The development of Dubrovnik as a cruise destination.

Krzelj-Colovic, Zorica ; Brautovic, Helena

Abstract: Cruises are one of the most perspective types of tourism in the world. An average rate of growth since the eighties until now has been 8, 26%. The biggest market, as far as the cruise passenger and ship transport is concerned, is the Caribbean, followed by the Mediterranean market. These two markets greatly vary. Entertainment is one of the most prominent characteristics of the Caribbean market, while history and culture are the characteristic features of the Mediterranean market. Dubrovnik became an unavoidable cruise port of call already at the end of the last century. The aim of this paper is to research the possibilities of the development of Dubrovnik as a cruise destination.

Key words: cruises, Croatian market, Dubrovnik, development.

1. INTRODUCTION

Mediterranean market is the second cruise industry market in the world considering the traffic of cruise passengers and ships, within which Croatian cruise industry market has found its place. Cruising along the Croatian coast has become one of the main tourist demand segments in the last several years. Croatia is very much attractive to the cruise passengers because of its natural beauties, historical and cultural heritage. Apart from Dubrovnik, which has become the main cruise destination in Croatia, there are also several significant cruise destinations in Croatia such as Korcula, Zadar and Split. Korcula is the second biggest cruise destination along the Croatian coast concerning the cruise ships and passengers traffic. Beside mentioned cruise destinations in Croatia, there are also few minor cruise destinations along the Croatian coast, such as Pula, Rijeka, Sibenik and Trogir. The fact that there are many cruise ports along the Croatian side of the Adriatic Sea, the possibility of developing a new, Adriatic cruise industry market is huge. Smaller ports within this market that do not have capacity to accommodate big cruise ships should berth smaller ships like sailing ships, up to several hundreds of passengers.

Dubrovnik has been in the cruise industry market for already many years. The biggest share of total cruise ship and passenger traffic is realized in Dubrovnik. The end of the last century meant the beginning of accelerated development of Dubrovnik as a cruise destination. In other words, the number of cruise ships and passengers in the area has rapidly been increased.

Consequently, Dubrovnik has become the second cruise destination in the region; it comes a close second to Venice. Dubrovnik would greatly benefit in the economic sense if it started to develop as a cruise destination. In order for this to happen, building a new passenger terminal and reconstructing Port of Dubrovnik is a necessity.

2. SEA CRUISES IN CROATIA

The most dynamic segment of the tourist market worldwide is the development of sea cruises. After many years of stagnation, the interest for sea cruises started to arise in the eighties of the last century. Since then, the annual rate of growth has been 8, 26% (Breskovic & Novakovic 2002).

By definition, cruise implies transport of people by ships according to pre-established itinerary, temporary and spatially adapted to various activities: leisure and (or) entertainment activities, health services or professional congresses. Passengers on cruise ships have a huge advantage over other tourists because they can visit several destinations in just few days. This is a well know characteristic of the Mediterranean cruise industry market. Croatia belongs to the east Mediterranean cruise industry market. Considering the fact that the Croatian coast is very attractive for cruising, due to its well-indented coast, numerous islands, coastal towns and cities whose history and culture allure tourists, there is a possibility of developing additional market in this area, i.e. Adriatic cruise industry market. It would especially be interesting and attractive to the more demanding clientele on sailing ships because of the close vicinity of towns on the coast whose ports are already adequately equipped for their berth.

In Croatia, ships of all sizes, from motor sailers to big ships with 3000 and more passengers, cruise the Adriatic Sea. The largest most frequently visit Dubrovnik only, while others visit several Croatian destinations during one cruise. According to the Central Bureau of Statistics, there were nine destinations along the coast and on the islands in the first nine months of 2006 (CBS 2006). The highest traffic, measured by the number of cruise ships and passengers, is realized in Dubrovnik (68% of total stops and about 80% of total number of passengers). Dubrovnik, together with Korcula, Split and Zadar realizes about 84% of total stops, and about 98% of total number of passengers (TOMAS 2006). Cruise passengers visiting Croatian coast are mostly from Italy, USA and Spain. In the last several years, the traffic of cruise ships and passengers has recorded a significant increase.

