AECO’s Strategy &
Action Plan 2014-2015
DRAFT by AECO’s Secretariat
September 2014
LIST OF CONTENT
Introduction to AECO ................................................................................................................................................................................................................. 3
Arctic expedition cruise tourism............................................................................................................................................................................................ 4
International development ...................................................................................................................................................................................................... 5
Arctic development ..................................................................................................................................................................................................................... 5
Development in Svalbard .......................................................................................................................................................................................................... 6
Development in Greenland....................................................................................................................................................................................................... 6
Development in Arctic Canada................................................................................................................................................................................................ 7
Development in Arctic Russia ................................................................................................................................................................................................. 7
AECO’s vision & mission ............................................................................................................................................................................................................ 8
AECO’s objectives ......................................................................................................................................................................................................................... 9
SWOT analysis ............................................................................................................................................................................................................................. 10
Strategy & action plan .............................................................................................................................................................................................................. 11
Strategy & Action Plan 2014-2015 DRAFT
Page 2
INTRODUCTION TO AECO
AECO – Association of Arctic Expedition Cruise Operators – is an international association for Arctic expedition cruise
operators and others with interests in this industry.
The association was established in 2003 by eight expedition cruise operators, for operators with itineraries in Svalbard. In
2006 AECO expanded its geographic range to include Jan Mayen (Norway) and Greenland. From late 2013 Arctic Canada and
the national park “Russian Arctic” (Franz Josef Land and northern Novaya Zemlya) also became part of AECO’s geographic
range. For members with operations in other Arctic areas AECO’s guidelines apply.
Per September 2014 AECO has more than 40 members, 25 of which are operating all together 30 vessels all over the Arctic.
AECO have two focus areas and guiding principles, i.e. to:
1. ensure sustainable1 expedition cruise tourism, and
2. advocate for the interests of the members.
Resources is particularly being used on developing and implementing guidelines as well as initiating projects, which supports
these overall areas.
The association is the only Arctic cruise industry association and organizes most of the operators within the expedition cruise
segment. During the years, AECO has become an important Arctic cruise tourism contact for governments and authorities as
well as researchers, and other industry associations and other stakeholders with interest in this area. AECO builds on
formalized as well as non-formalized co-operation, with a large amount of partners and projects.
1
Sustainability defined in regards to AECO’s vision of “responsible, environmentally friendly and safe Arctic cruise tourism”.
Strategy & Action Plan 2014-2015 DRAFT
Page 3
INTRODUCTION TO AECO (continued)
The Arctic is subject to a continuous increased interest from many sides such as interest groups, major industries and
researchers. In addition, governments are eager to take control of the development and have initiated a number of regulation
processes – on an international, national and local level. This has been and continues to be a challenge for an industry, which
depends on a predictable operational frame-work. One of AECO major tasks is to educate stakeholders and advocate for the
members’ interests.
Expedition cruise operations are not necessarily a very profitable activity - the industry therefore has a high focus on costs. It
is a continual challenge for AECO to prove the fact that we add value for members matching the membership fees paid. The
association therefore gives membership services and activities a high priority, as well as internal cost-efficient management.
To be able to carry out activities, AECO is depending on external funding. During the last 6-7 years, AECO has received
approximately 5 million NOK 5 (the equivalent of 800.000 USD) in external funding, some yeas as much as 50% of the working
budget. The economy of the association is however stretched and vulnerable.
AECO is administrated by an Executive director in Longyearbyen and since 2012 an Office manager in Copenhagen, both in full
time positions.
ARCTIC EXPEDITION CRUISE TOURISM
Tourism is developing in most Arctic countries. This is also the case for cruise tourism and expedition cruise tourism. Looking
back a couple of decades, the development has been significant in Svalbard and Greenland, while Canada and Russia still is in
the very beginning of a potential development.
Since the international financial crises in 2008, there has not been a major development in expedition cruise tourism to
Svalbard or Greenland. Recent developments may indicate growth in most Arctic regions, but several different issues will have
a major impact on the future development.
Strategy & Action Plan 2014-2015 DRAFT
Page 4
INTERNATIONAL DEVELOPMENT
Cruise tourism continues to grow worldwide, where a number of regions are experiencing growth. This also applies to areas
outside the traditionally most visited cruise destinations (Mediterranean, Caribbean), such as the Baltic Sea and the
Norwegian fjords. In the north there is a growing winter activity in regards to cruise and also peak seasons seems to grow in
both ends.
Conventional cruising is developing and attract broader market segments than ever. There are signs that some of these new
segments are now looking for new cruise products, such as smaller vessels and expedition cruises. The demand for expedition
cruise products in the Arctic may therefore also be growing in the years to come.
