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Cruise Industry Safety Background

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CLIA Information regarding Costa Concordia and Cruise Ship Safety

The Costa Concordia incident is a terrible tragedy and the cruise industry extends our most heartfelt condolences to all those affected. We want to respond to questions you have asked us about the safety record of the industry and the impact this incident may have on the industry and your business.

We would encourage you to use this information in your discussions with clients and prospects when and if the subject of cruise ship safety arises.

COMMITMENT TO SAFETY

The cruise industry is a heavily regulated industry and safety is our highest priority.
• All cruise ships must be designed and operated in compliance with the strict requirements of the International Maritime Organization, the UN agency that mandates global standards for the safety and operation of cruise ships through adoption of treaties, regulations and resolutions, codified in the Safety of Life at Sea (SOLAS) Convention.
• Safety-related regulations and requirements are rigorous – and ships often go substantially above and beyond what is required, for example carrying backup mechanical, navigational and safety provisions.
• Ships crews undertake extensive training, certification, drills and scenarios for emergency situations, including the evacuation of a ship.

The industry is committed to working on making cruise ships even more safe.
• In recent years, safety-related technology, processes and training have become more sophisticated and cruise ship safety is better than ever.
• As the industry has grown, the IMO, United States, European Union and other regulators have updated and enhanced the safety regime in numerous ways, including: improvements in navigation equipment, implementing shipboard safety management systems, enhancing life saving equipment, safe return to port standards; revised training and certifications standards; etc.
• The cruise industry consistently works with the International Maritime Organization, international maritime authorities, design and surveying experts, and shipbuilders to implement stringent safety standards and will continue to do so.

SAFETY RECORD

The cruise industry has an excellent safety record with an extremely low number of casualties.
• While even one death is one too many, between 2005-2010 cruise lines carried nearly 100 million passengers with a total 16 deaths related to marine casualties. That is less than 0.16 fatalities per million. 1) GP Wild (International) LTD http://www.gpwild.co.uk/
• The cruise line industry has heavily invested in technology, procedures, and in officer and crew training.

LESSONS LEARNED

• As more details become clear about the Costa Concordia incident, we will be closely examining whether any future regulatory changes would improve cruise ship safety.
• If it becomes clear that corrective measures are necessary, we will work as an industry with the appropriate governments and regulators to help ensure recommended measures are adopted.

BUSINESS IMPACT

• It is too early to predict the precise impact on the industry as a result of this incident.
• We do know that the cruise industry is resilient and will continue to make cruising a popular vacation choice for the North American traveler.

The cruise line industry is operating in full force.
• The cruise industry has seen steady growth in recent years. It is a global industry, a year-round industry, and member lines continue to welcome passengers onboard their ships and future bookings.

ADDITIONAL BACKGROUND

• On January 19, 2012, Carnival Corporation & plc issued a press release announcing a "Comprehensive Audit and Review of Safety and Emergency Response Across All Its Cruise Lines." A copy of the press release can be found at: [insert web link].
• All modern cruise ships are required by the Safety of Life at Sea (SOLAS) Convention to have an array of electronic navigational instruments that assist in properly navigating the vessel. Most cruise ships substantially exceed the regulatory requirements in this regard.
• The average CLIA ship, of approximately 97,000 gross tons carrying approximately 2700 passengers and 800 crew, typically has five firefighting teams whose main members have advanced shipboard firefighting training, 4,000 smoke detectors, 500 fire extinguishers, 16 miles of sprinkler piping, 5,000 sprinkler heads and 6 miles of fire hose.
• If the U.S. Coast Guard or other international authorities finds a cruise ship to be in violation of any required regulation or considers it unsafe in any way, the local coast guard, captain of the port or the local regulatory authority can prevent passenger boarding or departure until those deficiencies are corrected.

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