The development of sea cruises in Croatia is of a major importance for local economy. The earnings usually come from two different sources: cruise passengers spend money in a destination they visit and ships must pay different types of fees and taxes. The only problem is that not all Croatian destinations have equal opportunities for the development of cruise tourism, regardless the fact that some had already invested a substantial sum of money in the reconstruction of ports, for the needs of cruise passengers and cruise ships.

Current situation of the Croatian ports in which cruisers ashore shows that only Dubrovnik is capable to receive and accommodate large ships, regardless to its many flaws. Other ports are predisposed and equipped for merchant ships.

3. THE DEVELOPMENT OF DUBROVNIK AS A CRUISE DESTINATION

Cruise ships visit destinations whose ports are equipped for their berth. One of them is Port of Dubrovnik. Dubrovnik, as a cruise destination, has numerous possibilities to accommodate cruise ships.

One of them is the possibility to anchor ships in front of the old City Port, a well known sight and a major attraction for all tourists visiting Dubrovnik. On the average, almost half of the cruise ships visiting Dubrovnik anchor in front of the old City Port. Other half is berthed in Port of Dubrovnik. If there are no more available berths in Port of Dubrovnik, then the ships are anchored in front of it. This is the reason why only the largest cruise ships visit Dubrovnik.

It can be said that the sea cruises have marked the development of tourism in Dubrovnik. The first cruise passengers, who visited Dubrovnik in the first half of the 19th century, were passengers on steamboats. The beginning of the new millennium was characterized by the new and different approach to the development of cruising in the Dubrovnik area. The number of holiday-makers has constantly been growing since the beginning of the new millennium. For example, 205.100 holiday-makers visited Dubrovnik in 2001, and two years later there were 395.342 holiday-makers in Dubrovnik. The following year, 2004, Dubrovnik records 457.334 holiday-makers, which is again an increase if compared to the previous year. In 2005, Dubrovnik records, for the first time, the traffic of more than half a million passengers, or to be more exact, there were 510.641 holiday-makers. In 2006, there were 601.232 holiday-makers visiting Dubrovnik on cruise ships (Port Authority of Dubrovnik 2007).

On the average, out of total number of cruise passengers Dubrovnik is visited by 40% of them. The task that some travel agencies have set to themselves, and it is closely connected with the number of holiday-makers is to increase the average number of disembarkation per ship to up to 50%. However, there are some exceptions to the rule, like "Blue Star "ship (Pullmantur cruises). On the average 70% of the passengers disembark this ship in order to visit Dubrovnik (Travel agency Rea 2006).

Holiday-makers visiting Dubrovnik mostly come from the EU countries. The most numerous are Spanish and Italians, but the increased number of American holiday-makers has been recorded.

According to the research which was conducted in summer 2005, and which included 250 holiday-makers, 82% of them were middle aged Spanish people, i.e. in the age between 40 and 61.

The majority of holiday-makers belong to the category of consumers with a medium range purchasing power, as 84, 13% of them have net monthly incomes between 4000 [euro] and 5000 [euro] per household. According to this research, an average consumption per holiday-maker was 25 [euro], 01. Two thirds of the holiday-makers spent their money on the purchase of souvenirs and presents, and 27% of them spent money on buying clothes or footwear. Only 12% spent money in restaurants.

Dubrovnik economy depends on income from tourism. The cruise season in Dubrovnik is longer than the residential tourism season; therefore higher incomes from the cruise tourism would be expected.

Incomes from cruise ships berthing in Port of Dubrovnik are divided into two segments:

* port charges

* tourist services.

Port charges include: transit passage fee, wharfage, agency fee, pilot dues and other different types of fees and charges (garbage collection charge, water and light dues etc).