ARCTIC DEVELOPMENT
The International Maritime Organizations (IMO’s) Polar Code will most likely be finalized in 2014 and implemented over the
following years. This will involve major work and costs for the expedition cruise industry. For some, it might not be possible to
meet all the new requirements and they will be unable to operate in the Arctic. This may open opportunities to new operators
and/or vessels, given that there are operators who are interested in repositioning suitable vessels – or invest in rebuilding or
building new vessels.
The general interest for the Arctic is growing and states are taking steps to strengthen their position in the Arctic. The Arctic
Council is also developing and during the last few years, the Councils had agreed on two binding legal agreements, both
relevant for the Artic expedition cruise operators: the “Search and rescue agreement” and the “Oil spill response agreement”. It
is expected that the Arctic Council will continue to strengthen its position as a Pan-Arctic organization. AECO has a close
dialogue with different working groups under the Arctic Council – and are involved in several ongoing projects with these
working groups.
Strategy & Action Plan 2014-2015 DRAFT
Page 5
DEVELOPMENT IN SVALBARD
Svalbard has the highest number of visiting cruise guests and expedition cruise tourists in the Arctic. The archipelago is
considered easy accessible for tour operators as there is little bureaucracy and low costs connected to tour operations in the
areas.
A demand for pilots or pilot exemption certificates, applied to expedition cruise vessels from 2015, is however expected to
have minor negative effect on industry. For new operators and mariners without experience in the Svalbard, this may involve
challenges.
From 2015 there will be a Heavy Fuel Oil (HFO) prohibition in most areas in Svalbard. As most AECO-members run on MGO
(fuel much lighter than HFO) in Svalbard, this is expected to have minor impact on today’s operators. This may involve that
several of the conventional cruise vessel may not be sailing to Svalbard in the near future. It is difficult to predict if this can
lead to a higher demand for expedition cruise products. New local regulations may involve closure of some areas in the future,
but larger changes are not expected in the next few years to come.
DEVELOPMENT IN GREENLAND
Greenland has the second largest number of visitors in the High Arctic. In addition, Greenland is considered to be a fairly easily
accessible cruise destination with a manageable bureaucracy and not too high costs connected with operations. From time to
time, there have been challenges in regard to Greenlandic authorities using a very long time to respond in connection with
notifications and applications. This has been due to limited capacity within the administration.
New maritime regulations can be expected in Greenland in the years to come. The regulations will involve changes for all
passenger vessels carrying more than 250 persons, which in the future will only be able to sail in limited areas of Greenland,
need to carry a pilot and have to meet several other demands related to ice classification, competency and training
requirements, safety management systems, contingency plans etc. The regulations, or parts of the regulations, may later be
made applicable to vessels carrying less than 250 passengers.
Strategy & Action Plan 2014-2015 DRAFT
Page 6
DEVELOPMENT IN ARCTIC CANADA
The number of cruise tourist visiting the northern parts of Canada are still very limited. In the period from 2010 to 2014 the
number is between 1.000 and 2.000 passengers every year. The main reason for these low numbers is most likely the very
high level of bureaucracy and costs connected to getting permissions to carry out operations in Canada. Altogether, there are
more than 50 different permitting requirements in Arctic Canada, with more than 30 different permitting offices. Some of the
permits has to be translated to the local Inuit language. The total costs before operations can begin may therefore easily
exceed the potential profits by taking paying passengers to the Canadian Arctic.
DEVELOPMENT IN ARCTIC RUSSIA
Only very few cruise tourists visit the Russian Arctic each year. Until now the total number of visiting guests has been less than
1.000 people annually. The Russian Arctic has a lot of future potential. If Russian authorities permit cruise vessels to sail
directly from Svalbard to Franz Josef Land the many sea days that operators are currently using going down to mainland
Russia will be eliminated. This together with a more flexible permitting process will save tremendous additional costs for the
operators and such create the potential for a large increase of guests in the Russian Arctic.
Strategy & Action Plan 2014-2015 DRAFT
Page 7
AECO’S VISION & MISSION2
AECO’s vision is responsible, environmentally friendly and safe Arctic cruise tourism.
AECO’s mission is that expedition cruises and tourism in the Arctic is carried out with the utmost consideration for the
vulnerable, natural environment, local cultures and cultural remains, as well as the challenging safety hazards at sea and on
land.
Focus areas and guiding principles
1. Ensure sustainable expedition cruise tourism, and
2. Advocate for the interests of the members.
AECO’s strategic planning is based on a slightly modified version of “VMOSA” (Vision, Mission, Objectives, Strategies and Action Plans) as it can be seen
at the online community tool box developed by the University of Kansas, see: http://ctb.ku.edu/en/table-of-contents/structure/strategicplanning/vmosa/main.
