Australian Cruising One Decimal Point from Being a Three Billion Dollar Industry

Ann Sherry, CEO of Carnival Australia which operates or represents most of the cruise ships that
sail to or from Australia, said the cruise industry’s long value chain had been vital in achieving a new
milestone for direct and indirect economic activity.

Total economic activity generated by both domestic and international cruise operations confirmed
cruising as an economic powerhouse that generated $2.9 billion** in economic opportunity in 2012-
2013 – 18 per cent more than the $2.4 billion recorded in 2011-2012.

Ms Sherry said numerous sectors benefited from cruising including agriculture, hotel
accommodation, restaurants, tourist attractions tour operators, taxi owners and transport operators.

At any one time, as many as 70 local suppliers could be involved in replenishing cruise ships with
fresh food, beverages and other goods.

Tourism Accommodation Australia (TAA) said cruising has a flow-on effect across the economy with
pre and post cruise passengers accounting for an average two to three nights in hotels in Sydney
involving average spend of nearly $600 on accommodation, food and drink.

TAA NSW director Carol Giuseppisaid: “Cruise ship business is vital for increasing investor
confidence in the Sydney hotel market. It generates millions into the Sydney visitor economy,
particularly sustaining hotel performance during the quieter trading months of December and
January.”

Glandore Estate owner and chief wine maker, Duane Roy, whose winery in the NSW Hunter Valley
supplies P&O Cruises’ ships, said: “Our relationship with P&O Cruises has been one of the
foundation blocks that have helped us to continue to grow Glandore Estate over the last four years.

“Secure and mutually beneficial partnerships such as these provide the stability that allows us to
continue to invest for the future with some degree of certainty, and our continuing relationship with
the cruise industry has been particularly important over a time when the wine industry has not seen
the highs of previous years.”

Ann Sherry said such a stunning increase in cruise-generated economic activity helped explain why
businesses and regional ports wanted to be part of the fastest growing sector of Australian tourism.

“The latest evidence of cruising’s growing economic contributions has come as the industry
prepares for another record cruise season with 34 vessels, most of them Carnival Australia ships,
operating in Australian waters from the start of October to the end of April,” Ms Sherry said.

“These ships will make nearly 600 calls at Australian ports during the summer cruise season, around
30 more than for the 2012-2013 season.”

Ms Sherry said the new figures on cruising’s economic contribution showed New South Wales
remained the biggest beneficiary again putting the spotlight on Sydney’s port infrastructure
challenges as well as the city’s importance as the cruise gateway to Australia and regional ports.

“The certainty of long-term shared access at Garden Island is vital if cruising is to continue to grow
and generate the widespread ripple effect of commercial opportunities for hotel accommodation,
restaurants, transport and tour operators,” Ms Sherry said.

“It was encouraging to see support for the Garden Island solution across the political spectrum
during the recent federal election. However, we are also pleased that the idea of moving naval
assets from Garden Island is no longer on the table.

“We value our positive relationship with the Royal Australian Navy. The thought co-existing with real
estate developers was not an exciting prospect, which would have also placed the existence of the
Garden Island graving dock in jeopardy.

“The graving dock is a national asset and the only drydock in Australia that can accommodate large
cruise ships.”

** The new data is included in Cruise Down Under’s Economic Impact Assessment of the
Cruise Shipping Industry in Australia.