Hurricane Irma: ‘Too early’ to calculate cost to cruise industry

Hurricane Irma: ‘Too early’ to calculate cost to cruise industry

It is too early to say how much hurricane Irma will cost the cruise industry, according to Clia Europe vice-chairman David Dingle.

Cruise lines had to cancel and amend itineraries as a result of the category 5 hurricane which tore through the Caribbean before hitting Florida, including Miami.

Several cruise lines deployed ships to help in the post-hurricane humanitarian efforts.

Speaking during London International Shipping Week 2017, Dingle said: “It is a bit early to say. We need to understand the exact impact of cancelled, curtailed and rescheduled cruises. We do need to understand the condition of cruise ports in destinations badly affected, such as St Martin and British Virgin Islands.

“In the short term, we will need to adjust some itineraries. I don’t think they will have a profit impact. Certainly for the large corporations, the impact on total operating income as a percentage will thankfully be very low.”

According to an assessment by financial services company Morgan Stanley, earnings across the cruise industry are expected to be 1% down due to lost revenues and customers choosing to cancel revised itineraries.

Morgan Stanley also reported the impact of the hurricane could hit demand for cruises in the Caribbean.

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