Cruise shipping

Caribbean cruise: THE IMPACT

It’s said you should never put all your eggs in one basket. But in terms of tourism that’s exactly what many Caribbean islands have done over the last couple of decades and, perhaps, with good reason. It seemed so much more profitable and provided much better job prospects than those endured in the past.

Now a heavy reliance on tourism – especially revenue from the cruise shipping sector – has come back to bite in the wake of this year’s economy-crushing and job-destroying global coronavirus pandemic.

Until just recently, cruises were a global industry generating US$46 bn in revenues and with earnings flowing in from some 26 million passengers (and growing) a year. Now it’s at a standstill and so are the livelihoods of so many small companies and individuals throughout the Caribbean. And, at time of writing, with little immediate prospect of this industry getting fully back on its feet in the months ahead; although Carnival Cruise Line is tentatively aiming for 1 August.

The tragic situation is also likely to be compounded – at least in the short term – by a dramatic change of assumptions as to the value of the cruise sector. So instead of cruiseships being viewed as highly mobile and amazingly tax-efficient offshore-registered assets, able to effortlessly side-step any hurricane or dodge any national, political or local social upheaval, these vessels were suddenly regarded as potential harbourers of disease – for both passengers and crew – and which few destinations actually want.

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