ECONOMICS OF BOAT, FERRY AND CRUISE INDUSTRIES
6 credits during the nd year of 8698 Maritime, Logistics and Transport Economics and Business (L-18) GENOVA
The course focuses on the main current issues in passenger shipping, namely in the three sectors in which it is presently significant: ferries, boat industry and cruises. For each sector the fundamentals of demand function, production cost, market structure and competition are analysed, as well as macroeconomic issues such as contribution to GDP and to export, employment, induced effects, and policy issues such as tax policies and incentives.
The course is intended to provide an in-depth information and analysis on the economics of the three relevant sector of passenger shipping: ferries (transport), cruises (leisure, tourism), boating/yachting (leisure, tourism, sport).
The course also aims at providing the background to: business intelligence and management; research and forecasts; guidelines for policies and laws.
Lectures, guest speakers, workshops, short essays
The course focuses on the main current issues in passenger shipping, namely in the three sectors in which it is presently significant: cruises, boat/yacht industry and ferries. For each sector, the fundamentals of demand function, production costs, market structure and competition are analysed, as well as some macroeconomic issues such as contribution to GDP and to export, employment, induced/multiplier effects, local impact, environmental impact and related issues, as well as policy issues such as tax policies, incentives, and market regulations.
Part I: Introduction and methodology - An overview on maritime passenger transport: historical background and present organisation. Ferries, boating/yachting, cruises: their role in the transport industry and their links with tourism and other industries. Guidelines for sector analysis: (a) Microeconomics: the demand analysis, production function and costs, structure of the market and strategies of the players; (b) Macroeconomics: expenditure, added value, employment, contribution to GDP and to export; input-output links, direct and induced impact, multiplier effects; (c) Economic policy: market regulation, fiscal policies (taxes and incentives), public investment and expenditure, land use and infrastructure planning, environmental protection.
Part II: The economics of cruises - The demand: motivations to cruising, elements influencing the demand (price, income, social effects), competitors, direct and cross elasticity. The growth of the demand over time. The supply: the production function, fixed and variable costs, investment and competition strategies. The market: an oligopolistic market: the big world players and the different forms of competition. The growing macroeconomic importance of cruises in national economies and in related sectors (tourism, shipyards): geographical and economic links. Policies: why, when and how to promote the cruise industry. Fiscal and labour policies. Cruises and the environment, the Concordia case and the “Venice dilemma”.
Part III: The economics of boating and yachting - The final demand and the “self-production”. The demand for inputs: vessels, accessories, motors, rent services, leasing and financial services, insurance, bunker, crew, mooring and storage. The supply side: the economics of shipyards, building, maintenance and repair, refitting: production costs, competition strategies. The related sectors of marinas and boat/yacht renting. Markets, market trends, players. The “big crisis” of 2008-2014. Moving towards the recovery. Macroeconomic issues: contribution to GDP and export. An Italian excellence. Direct and induced employment. Impact of the related industries and links with the nautical tourism. Policy issues: how regulations can affect the success of the sector. The consequences of fiscal policies (property tax). Leasing and other regulations. Guidelines for future policies.
Part IV: The ferry-boat industry - Types of ferries, passenger and mixed transport, geographical distribution. The demand: function, factors influencing, direct price and income elasticity. Substitutes, inter-mode competition and cross elasticity. Production and supply. The structure of costs: fixed and variable, long and short run. Investment and market/growth/competition strategies. Macroeconomic issues: contribution to GDP and employment, external and environmental effects of modal switch to ferries. Policies: external vs. direct benefits/costs in the inter-mode competition. When and why public subsidies to ferries are useful. Promoting competition vs. the abuses of fiscal policies and vs. private oligopolies/monopolies. Investment and public expenditure in the industry and in infrastructure (ferry/port terminals and land infrastructure).
They will be specified during the course and on Aulaweb
Ricevimento: Every Wednesday 11:00-12:30 at CIELI (building of the dept of Economics, II floor, in front of the elevator). In all other days/hour students can be received on appointment: please address to email@example.com
ENRICO MUSSO (President)
Lectures, guest speakers, workshops, short essays
February 2019 (second semester)
L'orario di tutti gli insegnamenti è consultabile su EasyAcademy.
Written exams plus (optional) oral exams and/or essays. The exam consists of:
- a mandatory part, made of 2 tests, one 1,000-words short essay or workshop, 6 to 8 250-words summaries of guest lectures.
- an optional part, to be chosen between: a traditional oral examination (up to -/+ 5 points) or a (group-)workshop or seminar or oral presentation (with slides) on relevant topics.
(Mandatory) written exams plus (optional) oral exams and/or essays.
The mark of the mandatory part will be the sum of three parts – each from 1 to 10 points: (a) the average of the marks of 2 written tests run for each section; (b) the evaluation of either a team work within a workshop on cruises or a short essay of 1,000 words on a given topic; (c) the average evaluation of 250 words summaries of at least 75% of the guest lectures and of the conference (attending is mandatory). The optional part (oral examination or written essay) will grant up to (-/+) 5 points.
Textbook and other reccomended resources: They will be specified during the course and on Aulaweb