AECO’s vision is ‘our dream’ or idea about ‘what success will look like’. AECO’s mission is what we want to achieve. AECO’s objectives are how we want
to accomplish vision and mission. AECO’s strategy & action plan contains a number of specific strategies and actions to reach the goals derived from
the above. Time, work and cost estimates is a natural part of AECO’s strategies & actions.
2
Strategy & Action Plan 2014-2015 DRAFT
Page 8
AECO’S OBJECTIVES
1. Attractive industry association
To be recognized as an attractive industry association for Arctic Cruise operators and others related to the industry.
2. Industry representation
To be recognized as the primary organization representing the concerns and views of the expedition cruise companies
operating in the Arctic.
3. Incorporation of best practice guidelines
To agree upon and encourage the incorporation of specific standards and guidelines of operating expedition cruises in the
Arctic.
4. Encourage high level of knowledge & experience
To encourage the use of the highest qualified guides and staff knowledgeable about and experienced with the Arctic, it’s
environment; natural & human history, flora & fauna and contemporary local cultures.
5. Coordination among operators
To stimulate and encourage coordination among expedition cruise operators offering voyages to the Arctic
6. Single point of contact
To serve as a contact and advisory group to government ministries and agencies responsible for managing and regulating
the lands, surrounding marine waters, and human activities in the Arctic.
7. Interact with NGO’s
To interact with and maintain an open dialogue with non-governmental organizations interested in the Arctic.
8. Educate individuals and stakeholders
To educate interested individuals and stakeholders about expedition cruise tourism in the Arctic.
Strategy & Action Plan 2014-2015 DRAFT
Page 9
SWOT ANALYSIS
In order to establish a base for AECO’s strategic planning an analysis of Strengths, Weaknesses, Opportunities and Threats (SWOT) has been carried out.

























S – STRENGTHS
Majority of Arctic operators are AECO members
Good and efficient communication with members
High level of satisfaction among members
Large competence on Arctic tourism and Arctic regions among members
High credibility
Large network and many “friends”
Recognized, respected and attractive project partner in regard to scientific
research and project funding - in general
Good dialogue with other industry associations
Good contact and dialogue with governments and authorities
Own valuable databases and systems
Own valuable guidelines
Highly competent working committees consisting of actively participating
member representatives
Small, competent and resource-optimized secretariat
Positive press coverage
O – OPPORTUNITIES
Attract new members
Continue to develop in different geographic areas, especially new areas
Project funding
Consolidate and further develop position
Further develop and strengthen dialogue with authorities
Media strategy and planning
Attention to important tools/systems (cruise database, vessel tracking, siteguidelines etc.)
Becoming reference for best practice, e.g. on landings
Being the voice for all of the Arctic cruise operators
Improve data/statistics about the economic and environmental impact of
expedition cruise tourism
Maximize ability to react quickly to evolving issues by putting practical measures
in place where needed.
Strategy & Action Plan 2014-2015 DRAFT



























W – WEAKNESSES
Stretched economy/working capital
Small secretariat – limited resources
Vulnerable secretariat in case of illness or the like
Many day to day tasks limits the secretariats capacity to do work in regard to the
organizations overall strategy
No professional internal back up on systems like accounting, invoices, IT, etc.
Financial unpredictability/risks connected to income from membership fees
Members can leave on short notice – high economic risk
Only a few active members involve in day to day work
Over reliance on a few key volunteers within committees and working groups.
Arctic operators who are not members
Free riders
Diversity among members/different needs
No third party audit of compliance with guidelines
T - THREATS
Terminations of memberships
Reactive, impractical or unjustifiable regulations.
Inconsistent and varied tourism policies and requirements
Negative focus on Arctic expedition cruise tourism
Regulations and regulations processes, including the Polar Code
Ice/weather influencing on operations
World economy
Accidents – especially a single mass casualty incident.
Bankruptcies
Potential damage from activities of non-AECO operators or AECO operators not
adhering to guidelines or by-laws
Governments choosing other standards for operators
Liability and the Possibility of Litigation
Unmanaged, uncontrolled growth potentially compromising AECO’s vision and mission.
Not required to be AECO-member to operate in the Arctic
Page 10
STRATEGY & ACTION PLAN
The below Strategy & Action Plan is a tool to operationalize a number of specific actions to reach strategies and goals derived
from the above vision, mission and objectives. All time, work and cost entries are estimates.
