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Costa Cruises to Close 2012 With 13% Increase in Passengers

Costa Cruises expects to close 2012 with a 13% increase in passenger volume in a year "very difficult and complex" for this cruise company. Costa Cruises believes the Concordia shipwreck, which crashed in January with 4,200 passengers on board the Italian coast, has highlighted the "strength" of the brand of the shipping company, which after seeing its sales fell 60% in the first two weeks, two months later began to recover.

"After the accident and in the weeks following the Costa image was damaged, with an impact of almost 60% of our sales and sales across the sector as a whole," says the CEO of Costa in Spain Portugal, Bernard Echevarria, however we ensure that the company closed 2012 with an increase in passenger volumes by 13%.

"Revenues will also grow, but less, because prices are down", said Bernard Echevarria.

According to the director, the decline in the number of cruise passengers in Spanish ports responds to the "important" existing consumer crisis, affecting the demand.

Add to that the prices in the domestic market that have fallen between 20% and 25% in 2012, which results in lower revenues and margins for carriers and tour operators in the distribution. "In times of crisis we must resort to crisis and prices have to win less," he admitted.

Since the beginning of the crisis, cruise fares have been cut and in the last two years this trend has increased, with a fall of 25% in the case of Costa Cruises. In the domestic market, and Iberocruceros Costa, Carnival group ownership, have a share of 40%.

The increases in VAT, rates and taxes "do not help," said Echevarria, who recalls that the uncertainty about the economic and financial situation makes "consumer instinct when going on holiday will suffer."

On the Catalan tourist rate, the manager was pleased with the decision "smart" Generalitat to apply only to passengers who stay overnight. According to his calculations, the single application of the 10% tax on cruise traffic had completely nullified its effect, as carriers opt for other alternative ports.