As CLIA's Managing Director in Europe, Marie-Caroline Laurent leads the industry's engagement with EU institutions, European countries and the wider cruise community in support of policies and practices that promote safe, healthy and sustainable cruising.
Article from CruisesNews magazine no. 62 – September 2022
Laurent, a transport policy expert, joined CLIA in November 2021 after holding leadership roles at the International Air Transport Association (IATA) and the innovation consultancy LHA LAM. At LHA LAM, Laurent led the organization's European activities from 2018 to 2021, focusing on transport security regulatory strategy and border security issues.
Prior to joining LAM LHA, she was Deputy Director of EU Affairs at IATA, where she developed the organization's position on EU legislation affecting the aviation sector, advocated on behalf of IATA member airlines, and developed IATA's safety and travel facilitation strategies in Europe. Earlier in her career, she worked in policy development for the Association of European Airlines and also served as a parliamentary advisor in the European Parliament and as a senior policy officer at the U.S. Chamber of Commerce to the EU. Laurent holds a Master of Public Administration from Sciences Po Paris (IEP) and a second Master of European Policy from the Catholic University of Louvain in Belgium.
We could say that its official introduction to the cruise industry took place at the International Cruise Summit in November 2021, when it seemed like everything was over, but then Omicrom arrived. How would you describe these months in the industry?
Indeed, it will soon be a year since I took over as CLIA Director in Europe, a period I would describe as intense and enriching.
From this experience, I value – above all – meeting people throughout the industry who are truly passionate about what they do; people who want to contribute to changing the lives of others, whether by working to ensure others have the best vacations of their lives, or by using their energy and technical knowledge to develop more efficient fuels or advanced environmental technologies.
CLIA members are investing in and leading the decarbonization of shipping.
It has also been gratifying to see how, over these past twelve months, the industry has recovered and there is a strong desire to travel by cruise ship. This is largely due to the collective commitment and resilience of industry professionals.
I have also been particularly impressed by the spirit of collaboration within the sector. In June, we organized our first European summit, bringing together representatives from shipping companies, partners, and suppliers. It was an opportunity to discuss how we can accelerate the decarbonization of the industry and support each other and political representatives in achieving a sustainable blue economy in Europe.
You have extensive experience in air transport and dealings with institutions. Were you familiar with this industry and the challenges it faces?
Undoubtedly, my previous experience in the air transport sector has helped me understand some of the challenges we face, which are common to both the transport and tourism sectors.
As a mode of transport, the aviation sector, like the maritime sector, faces challenges related to reducing and ultimately eliminating greenhouse gas emissions. Regulators are aware of the complexity of rapidly decarbonizing both sectors, but significant progress toward achieving net-zero emissions by 2050 can be made through a combination of technological innovations, operational improvements, and market-based measures. The cruise industry, and CLIA members in particular, are investing in and leading the way in decarbonizing maritime transport.
One of the main differences of the cruise industry is that it's not just a means of transport and part of the maritime industry; it also encompasses accommodation, dining, entertainment, and more, and has a real impact on the economies and tourism development of the destinations we visit. Enjoying a cruise is not only one of the best ways to discover the world; the industry is also a fundamental element in the development of sustainable tourism.
Political attacks on the cruise industry continue to escalate, from Barcelona and Venice to Palma de Mallorca. Agreements are reached, only to generate further controversy. Now, the mayor of Marseille is calling for an end to the pollution of the Mediterranean. You and I know the enormous and rapid efforts this industry is making to adapt to increasingly stringent restrictions, but what is going wrong that allows politicians, and by extension many consumers, to continue to view cruise ships negatively as major polluters?
The cruise industry brings enormous economic and social benefits to communities around the world; our sector is investing large sums in the construction of new ships and in the design of new technologies that allow us to reduce our carbon footprint and be more sustainable.
At the same time, and as travel resumes, the focus has shifted back to how to manage tourism more effectively, especially in some of the world's most visited destinations.
While this is a challenge for the tourism industry, we have an advantage: cruise tourism is planned and organized in advance, which presents an opportunity to collaborate with local communities to ensure that their benefits are maximized. In fact, in recent years, CLIA and cruise lines have worked more closely with ports and local authorities to find ways to manage tourism while protecting the economic opportunities that cruise tourism provides.
Responsible tourism means being good partners with destinations; it means listening to one another and working in a climate of trust based on constructive dialogue. We understand that each port has specific needs, and it is essential that this dialogue be based on the real circumstances of each destination. For example, in the case of Marseille, we know that cruise ship calls represent only 5% of the total.
For our part, we can better explain the efforts we are making together with local authorities; we hope to have the opportunity to do so. We must continue to develop a narrative that allows us to highlight this commitment and continue working decisively on the rigorous communication of our steps, achievements, commitments, and challenges, relying on scientific studies and data and using all the tools at our disposal.
