Can Cruising Survive the Credit Crunch?

One of the most obvious changes in the internationalgrowth been fuelled by credit that's running dry?
holiday market of late is the boom in the numbers ofIn mid-2008, the body that represents the leading
cruise passengers. An increasing aversion to flying;cruise companies in Britain, the Passenger Shipping
the growth in personal wealth from rising propertyAssociation, forecast around 1.5 million Britons would
values; a greying population; all are factors that havetake a cruise that year. They expect over 2 million
helped to fill newspapers' travel pages with advertsBritish passengers to be cruising by 2012 and point to
for cruises.an increasing number of affluent older people as the
Cruise lines now have about 40 new ships underkey reason for the growth. Those figures may well
construction and ready to come into service by 2012.have to be revised.
Many of the new ships are bigger and better thanThe sheer number of cruise passengers has been
anything that has ever floated before. But is thecausing problems in some ports with large cruise ships
boom about to go bust with this extra capacityarriving at the same time, swamping the facilities.
arriving just as the worldwide recession has hitCruise visitors to Barcelona have virtually doubled in
travellers' finances and confidence?the past five years. Figures from MedCruise show a
The biggest operator is Carnival Corporation. Theirrise from 398,948 in 2002 to 789,409 in 2007.
chairman says soaring fuel and steel costs, combinedFortunately, Barcelona, the second most popular
with a weak dollar, have made it virtually impossibleMediterranean port after Naples, is much better
to put together a new ship building project beyondplaced to deal with the growth, being a large city
2012 for any of the corporation's North Americanwith good port facilities.
cruise brands Carnival Cruise Lines, Princess, andIn contrast, the Venice Port Authority has announced
Holland America Line. This gloomy prophecy wasplans for a new cruise ship berth costing £75
made, ironically, at a press conference for the launchmillion. It is needed to accommodate 1,000 foot
of Carnival's latest ship, Carnival Splendor.monsters such as Genesis, operated by Royal
Carnival's biggest competitor, Royal CaribbeanCaribbean, which can carry 6,000 passengers.
International, appears more optimistic. The company,Ship numbers and sheer ship size, have brought other
which includes Royal Caribbean, Celebrity Cruises andproblems. Local businesses often do not benefit as
Azamara, has placed orders for the largest, mostpassengers have less time to roam around thanks to
expensive ships ever to be built. Yet it's hard tothe longer time spent disembarking and re-embarking.
imagine that cruise bosses are as positive now asIn addition many passengers now go on organised
they were when they placed the orders.pre-booked tours which means less chance of local
Judging by the cut-price offers now being made toshopping and fewer meals taken at local restaurants.
entice passengers aboard, over-capacity may alreadyOver the next year or so these are the type of
be a big issue. It remains to be seen how long theconcerns that cruise operators would probably love
current economic woes will continue and how deepto be dealing with. But filling these monster ships in a
the recession will become. How will cruise passengersrecession might be a much bigger problem. There
react to all the economic bad news? Will those withcould be some real bargains on the market very
money to spare stick with their newly acquiredsoon.
enthusiasm for cruising? Or has much of the recent