According to the CLIA Industry report 2022, this year is set to be significant within the cruise industry. With the number of cruise passengers increasing, the report showcases how the industry is set for a full recovery after the pandemic.
From the luxury cruise ship market to the mass market, cruise is regaining its place amongst the wider travel industry.
How did the pandemic affect the cruise industry?
It’s no secret that the pandemic affected all industries. But one that was particularly hard hit was tourism. The impact and recovery process for cruise tourism is still ongoing, due to the far-reaching effects of the suspension of cruise holidays in 2020. The economic consequences were felt across all areas of the cruise industry, from service providers to tour operators and businesses of all sizes were impacted.
The ripple effect of Covid-19 was seen in the number of passenger embarkations reported by The Global Economic Contribution of Cruise Tourism, which showcased the drop from 29.7 million passengers in 2019, compared to 5.8 million in 2020 — a 81% decrease. The number of cruise-supported jobs and services also saw a 51% decrease, from 1.17 million in 2019, compared to the 576,000 in 2020. And finally, the cruise economic impact was represented through the total economic contribution, which saw a 59% decrease from $154 billion USD in 2019, to $63.4 billion USD in 2020.
How Scientific Public Health Protocols Benefitted the Cruise Industry
Whilst the cruise industry is gradually getting back to normal, it’s important to acknowledge the work that’s been completed by both public health experts and local governments to get to this point, alongside the determination of avid cruisers to get travelling back to normal. Using protocols that are backed up by scientific research, this information has ensured that passengers have the information they require to travel safely.
CLIA Elite Cruise Counsellor Mandy Goddard states in the CLIA 2022 report that “Within the new, science backed safety protocols implemented, the cruise industry continues to excel in being a global leader by providing one of the safest forms of vacation.” Introducing impactful actions to mitigate Covid-19, cruisers can rest assured that there are currently vaccination requirements, advanced ventilation and frequent sanitation procedures on the ships, alongside other strict safety protocols.
According to a CLIA SPI Survey conducted in November 2021, 80% of passengers who have cruised before, stated they would cruise again after the pandemic (the same number as before the pandemic), reflecting this belief that cruising is still safe. The growth in the cruise industry after the pandemic was also showcased, with more than 5 million passengers enjoying cruise holidays, more and more ships restarting and the reopening of 86 different countries and markets.
In the industry report, CLIA also reported that by the end of this year, the cruise industry will have seen a pivotal transition, and that by 2023 the cruise industry will be back to what it was before the pandemic. In the forecasted global cruise passenger volume statistics, CLIA predicted that by the end of 2022, it will recover to 101% of the levels seen in 2019 and that by 2026, it will reach an upside of 128%.
The Effect of the Pandemic on Cruise Employment
Due to the pandemic, millions of people around the world faced job loss or were furloughed. Common amongst cruise lines and other businesses associated with cruising, the effect that it had on cruise and reliant communities was devastating.
Fortunately, due to the reopening of the cruise industry and the responsible manner in which it’s been restarted, staff within it are getting back to work and both national and local economies are starting to recover. CLIA reported that even though up to 70% of cruise-related organisations had to make redundancies and furloughs due to the pandemic, 60% of them are in the process of hiring.
The impact that cruisers have on national economies was also portrayed in the report, stating that over a seven-day cruise, on average each passenger spends up to $750 in each port that they visit. Putting the money back into the economy, as people book more cruises, the more national and local economies will thrive.
In the 2022 industry report, CLIA also reflected upon the value that cruise tourists bring to the industry at the start of their booking journey, right through to after sailing. Statistics in the report estimated that for every 24 people that cruise, one full-time job is supported. Signifying the importance of people booking cruises, as the number of people that book cruises increases, the number of full-time jobs that are saved will increase in tandem.
Cruise Industry Trends – Demographics, Destinations and Markets
CLIA’s industry report paints a promising picture of what the future holds for the cruise industry. During the latter days of the pandemic, cruise ships began returning with ‘staycation’ sailings with enhanced safety protocols. As a result, cruises from Southampton around the British Isles greatly increased for the UK market as well as an uptick in new cruisers in the Millennial generation – 85% of whom say they would cruise again.
Since then, cruise has seen that:
- Although Western Europe, Asia, Australasia and South America’s cruise markets are rapidly growing, the largest remains North America, sitting at 51% of the market (on average from 2018-2020).
- Between 2018-2020 the Caribbean, Bahamas and Bermuda was the top cruise destination, taking a 44% claim on the market, compared to the 13% of Asia and China.
The Priority of Carbon Neutral Cruising by 2050
More and more cruise lines are committing to becoming carbon neutral by 2050. And with several cruise lines already launching LNG fuelled ships (including Carnival Cruises, PandO, Disney Cruise Line and MSC Cruises), it’s clear that the cruise industry is well on its way to achieving its goal. By 2027, the CLIA member fleet strives to include 26 cruise ships powered by LNG, 231 ships with innovative wastewater treatment systems, 174 with power connectivity shoreside, and 176 with advanced exhaust gas cleaning systems installed.
Alongside those, members of the CLIA are also introducing inventive solutions, such as energy efficient designs of ships, sustainability programs for the supply chain and converting waste produced by ships into energy.
The 2022 Ocean-Going Member of CLIA
At the start of 2022, CLIA reported that there were 16 new cruise ships (with an average cost of $617 million USD) expected to debut this year, including Carnival Celebration, Disney Wish and Celebrity Beyond. And, out of the 16 new ships there was an average capacity of 2,603 passengers, 9 were expedition class, 5 were powered by LNG and 100% of them were equipped with the aforementioned wastewater treatment systems. This showcases perfectly the goal of efficiency and sustainability within the cruise industry.
Press Release Distributed by The Express Wire
To view the original version on The Express Wire visit A Brief Analysis on the State of the Cruise Industry
