Impact of COVID-19 on the Global Cruise industry: Hot Topic Brief - Issue 1

Impact of COVID-19 on the Global Cruise industry: Hot Topic Brief - Issue 1

Summary

COVID-19, commonly referred to as the Coronavirus, is dominating headlines the world over. The travel & tourism sector is suffering significant disruption and the cruise industry is being greatly impacted.

Key Highlights

- Many operators have temporarily suspended all voyages, with many others cancelling a number of cruises. This comes in an unprecedented week for the industry, as share prices have plummeted. Carnival’s stock has dropped by nearly 60% while Royal Caribbean and Norwegian have lost more than 70% of their value over the past 30 days.
- The influence of the cruise industry is far reaching. Many small island nations rely heavily on the jobs and cash flow that ships provide.
- According to Skift, the cruise industry contributes $2 billion to the Caribbean each year.
- This results in a 5.9% contribution to some nations’ entire GDP, as is the case with St Kitts and Nevis.
- A fall in cruise tourism could be disastrous for these kinds of countries and the many people that rely on tourism for their livelihoods.
- The short term goal for cruise businesses at this stage is undoubtedly survival. This will most likely mean obtaining loans or government intervention to keep companies afloat.
- Long term, businesses have to deal with the disastrous reputational damage that has been caused over the past few weeks.
- One thing is for certain, the cruise industry faces a long struggle to ensure its survival.

Scope

- This report provides insight into the current state of play, offers a look at potential future scenarios and assesses the actions that cruise lines can take to mitigate the impact of COVID-19.

Reasons to Buy

- Gain an overview of the current global COVID-19 situation
- Understand the impact that COVID-19 is having on the industry
- Explore future industry scenarios
- Assess possible mitigating actions
- Compare key industry players' actions