The amount depends on the size of the ship. Tourist services most often include excursions, and the income goes to travel agencies. The average price of an excursion per holiday-maker is 12 [euro]. In 2004, 504 ships berthed in Dubrovnik. Taking into consideration the average price of the tax that the ships have to pay, it is estimated that the income in 2004 was 2.732.842 [euro] or 5.422,31 [euro] per cruise ship. In addition to this, if 457.334 holiday-makers visited Dubrovnik, and if an average price of an excursion was 12 [euro], than the income from the excursions was 5.488.008 [euro], which means that the total income in 2004 was 8.220.850 [euro]. The same method can be applied for the incomes in 2005. The increase of cruise passenger and ship traffic meant the increase of income as well. Considering the fact that 553 cruise ships berthed in Port of Dubrovnik in 2005, and the fact that there were 510.641 holiday-makers in the same year, estimated incomes from the cruise ships were 9.143.643 [euro]. Income from the excursions amounted to 6.127.692 [euro].

4. CONCLUSION

Sea cruise is one of the most prominent types of tourism in Dubrovnik. It has helped in prolonging the tourist season in the last several years. Every year, the traffic of cruise ships and passenger increases, this gives Dubrovnik a great perspective to develop in this segment of tourism in the Mediterranean cruise industry market. Dubrovnik is the most developed cruise destination in Croatia. It is also a destination visited by large cruise ships, as other ports along the Croatian side of the Adriatic coast are not equipped to accommodate and berth them. But there are great possibilities in developing cruise tourism for sailing boats for other ports. On such smaller boats, the clientele is usually more demanding, but at the same time they are better consumers compared to the holiday-makers on large cruise ships. The development of the sea cruises is important for the economic growth of Dubrovnik, as the income from port fees and services and the cruise holiday-makers consumption is substantial. Huge problem is that almost half of the cruise ships anchor in the Lokrum channel, which means that the fees and taxes that cruise ships have to pay are drastically decreased. There are also some negative effects of this type of tourism on the Dubrovnik economy, for example when up to ten cruise ships are berthed in both of the ports of Dubrovnik simultaneously, and when the whole town is jammed due to the disembarkation of cruise holiday-makers. As a result, some other types of tourism in Dubrovnik suffer, as they become less attractive, and can be fatal for future development of certain types of tourism in Dubrovnik. Another problem that all cruise destinations have to face, including Dubrovnik, is the problem of pollution. Regardless the negative effects that Dubrovnik has to cope with, positive effects have a considerably greater influence. Dubrovnik has a great potential for further development as a cruise destination, which indicates an increased traffic of cruise ships and holiday-makers. Major breakthroughs should be made in the promotion of the destination in order to increase the number of holiday-makers from the current 40% to 50%. Such an increase will primarily influence the holiday-makers consumption, but also more quality and enhanced tourist offer of Dubrovnik. All important destinations in the Mediterranean cruise industry market have showed and proved that the future development is impossible unless the existing ports are reconstructed and cruise passenger terminals are built.

5. REFERENCES

Breskovic, J.Novakovic, R. (2002). Razvoj turisticke destinacije pod utjecajem kruzing turizma. Nase more (The development of the tourist destination under the cruising tourism influence, Our Sea) Vol. 49, No. 1-2, 62-69, ISSN 0469-6255

Republic of Croatia--Central Bureau of Statistics (2006). Kruzna putovanja stranih brodova u Republici Hrvatskoj, (Foreign ship cruises in the Republic of Croatia), First releases No. 4.4.9/5--3. November 2006., Republic of Croatia-Central Bureau of Statistics, Zagreb

Port Authority of Dubrovnik, 2007.

Travel and Tourist Agency Rea, 2006.

TOMAS (2006). Brodska kruzna putovanja- stavovi i potrosnja putnika i clanova posade na brodskim kruznim putovanjima u Hrvatskoj, (Ship cruises--attitudes, traveller and crew spending on ship cruises) Institute for Tourism, Zagreb.