Cruise industry warns South America: itinerary costs are three times higher than in the Mediterranean
Representatives from the cruise industry have cautioned Uruguay that port operational costs in South America could have a negative impact on what has been a steady increase of business in the last few seasons and this impact could be felt as soon as next year despite the fact that the 2012/2013 season on the Atlantic is proving to be quite successful despite an uncertain start. “Itineraries’ costs in South America are three times those of the Mediterranean”.
“South America has become too expensive, it’s a fact we must face. Overall this year there were less vessels calling in South America and Montevideo and Punta del Este did not feel the contraction because the northeast of Brazil compensated. But next season there will be even less vessels and less calls and I’m sorry to say that some of the vessels from this year won’t be calling in Uruguay next year”, said Roberto Fusaro, head for South America of Mediterranean Shipping Company, MSC, one of the main operators in South America with South American clients.
Fusaro speaking with the media in Punta del Este said that MSC believes in the region in the long term and expects this moment to be overcome because “understanding it is a matter of costs and is quite simple. Operational costs in South American ports are far too expensive and I don’t mean fuel which has an international price. It’s not so much Uruguay, which also has its problems, but mainly Santos, Rio do Janeiro and Buenos Aires, and the problem is cruise companies analyze the whole itinerary. No company is going to come to the region because one port has normal costs or is free. On balance South American itinerary costs are three times those of the Mediterranean”.
“Uruguay has some problems but it’s not our main problem: we want Uruguayan officials to understand that they must not lose the advantages they have because of the two neighbouring giants which most of the time have earflaps. We are trying to convince Uruguay to join other countries in doing the region more cost effective”, added Fusaro.
The MSC representative recalled the case of Chile where for several seasons cruise tourism was down significantly because of the port costs in Valparaiso, Puerto Montt, Punta Arenas. “Nowadays Chile is not so costly, they modified their rates. But now we have the case of Argentina, too costly and several vessels did not call”
Fusaro said that the cruise activity is planned two years in advance, and once a vessel changes itinerary it’s very difficult to return on the short term. “In our case if one of our vessels heads for South Africa, my colleague in that region won’t want to let it go. Nevertheless MSC supports South America but it is a tough battle”.
More specifically on the current season Fusaro said that despite the negative forecasts mainly because of the measures implemented by Argentina, the ‘dollar clamp’ and to a certain extent Brazil at the beginning, “but we will be closing this season clearly ahead of expectations, both commercially (fully booked) and with very positive comments from our passengers”.
“We also gambled: we moved to the South Atlantic our largest vessels so our beds’ capacity actually was up 40% to 13.800. Last season between the four vessels we had just over 10.000 beds. And with more capacity we planned a shorter season and have finished growing 25%”, pointed out Fusaro.
Among the improvements were precisely some of the more modern vessels, for example MSC Magnifica is new and has excellent facilities and entertainments for the whole family plus something simple as 20 hour buffet.
As to the profile of cruise passengers, “half of them are families with children, from toddlers to teenagers and we have entertainments for all ages. They make friends and parents can relax knowing their children are in an environment where they don’t run risks”.
“MSC Magnifica targets the Brazilian market and operates from Santos, every Sunday. It calls at Montevideo, Buenos Aires, Punta del Este and back to Brazil. Two other vessels also take off from Santos and Rio do Janeiro to the northeast and there is a fourth cruise from Buenos Aires for Argentine and Uruguayan passengers calling at Rio do Janeiro, Angra dos Reis and Buzios.
According to Uruguay’s Ministry of Tourism during the 2011/2012 season 225 cruise vessels called in Montevideo (53%) and Punta del Este (47%) with an overall input of over 21 million dollars. For this year the estimate is that the number of passengers will increase by 7% (over 350.000) but overall income will be down to 20 million dollars.
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36 comments Feed
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“Of course too costly, but that's because Europeans have completely collapsed in standard of living.”
You're very quick to blame an EU “apocalypse” for these needs to reduce port fees.
It is not the European clientele that MSC is focusing on, at all. They target Brazil for sales.
“MSC, one of the main operators in South America with South American clients”
Obviously, from what they have said, cruise sales to South Americans have been affected already by high port fees. Passengers are up, but earnings are down for the Cruise Lines.
