DTCM to expand Rashid terminal as cruise industry makes waves

Dubai: The Dubai Cruise Terminal at Port Rashid is all set for expansion to accommodate the expected growth of the cruise industry.

The Dubai Cruise Terminal was launched in 2001 and currently can handle three cruise ships and about 7,000 passengers at a time.

After the expansion, it will be able to handle five ships and about 8,000 passengers.

Last year, the terminal handled 390,000 passengers, a number that is expected to rise to 625,000 by 2015.

"Dubai is the ideal hub for cruise liners to do their operations mainly because of our strategic location," said Hamad M. Bin Mejren, executive director at the Department of Tourism and Commerce Marketing in Dubai.

"We have one of the best airports with a capacity of over 60 million passengers, we have over 130 airlines serving the airports with direct access to over 200 cities all over the world. The port is very convenient for cruise operations because it is located right in the city."

TUI Cruises, a joint venture between TUI and Royal Caribbean Cruises, recently became the fourth cruise line to offer services in the Gulf from Dubai. Starting November 2012, TUI Cruises will use Dubai as its home port and conduct cruises to Abu Dhabi, Muscat and Bahrain. It will be operating its Mein Schiff 2 (My Ship 2) vessel in the Gulf.

Preference

"In comparison to the rest of the Arabian Gulf, Dubai has the most experience in handling cruise ships, which is why we've chosen Dubai as a location," said Richard J. Vogel, CEO of TUI Cruises.

"It's a growing business for the Gulf and becoming more and more interesting as an alternative for the Caribbean cruiser takers."

In 2006, Costa Cruises was the first operator to market regular cruises in the Gulf. The cruises have proved popular and the company has more than tripled its passenger traffic in five years. Royal Caribbean International, which has been marketing its cruises in the country for 16 years, started calling at Dubai last year.

"Dubai is a very attractive destination in the world marketed well in international markets," said Lakshmi Durai, executive director of Royal Caribbean International.

"We've had a successful first season. Almost all our sailings have been going full. The second season has been far more successful and is already fully booked." Worldwide, the cruise industry serves ten million cruise passengers a year with a fleet of about 300 ships generating over $14 billion (Dh51.38 billion).

The average expenditure per passenger per day is $150 to $250 which includes shore excursions and souvenirs," said Vogel.

"With 2,000 people on each cruise ship, it's a very good business for the local economy."

Costa Cruises generated an estimated €14 million during the 2009-10 season, derived from onboard spending by Costa's guests, shore excursions, port fees and expenditure on beverage.

Challenges

"Cruise tourists are becoming an increasingly important part of Dubai's tourism industry. At DTCM we look forward to a period of tremendous growth in cruise tourism," said Bin Mejren.

One challenge faced by the fledgling industry is the lack of facilities at local ports. Ports such as Fujairah are built to cater solely to cargo ships and do not have the facilities to accommodate cruise vessels carrying an average of 2,000 people.

"The main challenge is that most of the ports are not 100 per cent focused on cruise ships," said Vogel. "We don't have cruise port facilities as developed as the ones in the Caribbean or the Mediterranean. This is something which will be developed in the next years or so."

Because of this, there is a limit to the number of ports which cruise ships can call at. "Most of the cruise lines follow the same route," said Durai.

"It would be good if we were able to offer a greater variety of routes. "Our new itinerary offers stops in India. Because of the variety, the response has been great."

Another challenge facing the UAE cruise industry is that of entry visas. Cruise ship passengers currently must obtain a visa for each UAE port they land in. Tourists also must acquire three separate visas at a cost of $240 (Dh881) a person.

"The visa issue is being discussed and certain actions need to be taken — I don't have a date as to when it will happen, but it should be happening soon," said Saleh Mohammad Al Geziry, director of overseas promotions at the Department of Tourism and Commerce Marketing.

Soaring market