3.2 Liberalisation of cruise shipping cabotage
Up to 1991 the Greek cruise shipping’s legal framework was similar to other Mediterranean States, with maritime cabotage offering a protected environment to Greek maritime capital, while exercising control of maritime transportation within territorial waters(1) Panagiotis. G. Eliopoulos, Spyros Troumpetas, Spyros E. Polykalas, “Evaluation of Greek Legal Framework Regarding Cruise Tourism and Development Prospects”, Technological Educational Institute of Western Greece School of Business and Economics Department of Accounting and Finance Nea Ktiria, Messolonghi, Greece.. The 2004-2013 period is characterized by a greater extroversion to foreign shipping capital, achieving the overall compliance with the terms of the Regulation and also attempted an effective management of the cruise industry to maximize profits for local communities and the national economy alike(2) ibid.
More specifically, in 2003 three key Articles of the Public Maritime Law were amended No. 344/2003, extending the exclusive rights of Greek sailing ships to old and new EU flagged ships(3) Presidential Order No. 344/2003 (ΠΡΟΕΔΡΙΚΟ ΔΙΑΤΑΓΜΑ 344/2003 ΦΕΚ 314/Α/31.12.2003)., although national maritime employment was indirectly protected by language skill requirements.The first attempt at lifting cabotage restrictions was made in 2010, when it became clear that prohibitions used to protect Greek-owned cruise ships, not only failed to prevent the contraction of the sector in a national scale, but resulted in the transfer of related activity to other countries. The 3872/2010 Law (along with 59/2010 Ministerial Decision and 117/2010 Joint Ministerial Decision arranging the specific terms of 3872/2010 Law) abolished the exclusive right of cruise ships operating under Greek (or EEA) flag s from operating Greek ports and conditionally extends it to third country vessels. These conditions include: that the ship’s flag country also permits cruises by ships flying EU Member States (or EEA) flag, as long as these ships may carry more than 49 passengers, they perform at least 48 hour long circular leisure programmes with at least an 8 hour visiting time(4)http://www.nee.gr/downloads/84N3872-2010.pdf (In Greek).. Most importantly the companies must have signed a contract with the Greek State (up to three years with the right of extension) that would regulate matters of employment/insurance of Greek seamen.
Although the 3872/2010 Law was progress, it showed limited success, triggering a 3 year long debate in relation to the interpretation of the law by executive authorities and so it seemed urgent to amend it since it did not show the expected results. Many issues were raised relating to bureaucratic procedures that shipping companies had to comply in order to commence cyclical cruises starting from Greek Ports, but more significantly was the strict contract requirement of the Greek authorities for each ship to indicate the duration of the visit.(5) Panagiotis. G. Eliopoulos, Spyros Troumpetas, Spyros E. Polykalas, “Evaluation of Greek Legal Framework Regarding Cruise Tourism and Development Prospects”, Technological Educational Institute of Western Greece School of Business and Economics Department of Accounting and Finance Nea Ktiria, Messolonghi, Greece. Therefore contracts with specified duration binding a company’s freedom was an inhibitory growth factor for companies wishing to operate cruises using a Greek home port. In 2012 a new Law (Law 4072/2012, Explanatory Memorandum 4072/2012 Bill) removed: the bureaucratic obstacles and abolished the contract requirements that had had a deterrent effect to third country flag ships initiatives; the requirement of translation into Greek of all documents provided in accordance with the Hague Convention (Apostille); and the €3,95 tax per passenger(6) ibid.
The most important changes in the Greek legal framework regarding cruising came in the form of a new law (Law 4150/2013)(7) Law No. 4150/2013, ΝΟΜΟΣ 4150/2013/ΦΕΚ Α/102/29.04.2013 (In Greek). and two accompanying Decisions (D. 65627/2013, D. 65629/2013) in 2013. With the latter’s framework, cruising activities are promoted, so as to address the shrinking of the sector in Greece, resulting from the transfer of shipping activities to other countries (Explanatory Memorandum of the 4150/2013 Bill). In order to achieve these goals, the terms of cruise operations were released for providing the passenger embarkation rights in intermediate Greek ports by emphasizing, that it is their final disembarkation port and that the length of the circular touring trip will last at least 48 hours by meanwhile expending the same rights to ships under third country flags(8) Panagiotis. G. Eliopoulos, Spyros Troumpetas, Spyros E. Polykalas, “Evaluation of Greek Legal Framework Regarding Cruise Tourism and Development Prospects”, Technological Educational Institute of Western Greece School of Business and Economics Department of Accounting and Finance Nea Ktiria, Messolonghi, Greece.. From this standpoint, and also taking into account the development of international tourism competitiveness, Decisions 65627 and 65629 underline new development strategies and needs for organized cruises and particularly: the improvement and facilitation of ports of call, home ports and the enhancement of the cruise visitors’ experiences.