ShipInsight
STAY UP TO DATE
  • Guides
    • Future fuels for shipping
    • Shipping and the environment
    • Safety at sea
    • Ballast water treatment
    • Fuels and lubricants
    • Maritime communications
    • Power and propulsion
    • Coatings and corrosion
    • Navigation and bridge
  • Opinion
  • News and updates
    • Safety
    • Fuels
    • Environment
    • Communications
    • BWT
    • Power
    • Operation
    • Coatings
    • Navigation
    • Shipbuilding
  • Collections
    • COVID 19
    • Big data
    • Internet of things
    • Decarbonisation
  • Journal
  • Conference
No Result
View All Result
ShipInsight
No Result
View All Result

Cruise recovery in 2021 faces big challenges says MSI

Malcolm Latarche by Malcolm Latarche
January 13, 2021
in Operation
Cruise recovery in 2021 faces big challenges says MSI
Share on LinkedInShare on Twitter

Confidence in the safety of cruise shipping and the economic impact of Coronavirus on potential demand will challenge the industry’s attempts at a full 2021 recovery, according to leading research and forecasting consultancy Maritime Strategies International.

In its latest biannual report, MSI notes that even with leading industry players keen to publicise advance ticket sales and enquiries as evidence of pent-up demand and with vaccines becoming available, it will take some time to rebuild confidence in the sector despite enhanced safety protocols and fewer passengers onboard.

Of greater concern, however, is the impact of COVID-19 on discretionary consumer spending. Cruising holidays have become more accessible to broader age and income groups over the last decade, but the economic impact of COVID-19 is expected to have the greatest bearing on lower income households with lower levels of education.

PopularArticles

Digitalisation – the Key to Progress

Digitalisation – the Key to Progress

Drone specialist offering new inspection service for ships and offshore structures

Drone specialist offering new inspection service for ships and offshore structures

“According to a 2018 survey, US cruisers with an annual income of less than $100,000 per annum accounted for approximately half of all passengers and this population group is likely to see higher levels of unemployment and greater retrenchment in the near term,” said MSI Analyst Niklas Carlen. “This year, we expect cruise passenger levels to increase to 11.9m, an increase of 59% year on year, but still substantially below the 29.6m cruise passengers recorded in 2019. The recovery is likely to be relatively slow and cautious, weighted towards the second half of the year with mature markets leading the recovery.”

MSI’s analysis shows that just 7.5m passengers embarked on a cruise in 2020, a correction of 75% compared to 2019 levels. The severity of the collapse compared to overall tourism spending reflects the fact that, whereas air travel was at least partially restored during the summer months, cruise has remained in almost total lockdown with a handful of exceptions.

In modelling the outlook for the sector, MSI constructed Low and High Case scenarios based on different timings in terms of vaccine availability and the resumption of cruising. While its Q4 Base Case projection is conservative, it acknowledges that there may be some upside to the forecast particularly if the levels of pent-up demand claimed by the industry hold true. Conversely, the ongoing ‘second wave’ and concerns over new COVID-19 mutations could prolong the misery for the cruise sector by delaying any significant restart.

“Events at the end of 2020 and the start of 2021 are likely to increase economic pressure within advanced economies. Thereafter we retain our belief that economic recovery in 2021 will be strong, although economies are highly unlikely to make up all the ground lost during the crisis until sometime in 2022, especially where labour markets are concerned,” added Carlen. “However, the pace at which they make up this ground once vaccine roll-out accelerates will be brisk.”

Related Posts

BV conducts first remote underwater ship inspection
Operation

BV conducts first remote underwater ship inspection

An in-water survey of a ship located in Marseille has been supervised from Paris using a remotely operated drone. French...

Revised industry standard guide highlights issues of continuing concern
Operation

Revised industry standard guide highlights issues of continuing concern

Very little stands still in the shipping industry for very long and that is very true when it comes to...

BIMCO launches initiative to raise awareness about the crucial role of shipping
Operation

BIMCO launches initiative to raise awareness about the crucial role of shipping

As the COVID-19 pandemic spread across the world in early 2020, shutting down countries, borders and much of daily life,...

New dry cargo ventilation guide launched
Operation

New dry cargo ventilation guide launched

Many cargo shipments transported in bulk form can suffer damage or even pose a hazard to the crew while in...

Record breaking year predicted after China accounts for almost half of dry bulk tonne-miles
Operation

Record breaking year predicted after China accounts for almost half of dry bulk tonne-miles

A BIMCO report suggests that 2021 could be a record breaking year for the dry bulk market after Chinese imports...

Artificial Intelligence in shipping and how it works
Operation

Artificial Intelligence in shipping and how it works

Forget whatever you’ve seen in science-fiction movies. Artificial intelligence, usually known as AI, is an umbrella term for computer programs...

Next Post
MSC joins Hydrogen Council in search for decarbonisation options

MSC joins Hydrogen Council in search for decarbonisation options

About ShipInsight

Intelligent analysis of maritime regulation, technology and innovation.

If you work in the maritime sector and want to understand developments in regulation and technology that affect your industry in an easy-to-navigate format, then you need to read ShipInsight.

Connect With Us

  • About ShipInsight
  • Annual conference
  • The Journal
  • Email newsletter
  • Our partners
  • Privacy policy
  • Contact us
  • Article on maritime marketing

© 2020 Current Business Media Ltd - Intelligent analysis of maritime regulation, technology and innovation.

No Result
View All Result
  • Guides
    • Future fuels for shipping
    • Shipping and the environment
    • Safety at sea
    • Ballast water treatment
    • Fuels and lubricants
    • Maritime communications
    • Power and propulsion
    • Coatings and corrosion
    • Navigation and bridge
  • Opinion
  • News and updates
    • Safety
    • Fuels
    • Environment
    • Communications
    • BWT
    • Power
    • Operation
    • Coatings
    • Navigation
    • Shipbuilding
  • Collections
    • COVID 19
    • Big data
    • Internet of things
    • Decarbonisation
  • Journal
  • Conference

© 2020 Current Business Media Ltd - Intelligent analysis of maritime regulation, technology and innovation.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

We use cookies in order to give you the best possible experience on our website. By continuing to use this site, you agree to our use of cookies.
Accept
Privacy Policy