The covid-19 outbreaks cement perceptions that if holidaymakers “go on a cruise they could get ill and trapped at sea”
WHEN THE ZAANDAM, a cruise ship operated by Holland America Line, left Buenos Aires on March 7th, its passengers were promised 31 nights of “elegant and comfortable” luxury. They are now approaching Florida, and their holiday has been anything but elegant, comfortable or luxurious. More than 1,000 people have been confined to their cabins since March 22nd. As of March 30th at least 193 had fallen ill with flu-like symptoms, several have tested positive for covid-19 and four have died.
The industry’s reputation was shipwrecked from the pandemic’s early days, when a number of liners suffered covid-19 outbreaks. Several operated by Carnival—the world’s largest cruise company, which owns Holland America Line and the, quarantined in a Japanese port in February, the tally eventually reached at least 712 cases and ten deaths. Its sister ship, the, which has been in quarantine since March 9th in California, has reported dozens more.
Operating cruise ships is hardly a niche business. Global revenues in 2018 reached nearly $50bn. But the pandemic has already scuttled it. The world’s three largest cruise firms—Carnival, Royal Caribbean and Norwegian—which account for nearly 80% of global capacity, have suspended all voyages and have laid up their ships. Initially cruise bosses thought the hiatus would last just a month or so.
The pandemic has come at a particularly bad time for the industry. The first three months of the year are known as the “wave season” for the industry—the quarter during which it sells most of its holidays. And 2020 had been expected to break records. The three big firms now have virtually no revenue coming in. Their share prices are down by 70-80% since the start of the year , compared with declines of around 60% for airlines and 30% for the American stockmarket overall.
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