grown to about 120, showing an encouraging increase of 10 percent.

Yet when one considers that around 300 million European vacationers take a holiday throughout the year, only 1.8 million actually take a cruise. This shows what a huge market potential this is and how much can be done to attract a bigger share of this market.

In Malta, the state of this industry is also healthy. Yet it reflects the prevailing changing scenario in this Mediterranean basin. In fact, whereas during the past nine months, Malta has experienced a decrease of around 5% in the number of passengers compared to 1999, this year's figures still show a marked increase of 20% over the previous two years.

It is a fact already reported in the 1999 annual report, that the early predictions for the Mediterranean cruising industry were heavily over shadowed by the crisis in Kosovo and the Balkan region. In fact as a result of the political turmoil in that area a number of cruises in the Adriatic were either cancelled or re-routed to other destinations.

It is a fact, that Malta benefited substantially from this shift, and vessel calls saw a staggering 26% increase. This also reflected in a 27% or 38,500 passengers more that called at Valletta Port. It was evident from the beginning, that this scenario was a temporary one. In fact when the crisis came to an end, most of the fleet deployments and cruise operations in the Mediterranean, resumed their previous patterns.

In Malta, it has also been registered, a marked shift in market share patterns. There were considerable increase in the North American Market (22% of market share), Germany (17%) and the French market, which has now taken the fourth place previously occupied by the Italian market. The latter's market share has been halved, becoming 3% of the market share. On the other hand the U.K. market though still occupying top place with 27% market share, has experienced decline compared to previous years.

All this shows that we need to work harder to attract more cruise liners and at least maintain present passenger levels.

It is encouraging to note, however, that Valletta Port continued with its up-market trend, which is reflected by an 11% increase in the de luxe class vessels. Permit me to mention particularly, the call on its maiden voyage of the Celebrity cruises' new flagship – the Millennium. This is so far, the largest cruise liner to visit Grand Harbour.

It is also worth mentioning, other prestigious lines, such as, the Costa Crociere's flagship Costa Atlantica, three Renaissance Cruise liners, together with Nouvelle Frontiers' Van Gogh and l'Orient's Crown Odyssey.

Most importantly, is the fact, that some of these prestigious lines and vessels have, during this summer, operated a summer turn-around schedule from Valletta. This has helped to consolidate Malta's position as a turn-around port.

My government has always given great importance to this hub concept, and for the past decade has embarked on a number of measures and initiatives to enhance the infrastructure within the Grand Harbour and its environs.

Following the completion of works to increase deep water quays facilities that make it possible for a number of cruise liners to berth on the same day, the government in conjunction with the Malta Maritime Authority is in the process of initiating large infrastructural works, which include a new and modern Cruise passenger terminal, link roads and ancillary facilities that link the capital city with the port.

Work has also commenced on the Cottonera project on the opposite side of the port for the re-generation of the area and berthing facilities for large yachts.

During this summer, the national air carrier, Air Malta, commenced operations to the United States after Malta's Civil Aviation Department was upgraded to Class One by the Federal Aviation Authority. A few weeks ago this development moved a step forward with the signing of the Open Skies agreement which allows flights originating from Malta to use any American airport and vice versa. This offers us the possibility to tap the American market for this Cruise hub concept.

We are all aware that the North American market constitutes the biggest Cruise line potential with its 70% share of the market worldwide. Therefore not only Malta, but also other Mediterranean ports can benefit from a unified market strategy to attract this immense market.

To conclude, Mr. Chairman, I wish you success in your deliberations during this meeting. I am convinced that we all have a common goal that is, to continue registering increases in this important market.

Finally I wish you a pleasant stay in our islands.