An Update on the Cruise Industry and its Future Post-Pandemic
The recovery process is slowly moving forward in the cruise industry. The impact of the COVID-19 pandemic has been felt in every facet of society around the globe, impacting the world economy. The cruise industry was especially affected by the pandemic, given that most of the world was closed off due to quarantines and the fear of infection when travelling, basically paralyzing the industry in a way that has never been seen before. The Cruise Lines International Association (CLIA), the world's largest cruise industry trade association, has stated in their 2022 State of the Cruise Industry Outlook report that since resuming operations, six million passengers have sailed on ocean-going cruise lines. It is expected that by August of this year, ships will be at nearly 100 percent oceangoing capacity. (CLIA, 2022) The future looks good for the cruise industry to see a full recovery by 2023. The recovery trajectory for 2022 shows that it projects 272 ships will be in full operation throughout the year.
Other factors have contributed to the recovery of the industry. Earlier this year, the Center for Disease Control (CDC) dropped its recommendation against cruise ship travel. The CDC feared that many people in such close quarters would help spread the coronavirus during the height of the outbreak. But now that that many across the globe are now fully vaccinated and the outbreaks have been winding down, they feel that it is safer now to travel on cruise ships. The CDC stated, "While cruising will always pose some risk of COVID-19 transmission, travelers will make their own risk assessment when choosing to travel on a cruise ship, much like they do in all other travel settings." (Brooks, 2022)
Many countries are easing the rules and restrictions for cruise ships that wish to enter their ports. New Zealand’s Prime Minister, Jacinda Ardern has said that by the end of the month of July of this year, their country will fully reopen its borders, allowing tourists to visit and ships to dock. (Reuters, 2022) Pandemic restrictions are also easing in Asian countries such as Thailand, Malaysia, and Singapore. Canada is also reopening with Holland America Line being the first to enter with their cruise ship, Koningsdam, arriving at British Columbia. Gus Antorcha, president of Holland America Line, said in an interview, "We are thrilled to be the first cruise line back into Canada after such a long absence, and we look forward to celebrating a great moment for everyone who loves to travel and for those in Canada and Alaska whose livelihoods depend on tourism. Holland America Line has a robust schedule of cruises that explore Canadian ports on both coasts with Alaska, Hawaii, transatlantic and Canada and New England itineraries."
The way things are going, it is estimated that the cruise industry will have a full recovery by 2023. Jason Liberty, the president, and CEO of Royal Caribbean Group stated, “We are definitely on the other side of this. You’re seeing our guests and our crew going back to enjoying the best vacations in the world. We’re still not fully out of the woods, but we can see all the light that’s on the other side of this.” Many in the industry also believe that things will exceed 2019 levels by 2023-24. He added, “We termed this as a strong transitional year, and we expect 2023 to look and behave like it did pre-COVID.” With many looking positively ahead, there are still many challenges that need to be overcome. The coronavirus is still causing trouble in places and the situation in Ukraine has been an issue as well. But the industry keeps marching on, hoping to be stronger than ever in the coming years.
References
Brooks, K. J. (2022, March 30). CDC drops its recommendation against cruise ship travel. Retrieved from CBS News: https://www.cbsnews.com/news/cdc-cruises-covid-vacation-princess-carnival/
CLIA. (2022, January 27). Press Release 2022. Retrieved from CLIA Cruise Lines International Association: https://cruising.org/en/news-and-research/press-room/2022/january/cruise-industry-2022-outlook-report-quantifies-value-of-cruise-tourism
Reuters. (2022, May 12). New Zealand to fully reopen in July. Retrieved from CNN Travel: https://edition.cnn.com/travel/article/new-zealand-full-reopening-july/index.html