Passing on the high port costs to clients will make it less affordable to South Americans and affect sales.
Chile, unlike Argentina and Brazil has reduced theirs to allow the companies a better margin.
MSC is asking Uruguay to reduce their fees too, but makes a point of saying that they are not the main culprit.
Buenos Aires IS singled out and MSC makes it clear in this article that fuel costs are not higher, just other port services.
Charging 3x what Mediterranean ports charge has got to be price-gouging, even with Europe in recession.
MSC has been very candid. It will move its assets where it is more profitable to operate, and if they have to, their new commitments will not allow them to return any time soon.
Argentina has already driven away much of the premium European and North American traffic with their intimidation tactics.
Are they now going to price themselves out of the industry, altogether??
Actually we didn't hit a triple dip and actually for now we still have a triple A credit rating. I have my bottle of champagne ready for the collapse of your pathetic economy, won't be long now, tick-tock, tick-tock!
They ought to get put more... You feel you ought to feel sorry for them, but you can't
Of course, living in Europe you would know that !
Of course cruises in S.A, are more expensive for Europeans. They have to travel 5000 miles to get on a boat plus take 3 more days vacation to cover this time. Cruising the Med. is a better option for those who want to enjoy a sail and enjoy the onboard facilities. Distances between ports are not far and historical and cultural sites are better than S.A.
Third hand information varies in reliability. Some people are careful to use first hand information and cite sources, while the rest cling to second hand information or are completely full of crap like TELAM.
I know you weren't old enough to remember the 90s but this is just history repeating itself for your country. The high inflation makes your exports too expensive so the sales drop, You are seeing it in every export.
I have been waiting for farmers to chime in, selling products for U$ and getting 50% of the value back in Pesos isn't going to cut it.
But oh my this will be fun to watch!
its happening already
www.cronista.com/economiapolitica/El-campo-amenaza-con-no-vender-soja-y-el-Gobierno-reflota-idea-de-Junta-Nacional-de-Granos-20130218-0052.html
If the farmers can hold out through winter and deny CFK the tax revenue the will not be enough U$ to buy fuel.
4 months of no U$ flow should be enough time to make the gov't fall.
I am sure they know this.
The gov't is scared, they are cornered watch for them to start growling and biting
You'll hear,
THE SOY IS THE PEOPLE'S of ARGENTINA
THE RICH FARMERS ARE MAKING THE PEOPLE FREEZE
THE GREEDY FARMERS ARE KILLING OTHER BUSINESSES
THE OLIGARCHS ARE PLANNING A COUP
on and on
watch for the signs and graffiti in BA
it is all about to start
Good timing with the other unions planning on national strikes at the same time
Looks to me like the peasants are revolting
shouldn't be long now
How can you possibly compare cruising in a puddle with Europeans to the opportunities in SA?
The real point is of course the stupidity of AR. They are at the end of a long leg and ships may not bother expending fuel oil for the risk of state sanctioned threats and possible injury to their customers in AR ports.
Cruise operators have been complaining about the costs of calling to Punta and MVD for some time now and I would much rather the subsidies which Pepe and his wife introduced SOLELY for the argies (I am sure all Uruguayos recall her bleating in AR) who have houses etc. here be used to attract cruise ships. The passenger revenue in the shopping centres must be way above what the argies contribute due to the concessions on IVA and all the other giveaways that the local people cannot benefit from.
It will only take one or two visits to South Africa and the endemic risk of robbery in Cape Town or, worse still Lagos Nigeria, and the cruise ships will be back pronto.
Pepe needs to listen to this guy about Uruguay and act accordingly.
news.yahoo.com/thanks-lincoln-mississippi-finally-definitely-ratified-thirteenth-amendment-024920825.html
Welcome to the early 19th century, USA!!
Better get your posting done while you still can.
I hear they are expecting high temps and rain today it's a terrible combination for the Rg posters.
Ah, good morning miss “I am proud to show every morning I didn't finish 6th grade logic class”.
So if Formosa province has some law where crimes against indians by white men are always “self-defense” regardless of circumstance, you anti-argies would make it clear that this is not “ARGENTINA” but just an isolated backwards province???
I thought so, you would all say, and HAVE said, it's Argentina.