In your opinion, what is the exact role of CLIA Europe, or the role it should have? What are its objectives? What challenges and differences have you found in this sector that were previously unknown or that are not present in other sectors you are familiar with?
In the current environment, where we are emerging from an unprecedented crisis, there are significant challenges stemming from the geopolitical situation, and at a time when the foundations for Fit for 55—the legislative model that will shape maritime operations—are being laid, CLIA's voice on behalf of the industry in Europe is even more crucial.
As the voice of the industry, our mission is to work hand in hand with our partners in designing the roadmap and positioning plan, and then to communicate our position and defend our interests to various stakeholders of diverse natures; ultimately, CLIA has the responsibility to amplify the voice of the industry so that it is part of the debates.
For every 24 cruise passengers, one full-time job is created.
Similarly, the work we do to strengthen the industry's reputation is crucial: it is the industry, united under one umbrella, that showcases the milestones achieved, the progress being made, and the challenges it faces.
Finally, in our daily work we strive to build a top-tier network of contacts and act as the point of contact with institutional representatives, international organizations, industry associations, and so on. If we've learned anything from the pandemic, it's that collaboration leads to better results.
Cruise lines are reporting high occupancy rates, but there are still discrepancies in their requirements. Are the cruise lines operating at full capacity? When will we reach the 2019 figures?
While we won't have a clear picture until the season ends, I can say with certainty that 2022 will be a crucial year if we want to achieve a similar passenger volume in 2023 to that of 2019, when nearly 30 million people enjoyed a cruise—a record number. Furthermore, according to estimates in the State of the Cruise Industry 2022 report, we expect to reach 12% more passengers by 2026 than in 2019.
Of course, these figures are relevant in themselves, but they are even more so when we consider that we are dealing with high-quality tourism, which adds value and contributes to job creation and opportunities, as well as the development of local economies. Two examples illustrate this point: for every 24 cruise passengers, one full-time job is created, and on average, each passenger spends a total of around 700 euros in the destinations they visit during their seven-day cruise.
In these two years, shipping companies have sent many ships to the scrapyard, shipyard production has been delayed, ships have been remodeled, new fuels have been introduced—how has the global fleet as a whole changed?
The entry into service of a new ship means the arrival of new technologies and greater efficiencies, making it more sustainable than the vessel it replaces.
Undoubtedly, one of the areas where the most progress has been made in recent years is in the construction of ships powered by liquefied natural gas (LNG). This technology—which for now remains a fossil fuel—contributes to a significant reduction in emissions, such as the near-zero reduction of particulate matter and sulfur emissions, as well as a 20% reduction in greenhouse gases. The first LNG-powered ship was launched at the end of 2018, and by 2027, more than half of all new ships will use this fuel.
It is important to highlight that LNG is also a transition fuel, providing real benefits already; moreover, the engines and infrastructure built for the use of LNG will also support the transition to other sustainable fuels.
Furthermore, I would like to mention that many of the innovations we are seeing stem from intelligent design and the use of new technologies. Significant progress is being made in reducing energy consumption through changes in propulsion system design and the use of low-friction hull materials, allowing the ship to move more efficiently and consume less fuel. Similarly, there are air lubrication systems that produce millions of tiny bubbles around the hull, reducing drag and fuel consumption.
Another area where progress is being made is the use of shore power, which allows ships to connect to the electrical grid while docked and shut down their engines. All ships in the CLIA fleet will be equipped to connect to the electrical grid as soon as possible, and no later than 2035. We expect more and more ports to offer this solution.
This industry appears to have significant growth potential, judging by global cruise passenger figures compared to other forms of travel. How and by how much will this growth occur? Which groups or age ranges remain a target market?
Before the pandemic, the industry had experienced years of steady growth; growth that was partly driven by increased supply and peaked in 2019, setting a record with nearly 30 million passengers, as mentioned earlier. Now, after the standstill caused by the health crisis, we are in the midst of a recovery process: while almost 100% of the fleet is back in service—a considerable milestone—passenger numbers continue to rise. Following on from the previous discussion, we expect to surpass the 2019 passenger volume by 12% in 2026.
The industry has significant potential for sustainable growth for several reasons. Firstly, despite the growth already experienced, the penetration rate is not uniform, remaining low in many countries—a prime opportunity. Secondly, we have observed strong interest in this vacation option among Millennials and Generation X, coupled with emerging trends such as the rise of remote work.
What are the impacts of the war in Ukraine, fuel shortages, and inflation?
The conflict is a tragedy, and our thoughts are with all those affected. Our partners continue to support the affected crew members.
Regarding our activities, they have indeed been altered by the closure of some destinations and itineraries have changed, but we have adapted our operations thanks to the resilience and flexibility of the industry.