Objectives
1. Attractive industry association
Strategies
Actions
Aim at good service to all members
Respond within a couple of days
2014-2015
Help when possible
Continue to work for full
organization of all relevant Arctic
cruise operators
Ensure good communication and
information
Continue to develop resources and
tools and increased information of
different Arctic areas
Proactive initiatives towards
potentially new members
Newsletters 3-4 times a year
Email updates
Facebook updates
Twitter updates
Newsfeeds
Continue to develop www.aeco.no as
platform for communication
Strategy & Action Plan 2014-2015 DRAFT
Page 11
Objectives
1. Attractive industry association
Strategies
Actions
2014-2015
Provide tools and services
Continue to develop the Cruise
database
Improvements/changes based on
experiences from 2013-2014
Maintain the vessel tracking system
Introduce crowd sourcing in
cooperation with IAATO
Implement the crowd sourcing plans
with IAATO
Provide PowerPoint presentations
Provide contact lists
Offer training/meetings
Ensure involvement
Aim at organizing an EL-conference
every 2-3 years
Work with IAATO on a potential joint
event
Special theme meetings/workshops
Offer a Polar Code workshop in
cooperation with IAATO
Organize an open Arctic Cruise
Conference and a closed AECOmeeting for members every year
Encourage members to do work in
AECO’s various committees
October 2015
Ask members for advise
Solidify economy
Actively work on external project
funding
Apply for funding of
Site guidelines Greenland
Clean up Svalbard
Fauna reg. Svalbard
EL-conference
New guidelines?
Aim at one operation year’s equity
Strengthen the secretariat and
minimize vulnerability
Strategy & Action Plan 2014-2015 DRAFT
Hire help for routine work, economywork and building up systems
Step by step and within limits of
budgets
Page 12
Objectives
2. Industry representation
Strategies
Actions
2014-2015
Keep an open dialogue with
authorities
Engage in regulation and management
processes.
Continue cooperation with Arctic
Command.
Keep an open dialogue with the
research community
Cooperate when valuable
Topical
Topical
-
Keep a door open on partnership
with Arctic cruise tourism
stakeholders
Be open towards project partnership
with:
Hydrographic initiatives
Meteorological initiatives
Satellite based
communication initiatives
Biodiversity, flora and fauna
initiatives
Environmental initiatives
Arctic Council initiatives
Visit Greenland initiatives
Visit Svalbard initiatives
Etc.
All the above within the limits of
AECO’s capacity and budget
Be present at relevant conferences,
meetings and events
Meet with stakeholders
Visit different Arctic areas and meet with
stakeholders, as far as capacity and
budget allows
Strategy & Action Plan 2014-2015 DRAFT
Shipping reg. Greenland
Pilotage Svalbard
Management plan Svalbard
Tourism strategies Canada
Arctic council PAME efforts
Site guidelines Canada
Various EU projects
Fauna observations
Dialogue with CINA re joint event in 2016
PAME Arctic shipping workshop
PAME Arctic Circle
Arkhangelsk cruise tourism conference
NPI symposium
CAFF congress
IAATO Annual meeting
Visit Greenland during 2015
Page 13
Objectives
2. Industry representation
Strategies
3. Incorporation of best practice
guidelines
Continue with AECO’s high priority
on guidelines
Develop/collect Arctic cruise tourism
statistics
Actions
-
2014-2015
Work on with Tourism
organizations and research
institutions in Greenland,
Svalbard, Canada and Russia
Mandatory use of animated guidelines
Continue to develop site guidelines and
become a partner in projects with this
purpose
Consider new guidelines
Look at new Icelandic cruise surveys
for inspiration
Contact national statistical bureaus to
let them know about the statistical
knowledge which lacks
Add 8 languages to animated
guidelines
Site guidelines Greenland
Site guidelines Canada
Site guidelines FJL
Additional guidelines?
Use guidelines committee for advice
and to constantly improve AECO’s
existing guidelines
Consider a reporting system for the
implementation of guidelines
Offer participation staff meetings –
operators cost coverage
4. Encourage high level of
knowledge & experience
PolarQuest
Distribute information
Encourage use of AECO’s tools
Ensure competence in secretariat
Strategy & Action Plan 2014-2015 DRAFT
Administration must experience
operations
Page 14
Objectives
5. Coordination among operators
6. Single point of contact, and
8. Educate individuals and
stakeholders
Strategies
Actions
Mandatory use of AECO’s cruise
database
Continue to develop the database
Encourage good dialogue and
cooperation
Solve disagreements
Strengthen position as the primary
contact point for the Arctic
expedition cruise industry
Revisit and update AECO’s media plan
2014-2015
Send out press-releases
Ensure internal competence
Ensure high quality work
Respond quickly and professional
Be proactive
7. Interact with NGO’s
Continue the ongoing dialogue and
exchange with various NGO’s
Strategy & Action Plan 2014-2015 DRAFT
Page 15