So once again, your hypocrisy machine is on “spin mode”.
Tell me, why does hypocrisy form such an essential part of your culture?
as I was saying, the United States has abolished slavery today, 2013. Congrats.
All I get is spam asking me for “investment” money.
Funny the difference huh?
Those spammers are so clever.
TTT, you are forever telling us that Mendoza is better than any other Province in Argentina. It cannot be THAT difficult for you to understand the difference between individual States and the United States.
The majority of people from the USA will agree there are some redneck, shit-kickers there, just as there are a minority of racist morons in the UK. The difference is we don't defend them, whereas you would defend any Argentine just because they are Argentine.
Are you beginning to understand the difference between being patriotic and being nationalistic?
There are probably some states that haven't ratified some of the other ones either. It really doesn't matter though no one cares.
@14 Didn't your “education” include “adding up”?
@16 “Formosa” isn't really argieland. It's stolen Paraguayan territory! Its acquisition by argieland dates from after the War of the Triple Alliance. Uruguay, Brazil and argieland against Paraguay. And still it took them 6 years. Well, we all know about lousy, cowardly argie “troops”. Greedy argieland tried to get the whole of Paraguay using a “secret” clause of the “Treaty of the Triple Alliance”. Blocked by Brazil, who wanted to be reasonable, and Britain. So argieland only got 1/3 of what it was after. Another “reason” for it to hate Britain and Paraguay! Argieland has so many “enemies”. Largely because others wouldn't allow it to do whatever it liked! Thought it could “take over” from Spain. And thus its arrogant, colonialist, imperialist attitudes! But even Spain couldn't beat Britain!
Why is it that when you talk about “Britain's greatness” is always in the past tense! bAhahahahah... have beens.
An interesting point. Could it not just be that they do not want to go anywhere near Argentina whose reputation for welcoming hospitality is sliding down the tubes ? Many Europeans would rather spend their money elsewhere
You blithely quote that only 0.0003% of your economy would be affected. I will accept your figures and in the great scheme of things this may be insignificant; however this means many of your countrymen's jobs and livings will have gone. When they have no income, explain to them that it does not matter.
Cruises to Alaska are very popular now with no risk to the passengers - apart from a few bears. More and more people are enjoying cruises to Norway and the Arctic circle visiting civilized countries en route. Cruises in the Pacific visiting the Polynesian islands and finishing in Australia or New Zealand or on the increase. There is an abundance of choice.
No European need to go to S.A. for a holiday cruise.
Toby starts by maliciouslyslagging Europe - but the story is about South Anerica and SA passengers.
Toby is kicked to the curb and shown to be 'misdirecting' or as journalists say, “lying”.
Mature debate ensues for a few posts
Seversl hours pass and Toby re-appears and tries to deflect the conversation with an artless OFF-TOPIC post about a non-event in the USA, accompanied by moral condemnation.
Toby is called out, and slinks away.
To conclude, the Fslklands are more aware of the importance of the Cruise Industry in SA, than Argentina. There is a risk of losing it to more profitable destinations, at least for a time.
Some ports like Chile and Uruguay may accomodate the Cruise lines. Others like Argentina will not. Already, Argie posters like 'Vestige' are referring to “threats against Argentina” and repercussions.
I don't need to leave Argentina to see anything different, fair enough. Europeans stay home then.
@25
The opinions of a biased hater of Argentina are irrelevant and duly discarded. You would not say anything good about Argentina even if Milton Friedman was dictator for life with 100% of the vote, everyone fawned at the fact you are American, and held hostage under threat of castration.
If your country was run by someone like Pinochet for a generation I am sure I would like it just fine.
It is pretty and after a generation free of corruption, the lazy people learned to work, the scofflaws learned to obey laws it would be a perfectly acceptable country.
Unfortunately you are stuck with what you have todayand the path your're on is turning you into Venezuela.
I hope you have your toilet paper, sugar and laundry detergent stocked up by now. I see there are lot of people lined up doing what I recommend before the April price controls are released. That should be a doozy of a month for the inflation figures. What do you think 5-10% I would guess.
That means the UK stopped being good on May 2nd, 1707... :(
I reluctantly have to concur with your statement....we became bloody brilliant !!!!!
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